Foundations as honest brokers between market, state and nonprofits through building social capital

The ability of foundations to build social capital has been considered insufficiently. Using a case study design describing a successful project with a network structure, this study presents abilities and characteristics of foundations that allow them to develop networks, norms, and trust, the core components of social capital. Based on 20 interviews, the findings come from a project of the Eberhard von Kuenheim Foundation that saved a traditional glass manufactory by involving 60 different partners, including former employees, the employment office and other state authorities, nonprofits and investors, as well as local politicians. This paper contributes to a better understanding of the role of foundations as “honest brokers” that allows them to mediate between other social actors.