The Unaccountable, Anticapitalist World of Large Foundations

Nonprofits and universities team up to ‘reimagine capitalism.’ 

Letters to The WSJ.

"It’s a fortunate coincidence that your editorial “‘Reimagining Capitalism’” (Feb. 24) describing the Hewlett Foundation’s $40 million foray into a redesign of our economic system appeared next to several letters critical of BlackRock’s ability to vote its policy preferences with shares owned by others. What these institutional moves share is a lack of accountability.

Until BlackRock’s Larry Fink decided that he knew better than shareholders what the right course was for the companies in which they had invested their money, large foundations such as Hewlett and Ford were probably the least accountable institutions in the country, able to indulge ideological preferences and fantasies to their hearts’ content. Anyone who inspects the output of these foundations will indeed be impressed by their “imagination” and devotion to trendy topics, but not by their due diligence, the base of knowledge on which they act or their stewardship of the money they can dispense.

It’s time to have a good look at the privileges enjoyed by these institutions, just as it is to examine the proxy privileges enjoyed by those who control other people’s shares.

Em. Prof. Donald L. Horowitz

Duke University

Chevy Chase, Md."

"Large foundations like Hewlett are not only the product of free-market capitalism, but also remain tremendous beneficiaries of it. Per its website, Hewlett’s $14.4 billion endowment is invested mostly in private and public equities, and its performance has consistently exceeded the benchmark. Its most recent tax filings disclosed almost $3.8 billion in corporate stockholdings. Capitalism drives the creation of wealth at left-of-center philanthropies no less than it does everywhere else.

Robert Stilson

Capital Research Center

Richmond, Va."