Agency problems of corporate philanthropy

Evaluating agency theory and optimal contracting theory views of corporate philanthropy, we find that as corporate giving increases, shareholders reduce their valuation of firm cash holdings. Dividend increases following the 2003 Tax Reform Act are associated with reduced corporate giving. Using a natural experiment, we find that corporate giving is positively (negatively) associated with CEO charity preferences (CEO shareholdings and corporate governance quality). Evidence from CEO-affiliated charity donations, market reactions to insider-affiliated donations, its relation to CEO compensation, and firm contributions to director-affiliated charities indicates that corporate donations advance CEO interests and suggests misuses of corporate resources that reduce firm value.

Government grants - an abrogation or management of risks?

New public management (NPFM), with its hands-on, private sector-style performance measurement, output control, parsimonious use of resources, disaggreation of public sector units and greater competition in the public sector, has significantly affected charitable and nonprofit organisations delivering community services (Hood, 1991; Dunleavy, 1994; George & Wilding, 2002). The literature indicates that nonprofit organisations under NPM believe they are doing more for less: while administration is increasing, core costs are not being met; their dependence on government funding comes at the expense of other funding strategies; and there are concerns about proportionality and power asymmetries in the relationship (Kerr & Savelsberg, 2001; Powell & Dalton, 2011; Smith, 2002, p. 175; Morris, 1999, 2000a). Government agencies are under increased pressure to do more with less, demonstrate value for money, measure social outcomes, not merely outputs and minimise political risk (Grant, 2008; McGreogor-Lowndes, 2008). Government-community service organisation relationships are often viewed as 'uneasy alliances' characterised by the pressures that come with the parties' differing roles and expectations and the pressures that come with the parties' differing roles and expectations and the pressurs of funding and security (Productivity Commission, 2010, p. 308; McGregor-Lowndes, 2008, p. 45; Morris, 200a). Significant community services are now delivered to citizens through such relationships, often to the most disadvantaged in the community, and it is important for this to be achieved with equity, efficiently and effectively. On one level, the welfare state was seen as a 'risk management system' for the poor, with the state mitigating the risks of sickness, job loss and old age (Giddens, 1999) with the subsequent neoliberalist outlook shifting this risk back to households (Hacker, 2006). At the core of this risk shift are written contracts. Vincent-Jones (1999,2006) has mapped how NPM is characterised by the use of written contracts for all manner of relations; e.g., relgulation of dealings between government agencies, between individual citizens and the state, and the creation of quais-markets of service providers and infrastructure partners. We take this lens of contracts to examine where risk falls in relation to the outsourcing of community services. First we examine the concept of risk. We consider how risk might be managed and apportioned between governments and community serivce organisations (CSOs) in grant agreements, which are quasiy-market transactions at best. This is informed by insights from the law and economics literature. Then, standard grant agreements covering several years in two jurisdictions - Australia and the United Kingdom - are analysed, to establish the risk allocation between government and CSOs. This is placed in the context of the reform agenda in both jurisdictions. In Australia this context is th enonprofit reforms built around the creation of a national charities regulator, and red tape reduction. In the United Kingdom, the backdrop is the THird Way agenda with its compacts, succeed by Big Society in a climate of austerity. These 'case studies' inform a discussion about who is best placed to bear and manage the risks of community service provision on behalf of government. We conclude by identifying the lessons to be learned from our analysis and possible pathways for further scholarship.

Patterns of boardroom discussions around the accountability process in a nonprofit organisation

This chapter sets out to identify patterns at play in boardroom discussions around the design and adoption of an accountability system in a nonprofit organisation. To this end, it contributes to the scarce literature showing the backstage of management accounting systems (Berry, 2005), investment policy determining (Kreander, Beattie & McPhail, 2009; Kreander, McPhail & Molyneaux, 2004) and financial planning strategizing (Parker, 2004) or budgeting (Irvine 2005). The paucity of publications is due to issues raised by confidentiality preventing attendance at those meetings (Irvine, 2003), Irvine & Gaffikin, 2006). However, often, the implementation of a new control technology occurs over a long period of time that might exceed the duration of a research project (Quattrone & Hopper, 2001, 2005). Recent trends consisting of having research funded by grants from private institutions or charities have tended to reduce the length of such undertakings to a few months or rarely more than a couple of years (Parker, 2013);

Spinning a sustainable yarn : environmental sustainability and brand story in the Australian fashion industry

In the Australian fashion industry, few fashion brands have intervened in the design of their products or the systems around their product to tackle environmental pollution and waste. Instead, support of charities (whether social or environmental) has become conflated with sustainability in the eyes of the public. Thus it is difficult to assess with any accuracy fashion brands’ response to sustainability. This article aims to address this through proposing a categorization system to structure the various interventions that a company may make. This system is applied to two case studies, analysing campaigns that respond to environmental sustainability by two established Australian brands, Country Road and Billabong. The case studies demonstrate how the interventions employed by a company, at least in the Australian context, are carefully developed to align with their brand story, revealing the interplay between the intangible aspects of a brand’s positioning and the tangible, measurable impacts of their garments.

