Academic Supervisor of Laboratory Lester Salamon made a report on ‘Philanthropication thru Privatization: New Approaches to Charitable Endowments’

Senimar was organized by the HSE’s International Laboratory for Nonprofit Sector Studies at the Center for Studies of Civil Society and the Nonprofit Sector, under the NGO "Evolution and Philanthropy" in Russia and "Uralsib".

 

Lester Salamon is Director of the Center for Civil Society Studies at Johns Hopkins University (United States), Director of the far-reaching initiative for comparative research into the not-for-profit sector, and Academic Supervisor at the International Laboratory for Nonprofit Sector Studies which was established at the HSE’s Center for Studies of Civil Society and the Nonprofit Sector this year.

Participants discussed innovative approaches to the creation of charitable targeted funds (endowments), in part using all or part of the income generated by privatizing non-commercial and charitable organizations and foundations. The concept of this innovative financial tool was developed by Lester Salamon, and is known as ‘Philanthropication thru Privatization (PtP).

World over, in less developed regions, large-scale initiatives aiming to support local community foundations are being implemented. However, these initiatives are limited by insufficient capital. However, solutions akin to that suggested by Professor Salamon, are right in front of us. ‘It can be compared to alchemy, turning ordinary processes of privatization into charity gold.’

Research carried out under Professor Lester Salamon by researchers at the Johns Hopkins University identified over 500 foundations whose appearance or presence was a ‘byproduct’ of privatization deals.

An online version of the final report ‘Philanthropication through Privatization:Building Permanent Assets for Social Progress’ by Lester Salamon and co-authors, p-t-p.org, was published as a result of the analysis of these case studies. It can be found here.

 

This prompts the question: Does the Concept of PtP have a future? The speaker assured the audience that the idea that we are coming to an end of privatization processes is a myth. The concept’s continued relevance can be explained by the fact that using PtP processes is in the interests of a broad range of stakeholders: governments, social institutions, investors, civil society, and others. It opens up mutually-beneficial ‘win-win’ opportunities.

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