Transformational philanthropy and networks of cocreated value in Canada

Abstract

This research discusses transformational philanthropy and networks of cocreated value in Canada, focusing on the top segment Canadian philanthropists who make single donations of $5 Million CAD or more. This segment of donors, who with a single gift at that level can and do “transform” organizations by creating extraordinary value with a single donation. The context for this research is the sphere of post-secondary education, specifically universities and their affiliated medical institutions. Ultimately, this research attempts to answer the following questions: Why do donors make transformational donations? What are the characteristics of a “transformational donation” and, by extension, the “transformational donor”? How does the marketing literature, and more specifically, the cocreation construct, illuminate the donating behaviour of these philanthropists? And finally, what kind of experiences between the donor and the organization result in the donor making transformational donations? This body of qualitative research concludes that the act of transformational giving is not simply a dyadic relationship between the donor and the receiving organization, nor does the gift itself benefit only the “intended” or ultimate recipients. In Project one I develop the theoretical “philanthropic exchange system,” based on the literature. Building upon this theoretical development in Project one, in Project two, I propose an evolution of the “philanthropic exchange system,” further defining it as a philanthropic social system of reciprocal exchange and cocreated value, or, a “philanthropic ecosystem” as a metaphor to understand the complex web that underpins transformational giving. Project three elaborates this metaphor, based on more informant data, and suggests a self-sustaining constellation of networks comprising symbiotic interrelationships among the stakeholders – the donor, beneficiary organizations, as well as the people and micro-communities they each serve and support. It is suggested that the actions and interactions of the philanthropists have a “compounding” or leveraged effect on the philanthropic ecosystem, resulting in value creation that transcends the original donor-beneficiary dyad and extends its impact well beyond the boundaries of the initial relationship. Based on empirical evidence, this research proposes that transformational philanthropy is embedded in a philanthropic ecosystem – one that is defined more simply upon conclusion of this research project, as a network of cocreated value.