The literature often observes that private foundations are difficult for nonprofits to access and that distribution of power between foundations and nonprofits is markedly uneven. It has been said that “whoever has the gold makes the... more
The literature often observes that private foundations are difficult for nonprofits to access and that distribution of power between foundations and nonprofits is markedly uneven. It has been said that “whoever has the gold makes the rules.” The resource-intense nature of endowed foundations and the resource-dependence of grant seekers, taken together, combine to create a setting in which an imbalance of power is likely to exist. This can too often result in awkward foundation-nonprofit relations—also restricting foundation access. Yet, sometimes deep relationship development with foundations can reverse challenges to access and mitigate the effects of unequal power.
Research Interests:
While transparency in private philanthropy can have positive effects on public perceptions and grantee relations, it can also result in untoward effects. Private foundations need to fully understand how transparency can be benefit, but... more
While transparency in private philanthropy can have positive effects on public perceptions and grantee relations, it can also result in untoward effects. Private foundations need to fully understand how transparency can be benefit, but also when opacity can be an effective philanthropic tool. This article explores potential negative effects from private foundation engagement in transparency.
Research Interests:
Foundation Transparency - Opacity: It’s Complicated Abstract Private philanthropy has been referred to as one of the least transparent and accountable social institutions in the United States. Accordingly, private foundations are being... more
Foundation Transparency - Opacity: It’s Complicated
Abstract
Private philanthropy has been referred to as one of the least transparent and accountable social institutions in the United States. Accordingly, private foundations are being challenged to become more transparent. Like other charitable institutions, private foundations already disclose extensive information about their activities in federal tax returns, which the public can easily access. Yet, a widely held presumption is that private foundations remain intensely and uniformly opaque. Research findings confirmed that private foundations are generally opaque, but also found that they selectively engage in situational transparency, which is not generally observed in the literature. This article makes three contributions. First, it uses specific indicators to assess the existence private foundation opaque practice, resulting in important insights regarding the contexts in which each may occur. Second, it reports findings that, under certain circumstances, private foundations have intentionally relaxed their opaqueness in favor of greater transparency with certain grantees in furtherance of philanthropic objectives. Third, several questions are posed to help guide foundations in deciding for themselves how and with whom they might wish to engage in greater transparency. Research findings discovered that the matter of transparent/opaque practice in private philanthropy is less than straightforward. As it turns out, transparent/opaque practice among private foundations is a nuanced and complicated matter.
Abstract
Private philanthropy has been referred to as one of the least transparent and accountable social institutions in the United States. Accordingly, private foundations are being challenged to become more transparent. Like other charitable institutions, private foundations already disclose extensive information about their activities in federal tax returns, which the public can easily access. Yet, a widely held presumption is that private foundations remain intensely and uniformly opaque. Research findings confirmed that private foundations are generally opaque, but also found that they selectively engage in situational transparency, which is not generally observed in the literature. This article makes three contributions. First, it uses specific indicators to assess the existence private foundation opaque practice, resulting in important insights regarding the contexts in which each may occur. Second, it reports findings that, under certain circumstances, private foundations have intentionally relaxed their opaqueness in favor of greater transparency with certain grantees in furtherance of philanthropic objectives. Third, several questions are posed to help guide foundations in deciding for themselves how and with whom they might wish to engage in greater transparency. Research findings discovered that the matter of transparent/opaque practice in private philanthropy is less than straightforward. As it turns out, transparent/opaque practice among private foundations is a nuanced and complicated matter.