Doing Good,Public Good,and Public Value

In this article, using multiple illustrative case examples, we demonstrate that philanthropic institutions are in the business of creating public value. In framing the work of philanthropy more broadly to include the process of public value creation, philanthropic institutions and leaders are challenged to be more strategic not only in their mission‐fulfillment grant‐making with nonprofit organizations but also in the way they stimulate and encourage collaboration, create the “third space” necessary to incubate ideas to transform society, and leverage resources to increase the return on their investments toward system‐wide change. The implications for philanthropic actors and institutions suggest that the strategic contributions they make toward creation of public value are those that go beyond transactional performance measures, such as number of dollars spent or clients receiving services, to include ways that their investments are amplified by meaningful partnerships with nonprofit and other organizations, changed behaviors of institutions and individuals, and transformative public policies.     

An unseen lens: The relationship between philanthropists’ developmental meaning making and philanthropic activity

To solve complex problems such as poverty, nonprofit leaders must think in increasingly complex ways. Research on philanthropy has not yet explored the complexity of philanthropists’ thinking while making philanthropy‐related decisions. Developmental psychology indicates that adults develop an increasingly complex mental map over the course of a lifetime and that this map emerges as a series of successive stages. This study asked: How, if at all, does this mental map inform philanthropy? This four‐phase mixed‐methods multi‐case study (n = 11) used constructive developmental theory to empirically assess philanthropists’ developmental levels and, then, compare identified levels with data about the donor's philanthropic activities such as donations and board memberships. The contributions of the study are twofold: (a) the findings suggest philanthropists’ developmental levels are related to their thinking processes about charitable giving and the rationales they employ to make decisions about their philanthropic activities (specifically, how they form ideas about the problem and how they engage in empathy), and (b) this study makes a methodological contribution by demonstrating a novel (and apparently useful) approach to researching philanthropic giving. Theoretical and practical implications are discussed.     

At the Mercy of the State: Health Philanthropy in China

Public health and healthcare issues in China have historically attracted individuals and organizations to engage the health sector. The growth of health philanthropy in post-Mao China raises questions regarding the role of the state in the development of China’s health philanthropy. Through a historical overview of health philanthropy in China as well as an examination of the functions and effectiveness of health-related philanthropic actors in the contemporary era, this study has identified the state as a major factor in the development of China’s health philanthropy. Indeed, even though the post-Mao reform dynamics have expanded space for health-related charity organizations, the state continues to have commanding height in health philanthropy in terms of status, funding, services, and influence. The state dominance in turn negatively affects the registration, financing, and capacity building of private foundations and NGOs in this area. Whether the state will dominate health philanthropy in the future to a large extent hinges upon how much extra space it is willing to concede in order to accommodate the dynamics in China’s philanthropic sector.

     

New Styles of Community Building and Philanthropy by Arab-American Muslims

Among Arab-American Muslims, secular ethnic and humanitarian giving, focused on ‘results’ and ‘measurable impact,’ is displacing religiously inspired giving, that is driven by ‘charity’ and ‘love of mankind.’ This trend is supported by evidence of the way donors position themselves and philanthropic organizations appeal to their donor base. The case is supported by qualitative data drawn from interviews with key informants and from trend data on giving. I propose a new model of giving based on identity and giving, using Grounded Theory methods. This model challenges our understanding about the connection between community and philanthropy and proposes that philanthropy can create ‘community.’     

Crowdfunding and Diaspora Philanthropy: An Integration of the Literature and Major Concepts

Crowdfunding and diaspora philanthropy are two emerging areas of research that are generating excitement in the field of philanthropic studies. However, little if any research examines the shared characteristics and advantages of these two phenomena, and if and how crowdfunding might serve to strengthen efforts in the practice of diaspora philanthropy. This article reviews relevant literature on crowdfunding and diaspora philanthropy, and then analyzes overlapping characteristics, strengths, and limitations of these practices. The article then considers the potential of crowdfunding to contribute toward diaspora philanthropy, giving particular attention to the contexts and challenges faced in philanthropy in the global South.     

The complexity of diversity and importance for equitable philanthropy

The current U.S. climate of racial and social injustice has prompted a renewed call for diverse and equitable ways to rethink community philanthropy. Community foundations are vehicles for community philanthropy which offer vast benefits for social improvement and community development. The board of directors ensures these organizations fulfill their mission, making decisions on funding priorities and holding the organization functionally and fiscally responsible. Drawing on constructs of diversity and representative bureaucracy and a case study of Florida community foundations, we suggest that diversity is understood in different ways and the presence of diverse board members may be linked to advancing the interests of diverse communities and in achieving outcomes that assist in the needs of certain social groups. Increased understanding of diversity can improve foundation and philanthropic effectiveness and bring broader social change by promoting equity and social justice among community‐based philanthropic organizations.     

