Business Commons^™

Capstone Revival, Mary Mesele, Ruochen Lu, Quilin Jiang

School of Professional Studies

The capstone project is a culminating experience whereby students choose to research a topic that is relevant in their field of study and have been highly regarded as important learning activities. The capstone allows students to use research, analytical, problem solving and evaluation skills they have learned in the course of the graduate program. McGill indicates the benefit of the completion of a capstone project not only in gaining knowledge in capstone but also in learning how to apply the knowledge gained in other courses in the major (McGill, 2012). Currently, COPACE (College of Professional and Continuing Education) has three …

Front Matter

The Foundation Review

No abstract provided.

Editorial, Teri Behrens, Michael Quinn Patton

The Foundation Review

No abstract provided.

The Blandin Foundation: The Journey To A Theory Of Philanthropy, Kathy Annette, Wade Fauth, Allison Ahcan

The Foundation Review

The Blandin Foundation, located in Grand Rapids, Minn., is one of the few foundations focused on rural communities.

The foundation’s trustees commissioned the senior leadership team in 2007 to undertake serious, sustained, and annual assessments of the foundation’s work and impact. The first assessments focused on the ways in which they were delivering on the strategic plan, observations about impact, and potential adjustments.

After focusing on strategies, foundation leadership asked themselves what their theory of change was. This question led to a deeper process of exploring why and how they do their work, eventually leading them to a theory of …

Back Matter

The Foundation Review

No abstract provided.

The International Humanity Foundation Co-Director Training Program, Indonesia: Supporting International Volunteers, Christina Darling

Capstone Collection

The following capstone paper takes a critical look at international volunteer programs and the potential negative consequences these programs may inadvertently have on the host community. The current volunteer Co-Director program at the International Humanity Foundations (IHF) is an archetype of this phenomenon. This paper examines the ways in which IHF falls short in achieving its mission and warns of the possible neo-colonial impact its Western volunteers may be having on the local communities around IHF’s centers.

The International Humanity Foundation Co-Director Training Program, Indonesia has been created in an effort strengthen IHF’s existing program by minimizing any negative impacts …

Executive Summaries

The Foundation Review

No abstract provided.

A Foundation's Theory Of Philanthropy: What It Is, What It Provides, How To Do It, Michael Quinn Patton, Nathaniel Foote, James Radner

The Foundation Review

This article argues that philanthropic endeavors should be undergirded by a theory of philanthropy. Articulating a theory of philanthropy is a way for a foundation to make explicit what is often only implicit, thereby enabling internal and external actors to pose and resolve significant questions, understand and play important roles more fully and effectively, and improve performance by enhancing alignment across complex systems.

A theory of philanthropy articulates how and why a foundation will use its resources to achieve its mission and vision. The theory-of-philanthropy approach is designed to help foundations align their strategies, governance, operating and accountability procedures, and …

Influences Of Venture Philanthropy On Nonprofits’ Funding: The Current State Of Practices, Challenges, And Lessons, Tamaki Onishi

The Foundation Review

This article looks at the current state of venture philanthropy practices in the nonprofit sector, based on data from a survey of 124 nonprofits that engage in venture philanthropy.

The survey probes to what degree nonprofit funders are implementing core activities of venture philanthropy – use of market-based funding instruments, providing strategic assistance, board participation, and use of social and financial performance criteria.

Seven venture philanthropy organizations were also interviewed for this article. Various tactics they have used to mitigate internal and external tensions are examined, including complying with diverse interests to balance conflicting views if internal tension is moderate …

The Theory Of Philanthropy Of The Alberta Family Wellness Initiative, James Radner, Nathaniel Foote, Michael Quinn Patton

The Foundation Review

This article presents the theory of philanthropy of the Palix Foundation, which seeks to improve health and wellness outcomes for children and families in Alberta, Canada, by mobilizing and applying knowledge about brain and early childhood development and the link to lifelong mental health and addiction outcomes.

Through years of intuitive exploration and adaptation, the foundation evolved its role to include brokering access to the latest scientific knowledge, convening key players in multiple forums to explore applying that knowledge, and serving as a learning partner to public systems and communities in Alberta.

Following evaluation of a major phase of the …

Reflections And Commentary On A Theory Of Philanthropy, Michelle Gagnon, Nathaniel Foote, Michael Quinn Patton, James Radner, Patricia Patrizi, John Bare, Kay Sherwood, Teresa Behrens

The Foundation Review

No abstract provided.

