Public Policy, Philanthropy, and Governance: Conditions for Effective Cooperation Theo Schuyt, René Bekkers, Leo Huberts & Willem Trommel VU University

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


Wall Street is an early example

of Dutch Philanthropy.



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


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.


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.


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



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


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


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.


The current situation


• 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.



“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.


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.


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.


This…


Rather than this.


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.


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.


Thanks, says• René Bekkers, [email protected]• 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

mailto:[email protected]

http://www.geveninnederland.nl/

Documents

Public Policy, Philanthropy, and Governance: Conditions for Effective Cooperation Theo Schuyt, René Bekkers, Leo Huberts & Willem Trommel VU University