Who’s Doing Good?

5 February 2018 - 11 February 2018

This weekly brief is a one-stop shop for selectively curated news on “doing good.” From mega-donations and CSR to nonprofits and social enterprises, “Who’s Doing Good?” keeps you up-to-date with the ever-bustling market of philanthropy and charity in Asia.

THE GIVERS

Chinese home appliance-maker’s founder tops the list of China’s top 100 philanthropists for the first time. He Xiangjian, founder of Midea Group Co., Ltd., donated 6.8 billion yuan (US$1.09 billion) to charity last year, topping for the first time the list of China’s top 100 philanthropists published by Beijing Normal University’s China Philanthropy Research Institute. According to the same report, the top 100 givers in China donated a total of 23.3 billion yuan (US$3.68 billion). In comparison, the top 50 givers in the United States donated US$12.2 billion to charity in 2016.

In the wake of the Hualien earthquake, donations from Taiwanese philanthropists pour in. Including those from ultra-high-net-worth philanthropists, total donations (as of February 8, 2018) to disaster relief funds for people affected by the earthquake in Hualien, Taiwan, is reported to have exceeded NT$600 million (US$20.42 million). List of notable companies and organizations includes: Hon Hai Precision Industry, Formosa Plastics Group, Lin Rung San Foundation of Culture and Social Welfare, Union Bank of Taiwan, Pegatron, and Fubon Financial Holding.

Prince Charles launches education impact bond for India. With the support of the British government’s Department for International Development, Comic Relief, the Mittal Foundation, the UBS Optimus Foundation, and philanthropists like Sir Ronald Cohen, the US$10 million Development Impact Bond (DIB) aspires to help improve education for over 200,000 children in India. The DIB is the largest bond of its type in South Asia and is the latest fundraising initiative by the British Asian Trust, which was set up by Prince Charles in 2007 to fight poverty in South Asia.

THE THINKERS

SK plans to launch research unit on social enterprises. In March, the South Korean conglomerate will establish and fund a nonprofit research foundation on issues relating to social enterprises. Chey Tae-won, Chairman of the SK Group, has been a longtime supporter of social enterprises in Korea.

THE NONPROFITS

Doctor and his healthcare charity win the The Straits Times Singaporean of the Year award. Dr. Goh Wei Leong and his team have been named The Straits Times Singaporean of the Year, an award organized by The Straits Times and sponsored by UBS Singapore. Dr. Goh co-founded HealthServe, a healthcare charity in Singapore that provides migrant workers with affordable healthcare and other social services.

THE BUSINESSES

Hyundai Motor supports the 2018 PyeongChang Winter Olympics by providing 4,100 vehicles and ₩50 billion (US$46.95 million) donation. On top of the logistical and financial contributions it has made to PyeongChang, Hyundai has been an active supporter of winter sports in Korea, developing upgraded bobsleighs and providing coaching staff for the country’s national team.

THE INNOVATORS

Grab and the International Federation of Red Cross and Red Crescent Societies (IFRC) join forces to raise funds for supporting vulnerable communities. Grab is Southeast Asia’s leading on-demand transportation and mobile payments platform, and its customers will now be able to convert GrabRewards loyalty points to a donation to the IFRC. Such partnership is the IFRC’s first fundraising initiative globally to use a smartphone application.

The Tata Trusts launches the “Social Alpha Energy Challenge” to find high-impact innovations that could catalyze system change in the field of energy. The challenge is managed and run by the Tata Trusts’ Foundation for Innovation and Social Entrepreneurship (FISE), which supports innovative, technology-based solutions for social impact. It specifically focuses on clean technology, sustainability, and energy efficiency and will select a maximum of 10 winners, whose ideas will receive incubation and other forms of support from the Tata Trusts.

THE VOLUNTEERS

Charity and volunteerism help fight aftermath of the Hualien earthquake in Taiwan. On top of the reported total of NT$600 million (US$20.42 million) in charitable donations, many are offering to help as volunteers utilizing their resources and skills. Hsu Tang-yu from Taichung, for example, showed up in Hualien to provide rescue workers with bowls of noodles from her mobile ramen cart, while a team of traditional Chinese medicine practitioners set up a station to treat rescue workers’ back pain and sore muscles.

