Italian Bank Foundations Research Articles

Does the Adoption of Planning and Control Tools Influence Performance? Opinions of Grantors and Grantees About Non-profit Projects

This study analyzes whether a positive association exists between foundations' adoption of accounting control tools and the perceived economic and social perfor- mance. Data are collected through a survey addressed to both decision-makers of Italian banking foundations (IBFs) and grantees that received project-related dona- tions from the same IBFs. Results show a positive association between the adoption of selected planning and control tools (i.e., definition of project budget, in-progress monitoring, and utilization of operating performance indicators) and performance. Meanwhile, a second set of more complex tools (i.e., ex-post valuation of activities, direct operative support offered from foundations to their grantees, and social key performance indicators) records a mixed association with social performance and a negative association with economic performance.

Standing in the space between fields: The interstitial power of elites in Italian banking foundations

In this article, I explore interstitiality – a concept based on Gil Eyal’s notion of ‘spaces between fields’ – as a potential heuristic lens for observing contemporary elites, applying it to high-ranking figures in the Compagnia San Paolo (CSP). CSP is a banking foundation ( Fondazione di origine bancaria or FOB) that was set up in the 1990s arising from the privatization of the Italian banking sector. After outlining the theoretical underpinnings of interstitiality, I bring the construct to bear on my own empirical work. First, I elucidate what FOBs are and why they may represent a valuable interstitial observatory on a significant segment of power elite. Second, I examine CSP as an emblematic instance of an FOB. Third, I illustrate the main characteristics of CSP’s elites, suggesting that these groups reflect the features of interstitiality insofar as: they merge logics and grammars of justification from different fields; and, given their high degree of mobility across fields, they contribute to disseminating discursive and governmental practices of hybridization. My aim, as advocated for by Mike Savage and Karel Williams, is to enrich the sociological debate on elites by introducing a new conceptual tool.

Las fundaciones de origen bancario italianas: Un espejo donde mirarnos

Este artículo estudia el nacimiento y la evolución de las fundaciones de origen bancario italianas y consta de tres partes. La primera está dedicada a la aparición de las fundaciones como resultado de la restructuración bancaria emprendida en 1990 mediante el denominado conferimento y a su evolución normativa. En la segunda se analizan aspectos tales como el mapa de fundaciones y la evolución de su patrimonio; su participación en el capital de las sociedades conferitarias; la rentabilidad de su patrimonio; sus cuentas de resultados; sus actividades institucionales y las inversiones relacionadas con el cumplimiento de su misión. El trabajo se cierra con unas conclusiones entre las que destacan dos: las fundaciones han contribuido positivamente a la reestructuración del mapa bancario italiano y a la estabilidad del sistema financiero durante la reciente crisis y, entre 2001 y 2012, han aportado 15.617 millones de euros a actividades propias de la economía social.

New opportunities for the development of smart cities in Italy: the role of banking foundations

The present study represents a theoretical contribution in the field of smart cities and banking foundations and, in particular, the paper aims to underline the opportunities and the potential benefits of banking foundations supporting the development of smart cities in Italy. We analysed the reports on strategic business plan of the period between 2017-2019, published by the eighty-eight banking foundations, the corporate governance and the internal organisation model, the notes to the financial statements and the websites of the Italian banking foundations and, through a deductive approach, we elaborated their general business model. This research, thanks to its multidisciplinary approach, contributes to the body of knowledge by providing a virtuous example of interactions and synergies between smart cities and banking foundations in Italy. This work represents the first step of a far deeper analysis and consequently future developments will constitute valid tests of core arguments deeply analysed in this context.

Boards, governance and value creation in grant-giving foundations

The non-profit sector is a sizeable and highly dynamic component of economies and societies throughout the world. The expectations placed upon non-profit organizations raise fundamental issues such as the capacity of these organizations to deliver, their accountability to the various constituencies that they serve and their capacity to create value. The effectiveness of these organizations should not be taken for granted, and it is therefore important to understand which factors affect their ability to create value. This paper investigates the relationships between the specific knowledge and experience possessed by board members and foundations’ commitment to pursue high value-added activities, such as the improvement of the performance of grant recipients or social innovation. It uses an empirical analysis to apply statistical techniques to a sample of Italian banking foundations. Our results show that, of the various types of skills and background possessed by board members, the managerial skills of business experts are particularly relevant for value creation by grant-giving foundations. The article therefore contributes to the discussion on the relationship between board skills and organizational outcomes.

When the Law Shapes Nonprofit Boards

The study investigates how governance mechanisms can affect community representation within nonprofit organizations, focusing on Italian Bank Foundations where the community is on board by law. To investigate what governance arrangements increase substantive and symbolic representation, the study adjusts Guo and Musso’s framework by considering several formal mechanisms for appointing board members and the residence of board members as a new aspect of descriptive representation. A content analysis of the statutes and an email survey show that formal mechanisms contribute to substantive representation, whereas descriptive and participatory arrangements enhance symbolic representation. In addition, this study explores the moderating influence of local stakeholders in appointing board members, offering a wider point of view on the relationships among the five dimensions of representation.

Mandatory or Not Mandatory Reporting? Insights From Italian Bank Foundations

In the Italian nonprofit field, bank foundations face an increasing demand to account for their grant activity in forms that go beyond traditional financial statements. Consequently, bank foundations have developed specific reports in accordance with a 2001 Italian law that requires a mission report to be included within financial statements. This study investigates the peculiarities of social reporting documents in terms of standards used and formal characteristics, revealing different adoption levels. Contributing to an ongoing debate, the analysis of the reporting practices underlines how the due by law on social accounting could hamper the disclosure in nonprofit organizations.

