Tools for Effective Philanthropy

If you were interested in last week’s posting on Stanford University’s lecture series on philanthropy, let me also bring your attention to "Effectiveness, Efficiency and Accountability in Philanthropy: What Lessons Can Be Learned From the Corporate World?" This volume, published last year by the Philanthropy and Foundation division of the Bertelsmann Foundation, contains summaries of arguments made at the International Foundation Management Symposium that took place in Berlin, Germany.

Speakers at the event included scholars such as Helmut K. Anheier, J. Gregory Dees, Joel Fleishman, and more. They explored major topics in foundation management, social entrepreneurship, accountability, marketing, quality management, sustainability, and other areas. Despite the complex issues facing nonprofits, the speakers pointed out useful concepts that can be transferred from the for-profit sector.

Heribert Meffert, Volker Then, and Nina Fritsch note in the first chapter:

“The competitive advantage of the corporate world is its market-driven allocation mechanism and the resulting efficiency and discipline. The competitive advantage of foundations is their legitimacy, which they establish through mobilizing private investment for the public good. What both sectors have in common is that their roles are subject to the scrutiny of the public eye.”

This is why transparency and accountability continue to be important issues for both businesses and nonprofit organizations.