THE TRUSTBREAKERS

A Hong Kong millionaire’s bribery case in Africa shows another incident where a donation and NGO status are abused as a bribery vehicle. Chi Ping Patrick Ho, former Hong Kong Home Affairs Secretary and founding chairman of an energy NGO registered in Hong Kong and the United States, was alleged to have drafted a letter to the President of Chad expressing a Chinese company’s desire to make a US$2 million “donation” to support “social and other programs as [the President] see[s] fit.” Ho’s bail application and request to be put under house arrest were rejected.

Pragmatic Philanthropy: Asian Charity Explained

Palgrave Macmillan, January 2018

“We must create a civilization where we can realize the best of human potential. This book helps us to understand how this vision is being realized in Asia today.” (Muhammad Yunus, Nobel Laureate and Founder, the Grameen Bank)

“In today’s world, leaders must rely on partnerships that connect across business, government and civil society. In Asia, partnerships are in evident display. Ruth Shapiro tells us how they help address our shared problems in ways that create win-win solutions.” (Dominic Barton, Managing Director, McKinsey & Company)

“Charity has had a long and noble history in Asia.  It has not however, been the study of much research or documentation.  Pragmatic Philanthropic makes an important contribution to understanding the way in which social investment in Asia takes place.” (Victor K. Fung, Group Chairman of the Fung Group)

“Kiva is working in 80 countries.  While some aspects of our work are consistent throughout the world, we have learned that it is essential to have on the ground knowledge in each of the localities where we make loans available.  We must have trust worthy local partners and be familiar with local laws and practices. Dr. Ruth Shapiro’s insights come from decades of work in Asia. This book provides a very helpful view into the way philanthropy and other types of social investment gets done in the region.” (Premal Shah, Co-Founder & President, Kiva)

“As every great social entrepreneur knows, and as the Skoll Foundation has learned from our work with them, context matters. What works in Bangladesh may not translate to Indonesia, and vice versa. Successful social investment depends upon local knowledge and uptake, as Ruth Shapiro demonstrates in this valuable volume. Here she shares insights gained from her work in Asia together with some of the world’s most promising philanthropists. Pragmatic Philanthropy: Asian Charity Explained is essential reading for change-agents working across the Asian continent, and for those seeking to support them.” (Sally Osberg, President and CEO, Skoll Foundation)

“We are beginning to see dramatic increases in interest and activity in philanthropy in China and throughout Asia.  We also need to see a commensurate degree of research and understanding of the sector.  This book is a worthwhile effort to help close the gap between interest and impact.” (Xiulan Zhang, Professor and Former Founding Dean, School of Social Development and Public Policy, Beijing Normal University, China)

“Although non-profit corporations have been in existence in legal sense since 1898, the Kobe earthquake of 1995, followed by other natural disasters have been a wake-up call for Japan. We see the need for citizens to be active in addressing our shared concerns whether they are helping vulnerable people or reconstructing a devastated area.   Studies like the one carried out by the Centre for Asian Philanthropy and Society help us to learn valuable lessons about what works in taking on these roles.” (Tatsuo Ohta, Chairman, The Japan Association of Charitable Organizations)

“This book exemplifies the reason that I agreed to go on the board of the Centre for Asian Philanthropy and Society – it provides world-class analysis to a field that is understudied and misunderstood.  For too long, philanthropists have worked from the premise that the rigor and analysis they use in their businesses are not applicable to their charitable investments.   The opposite is the case as these types of investments are more difficult to measure and can touch the lives of many.  Dr. Ruth Shapiro’s book helps us to understand the dynamic nature of the Asian philanthropic sector and make more informed choices about how we invest our time and our resources.” (Elizabeth Eder Zobel de Ayala, Chairman, Teach for the Philippines)

“More and more people are thinking about philanthropy in a more methodical, intelligent way.  It is important to understand deeply the issues you are dealing with and support solutions that make the most impact.  Grounded in  research and evidence, this book helps us to see how this trend is accelerating across Asia.” (Jamshyd Godrej, Chairman, Godrej and Boyce)

“Our own Trust Barometer shows that trust is in crisis around the world.  Non-profit organizations tend to be more trusted than governments and companies but even their numbers are going down.  In Asia, this lack of trust has significant ramifications for philanthropy and the charitable sector.  This book helps us to understand why trust is in such short supply, why this matters and what we can do about it.” (Richard Edelman, Chief Executive Officer, Edelman)

“The Djarum Foundation’s work is grounded in community help, tolerance and mutual assistance.  These are values that are integral to who we are and are shared by many in Indonesia and throughout out Asia.   Pragmatic Philanthropy explains how these values underpin programs and practices of helping each other in Asia.” (Victor Hartono, Chairman, The Djarum Foundation)

Philanthropy in Asia needs a push from good government policies

South China Morning Post

Ruth A. Shapiro says that governments in the region must send strong signals that they value philanthropy through tax incentives and other policies. This could encourage a more systematic approach to giving and spark innovation in the social sector.