Fundraising in the new philanthropy environment: The benefits and challenges of working with giving circles

This article reports on an exploratory study to understand the impact of the new philanthropy on funding recipients by asking nonprofit professionals about their experiences working with giving circles. Giving circles are growing in number across the United States. They are attractive to new philanthropy donors who pool their resources and then decide together where to give them away. They also frequently include social, educational, and volunteer engagement components. Giving circles seem to be an important source of new and expanded resources for nonprofit organizations, but there are both benefits and challenges to working with giving circles that reveal several problematic tensions for nonprofit funding recipients, the philanthropic relationship, and society more broadly.     

Organizational Identity and Philanthropic Institutions

This article proposes a framework for viewing the behavior of philanthropic institutions through the lens of organizational identity via semi‐structured interviews with twenty‐seven grantmakers representing seventeen foundations, along with content analyses of these foundations’ public documents. This empirical investigation revealed three identity profiles: agenda setter, supporter, and community builder, which capture distinct patterns in foundation strategy, operational structure, and grantmaking practices. For theory, these findings provide an alternative to the conventional view of foundation behavior along an active to passive continuum to one that suggests a role for organizational identity. For practitioners (grantmakers and grantseekers), this perspective demonstrates that there are multiple pathways through which foundations create social value, not just one definition of “best practices.” Understanding these different perspectives on social value creation can help grantmakers identify internal inconsistencies in their strategies and operations and can help grantseekers identify foundations most likely to fund their work. The article concludes with suggestions for further research to explore the extent to which this framework can advance understanding of institutional philanthropy as the field moves to challenge traditional boundaries between nonprofit foundations and private social change initiatives.     

Encounters with Philanthropic Information: Cognitive Dissonance and Implications for the Social Sector

Using interviews with senior level employees in the social sector, I analyze the interactions between organizations and individual potential and existing donors. I recommend a reevaluation of the sector’s use of what I term “agents of philanthropy,” as well as a reconsideration of the hesitation to introduce philanthropic giving to individuals and corporations. To support this assertion, I conduct a thematic content analysis of The New York Times to show how the transference of philanthropic information affects the cognitions and subsequent actions of readers. Using this analysis, I show how individuals may be primed for charitable giving if only these opportunities were presented. The design and focus of this research addresses what I have perceived as oversights in philanthropic research to date: the exclusion of psychology theory, an overemphasis on the conscious, stated motivations of donors, and the lack of interdisciplinary work on prosocial behaviors.     

Celebrity Philanthropy in China: An Analysis of Social Network Effect on Philanthropic Engagement

Celebrity philanthropy is a recent but widespread phenomenon in China. Using social network analysis, this paper seeks to answer the following questions: Is a celebrity’s position within a social network related to that celebrity’s philanthropic engagement, and how? Does a celebrity’s network position interact with normative influence to affect philanthropic engagement? What implications the study has for the development of modern philanthropy in China? Hypotheses regarding the associations between philanthropic engagement and a celebrity’s social network were tested using a sample from the “Celebrity Relationship Database.” Findings suggest that philanthropic engagement was more common in the center of the social network; under normative influence, a celebrity was more likely to engage in philanthropic activities if other members within the social network were active in philanthropic engagement; and, the effect of normative influence was stronger for celebrities who were positioned at the center of a social network than those who were positioned at the periphery. Implications for the development of modern philanthropy in China are also discussed.

     

Strategic corporate philanthropic relationships: Nonprofits’ perceptions of benefits and corporate motives

This study examines corporate philanthropy, a component of corporate social responsibility, from the perspective of nonprofit managers engaged in strategic philanthropic relationships. Using a grounded theory approach, the study found nonprofits perceive multiple corporate motives, with blends of altruism and self-interest. In the most strategic alliances, relationships were characterized as interdependent and benefits were viewed as equal.     

Profit and Philanthropy: Stock Companies as Philanthropic Institution in Nineteenth Century Germany

Philanthropy and Civil Society is often identified with the activities of foundations and non-profit organizations. Susannah Morris pointed out already that nineteenth century philanthropy included many forms of organization which we today would not identify as philanthropic in nature. The most important such form of philanthropy was the “Philanthropy and Five Percent” model which favored stock companies in the alleviation of poverty. English, German, and American philanthropists championed the limited dividend company—a stock company which was financed through shares sold to shareholders but limited the profit to be distributed among shareholders to a maximum of 5 %—as an ideal tool to produce proper housing for working-class families. Following the model of Sydney Waterlow’s limited dividend housing company in London (the Improved Industrial Dwellings Company, 1863), similar enterprises were across Germany and the United States from the 1870s to the 1910s. The more famous such institutions were the City and Suburban Homes Company in New York City, the Boston Cooperative Building Company in Boston, and the Society for the Improvement of Small Tenements in Berlin. The belief that the capitalist market could produce social welfare was the underlying philosophy of this movement. In Germany, however, the application of this business/philanthropy model went beyond social housing. Limited dividend companies were formed to support various forms of philanthropic activities from public parks and zoos to theaters and music halls. In this essay, I will discuss the transformation of philanthropy in the course of the nineteenth century with regards to the different institutional forms of philanthropy. In the first half of the nineteenth century, German philanthropists considered associations as well as limited dividend companies as the most important and effective forms of philanthropy. Up until World War I, German philanthropists had a much broader set of institutions at their hands from which they could chose if they decided to engage in philanthropy. Only after World War I, did the definition of philanthropy in Germany begin to narrow.     

