By Mike Porteous, Co-Founder of Next Round Philanthropy & CEO of Next Round AI

Since launching Next Round Philanthropy, one insight has become abundantly clear: the idea of using philanthropic capital to revive America’s innovation ecosystem resonates deeply. The energy, curiosity, and willingness to explore new models among donors is both inspiring and transformative.

But as we’ve engaged with well-capitalized philanthropists across the country, we’ve noticed a shift in behavior—one that reveals both an opportunity and a challenge.

The Rise of Donor-Advised Funds—and Their Next Step

Traditionally, high-net-worth donors have given to large, established charities, often supporting proven organizations with longstanding track records. Increasingly, however, we’re seeing these donors channel significant resources into Donor-Advised Funds (DAFs).

A DAF functions much like a private foundation: donors contribute capital, receive an immediate tax deduction, and then decide—over time—how to allocate that capital for charitable purposes. This flexibility makes DAFs a powerful tool.

Yet, once those funds are established, many donors choose to invest in venture philanthropy funds. On the surface, this is logical—supporting early-stage companies with transformative missions, from curing cancer to combating climate change.

But here’s the question: Is simply buying into a venture philanthropy fund the most effective way to align capital with impact?

Beyond “Off-the-Shelf” Giving

At Next Round Philanthropy, we never initially set out to build a venture philanthropy model—but in many ways, that’s exactly what we’ve done. The key distinction? We’ve eliminated the traditional “2 and 20” fee structure.

Instead of a fund model, we operate with a 0 and 0 fee structure—and everything is custom-built for the individual donor. We don’t offer a pre-packaged portfolio. We craft a bespoke, one-at-a-time philanthropic investment strategy, designed to reflect each donor’s values, priorities, and aspirations.

If you’re giving $2 million or more to charity, chances are most of your decisions—whether personal or professional—are custom, not off the shelf. Why should your philanthropic capital be treated any differently?

With a typical venture philanthropy fund, you hand over capital to a fund manager who decides where it goes. With our model, you remain actively involved. We start by asking: What is your deepest philanthropic motivation? Then, we connect you directly with early-stage founders whose missions align with yours.

This isn’t a one-time transaction—it’s an evolving relationship. Donors see firsthand the challenges, breakthroughs, and progress of the companies they support. The result is transparency, intentionality, and deeper impact.

Funding the Beating Heart of Innovation

One of the biggest limitations of large venture funds is their late-stage focus. Many don’t invest until Series B or C—sometimes even later—when companies are already well-capitalized.

But the true heartbeat of American innovation lives in earlier stages: seed rounds and Series A. These are the phases where groundbreaking ideas take root—and also where funding gaps are most severe in today’s risk-averse environment.

By channeling philanthropic capital to these early stages, we help ensure that transformative companies—whether tackling rare cancers, developing climate-resilient technologies, or building next-generation satellite imaging systems—get the lifeline they need to thrive.

A New Way Forward

Next Round Philanthropy is more than a platform—it’s a movement to bridge the gap between philanthropy and innovation. We maintain full charitable tax deductibility, but take it a step further with customized, founder-connected, early-stage investing that aligns personal values with measurable impact.

If you—or someone you know—are already using a donor-advised fund and want to amplify your philanthropic power, we’d love to introduce you to some of the extraordinary founders in our ecosystem.

From medical breakthroughs in pancreatic cancer, multiple myeloma, and ALS, to pioneering advances in aerospace and climate resilience—the future is being built right now. And with the right model, philanthropic capital can help shape it.

To explore how we can design a philanthropic investment strategy tailored to your mission, visit nextroundphilanthropy.com and connect with our team.

Because when capital meets purpose at the earliest stages, innovation has the power to change the world.