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): 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