When Backbone Organizations Become The Funder: The Use Of Fiscal Intermediaries In The Context Of Collective Impact, Jewlya Lynn, Kirsten Breckinridge, Ashley Denault, Chris Marvin

The Foundation Review

Intermediary organizations are increasingly being engaged to work with grantees in the context of collective impact and similar collaborative approaches that aim to solve significant societal problems. At times the backbone organization – the group providing support to the collective effort – takes on the work of a fiscal intermediary. This dual role has two distinct functions: engagement of collaborative partners to advance a shared agenda, and distributing funds while holding those partners accountable.

This article explores the complexities of the dual relationship by using examples from the Social Innovation Fund, a White House initiative, and Got Your 6, a …

Place-Based Initiatives: Lessons From Five Decades Of Experimentation And Experience, James M. Ferris, Elwood Hopkins

The Foundation Review

This article summarizes the findings from a yearlong inquiry into the state of place-based initiatives, underscores the lessons learned, and develops implications for foundation practice.

Place-based approaches have matured in response to five decades of historical change. In more recent years, a new framework for such initiatives has emerged that views place as an open system where neighborhoods are aligned with larger areas and influenced by market forces and public policy. Consequently, place-based initiatives targeted to a specific neighborhood are only part of any solution.

Seven key lessons emerged from this inquiry that animate a renewed sense of the possible …

Constancy And Change In The Women’S Funding Network: International Horizons And Core Values, Eleanor Brilliant

The Foundation Review

This article is a case study of women’s advocacy funders and their network organization, the Women’s Funding Network (WFN). WFN developed in the context of alternative (targeted) private funding sources emerging in the 70s and 80s to support newly formed social action and identity groups, some of whom had been encouraged by federal programs before the Reagan era, but that in those years were also not receiving support from more traditional funders like the United Way and many foundations.

The author analyzes the evolution of the network and its member funds from 1985 to 2012 as they struggled for survival …

Understanding Collective Impact In A Rural Funding Collaborative: Collective Grantmaking In Appalachian Ohio, Judith Millesen

The Foundation Review

This article documents the history and work of the Appalachian Ohio Funders Group, a ninemember regional grantmaking collaborative committed to strategically enhancing the region’s assets through leadership, networking, financial and in-kind investments, leveraged resources, and collaboration.

The work of the collaborative is positioned within the broader context of recent publications examining funder collaboratives, networks, and collective impact as ways to address social problems, achieve economies of scale, and inspire innovation. Specific attention is given to what makes the collaborative unique – namely, the organizational diversity of the funding partners, the lack of a shared issue area, and the fluidity of …

Creating Choices Before Making Choices: One Family Foundation’S Journey To Finding A Strategic Focus, Kelly C. Medinger, Angela R. Logan

The Foundation Review

Rooted in business principles, philanthropic study, and reflective practice, this article examines the journey of the Marion I. & Henry J. Knott Foundation, a small family foundation established in 1977, toward a strategic grantmaking focus.

This article examines a foundation’s first step toward building a grantmaking strategy – finding an issue or problem to address – alongside a three-part model for creating choices that reflect donor intent, organizational talents and resources, and broader community needs.

The study adds to the body of knowledge about the value, process, and challenges of finding a strategic grantmaking focus, whether that focus is for …

Mud Volleyball Tournament Fundraiser Event Supporting The Water Project, Autumn Gammon

Honors Theses

The WMU Mud Volleyball Tournament took place on September 26, 2015 as Autumn Gammon and Morgan DeBoer’s honors thesis project for the Lee Honors College. The tournament was a fundraising event that helped bring awareness to The Water Project, a non-­‐profit organization that is dedicated to bringing clean water systems to communities throughout Sub-­‐Sahara Africa. Held at the Kalamazoo County Expo Center and Fairgrounds, the event brought together Western Michigan University students and surrounding community members for a fun-­‐filled day in the mud supporting a deserving cause.

