Movement among German foundations?

I recently came across a report on LinkedIn about the Deutscher Stiftungstag 2024 (German Foundation Day 2024) in Hanover. At a Foundation Day, many foundations come together and exchange ideas. Afterwards, they dance the polonaise. This reminded me of an article I wrote back in 2014. Even though I have not been part of the foundation scene for a few years now, I fear that some of my observations are still valid. This also applies to the prom, which I only used as a metaphor back then. I never thought it would actually become a reality - especially in this form.

Anyone who has spent some time in the foundation sector and wants to summarize what this very special scene is all about will probably not be helped by terms such as innovative, focused, strong in implementation, and controversial. This is unfortunate, because the starting point - freed from the constraints of economic success and committed solely to the common good - could provide excellent conditions for seeking new solutions to pressing problems in a courageous, decisive and targeted manner.

A long-time expert in the social sector sums up his impression as follows: Foundations are caught in a “spiral of gratitude. Surrounded by people and initiatives who are grateful for any financial contribution (no matter how small), foundations fall prey to the autosuggestion that they have already made a decisive contribution to solving future problems by providing funding - no matter to whom.

In Germany, the term foundation has an exclusively positive connotation anyway. This is due to the widespread view that donors always do “good” by definition. That the founder can use his well-earned money however he wants. And if it is for a charitable purpose, then the public should practice in silent gratitude. What is often overlooked, however, is that the money donated is usually tax-deductible and thus taken out of the general tax revenue. This means that the citizens who are being asked to be grateful have actually paid half of the donation. Without ever having been asked.

Unfortunately, this fact is not only overlooked by citizens. In a recent background interview, a journalist asked the management of a large German foundation how much of the money it uses comes from taxes. The management did not give an answer. They simply did not know.

Back to auto-suggest. A consulting firm with expertise in the nonprofit sector surveyed a large number of foundations about their funding strategy for internal purposes. According to the results of the survey, funding often depends on the foundation’s phone ringing at the right time, the request being presented in an appropriate form, and the foundation having funds available.

A foundation that supports in this passive-opportunistic rather than active-strategic way is self-sufficient in the act of supporting. It derives its raison d’être from the fact that it exists. Those who act in this way have already achieved their goals the moment they define their tasks. They no longer need to measure themselves against anything, because they are the measure.

This impression can be reinforced at some foundation events: instead of a passionate struggle for the most effective solutions, courtly dances are performed in the hall of mirrors. The order of the steps is fixed. With elegant momentum and in perfect harmony with yourself and the world, you take one step forward and two steps back. Fine appetizers are served.

Even though the folk dance is closer to them personally, the citizen feels blessed that so much attention is paid to their simple circumstances in the noble discourse. What they don’t realize in their grateful humility is that they’re paying the bill!

(originally published in German under the title “Allemande - Courante - Gigue” on the blog of the Benckiser Stiftung Zukunft, 30.12.2014)

About the author

Stefan Shaw

Founder & Director of Donor Advisory

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I am one of the founders of Effektiv Spenden. If you have any questions or suggestions, please feel free to send me an email. I will get right back to you.