Financial Times FT.com

Foundations must enter commercialisation debate

By Buzz Schmidt

Published: August 26 2008 04:27 | Last updated: August 26 2008 04:27

Readers of Mike Edwards’ recent FT article (“Misguided calls for ‘business thinking’”, June 7, 2008) might expect me to rebut his thesis about the dangers of applying business thinking to philanthropy and non-profits.

My organisation, GuideStar International, reports on non-profits worldwide to support an effective philanthropic “marketplace”. Despite the business-like nature of this work, I agree with Mr Edwards. The pressure to “commercialise” social activity erodes the integrity of non-profit initiative by promoting the “concentration of activities with the greatest revenue-generating potential rather than the biggest impact on social change”.

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