Foundations in the U.K.: Organizations and Nations in a State of Flux

Abstract

In the absence of a legal foundation form, and with differing national legal contexts, researching UK foundations presents major conceptual and practical challenges. This papers maps and critically discusses the UK foundation landscape; it highlights the blurred boundaries of foundations as an organisational form and outlines the different expressions of charity laws that foundations face across the UK's constituent parts. Examining data on foundation characteristics, the paper shows that although data on foundations indicate that the organisational characteristics and activities of UK foundations resemble those in Germany and the US, there remains an urgent need for more, and for more robust, data and insights on UK foundations to allow for meaningful comparison. Pointing to increased socioeconomic challenges and changes in political perspectives on foundations, the paper explores the shifting attitudes towards, and expectations and roles of, UK foundations and reflects on the issues ahead.

Mapping the Margins

“…In order to obtain successful funding for services and salaries, a significant amount of staff time has to be dedicated to the re-application and evaluation [39]. The combination of a high-staff turnover from increased workload stress, the rapidity of re-/de-/commissioned services and measurement of success through narrow concrete and measurable outcomes form a public service landscape that is in a "state of flux" [33]. Local activist groups have deemed that this state of crisis is felt especially strongly at the intersection of the North of England public service delivery, and domestic violence in the UK [45].…”

“…The 3-stage process we designed in our study, allowed us to gradually reveal the deeper and nuanced complexities and tensions that can exist in the relationships between service providers, and between collaborators and the researcher. This process didn't make the uncertainty go away but simply helped us embrace that we could be certain of further uncertainty, especially against the backdrop of a service landscape in a "state of flux" [33].…”

Toward a Comparative Understanding of Foundations

“…This appears to be the case in the liberal-democratic West as much as in more authoritarian contexts, such as Russia and China, which look to foundations and philanthropy more or less explicitly as a revenue source for state institutions and projects. In the West, the Australian government similarly "wishes to encourage and promote philanthropic giving as an adjunct, and in some instances as a substitute for government funding" (McGregor-Lowndes & Williamson, 2018); and in the United Kingdom, "a simplistic political 'enchantment with philanthropy' has been noticeable" along with "a strong interest by policymakers in accessing foundations' resources" (Jung, 2018).…”

“…In other Anglo-Saxon countries, the difference in foundation approaches is recognized, but it is not readily discernible. The "rationales for casting and demarcating these foundation forms in the UK contexts appear abstruse" (Jung, 2018). In Canada, "While they may be informally categorized as donative or operational, Canadians foundations can vary how they allocate their funding without the need for any statutory approval, so long as they maintain their disbursement quota on charitable activities or grantees" (Elson et al, 2018).…”

“…While governments occasionally look to foundations to initiate dialogue or help develop new approaches to social issues, foundations are, for the most part, faced with significant substitutional expectations. As this is also the role that is most universally rejected by foundations everywhere, this carries a potential risk for the field: Failure to meet such expectations in the long run could lead to a growing disillusionment, shrinking good will in policy terms, and finally end the "simplistic political 'enchantment with philanthropy'" (Jung, 2018) of the past three decades.…”