Why is the German foundations model different from the U.S. model? Does it have to do with the long and surprisingly unbroken history of foundations in Germany or rather with differences in the role of the state? Whatever the answer, this has enormous repercussions on what foundations may achieve in helping to shape public debates. Using Hirschman's model of loyalty, voice, and exit, and a definition of foundations based on seven different functions, the article explores the history of foundations in Germany and assesses their public role, both as contributors of arguments and policy papers, and as objects of public debate. It describes the amazing revival the concept of philanthropy has encountered over the last 15 years, and discusses whether this is due to long‐term political convictions or rather to short‐term political needs. Using examples taken from the 19th and 20th centuries, the article highlights a number of aspects that serve to illustrate the theoretical dilemma as to whether and to what extent highly hierarchical organisms may legitimately exist in an open heterarchical society.