At some point during the twentieth century, foundations began to devote more resources towards public policy issues, diverting resources away from their traditional giving, which sought to directly improve the well being of the less fortunate. Foundations, charged with acting in the public's interest, began working in an area where the public's interest could be less well defined: the realm of ideas. In Writing Off Ideas: Taxation, Foundations, and Philanthropy, Randall G. Holcombe examines "how tax laws affect the ideas that are financed by nonprofit foundations," and explores whether the laws ensure that foundations act within the public interest when it comes to the ideas they produce.

Writing Off Ideas begins with the origins and the development of foundations, and examines their giving from a historical perspective. Holcombe focuses heavily on three foundations, Carnegie, Rockefeller, and Ford, and explores the influence these foundations have had on the funding of ideas. He follows with an examination of the public policy ideas promoted by foundations, and highlights the trends and biases of these ideas. Two questions arise: Do the ideas promoted by these foundations benefit the public welfare? And, how accountable are foundations to the public? Holcombe asserts that foundations have little accountability, outside of certain tax codes, and as to whether the ideas promoted benefit the public, no clear-cut answer exists.

The Tax Code of 1969 changed the face of foundations, and increased their accountability to the public. The remainder of the book examines the affects of this tax code on the current state of foundation giving as it relates to public policy, and how effectively the tax code renders foundations accountable. A thorough examination of donor intent, and the role of trustees, in the process of producing public policy ideas follow.

While a number of questions are raised about the efficacy of reforms, and the accountability of foundations, Holcombe concludes that "several decades later those reforms seem to have served their purpose, and at the end of the twentieth century public policy toward foundations strikes the appropriate balance between foundation and government independence."

Throughout Writing Off Ideas, Holcombe maintains a balanced tone, as he is intent on delivering information as evenhandedly as possible. The work is scholarly in nature, and though primarily concerned with the economic influences of foundations it is an absorbing study that can be appreciated by anyone interested in foundations or public policy.

For citations to additional materials on this topic, refer to Literature of the Nonprofit Sector Online, using the subject headings "Foundations-accountability" or "Foundations — analysis."