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Friday, May 25, 2018
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Does High Engagement In Philanthropy Lead To Better Outcomes?
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Does High Engagement In Philanthropy Lead To Better Outcomes?

A critical evaluation of venture philanthropy from a new institutional economics perspective

43 pages · 6.88 EUR
(May 2009)

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From the Introduction:

In the first part of this article venture philanthropic practices are examined from a political economy point of view. By using the agency and transaction cost framework, the relationship between the foundation (donor) and nonprofit organization (grantee) is analyzed and its special characteristics are elaborated. The aim is to develop a better understanding of the relationship between both parties in order to evaluate if venture philanthropy principles are able to produce better social outcomes in comparison to mainstream philanthropy practices.

In the second half, the article intends to develop a new perspective on engagement in philanthropy. Since the discourse on the appropriateness of venture philanthropy has been held for over a decade now, it is time to move on towards a more differentiated picture about engagement. It is argued that the decision about the right level of engagement should not depend on ideological beliefs but only on its result in terms of the social outcome. For this purpose, a simple functional model is presented which highlights the influencing factors on the optimal level of engagement within the foundation-nonprofit relationship.

quotable essay from ...
Birger P. Priddat (Hg.):
the author
Jens-Philipp Klein

1983, seit 2008 Associate bei der Early-Stage Risikokapitalgesellschaft Atlantic Ventures in Berlin. Bankkaufmann, Studium der Wirtschaftswissenschaften an der Universität Witten/Herdecke (BA) sowie der Universität Göteborg. Mitarbeiter am Wittener Institut für Corporate Governance. Fellow der Global Partnership Governance (GPG) Research Initiative im Jahr 2008 (Thema: Venture Philanthropy).