Do Foundations Assess Social Impact?An Investigation of the Forces that Motivate Foundations to Evaluate Grants and Measure Organizational Performance

This paper examines the factors that influence the evaluation practices of American philanthropic foundations, using an institutional theory framework. To this end, it explores the literature, contributed by both the academic community and esteemed philanthropic practitioners, that informs understanding of organizational dynamics in general and evaluation practices in particular. From this literature emerged several propositions regarding the factors that influence evaluation practices. As part of this study, these propositions were explored through key informant interviews with representatives from eight foundations headquartered in Pittsburgh, Pennsylvania. Through this approach, this paper contributes to the field by integrating the views of academic theorists, philanthropic thought leaders, and current practitioners. Relative to evaluation practices, the most striking findings were the importance of the grantee-funder relationship, the influence of grantees, and the impact of organizational lifecycle. These insights have several implications for policy-makers and point to opportunities for further research.