On the Technical, Moral and Social Underpinnings of the Accounting for Philanthropy

Abstract

This article aims to substantiate the conception of accounting for philanthropy (AfP) as technical, social, and moral practice, according to the framework of the multidimensional nature of accounting proposed by Carnegie et al. (2021, 2023, 2024a). As a technical practice, AfP identifies, measures, records, and reports information on voluntary giving and institutional philanthropy based on models and generally accepted principles established in standards, regulations, and laws. As a social practice, AfP affects social actors and impacts on operations, evaluations, and behaviors, depending on what information is and is not collected and reported. As a moral practice, AfP is grounded in moral discernment and saturated with moral implications deriving from alternative ways to affect people, organizations, and society, to which different consequences are associated. By depicting the multifaceted nature of AfP and emphasizing its social and moral connotations, this study invites reflection on the role and potential of this practice, which extends well beyond providing limited anecdotal evidence on funds given or received. AfP can serve monitoring, signaling, and agenda-setting functions, actively contributing to the development of research, public policy, and the management of nonprofit and philanthropic organizations.