Philanthrocapitalism and the Separation of Powers

This article discusses the rise of an approach to philanthropic giving known as philanthrocapitalism. I relate it to a new paradigm in management theory that has claimed that private profit making naturally aligns with improved public welfare. I show how growing belief in the inherent “compatibility” of corporate missions and public benefits has led to new laws and contributed to major shifts in how giving practices are structured and legitimated. The original point made in this article is that the philanthrocapitalist turn is more than simply an organizational change in the structure of different philanthropic institutions. Rather, the belief that profit-making and public welfare are naturally aligned also has significant, undertheorized implications for different principles in European-American legal traditions. The ascendancy of the philanthrocapitalist approach represents a subtle but profound displacement of belief in the need for democratic checks and balances on the use of public funds for private enrichment. Expected final online publication date for the Annual Review of Law and Social Science, Volume 17 is October 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.