A Governance-Based Typology of Family Foundations

Razvan Lungeanu · John L. Ward

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Abstract

This article brings together research on philanthropy, family business, and governance to examine patterns of giving by U.S. family versus nonfamily independent foundations. The authors use a sample comprising the 200 largest U.S. independent foundations in 2007 to show that family foundations are more focused in their grantmaking than nonfamily foundations. Board size moderates this relationship. They also offer a new typology of family foundations to show that the generation stage of the family and the foundation board’s composition are associated with different levels of grantmaking diversity in family foundations but in dissimilar ways. Scholarly and practical implications are discussed.

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References

1996Higher market valuation of companies with a small board of directors 2007Socioemotional Wealth and Business Risks in Family-controlled Firms: Evidence from Spanish Olive Oil Mills 2003Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives 2012Socioemotional Wealth in Family Firms 1999A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms 2003Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives 2009Strategic leadership: theory and research on executives, top management teams, and boards 1972Size and Composition of Corporate Boards of Directors: The Organization and its Environment

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2019Why some are more equal: Family firm heterogeneity and the effect on management’s attention to CSR 2013Advising Family Enterprise 2015Agency, Stewardship, and the Universal-Family Firm 2017Stepping across for social approval: Ties to independent foundations' boards after financial restatement 2021Family Business as a Bearer of Social Sustainability in Multinationals-Case of Slovakia

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