Research

The Role of Founder and Other Family Participation on us Private Foundation Efficiency

Founders make significant financial contributions in creating US private foundations. Therefore, we hypothesize that founders monitor foundation operations and predict a positive relation between founder participation and foundation efficiency. In contrast, we propose competing hypotheses in examining the relation between other family member participation and foundation efficiency. Other family member participation has the potential to enhance foundation efficiency if founders are able to transfer their philanthropic values to their progeny. However, other family participation also has the potential to diminish foundation efficiency if the founders’ withdrawal leaves their foundations without true principals to monitor managerial actions. We find that both founder and other family participation are positively associated with foundation efficiency. We also provide limited evidence that the positive association between founding family participation and foundation efficiency is transferred to second generation family members, but is not transferred to subsequent generations.
Publication Information
Article Title: The Role of Founder and Other Family Participation on us Private Foundation Efficiency
Journal: Financial Accountability and Management (Feb, 2017)
33
Author(s): McAllister, Brian;  Allen, Arthur C
Researcher Information
    
Allen, Arthur C
Allen, Arthur C
Associate Professor
Expertise:
  • Financial Accounting
  • Governmental and Nonprofit Accounting
Accountancy
HLH 445 J
P.O. Box 880488
University of Nebraska-Lincoln
Lincoln, NE 68588-0488, USA
Phone: (402) 472-3275
Fax: (402) 472-4100
aallen1@unl.edu