Collaboration of foundations with public administration in cross-border territories

Place leadership theory explains how collaborative leadership among local actors shapes the development of places and the well-being of local populations. Prior research has concentrated primarily on the role of public authorities in places. However, other stakeholders, such as non-profit organizations, also contribute to fulfilling the needs of local populations. This research examines local foundations, a distinct subgroup within the non-profit sector, which are committed to enhancing the quality of life in their operational areas. We build on the theoretical assumption that non-profit organizations provide services when markets and governments fail. Based on interviews with three foundations in the cross-border region of the Upper Rhine (France, Germany, and Switzerland), we investigate the role of foundations in increasing the quality of life in places. To triangulate our findings, we also interview stakeholders from the public and private sectors, target groups, and civil society organizations. Our findings show that foundations exercise place leadership through informal power, knowledge sharing, and flexible networks that foster dialogue and coordination among local stakeholders, including strong ties to public-sector actors. Their endowment-based resources enable independent project implementation and position foundations as genuine place leaders that create public value by filling those gaps left by market and government failures.