NEWS RELEASE | The World’s Third Largest Charitable Foundation—A byproduct of the PtP concept

FOR IMMEDIATE RELEASEContact: Chelsea Newhouse We are pleased to announce the publication of an in-depth case study of the newest and largest foundation to emerge from the implementation of the PtP Concept, a recently discovered, but powerful, “third route” to the creation of significant, charitable endowments around the world through the capture of all or a portion of the proceeds of transactions involving the privatization of government-owned or -controlled assets. Prepared by Johns Hopkins University Professor and PtP Project Director Dr. Lester M. Salamon with the technical assistance of Dr. Juan-Cruz Alli-Turrillas, a noted authority on Spanish foundations and Professor at Spain’s National University of Distance Education (UNED), “Spain’s ‘la Caixa” Banking Foundation: A Global PtP Model” focuses on one of the largest charitable foundations in the world, with an estimated Gross Asset Value of €25.8 billion (roughly US$29 billion) at its founding, and annual philanthropic expenditures approaching €500 million. As this case study shows, this foundation emerged from the transformation during the 2009-12 global financial crisis of Spain’s network of trustee savings banks into for-profit banks, in the course of which the charitable arms and accumulated assets of the previous savings banks were transferred to free-standing, private charitable...

Continue reading

“How to Apply PtP to State-Owned Enterprises” by William L. Megginson and Lester M. Salamon

FOR IMMEDIATE RELEASE Contact: Chelsea Newhouse Governments around the world have recently been involved in a significant new wave of privatizations-sales of state-owned enterprises to private companies. The 48-month period between January 2013 and December 2016 saw governments raise more money through privatization sales than during any comparable previous period. Yet three times worth of government enterprises than the $3.5 trillion sold since 1977 still remain in government hands, many of them awaiting sale. What happens to the vast resources secured through such sales? Too often, it is difficult to determine. Stories of widespread corruption are rampant. Even when the proceeds are appropriately channeled into government budgets, however, their uses are hard to track. But these are the people’s assets, often the only real assets a population has. Surely a case can be made for handling them more responsibly and ensuring that citizens get a clearer benefit from their use. This is especially so given what is often the “upside-down” effects such asset sales can produce-yielding positive economic benefits for companies and citizens that are often long in coming and too dispersed to be clearly felt; while producing immediate harms in the form of lost jobs and community disruptions...

Continue reading

“How to Apply PtP to Stolen or Stranded Assets” by Aaron Bornstein and Lester M. Salamon

FOR IMMEDIATE RELEASE Contact: Chelsea Newhouse According to a recent UN report, close to US$4 trillion is stolen from governments or generated by bribes or other forms of corruption each year in countries around the world—an annual sum well above the total budgets of numerous developing and transition country governments. Despite often heroic efforts, however, the record of successful discovery, confiscation, and effective return for social re-use of these vast assets has been frustratingly meager. This limited success in returning such assets for effective social re-use is largely due to the complexity of the process. Also at work, however, is that so much of the attention has had to focus on the challenges of locating, documenting, freezing, and confiscating stolen assets that too little attention has been available to focus on the all-important question of what to do with these assets if and when they become available for potential return. The document being released today seeks to remedy this shortcoming by focusing on one of the most promising of the social re-use and return options available. This is the option exemplified by the case of the BOTA Foundation in Kazakhstan, and by close to 600 other foundations that have...

Continue reading

NEWS RELEASE | The BOTA Foundation: A Model for the Safe Return of Stolen Assets?

FOR IMMEDIATE RELEASE Contact: Chelsea Newhouse     We are pleased to announce the publication of The BOTA Foundation: A Model for the Safe Return of Stolen Assets?, the first in a series of reports from the Philanthropication thru Privatization Project (PtP) examining important examples of significant charitable endowments that have resulted from the sale or other transformation of government-owned or -controlled assets.   Prepared by international development specialist Aaron Bornstein and edited with an Introduction by PtP Project Director and Johns Hopkins University Professor Dr. Lester M. Salamon, this report analyzes the major example to date of the application of the PtP concept to stolen or disputed assets: the case of the BOTA Foundation in Kazakhstan, which arose from the seizure of assets totaling US$84 million that an American citizen secured from U.S. oil companies in the 1990s and channeled to high level officials in the Government of Kazakhstan in order to secure oil drilling rights in the Caspian Sea.   As such, it profiles one of over 550 charitable foundations that have emerged from some type of transaction transforming a government-owned or government-controlled asset into a charitable foundation. In the process, it helps point the way to...

Continue reading

NEWS RELEASE | A “Win-Win” Solution for Transforming the Philanthropic Landscape of the World

FOR IMMEDIATE RELEASE   With the resources and capabilities of governments and private charity 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 energies, and new resources, are urgently needed to address the world’s pressing social and environmental challenges.   Now a new book, Philanthropication thru Privatization: Building Permanent Endowments for the Common Good by Dr. Lester Salamon of the Johns Hopkins University and the East-West Management Institute, offers a novel solution to this increasingly urgent problem: capture all or a portion of the enormous privatization transactions under way around the world for autonomous charitable endowments serving the social and economic needs of citizens.   Far from an abstract idea, philanthropication thru privatization, or PtP, turns out to be a proven and effective approach for creating or enlarging charitable assets. But it has yet to be recognized as such: until now.   About Philanthropication thru Privatization  In this book, Salamon provides a first conceptualization of the PtP concept and then, working with an international team, documents over 500 foundations around the world that already embody it, including some of the largest and most...

Continue reading