Between corporate philanthropy and development : a nexus of funding strategies for achieving optimal results

Abstract

This thesis will examine the distribution of philanthropic corporate funds that are directed towards development projects. It assesses different strategies in which a corporation can choose to distribute its earmarked financial contributions towards international development projects. Further, through the evaluation of corporations’ distribution of funds, this thesis will identify three types of funding strategies: The Fully Dependent and Controlled Strategy, that allows a corporation to attach the sale of its product to a philanthropic initiative; The Distinct but Controlled Strategy, whereby philanthropic projects are funded under the umbrella of the corporation through a philanthropic wing or arm; and, The Functionally Independent Strategy, defined as a philanthropic foundation funded by a corporation, where the former is a separate legal entity. This thesis argues that the funding and legal structure that clearly separates the philanthropic decision making and implementation efforts from those of the sponsoring corporation, is the best alternative to minimize the potentially negative impacts and maximize the potentially positive impacts that, according to the literature, philanthropic efforts can have on their beneficiaries through development projects.