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Public Policy,Philanthropy, and
Governance:Conditions for Effective
CooperationTheo Schuyt, René Bekkers,
Leo Huberts & Willem TrommelVU University Amsterdam
November 19, 2011 140th Arnova Conference, Toronto
The paper• Aims to introduce philanthropy to a
continental governance and public policy audience that knows little about it.
• Is authored by Theo Schuyt, myself, and two professors from the Department of Governance Studies at VU University Amsterdam.
• Let me tell you something about the situation in which the paper will land.
November 19, 2011 40th Arnova Conference, Toronto 2
November 19, 2011 40th Arnova Conference, Toronto 3
Wall Street is an early example
of Dutch Philanthropy.
November 19, 2011 40th Arnova Conference, Toronto 4
November 19, 2011 40th Arnova Conference, Toronto 5
Stuyvesant called upon the 43 richest residents of New Amsterdam to provide funding to fix up the ailing Fort Amsterdam and to construct a stockade across the island to prevent attacks from the north, while it took New Amsterdam's most oppressed inhabitants -- slave labor from the Dutch West India Company -- to actually build the wall.
Russell Shorto – The Island at the Center of the World
November 19, 2011 40th Arnova Conference, Toronto 6
This is the ‘Giving house’ in the city of ‘s-Hertogenbosch. In the middle ages, the poor in the city received food and clothing at this house. Funds for the service were obtained through bequests, legacies and other donations from citizens, but also from the city council. Today, the building serves as the city’s library and an arts center.
November 19, 2011 40th Arnova Conference, Toronto 7
The ‘Sweet Mary’ Fraternity was founded in 1318. Its first members were clergy. The fraternity engaged in charity and cultural activities. Ghisbertus van der Poorten donated his house in 1483. The acceptance of Protestants, including members of the Royal House of Orange, helped resolve religious conflicts that had dominated the city since the spanish occupation in the 17th century. The current building in neogothic style dates back to 1846.
November 19, 2011 40th Arnova Conference, Toronto 8
The ‘Sweet Mary’ Fraternity was founded in 1318. Its first members were clergy. The fraternity engaged in charity and cultural activities. Ghisbertus van der Poorten donated his house in 1483. The acceptance of Protestants, including members of the Royal House of Orange, helped resolve religious conflicts that had dominated the city since the spanish occupation in the 17th century. The current building in neogothic style dates back to 1846.
Amsterdam Concert Hall
November 19, 2011 40th Arnova Conference, Toronto 9
November 19, 2011 40th Arnova Conference, Toronto 10
This is all history.We have ‘lost’ the philanthropic
tradition.Since World War II, state subsidies
dominate funding for nonprofit organizations.
Philanthropy is in our culture – but institutions have discouraged it.
Giving USA
101
40
31
27
23
23
129
6
32
religioneducationhuman servicesfoundationspublic-society benefithealtharts, culture, humanitiesinternationalenvironment/animalsunallocated
November 19, 2011 40th Arnova Conference, Toronto 11
Total giving, 2009: $304 billion (2.1% GDP)
Giving in the Netherlands891
285
458
644454
572
435
253
715 religion
education
[human services]
[foundations]
public-society benefit and human services
health
arts, culture, humanities
international
environment/animals
unallocated
sports and recreation
November 19, 2011 40th Arnova Conference, Toronto 12
Total giving, 2009: $6.4 billion (0.8% GDP)
Giving in the Netherlands today
• Compared to the US, very low levels of giving to the arts and culture, to hospitals and universities.
• In culture, health and education many institutions are now entering the fundraising market.
• Established fundraising charities now target the high net worth households.
November 19, 2011 40th Arnova Conference, Toronto 13
The current situation
November 19, 2011 40th Arnova Conference, Toronto 14
• Wall Street may revive philanthropy in the Netherlands.
• The economic crisis and the budget deficit resulting from the bail out of several national banks in the Netherlands has increased the necessity to cut government expenditure.
• The charitable deduction in the income tax was on the list of potential budget cuts.
