Debate: Thou shalt have impact, total impact—government involvement in philanthropic foundations’ decision-making (original) (raw)

2015, Public Money & Management

Abstract

Philanthropic foundations have famously been described as large amounts of money completely surrounded by people who want some (MacDonald,1956). As such, it is unsurprising that the last few years have seen an increasing governmental interest in and focus on foundations. Given foundations' outward appeal and mythic properties (Jung and Harrow 2015a), as well as wider debates around foundations' future roles and responsibilities (Robert Bosch Stiftung 2014), it thus seems timely that the UK's Cabinet Office has recently published a working paper on 'How foundations are using Total Impact approaches to achieve their charitable missions' (Cabinet Office 2014a). Aimed at foundation staff, trustees, and professionals within and beyond the foundation field, the paper purports to highlight 'latest practice' in the area and outline 'crucial steps' required from foundations seeking to achieve Total Impact (Cabinet Office 2014a:4). Total Impact is perceived as a foundation considering 'all the different ways they [sic.] can achieve impact, and focuses resources on areas that have the maximum impact' (Cabinet Office 2014a:4). As part of this, the paper points towards an assessment tool that the Cabinet Office has been working on, aimed at framing foundations' conversations 'with their investment managers and advisors (ibid.: 29). Given the Cabinet Office's remits, such as providing governmental support, ascertaining the smooth running of government, and ensuring the effective development, coordination and implementation of policy (Cabinet Office 2015), the content of this working paper raises important questions about government's expectations of and agenda for philanthropic foundations. Impact? Total Impact! In modern times, the explicit focus on conducting effective philanthropy goes at least back to Andrew Carnegie. Disenchanted with 'indiscriminate charity' (Carnegie 1901:16), Carnegie argued that a philanthropist has a duty to 'cease giving to objects

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