Philanthropic Foundations, Public Good and Public Policy

Diana Leat is Visiting Professor at Cass Business School, London, UK, and at the Australian Centre for Philanthropy and Nonprofit Studies, QUT Brisbane, Australia. She is author of over 120 articles and books on the non-profit sector and social policy, and has held research posts in universities and think tanks in the UK, the US and Australia. Diana spent a year with the Carnegie Trust developing the first research centre for philanthropy in the UK, and until its closure in 2013 was a trustee of the Diana, Princess of Wales Memorial Fund.

Contents 1. Focus on foundations Introduction Philanthropy is good - more is better? Focus of the Book Why Focus on Foundations Global Growth Scale of Resources The Reach of Foundations Philanthropic Foundations in the Dock Charges and Responses 2. Definitions and distinctions Varieties of Giving What Is a Philanthropic Foundation? Initial Definitions Types of Foundation Distinguishing by Source/Type of Income Distinguishing by Style: Operating and Grantmaking Rationales for Grant Making and Operating Table 1: Grant-making vs. Operating 3. How foundations work - an overview Birth to Work In the Beginning- Donors and Money A Mission/Deed Governance Staffing Grant Making Styles and Processes 4. From charity to change, Brussels to Beijing The Variety of Foundations Introduction Approaches to Foundation Formation Throughout the World Sketches of Foundations Across the Globe Introduction Africa China, Japan and Singapore India Australia and New Zealand North America South America Europe Russia Saudi Arabia Concluding Remarks 5. Public benefit or playthings of the rich Introduction Charges and Responses The Charges The Responses The Charges Why Create a Foundation? Motives for Giving What's Need Got to Do with It? Where the Money Goes The Responses The Right to Give as You Choose Legal Restrictions Tax Matters The Duty of Wealth We're All Different Variations in Giving The Power of Staff A Stop Gap Against Government and Market Failure Sources of Innovation and Change Discourtesy or Necessity? Coordination - Damned If You Do ... Unelected and Undemocratic Funding Terms A Product of Culture not Whims? 6. Sources of wealth and income Introduction Charges and Responses The Charges How The Money Was Made Eroding the Tax Base 'Doing good' - the Cherry on the Cake or Horse Manure Sources of Income - Taking with One Hand and Giving with the Other The Responses This is Capitalism Investment Income: A Force for Good? 7. Warehouses of wealth: payout and perpetuity Introduction The Charges and Responses The Charges 1 Warehouses of Wealth In Favour of Mandatory Payout Rates The Responses Against Mandatory Pay Out Rates Robbing Peter to Pay Paul Market Volatility A Ceiling Not a Floor? Practical Problems Pay Out: The wrong Issue ? The Charges 2 Perpetuity - the Issue Against Perpetuity The Response 2 Perpetuity Is Not For All In Favour of Perpetuity 8. Cash machines or more? Foundations: Money, Value Added and Overhead Introduction Charges and Responses Charge Expensive Cash Machines? Responses Introduction Accounting for Higher Costs Practical Problems< Another Explanation for Differences The Costs of Creating public Benefit Funder Plus Beyond Moving Money to Effectiveness Multipliers 9. Missing measurement, misunderstanding measurement? Foundations and Effectiveness The Growing Pressure to Measure The Charges and Responses The Charge No Change? Maintaining the Status Quo? Ineffective Practices? The Responses An Inappropriate Demand No Responsibility to Produce Maximum Benefit? Effectiveness and Values The Effective Ineffective Foundation Measuring Impact - A Fools Errand? Measurement - Too Little, Too Late? Misunderstanding the Contributions of Foundations? 10. Foundations and democracy: threat or promise? Introduction The Charges and Responses The Charges A Brief US History Unpicking the Charges Sucking Wealth Out of the Tax Base Unregulated and Unaccountable Concentrations of Wealth and Power Influencing Policy Narrowing Alternatives 'Bribing' State Governments 'Cooling Out' Creeping Privatisation A Substitute for Justice? The Responses Introduction Denying the Charges Misplaced Fear It Depends Positive Responses Protection Against Big Government Pluralism Maximum Public Benefit and Minimum Loss of Economic and Political Freedom Cost Effectiveness Redistribution Creativity Promoting Democracy Looking in the Wrong Place? 11. Dark corridors or glass pockets? Introduction The Charges and Responses The Charges Unaccountable and Unregulated? The Responses Tax Subsidies and Accountability Adequate Regulation Table 2: Foundation Accountability in Four European Countries Self Regulation Confused Demands: It All Depends The Downsides of Glass Pockets Not More or Less But the Right Sort 12. The future is monstrous? Introduction Issues Ahead? Tax Advantages Greater Regulation The Rise and Rise of 'Effective Altriusm' Relations with Government and Business Power and Decision-Making Talking about Happiness Grant-Making and Money Foundations and Dinosaurs? Legitimacy Matters Keepers of the Public Faith