The Centre for Asian Philanthropy and Society has just released its inaugural Doing Good Index, which looks at the factors that both enable and hinder philanthropy and other kinds of private social investment in Asia. We found that Asia has enormous potential to do good. If Asia were to donate the equivalent of 2 per cent of its GDP, the same as the United States, it would unleash US$507 billion (HK$3.9 trillion) annually. This is more than 11 times the foreign aid flowing into the region every year and one-third of the annual amount needed globally to meet the sustainable development goals by 2030.

We did this study after understanding several important dichotomies affecting Asia and its social sector. First, there is enormous wealth being created in Asia but still incredible and at times tragic need. Second, while there is a long history of charity in Asia, philanthropy, or the systematic approach to doing good, is relatively new. Third, while many on the ground are carrying out extraordinary efforts to help relieve suffering and need, there is often a debilitating lack of trust towards the sector. Last, many Asian governments realise that philanthropy is growing and are reacting by crafting new policies and regulations that both encourage and control its flow.

The Doing Good Index is an ambitious initiative. Supported by donors in Asia, the team worked with 34 partners from 15 economies to survey 1,516 social delivery organisations and 80 experts. They answered questions about a range of factors that influence philanthropic capital. The questions fell into four categories – regulations, tax and fiscal policies, procurement and ecosystem. The first three are government-driven, while ecosystem looks at the role that people, communities, companies and universities are playing in addressing social challenges and nurturing the social sector.

We find that people are ahead of government: on average, Asian economies perform better in the ecosystem category than in the other three. Society is rewarding philanthropists and organisations in the social sector. Public recognition and awards are becoming more prevalent in most economies we studied. Many are volunteering both through their companies and on their own, people are serving on boards, and universities are offering classes in philanthropy and non-profit management.

Our study also shows that the right policies and incentives do matter. Tax subsidies contribute a great deal towards the propensity to give across income levels and have an important signalling effect. Asian philanthropists are pragmatic. People want to help their communities but also want to do this in ways that are aligned with their own government’s goals. When a government signals that philanthropy is appreciated, it has a positive influence on giving.

The right policies can address the trust deficit and mitigate the deleterious effect on philanthropy. Many social delivery organisations in Asia are endeavouring to become more transparent and accountable. In our study, 75 per cent of those surveyed have a website and 86 per cent have a board of trustees with nearly all reporting regular board meetings. Organisations in 13 of 15 economies are required to submit an annual report. The right regulations create a culture of accountability and facilitate the ability of organisations to report.

However, regulations need to be calibrated to reduce friction in the social sector and facilitate its growth. In some economies, organisations need to work with many government agencies, with one country having 15 different ministries all with different reporting requirements. This puts a burden on non-profit organisations and encourages underreporting.

Last, the social sector is vastly understudied. There is very little reliable data. For the Doing Good Index, we had to create the data from scratch. More information about philanthropy can help address the trust deficit and showcase which practices, models and policies are best in class. There is no dearth of humanity, creativity and commitment in Asia.

The key is to put systems and practices in place that allow us to learn from each other, contribute to our communities and help Asia become a global philanthropic leader and a centre for social innovation.

Ruth A. Shapiro is founder and chief executive of the Centre for Asian Philanthropy and Society.

This article appeared in the South China Morning Post print edition as: Right policies can boost Asian philanthropy.

This article ran originally in the South China Morning Post.

Doing Good Index 2018

Maximizing Asia's Potential

The inaugural Doing Good Index examines the enabling environment for philanthropy and private social investment across 15 Asian economies. Composed of four areas–tax and fiscal policy, regulatory regimes, socio-cultural ecosystem, and government procurement–the Index reveals how Asian economies are catalyzing philanthropic giving.

If the right regulatory and tax policies were in place, Asian philanthropists could give over US$500 billion, contributing to the US$1.4 trillion annual price tag needed to achieve the Sustainable Development Goals.