Go your own way : reporting of fundraising in Australian charity financial statements

Australian charities are facing increased public scrutiny of their financial reports, which must now be submitted to the national regulator, the Australian Charities and Not-for-profits Commission. Some may wish to use reports to create so-called 'fundraising efficiency league tables'. This article seeks to provide a description of current best practice in fundraising financial reporting by examining annual reports that have been recognised with industry awards. We find a wide variation in how terms have been used, with no patterns discernible. Moreoever, reporting is influenced by regulatory requirements in the relevant jurisdiction, which differ substantially. It is unlikely that league tables will be meaningful if constructed from charities' current annual financial statements.

The Lazarus effect: The (RED) campaign, and creative capitalism

"4,400 people die every day of AIDS in sub-Saharan Africa. Treatment exists. In about 60 days, a patient can go from here to here. We call this transformation the Lazarus Effect. It is the result of two pills a day taken by a HIV/AIDS patient for about 60 days. Learn more about how you can help give people the chance of life and joinred.com."The Lazarus Effect video, the (RED) Campaign.This Chapter explores how a number of non-government organizations, charities, and philanthropists have promoted ’grants' as a means of stimulating investment in research and development into neglected diseases. Each section considers the nature of the campaign; the use of intellectual property rights, such as trade marks; and the criticisms made of such endeavors. Section 2 looks at the (RED) Campaign, which is designed to boost corporate funding and consumer support for the Global Fund. Section 3 examines the role of the Gates Foundation in funding research and development in respect of infectious diseases. It explores the championing by Bill Gates of ’creative capitalism'. Section 4 considers the part of the Clinton Foundation in the debate over access to essential medicines. The Chapter concludes that, despite their qualities, such marketing initiatives fail to address the underlying inequalities and injustices of international patent law.

Will-making prevalence and patterns in Australia: Keeping it in the family

This article provides evidence of the prevalence of wills and the principles underpinning the intended distribution of estates in Australia. Intentions around wealth transfers and the social norms that underpin them occur in the context of predicted extensive intergenerational transfers from the ageing baby boomer generation, policies of self provision and user pays for care in old age, broader views on what constitutes ‘family’, the increased importance of the not-for-profit sector in the delivery of services, and the related need for philanthropy. A national telephone survey conducted in 2012 with 2,405 respondents aged 18 and over shows that wills are predominantly used to distribute assets to partners and/or equally to immediate descendants. There is little evidence that will makers are recognising a wider group of relationships, obligations and entitlements outside the traditional nuclear family, or that wills are being replaced by other mechanisms of wealth transfer. Only a minority consider bequests to charities as important. These findings reflect current social norms about entitlements to ‘family’ money, a narrow view of what and who constitutes ‘family’, limited obligation for testators to recompense individuals or organisations for care and support provided, and limited commitment to charitable organisations and civil society.

The fisc and the frontier: Approaches to cross-border charity in Australia and the UK

The late twentieth century witnessed the transformation of the global economy beyond the fixed geographic boundaries of the nation-state system to one dominated by financial centers, global markets, and transnational firms. In the two decades to 2011, cross-border philanthropy from OECD Development Assistance Committee (DAC) donor countries to the developing world grew from approximately USD 5 billion to USD 32 billion (OECD, n.d.),[1] with some estimates for 2011 as high as USD 59 billion (Center for Global Prosperity, 2013). This is only part of cross-border philanthropy, which also includes remittances from migrant communities, social-media-enabled global fundraising, and medical research collaborations.

Combined Jewish Philanthropies (Boston, Mass.) records, undated, 1865-1989 (bulk 1942-1979)

The Combined Jewish Philanthropies (CJP) of Boston, Massachusetts is the oldest federated Jewish philanthropy in the United States. The current incarnation of CJP was formed in 1960, when two separate federated philanthropies – the Combined Jewish Appeal and Associated Jewish Philanthropies – merged to create a single organization dedicated to serving the needs of Boston’s Jewish community. CJP’s records contain the history of several other organizations, from the forerunners of the current Federation to the Jewish institutions supported by CJP. Their beginnings can be traced to the founding of the United Hebrew Benevolent Association (UHBA) in 1864 at the Pleasant Street Synagogue (now Temple Israel.) This collection contains meeting minutes, correspondence, photographs, scrapbooks, financial documents and ledgers, appeal information, publicity, programs, brochures and other written documents relating CJP’s history.