November 19, 2011 40th Arnova Conference, Toronto 15
November 19, 2011 40th Arnova Conference, Toronto 16
“Sports clubs increase resilience and autonomy of neighborhoods!”
“Cutting subsidies increases the resilience and autonomy of sports clubs!”
A social worker and a city council member, debating a cut of subsidies for local sports clubs
Times aheadProblems such as the aging population
and an increasing health care burden,
lower economic competitiveness and - who knows - mass unemployment
and poverty,not just in the Netherlands but across
Europe, provide opportunities and challenges
for the philanthropic sector. November 19, 2011 40th Arnova Conference, Toronto 17
Lack of Vision• The EU, the national government as
well as political parties lack a clear view on the role of philanthropy in public policy.
• The new government has proposed a new charity law.
• The charitable deduction has been retained, but now includes a ‘multiplier’ for donations to arts and culture.November 19, 2011 40th Arnova Conference, Toronto 18
A ‘Big Society’?• The current government is trying to
establish a ‘crowd out’.• Tax incentives to give are hardly
changing.• Charities are asked to advertise the
deduction more actively.• Competition for donors will increase.• Societal need will increase as well.
November 19, 2011 40th Arnova Conference, Toronto 19
What Dutch citizens (say they) will do when the government cuts…
Series1
-20
0
20
40
60
80
100
83
8
-10
Give about the same Give more Give less
Giving in the Netherlands Panel Survey 2010 (n=1,866)
How much more or less?
Series1-40
-30
-20
-10
0
10
20
3025
-33
1
Will give more, average do-nation in 2009: €348
Will give less: average do-nation in 2009: €159
net effect
Giving in the Netherlands Panel Survey 2008-2010 (n=1,692)
What we need is…• A serious political discussion about
the role of philanthropy in public policy.
• Decent research informing policy decisions.
• Thorough evaluation of the results of any changes that will be implemented.
November 19, 2011 40th Arnova Conference, Toronto 22
Ingredients• People are longing for a more
‘caring society’ and are prepared to contribute.
• People enjoy giving and volunteering more than paying taxes.
• They dislike organizational inefficiency.
• People respond to tax incentives and changes in government subsidies, but not that much.November 19, 2011 40th Arnova Conference, Toronto 23
Alternative visions• Aiming for a substitution effect, the
resulting crowd out will be far from perfect.
• If nonprofit organizations are viewed as partners in public policy, this would help.
• Think from a ‘crowding in’ hypothesis, even if subsidies are not changing.
• Present subsidies as matching grants.
November 19, 2011 40th Arnova Conference, Toronto 24
This…
November 19, 2011 40th Arnova Conference, Toronto 25
Rather than this.
November 19, 2011 40th Arnova Conference, Toronto 26
Tools for governance1. Measure impact and effectiveness.
Thank you, ECSP.2. Impose financial reporting
requirements.3. Establish nonprofit management
education programs.4. Amplify the signal that
accreditation gives to donors.
November 19, 2011 40th Arnova Conference, Toronto 27
Tasks for the sector• Nonprofit organizations will need to
report and improve their reporting standards.
• Raise standards by education in nonprofit management.
• Adopt more stringent codes of conduct.
• Evaluate programs and show impact.• Advertise tax incentives and engage
donors more in programs.November 19, 2011 40th Arnova Conference, Toronto 28
Tasks for the government• Get educated in nonprofit
management.• Measure and evaluate impact and
effectiveness of reforms.• Check charity registrations.• Give public access to the charity
register, in a user-friendly manner.
November 19, 2011 40th Arnova Conference, Toronto 29
Thanks, says• René Bekkers, r.bekkers@vu.nl• Blog: renebekkers.wordpress.com• Twitter: @renebekkers• ‘Giving in the Netherlands’, Center
for Philanthropic Studies, Faculty of Social Sciences, VU University Amsterdam: www.geveninnederland.nl
November 19, 2011 3040th Arnova Conference, Toronto
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