Research On The Operation Mechanism Of VenturePhilanthropy Activities

Along with the economic and social development and the deepening of social transformation, the government began to seek the transformation of public functions, changing from a managed “almighty government” to a service-oriented “small government”, because of the emerging of many social management and service problems which can not be bore by the market or completely solved by government departments. A lot of social organizations spring up from place to place, but most of them are still in the state of beginning. They are relatively lack of various abilities, and their abilities to undertake the government’s transformation of public service function is very limited, so they cannot do without the government’s guidance and support. Therefore, venture philanthropy arises at the historic moment as a new model of government supporting and cultivating social organizations’ development. After 10 years’ rapid development, venture philanthropy presents a vigorous vitality.Venture philanthropy to applies the concept and technology of venture capital to the public welfare undertakings, taking advantage of the participation and multilateral cooperation of government, social organizations, enterprises and individuals, to support and cultivate the development of social organizations, to provide diversified and personalized services for the community residents, as well as to solve a series of social management problems in helping the aged, the disabled, students and teenagers, and so on. But there are still a lot of problems, such as insufficient development of social organizations, lack of ability, shortage of professional talents and not sustainability of project operation.This article will combine the research achievements of domestic and foreign venture philanthropy practices, relying on the New Public Management Theory, the New Public Service Theory and the Third Sector Theory, and use synthetically literature research, questionnaire survey method, field survey, interview method and case study method, etc. This article will analyze the government functions of the government-leading venture philanthropy model, elaborate in details the current development situation and the social effects of venture philanthropy in China, and comparatively analyze the similarities and differences between five different modes of venture philanthropy. At the same time, this article will analyze in details the basic situation, operation process, main characteristics and the positive role of the practice of venture philanthropy in Wuxi. According to the experiences and lessons from the Wuxi venture philanthropy practice, by discovering the problems and reasons and studying internal and international experiences, this article will put forward feasible countermeasures and suggestions for government’s involvement in venture philanthropy.