Board of Delegates of American Israelites records 1859-1881, 1887, 1932

Contains printed copies of the 1860 constitution and by-laws, copies of proceedings and annual reports, 1859-1877, of the Board of Delegates; report on Jews in Roumania, an 1874 annual report of the Hebrew Benevolent and Orphan Asylum Society, manuscript minute books and minutes of meetings, 1859-1876, resolutions, executive, financial, ritual slaughtering and other special committee reports, newspaper clippings and correspondence with synagogues and organizations in the U.S. who constitute the membership of the Board of Delegates, with the Union of American Hebrew Congregations with whom they later merged, the Union's Board of Delegates of Civil and Religious Rights, and with individuals and organizations in foreign countries including the Alliance Israelite Universelle, the Anglo-Jewish Association, the Board of Deputies of British Jews, the Committee for the Roumanian Jews (Berlin), the Koenigsberg Committee, and the London Roumanian Committee.

Seligman Solomon Society records 1912-1922

Contains minutes of Meetings (May 1918; May 1921), bulletins, official reports, 25th Anniversary Journal, photographs, and correspondence (May 1917-May 1922), particularly concerning the organization's social and philanthropic activities. Much of the correspondence is with Jewish personnel serving in the armed forces during and after World War I (1918-1919).

Grand Street Boys' Association (New York, N.Y.) Records, undated, 1907-1968, bulk 1940-2000.

The Grand Street Boys' Association began in 1916 as a reunion of men who had grown up on or near Grand Street in the Lower East Side neighborhood of Manhattan and quickly grew into an active club, open to all men (and eventually women) regardless of religion, ethnicity, or social class. The Association promoted welfare projects, acts of fellowship and tolerance, scholarships, youth employment, war efforts, and the elimination of discrimination in sports, among other projects. The collection documents the activities of the Association, as well as the Grand Street Boys' Foundation, its financial arm established in 1945, and its Hobbycraft Program, a charitable program tasked with collecting and redistributing donated items to charitable and nonprofit organizations. Materials include administrative records, financial records, correspondence, minutes, membership records, newsletters, yearbooks, artifacts, speeches, and photographs relating to both the New York Grand Street Boys' Association and the Association's Grand Street House in England. Series I, comprising the majority of the collection, contains the records of the Grand Street Boys' Association. In it are extensive membership records, meeting minutes, annual yearbooks, financial records, administrative material, newsletters, and artifacts. Series II documents the Grand Street Boys' Foundation and contains administrative records and financial records. Some overlap of material will be found in Series I and II such as material pertaining to the relationship between the Association and Foundation. Series III consists of photographs documenting both the Association and Foundation. The photographs show members and highlight the activities of the Grand Street Boys.

National Council of Jewish Women, New York Section records, undated, 1895-2004.

These records document New York Section’s early history to the present, representing a significant portion of its work in community programming and advocacy, as well as its supporting administrative, fundraising, membership, and public relations activities. As a section of the National Council, its records also include a substantial amount of material regarding the National Organization’s programs, events, publications, and reports, dating from 1896 through 1999.

Galveston immigration plan records undated, 1901-1920.

Collection consists largely of minutes and correspondence from the office of the Jewish Immigrant Information Bureau which administered the Galveston Immigration Plan. Includes correspondence among members of the JIIB, the Industrial Removal Office, the Hilfsverein de Deutschen Juden (Relief Organization of German Jews), the Jewish Colonization Society (ICA), and various Jewish organizations in the United States. Collection also contains many ship passenger lists.

Industrial Removal Office records undated, 1899-1922

Contains Board of Directors minutes (1903, 1907), Executive Committee minutes (1907), Removal Committee minutes (1903-1917), Annual Reports (1910, 1913), Monthly Reports (1901-1919), Monthly Bulletins (1914-1915), studies of those removed, Bressler's "The Removal Work, Including Galveston," and several papers relating to the IRO and immigration. Financial papers include a budget (1914), comparative per capita cost figures (1909-1922), audits (1915-1918), receipts and expenditures (1918-1922), investment records, bank balances (1907-1922), removal work cash book (1904-1911), office expenses cash account (1903-1906), and the financial records of other agencies working with the IRO (1906). Includes also removal case records of first the Jewish Agricultural Society (1899-1900), and then of the IRO (1901-1922) when it took over its work, family reunion case records (1901-1904), and the follow-up records of persons removed to various cities (1903-1914). Contains also the correspondence of traveling agents' contacts throughout the U.S. from 1905-1914, among them Stanley Bero, Henry P. Goldstein, Philip Seman, and Morris D. Waldman.