Assessing the Roles of Foundations in Welfare States: A Comparative Study in Times of Crisis

• In Event: NGOs’ Resilience Strategies During Crisis

Abstract

In the ongoing discourse surrounding philanthropic research and practice, differing perspectives regarding the roles of philanthropic organisations in welfare states exist: Some argue that these organisations can serve as intermediaries and bridge-builders, operating independently of economic and governmental influence (Anheier, 2018). Others emphasize that philanthropy can contribute to the common good and redistribute wealth as a complement or a substitute for governmental action (Adloff, 2004). A more recent viewpoint considers philanthropy as a catalyst for innovation by supporting the development of novel ideas. Through the funding of venture capital, these projects can operate independently of traditional market mechanisms and accountability demands (Bethmann, 2020; Dodgson & Gann, 2020; Ostrander, 2007; Reich, 2016). Conversely, some scholars adopt a critical stance towards the innovative potential of philanthropic organisations, arguing that their actions exhibit conservatism and caution, predominantly serving to uphold existing societal structures (Dodgson & Gann, 2020; Jaskyte et al., 2018; Kasper & Marcoux, 2014; Knott & McCarthy, 2007; Reich, 2016). While the literature extensively discusses the roles of philanthropic actors, empirical evidence is insufficient to substantiate these roles (Anheier, 2001; Bekkers, 2022; Ostrander, 2007; Scherer, 2017; Toepler, 2018). Addressing this research gap is crucial for a comprehensive understanding of philanthropy's potential and limitations within welfare states and for formulating practical recommendations for foundations. Much of the current research on foundations maintains a national perspective and heavily relies on self-reported data, often overlooking external viewpoints (Anheier et al., 2017; Anheier, 2011; Ricciuti & Turrini, 2018; Williams & Millner, 2023). This research aims to bridge this gap by operationalizing theoretical debates regarding foundation roles in the context of the welfare state. The study investigates the roles of foundations, comparing self-assessment and external stakeholder assessments of these roles. In addition, it analyses changes in role assessments during times of crisis, using the COVID-19 pandemic as a global example.
The theoretical framework of the Foundation Triangle is utilised, to categorise the goals, approaches, and roles of foundations (Anheier, 2018; Anheier et al., 2017). A multiple-case study design with six cases is employed (Yin, 2018). The cases feature instances from Germany, Austria, and Italy, used to draw comparisons between roles in those countries and determine the impact of the national context. Data is collected through guideline-based interviews with foundation employees, grantees, and partners triangulated with secondary data from foundations' websites and annual reports. The analysis employs a qualitative content analysis applying a deductive-inductive category system (Mayring & Fenzl, 2019).
The paper aligns with the current discourse in philanthropy on foundations’ roles in the welfare state context. It offers empirical evidence to address the highly contested issue of whether foundations can and do serve as innovators. By illuminating the roles of foundations, potential disparities between self- and external assessment, and the effects of crises on this evaluation, this study enhances our grasp of the boundaries and benefits of foundations within welfare states. The comparative analysis of different countries helps to identify national differences in how foundations are perceived, offering valuable insights into the impact of national contexts.

References

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Author

• Antonia Muhr, WU Vienna University of Economics and Business