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THE PtP INITIATIVE

With the resources and capabilities of governments barely growing or in decline around the world, yet the problems of poverty, ill-health and environmental degradation ballooning daily, it is increasingly clear that new efforts, and new financial resources, are urgently needed to address the world’s pressing social, economic, and environmental challenges.
 
sidebarOne promising route to solving this dilemma may be to channel into charitable endowments all or a portion of the proceeds of privatization transactions, a process we are calling Philanthropication thru Privatization, or PtP.
 
Properly designed and executed, PtP can revolutionize the charitable landscape of countries while transforming privatization into a “win-win” process for citizens, governments, and investors alike.
 
PtP is not just an abstract idea, moreover. It is already in operation. Indeed, some of the largest and most reputable foundations in the world, such as Germany’s Volkswagen Foundation, Italy’s foundations of banking origin, New Zealand’s network of “community trusts,” Belgium’s King Baudouin Foundation, and close to 200 health conversion foundations in the U.S. have all resulted from, or been enlarged through, a PtP process.
 
Yet these developments have all proceeded in virtual isolation. No one has thought to draw a circle around them and call attention to their striking commonalities. More importantly, no one has thought to highlight the important lessons they might hold for a new approach to privatization that can yield win-win payoffs for citizens and civil society, as well as for governments and investors.

Until now.

The PtP Initiative

The PtP Initiative is the first concerted effort to pursue this option for creating indigenous charitable endowments out of the proceeds of privatization transactions. To date, the Initiative has: 

    Identified 540 PtP foundations with assets in excess of $130 billion
    Conducted case studies of 21 of these foundations
    Produced a major report, analyzing how these foundations came about and how they have performed
    Organized an Initiative Advisory Committee
    Launched several PtP Pilot Projects
    Undertaken a variety of dissemination events

Next steps include:

    Broad dissemination of the PtP idea
    Organization of additional pilot implementations
    Continued collection of examples of PtP foundations