The event took a great deal of organizing, with planning starting in the …

Take Two Tablets And Do Not Call For Judicial Review Until Our Heads Clear: The Supreme Court Prepares To Demolish The 'Wall Of Separation' Between Church And State, Terence Lau, William Wines

Terence Lau

In this article, we examine the issues that bring First Amendment jurisprudence to the grant of certiorari in Pleasant Grove v. Summum, scheduled for oral argument in the Supreme Court of the United States in November. We examine the historical basis for America’s religious heritage, the historical judicial treatment of the religious clauses, and the erosion of the wall of separation between church and state. We examine the Ten Commandments, finding inherent discrimination present in modern-day attempts to advance a particular version of the Ten Commandments as secular. By drawing upon Rousseau’s civic religion, we suggest alternative routes for the …

Attitudes Toward And Behavioral Intentions To Adopt Mobile Marketing: Comparisons Of Gen Y In The United States, France And China, Rebecca Wells, Catherine E. Kleshinski, Terence Lau

Terence Lau

The rapid global diffusion of mobile marketing makes it increasingly important to understand cross-­‐cultural consumer attitudes and behavioral intentions toward mobile marketing as a promotional channel. By building on the previously published research of Altuna and Konuk (2009), this work investigates the attitudes and behavioral intentions toward mobile marketing of Generation Y consumers in the United States, France, and China. Based on this analysis, Chinese Gen Y have the most positive attitude toward mobile marketing, and their overall attitude is significantly more positive than the attitudes of French and American Gen Y groups. While American Gen Y's behavioral intentions are …

Segment Disclosures Under Sfas No. 131: Has Business Segment Reporting Improved?, Donna Street, Nancy Nichols, Sidney Gray

Donna L. Street

In response to user concerns regarding segment reporting, the FASB issued SFAS No. 131, Reporting Disaggregated Information about a Business Enterprise, in 1997. SFAS No. 131 became effective for fiscal years beginning on or after January 1, 1998. This research examines the segment disclosures of U.S. Global 1000 companies for both 1997 and 1998 to ascertain the impact and effectiveness of SFAS No. 131 in practice. Specifically, this research considers whether the new requirements have resulted in:

• A greater number of line‐of‐business (LOB) segments for some enterprises, particularly those who claimed to operate in one LOB under SFAS No. …

Compliance With Disclosure Requirements At Germany's New Market: Ias Versus Us Gaap, Martin Glaum, Donna Street

Donna L. Street

This research examines compliance with both International Accounting Standards (IAS) and United States Generally Accepted Accounting Principles (US GAAP) for companies listed on Germany's New Market. Based on a sample of 100 firms that apply IAS and 100 that apply US GAAP, we investigate the extent to which companies comply with IAS and US GAAP disclosure requirements in their year–2000 financial statements. Compliance levels range from 100% to 41.6%, with an average of 83.7%. The average compliance level is significantly lower for companies that apply IAS as compared to companies applying US GAAP. This study provides the first systematic evidence …

Factors Affecting Md&A Disclosures By Sec Registrants: Views Of Practitioners, Ann Tarca, Donna Street, Walter Aerts

Donna L. Street

This study identifies factors influencing the preparation, scope and content of management discussion and analysis (MD&A) reports provided by SEC registrants. We interviewed U.S., Canadian, U.K., and Australian financial executives during the period December 2009 to May 2010 to better understand how the reporting environment affects managers’ ability to provide useful disclosures. Interviewees agree MD&A should be "through the eyes of management"; however, many describe a tension between statutory requirements and providing relevant information for investors. Some believe MD&A is useful for analysts and investors as a summary of the past year and by functioning as a benchmark. Interviewees frequently …

Ifrs Teaching Resources: Available And Rapidly Growing, Robert Larson, Donna Street

Donna L. Street

With the rapid adoption of International Financial Reporting Standards (IFRS) around the world, accounting practitioners, educators, and students are in great need of IFRS instructional materials. This article provides a compilation and review of IFRS teaching resources based primarily on presentations made at a series of IFRS Teaching Workshops sponsored by the IFRS Foundation Teaching Initiative and the International Association for Accounting Education and Research (IAAER). With the purpose of helping those teaching IFRS, especially those with limited prior IFRS teaching experience, we provide detailed information so educators can easily access and use these resources. Several different IFRS teaching strategies …

Besser Pharma: International Accounting For Pensions, K. Geary, Donna Street

Donna L. Street

The purpose of the Besser Pharma case is to bring an international perspective to the coverage of pension accounting. Students are required to read U.S. and international pension accounting standards, complete financial statement research on the pension plans of Besser's competitors, and answer, in a memo to Besser Pharma's CFO, a series of questions about alternative accounting approaches permitted by International Accounting Standard No. 19, Employee Benefits.