Towards community engagement in the governance of non-profit organisations

Nowadays, non-profit organisations (NPOs) face growing pressure to involve the community in their governing boards. Nevertheless, few empirical studies have been conducted on how they selfregulate community engagement in their governance. With the aim of filling the research gap on this topic, this article provides new insights into community engagement in non-profit governance, considering the case of Italian bank foundations (IBFs) in which community representation on the board is required by law, and self-regulation plays a pivotal role in defining mechanisms of engagement. Applying Guo and Musso‘s (2007) framework, a content analysis of IBFs‘ statutes highlights that detailed attention has been paid to formal procedures and descriptive representation mechanisms, while participatory arrangements are lacking. The analysis of the IBFs‘ case reveals additional mechanisms that are useful for better ensuring community representation within governance, and provides new mechanisms that could be considered by regulatory activity in NPOs where the community is on board by law.

Does the presence of member assemblies in grant-giving foundations affect levels of stakeholder engagement in mission reporting? Evidence from Italian banking foundations

Stakeholders play a fundamental role in the governance systems of non-profit organisations. Their participation in decision-making processes - especially within governing bodies and in terms of mission reporting - is an essential element for effective and coherent organisation management. The present study carries out empirical research into Italian banking foundations (IBFs), a particular kind of grant-giving foundation with specific statutory obligations towards their stakeholders, including local communities and the beneficiaries of contributions. These types of foundations are unique, featuring characteristics that could contribute to a better understanding of the role played by governing bodies among third-sector organisations in creating a system of stakeholder engagement, participation, and dialogue. Using content analysis, we studied the Annual Reports and statutes of 88 IBFs in order to verify whether the presence of a member assembly in this particular type of grant-giving foundation affects the degree of stakeholder engagement in mission reporting. The results of our study reveal a greater presence of stakeholder engagement policies and practices among foundations with member assemblies, as well as a tendency towards stakeholder management in foundations without this type of governing body.

Using Information Markets in Grantmaking: An Assessment of the Issues Involved and an Application to Italian Banking Foundations

The likelihood of success of grantmaking on large scale projects depends in general on pieces of information widely dispersed and privately held by recipients, public agencies, nongovernmental organizations and other interested parties. In this paper we discuss how philanthropists could effectively make use of suitably designed information markets to help them gathering dispersed knowledge and beliefs on the potential for social impact of innovative projects on the one hand, and in supporting the deliberation process regarding the allocation of grants on the other one.

Italian Bank Foundations: From Grant-Making to Operating

Local Authorities Funds for decades. New Patrons have crowded the fund-giving scenario with new expertise and subsidiary roles lately. Among them, Bank Foundations today represent the most deeply involved Italian Cultural Patron. Next to other grant-making foundations, Public Administrations, the National Lottery, citizens, firms, they perpetuate their fund-giving role – as savings banks – and engage in the role of destination managers of Italian cultural landscapes.Nevertheless, bank foundations are not only grant-makers. Having collected arts and heritages through their past and today’s bank investing policies and services they are now realizing their exhibiting potentials. Through a cluster analysis of bank foundations assets, main accounting results and granting performances and thanks to interviews with a verified panel, it will be discussed of strategies and polarities of grant-making and operating in the arts.

The Italian banking foundations during the financial crisis: Some thoughts on corporate governance and accounting issues

Banking Foundations are both non-profit entities and key investors in Italian banks. Since the beginning of the 1990s, they have supported their banking concerns, receiving in exchange growing dividends used to finance their granting activity. However, the recent financial crisis has severely questioned this symbiotic relationship. Due to the high concentration of their resources in the equity capital of the Italian banks, Foundations have dramatically suffered the ongoing market downturn, cutting their grants by 50% in 2011, with negative consequences on the welfare of the local communities in which they operate. The poor attention traditionally showed by Banking Foundations on the adoption of risk diversification techniques is probably due to the existence of weak corporate governance mechanisms and to the lack of transparency characterizing their financial reports. Indeed, the adoption of accounting criteria exclusively based on historical data hampers the comparability of the financial information and allows income-smoothing techniques that threaten the stewardship function of the financial documents. Therefore, this paper proposes the introduction of a mark-to-market disclosure in the Banking Foundations’ financial statements, stressing the fundamental role that financial information based on current values can play in improving the accountability process and, consequently, in increasing the efficiency and the effectiveness of the investment strategies.

Insights into preparing social reports for Italian Bank Foundations. A research note.

This study contributes to an understanding of the practice of social reporting in Italian bank foundations. Specifically, the study examines the views of the preparers of social reports. In Italy, the development of social reports for non-government organizations (NGOs) is voluntary. The research question is informed by a review of the relevant literature, which highlights key issues in relation to social reports. On the basis of this literature review the research question developed is: What is the perspective of those who prepare social reports and how did the issues identified influence in developing social reports? The research was conducted using a survey submitted to the preparers of social reports of all Italian bank foundations (BFs). The study found that social reports are mainly developed internally and there is little external assurance. Also, the study found that BFs used different media to communicate social information (e.g. internet and hard copy reports mailed to the main stakeholders). Finally, several benefits and constraints have been perceived in the preparation of social reports.