Abstract
In the face of decreasing returns on investments and the growing influence of sustainability requirements, foundations have had to adjust the way they invest their assets. Sustainable investments have shown themselves to be as robust in terms of their returns as conventional investments and—more than that—they can support foundations’ goals much more effectively. But only very few foundations implement sustainable investment strategies. The present study analyses the reasons for this, by means of interviews with personnel responsible for assets. The interviewees operate as ‘sense givers’ who have to kickstart a process of strategic readjustment. The reference framework for their ways of thinking and acting has been investigated using framing analysis. So-called sense givers’ isolated position in their foundations is the rather disturbing finding of this study. Familiar strategies of action seem to be of little help in their endeavours. This is frequently expressed in sometimes poignant calls for external guidelines and role models, while specific ideas about courses of action remain relatively vague. This applies particularly to large foundations where strategic readjustments are hindered by complex structures and hierarchies, whereas in small-scale entities, decisions follow shorter, face-to-face pathways. The imperative of carving out a complex sustainability discourse in their foundations drives sense givers to activities like networking inside and outside their foundations in order to exchange ideas and build alliances, for example within the German Association of Charitable Foundations. Investment managers need first of all to develop new strategies to convince the range of stakeholders in their foundations.
Highlights
This paper examines the process of sense giving on the part of ‘change agents’ responsible for foundations’ investments
To the extent that experts in societally crucial positions are agents in discourses—that is, in processes of negotiation concerning which accepted stock of knowledge is established in a society—this type of interview is increasingly viewed as a methodological procedure that can generate insights into processes of interpretation [39]
The framing structure of the asset-responsible foundation staff interviewed can be assessed with the aid of the following frames (Figure 1), and this can highlight where sense givers see opportunities or obstacles to implementing sustainable investment
Summary
Thanks to the twofold connection of charitable foundations with civil society and asset management, they have a major potential for leverage because they have to bring their capital into sync with the aims of their foundation [1,2,3,4] In this context, innovative financing options such as crowdfunding are emerging, which enable smaller foundations in particular to be more impact-oriented, linked to the foundation’s purpose [5,6]. This rarely leads to an orientation towards sustainability in the investment strategies of foundations This gives rise to the issues of which possibilities asset-investing employees envisage and where they experience constraints with regard to sustainable financial investment. Their position is not to be confused with programme managers who concentrate exclusively on spending money on projects concerned with foundations’ goals [7], nor should it be confused with the top echelons of a foundation who are usually only concerned with the funding side
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