The Predictive Ability Of Geographic Segment Disclosures By U.S. Companies: Sfas No. 131 Vs. Sfas No. 14, Bruce Behn, Nancy Nichols, Donna Street

Donna L. Street

This research considers whether recent modifications to segment reporting adequately address analysts' concerns regarding the usefulness of geographic data. Forecast errors for models utilizing SFAS No. 131 geographic sales data are compared to forecast errors for models utilizing SFAS No. 14 geographic sales data. The results indicate a significant improvement in the predictive accuracy of geographic sales disclosures provided under SFAS No. 131. Additional analysis suggests this enhanced predictability may be associated with the revised requirements that companies report sales for the country of domicile and for each individually material country. Overall, our findings appear to support the FASB's argument …

Have ‘European’ And Us Gaap Measures Of Income And Equity Converged Under Ifrs? Evidence From European Companies Listed In The Us, Sidney Gray, Cheryl Linthicum, Donna Street

Donna L. Street

The EU's adoption of IFRS, combined with the SEC's removal of the US GAAP reconciliation requirement for non‐US registrants reporting under IFRS, signifies a major shift toward the acceptance of global standards. Based on 20‐F reconciliations provided by the population of US-listed European companies filing IFRS‐based statements with the SEC in 2005, we examine whether "European" and US GAAP measures of income and equity converged under IFRS. We find that during the period immediately preceding IFRS, for our sample companies, European and US GAAP measures are generally comparable in respect of income and equity. However, as an exception to the …

The Relationship Between Competition And Business Segment Reporting Decisions Under The Management Approach Of Ias 14 Revised, Nancy Nichols, Donna Street

Donna L. Street

This research addresses the relationship between industry competition and managers’ choice regarding whether to separately disclose a business segment following the adoption of International Accounting Standard 14 Revised (IAS 14R) and the management approach to segment determination. Logistic regression reveals a significant negative relationship between disclosure and company returns in excess of the industry average.

Prior research indicated a significant relationship between disclosure and abnormal returns under the industry approach to segmentation. Our results provide evidence that this flexibility persists as managers maintain their ability to aggregate segments to protect excess returns under IAS 14R and the management approach. Our …

The G4'S Role In The Evolution Of The International Accounting Standard Setting Process And Partnership With The Iasb, Donna Street

Donna L. Street

Between 1992 and 2001, representatives of the G4 national accounting standard setting bodies and the International Accounting Standards Committee (IASC) participated in a working group known as the G4+1. Immediately following the formation of the International Accounting Standards Board (IASB), the G4 announced that the working group would no longer meet. Alternatively, the G4 national standard setters would form a partnership with the IASB via liaison representatives.

This paper focuses on the objectives and mission of the G4+1, the G4's relationship with the IASC, the impact of the G4 on the restructuring of the IASC to establish a quality independent …

Large Firms Envision Worldwide Convergence Of Standards, Donna Street

Donna L. Street

Currently, the largest accounting firms1 are working diligently in conjunction with their partners in the International Forum on Accountancy Development (IFAD) to achieve their vision of raising national accounting and auditing standards worldwide to meet or exceed internationally recognized benchmarks. An awareness of the ongoing activities of the firms and their IFAD partners to improve financial reporting, accountability, and transparency worldwide is crucial if other members of the accounting community, including educators, are to support and, more importantly, actively participate in these efforts. IFAD was formed in 1999 on “the premise that the expertise of the accounting profession and the …

Convergence With Ifrs In An Expanding Europe: Progress And Obstacles Identified By Large Accounting Firm's Survey, Robert Larson, Donna Street

Donna L. Street

The International Accounting Standards Board (IASB) acquired greater legitimacy and stature when the European Union (EU) decided to require all listed companies to prepare consolidated accounts based on International Financial Reporting Standards (IFRS) beginning in 2005. This study examines the progress and perceived impediments to convergence in 17 European countries directly affected by the EU's decision. These include: (1) the 10 new EU member countries, (2) EU candidate countries, (3) European Economic Area (EEA) countries, and (4) Switzerland. We utilize data collected by the six largest international accounting firms during their 2002 convergence survey. Additionally, we analyze subsequent events and …