Environmental Justice Grantmaking: Elites and Activists Collaborate to Transform Philanthropy

The rise of environmental justice activism since the 1980s provides an exceptional opportunity to study the relations between a grassroots movement and philanthropic foundations. I utilize archival documents and interviews with activists and funders to pose two guiding questions. One, to what degree has the environmental justice movement gained access to foundations? Two, to what degree does this movement maintain self‐determination in its relations with foundations? This paper shows that the movement successfully established connections with a few key foundations. I also show how environmental justice grantee organizations maneuvered around some of the foundation‐related constraints that might otherwise present very real threats to their self‐determination. This analysis builds on, but also goes beyond, the channeling and co‐optation literatures that emphasize the potentially negative influence of foundation funding on grantees. It also contributes to the newly developing social relations perspective which conceptualizes social movement philanthropy as a relationship that is mediated by many factors (for instance, the political orientation of the funder and grantee, among others).     

Institutionalizing Japanese Philanthropy Beyond National and Sectoral Borders: Coevolution of Philanthropy and Corporate Philanthropy from the 1970s to 1990s

Building on an analytical framework of agent-based institutionalization, this qualitative study uses narrative accounts to explore a historical evolution of Japanese philanthropy and corporate philanthropy from the 1970s to 1990s. Using primary data, such as interviews with key actors and archival resources, as well as secondary and publication data, I examine the process of how Japanese philanthropy and corporate philanthropy progressed simultaneously and how the American concept of philanthropy was integrated into different cultural contexts and emerged as the Japanese concept of philanthropy, firansoropii. This study also reveals that the three-decade process of institutionalizing Japanese philanthropy was driven by Japanese institutional actors who bridged the philanthropic, political, and economic boundaries between Japan and the United States.     

Community Foundations: A Growing Resource for Community Development

Like many nonprofit organizations, community development corporations (CDCs) rely on various sources of funding and support for their activities in poor and distressed neighborhoods. Funders often include the federal government, state and local government agencies, financial institutions, and philanthropic organizations. The author explains how community foundations are different from other philanthropic organizations and describes the various mechanisms that community foundations use to support community development. She suggests that there is a natural fit between the purpose of community foundations and the philosophy of community development, concluding that it is important for CDCs, as well as other nonprofit organizations, to understand how community foundations are different from other philanthropic organizations so that they may better position themselves to take advantage of the many resources that community foundations bring to their communities.     

Venture philanthropy and social entrepreneurship in community redevelopment

This article provides a case study of Tom Cousins, a social entrepreneur who used his own venture philanthropic investments and leveraged additional resources through extensive public‐private partnerships for the sole intent of redeveloping an area of disinvestment and poverty. In the process, Cousins also provided the visionary, strategic, and operational leadership often associated with the actions and responsibilities of a social entrepreneur. The limited research to date has investigated social entrepreneurship and venture philanthropy as separate and often unrelated concepts. In this study, we analyze the sustained and intensive involvement by Cousins and his foundations and the continued leadership provided in the creation of public‐private partnerships focused on the redevelopment of the East Lake area in Atlanta.     

Fidelity in philanthropy: Two challenges to community foundations

Two recent court cases have raised doubts about how faithful community foundation officials must remain over time to the donor's charitable intent. For trustees of community foundations, nonprofit managers, and potential donors, the two cases discussed in this article raise three critical questions: Under what conditions can and should a donor's charitable intentions be modified? Do nonprofit organizations have legitimate claims to funds in community foundations earmarked for their organizations by donors? Should donors consider disbursing their philanthropic funds themselves rather than seek to have them held in perpetuity in a foundation? In addition to addressing these questions, the author suggests that the two court cases examined here reveal something important about the broader evolution of philanthropy over the past three decades.     

Ties That Bind: Public Foundations in Dyadic Partnerships

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - Public Ancillary Funds (PubAFs) are grantmaking philanthropic foundations, largely held to be independent. However, some...     

Does philanthropy reduce inequality?

Wealthy individuals often voluntarily provide public goods that the poor also consume. We show that, rather than reducing it, such philanthropy may aggravate absolute inequality in welfare achievement, while leaving the change in relative inequality ambiguous. Additionally, philanthropic preferences may increase the effectiveness of policies to redistribute income, instead of weakening them. Our results thus suggest that philanthropy and direct redistribution may often be better viewed as complements, rather than substitutes, in the context of inequality reduction. In so doing, they also bring into question the general normative case for large tax deductions for charitable contributions.