Intel and the nonprofit project, One Laptop Per Child, have officially parted ways, ending a collaboration that was marked by controversy almost from the start. And now some nonprofit observers are wondering whether this is a sign that charities should be more cautious in how they work with business.

The Wall Street Journal last week reported that Intel was frustrated by constraints the nonprofit organization put on the company when it was devising its own approach to selling laptops in developing countries and decided to stop working with One Laptop.

Jack Siegel, the Chicago author of Charity Governance, writes that Intel was right to put its business needs first. But more important, he says, the failed alliance is a sign that the “so-called new philanthropy” that encourages partnerships between “innovative” nonprofit groups and businesses is unrealistic and unwise.

Mr. Siegel says such partnerships are typically viewed by businesses as “nothing but marketing campaigns to build goodwill with the public.” When pushed, companies will seek to advance their edge in the marketplace and “managers are always going to choose profits, abandoning charity.”

He says he wonders whether even “innovative” nonprofit groups “might be better off following the traditional route of seeking grants from corporate foundations” rather than looking to create alliances that may pit the goals of a business against the goals of a nonprofit cause.

What do you think? Are corporate partnerships effective for charities? Click on the comments link below this post to share your thoughts.