No abstract

Partnerships are increasingly considered to have the potential to address societal problems that one single actor cannot solve. This paper rationalises the development of partnerships between entrepreneurs and non-profit organisations by the effects of its alignment. In organisations, the process of alignment focuses on the activities that management perform to achieve cohesive goals (e.g., finance, marketing, sales, human resources). Whereas in an entrepreneurial philanthropy partnership, the stage of alignment maturity addresses both how the opted societal change is in harmony with the entrepreneurial approach and how this approach can be in harmony with societal change. This approach is deemed crucial in understanding how the two partners can translate their views on leadership, strategy, and culture into opportunities that enhance their impact. Theoretical researches have provided foundations for identifying dimensions of the conceptual Entrepreneurial Philanthropy Alignment Model (EPAM) that might strengthen the impact of a partnership between an entrepreneur and a non-profit organisation.

Entrepreneurial philanthropy gives the impression of being a paradox because personal gains and societal benefits are generally seen as opposing forces, which particularly will become clear when philanthropreneurs emerge in the non-profit sector. It is suggested this charitable giving with venture bent might affect an alignment of both worlds. What will happen: a culture clash or a smooth transition? On what issues a partnership is easy to reach, and what are causes for concern? To answer these questions, a literature study has been carried out to construct a preliminary "theoretical framework of entrepreneurial philanthropy alignment". In this paper a framework has been tested among seven Dutch senior executives of non-profit organisations and five philanthropreneurs. A series of semi-structured interviews were held to explore the variables that could determine the degree of their alignment. These variables were grouped in three domains: 1) Leadership, the linking path; 2) Strategy, the guiding path; and 3) Culture, the driving path. The outcome gave insights to modify and upgrade the theoretical framework, and provided support to study alignment maturity more extensively in a subsequent survey.

Entrepreneurial philanthropy is becoming more significant in the domain of social change, yet an understanding of how non-profit organisations respond to the phenomenon, and vice versa, has received minimal academic research outside the United States. However, charitable giving with a venture bent may be an uncomfortable realm and can impose a culture shock for non-profits. Also the organisational processes of non-profits can be equally as uncomfortable for entrepreneurs, which may cause potential frictions. The paper seeks theoretical considerations to determine a framework that describes the alignment paradigm, in the situation entrepreneurial philanthropy will meet up with non-profit organisations. The primary focus is to select valid domains where compelling choices for both are foreseen, along with the qualifying variables to guide the meeting process effectively. The paper proposes a conceptual approach of alignment that may offer observations for enhancing the concept of entrepreneurial philanthropy.

There is increasing recognition that an entrepreneurial philanthropy partnership (EPP) has become a modus operandi for non-profit organisations and for-profit companies, aligning their interactions according to societal expectations. While these partnerships offer many advantages in principle, there is little consensus by academics and practitioners on what it presents for action, and its practice varies. The purpose of this article is to address the characteristics of EPPs that are associated with its establishment and with maintaining the continuous dialogue of tacit and explicit know-how. Therefore, a theoretical Entrepreneurial Philanthropy Alignment Model has been developed and is empirically tested in the context of existing EPPs in The Netherlands. The model may inform continuing theory building and practical experimentation to refine defining the amplitude of partnership practice, and to enhance the responsiveness to partners' expectations of an EPP.