The Crowding-out Effect On Supporting Organizations In The Background Of Standardized Venture Philanthropy

As the application of the concept of business investment in charity,the practice of "Venture Philanthropy"(VP)has been blossoming in China.In order to promote the internal capabilities of NGOs,"Venture Philanthropy" will not only provide financial support,but also provide technical support and management support to start-up and small & medium-sized NGOs.VP is mainly sponsored by local governments in China.In order to ensure the safety and efficiency of VP funds,China’s government-sponsored VP practise shows more and more standardization from project design to project evaluation.However,the standardization has not make the high effectiveness of VP as expected,and the capacity of supporting organizations has not been improved as expected.Excessive external regulations and incentives have affected the internal mechanism of NGOs,which has crowded out the autonomy and flexibility of supporting organizations.The crowding-out effect mainly reflected in those aspects: its mission of supporting other NGOs and building a NGO network was shifted,the advantages of flexibility and freedom cannot be realized,and organizations lose their innovation and enthusiasm.The reasons for the crowding-out effect include both the government’s goal replacement for supporting organizations and the strong dependence of the supporting organizations on government preferences.This article used research methods of non-participating observation and interview,took the Guangzhou VP practice of four consecutive sessions as an example to analyze the impact of “crowding-out effect” on supporting organizations,hoped to put forward new ideas about the trend of standardization of VP practices.