The Index serves as a unique and useful body of data for Asian governments, as well as for nonprofits, foundations and charities in Asia, to learn from each other. At a time when policy is evolving, the social sector is growing, and interest in philanthropy is rapidly developing, the DGI shows the potential for Asia to leapfrog and become a leader in social innovation.*

*The latest version as of 19 January 2018 is available for download now.

Asia’s embrace of social enterprises: governments lean in

Philanthropy Impact Magazine, Autumn 2017

Asia is awash with enthusiasm for social entrepreneurship, and Asian governments are demonstrating their faith in it not only with ancillary services but with cold, hard cash.

This article looks at government support for social entrepreneurship, particularly in India, South Korea, Hong Kong, Singapore, and Thailand.

This article was first published in Philanthropy Impact Magazine.

Hong Kong’s spirit of charitable giving is strengthened by its history, laws and belief in education.

South China Morning Post

Hong Kong outperforms larger markets in its donations, thanks to vivid memories of past poverty, belief in the life-changing power of education, and faith in the rule of law that many other Asian economies lack, writes Dr Ruth Shapiro in the South China Morning Post.

The Charity Aid Foundation recently released its annual World Giving Index. To collect data for the survey, people are asked if, over the past month, they have helped a stranger, donated money to a charity or volunteered time at an organisation. Hong Kong ranked 25th out of the 139 economies in the survey, with 43 per cent saying they had done at least one of these activities in the last month.

The index offers one lens to see how charitable people are but there are other means to evaluate giving. Last December, the chairman of our board hosted a dinner in Hong Kong for Rafael Reif, president of MIT. He noted that among those attending were some of the largest contributors to Harvard, Yale, the University of Southern California and a host of other universities.

John Wood, founder of the charity Room to Read, noted that Hong Kong had consistently been one of its top four fundraising regions and “punches way above its weight, outperforming larger markets such as Australia, Switzerland and Canada”. Each year, around 10 per cent of its global fundraising comes from Hong Kong alone.

Why has Hong Kong come to be such a philanthropic centre? A mixture of Chinese values, unusual history and commitment to a strong legal foundation have worked together to underpin this largesse.

First, in recent decades, much wealth has been made in Hong Kong. From 1990 to the present, Hong Kong’s per capita gross domestic product has grown from US$5,000 per year to more than US$38,000 in 2013. Many people have done extremely well and have enough disposable income to be quite generous. Additionally, many can still recall a time when their families did not have enough. According to Forbes, there are more than 55 billionaires living in Hong Kong, ranking it seventh in a list of territories by that measure.

The second reason is that Chinese people have always greatly valued education. A proverb says, give a man a fish and feed him for a day, teach him to fish and feed him for a lifetime. According to Harvard’s Kennedy School 2015 report, China’s Most Generous, 57.5 per cent of total giving from China’s top philanthropists goes to education. According to Coutts, in 2014, the single largest recipient of donations in Hong Kong was the University of Hong Kong. The great majority of the Centre for Asian Philanthropy and Society’s benefactors support education generally and scholarships in particular.

Hong Kong’s devotion to social investment dates to at least its establishment as a British colony in 1841. The British, with limited numbers, were unable and at times unwilling to provide many social services. They encouraged the creation of local self-help organisations to address social issues. Thus, Hong Kong people’s tendency not to rely on government but organise citizen-driven social efforts is embedded in the DNA of our city.

Of the 395 non-profit organisations listed in the city’s Directory of Social Services Organisations in 2016, 49 per cent of their total income comes through government contracts and project funds. This is the highest amount of government support to independent non-profit organisations in all of Asia.

When the government procures the products and services of social delivery organisations, there is an implicit endorsement and validation of their work. This is important as a signal to the public at large that social delivery organisations are credible, important players in the community. There are many governments in Asia and around the world who do not procure services from social delivery organisations at all. Hong Kong stands in stark contrast.

Hong Kong also has philanthropic organisations as part of its social fabric. After the second world war, when Hong Kong struggled to overcome the destruction caused by the war, the Hong Kong Jockey Club created its foundation to channel a significant portion of its funds to charitable causes. Since that time, the Jockey Club Foundation has become the most important philanthropic institution in Hong Kong. The formation and success of the foundation has cemented the linkage between wealth, entertainment and charity in the minds of Hongkongers.

The last critical factor of Hong Kong’s philanthropic strength has been the rule of law. Throughout Asia, the lack of trust that people feel towards non-profit organisations is profound. The Centre for Asian Philanthropy and Society attributes this lack of trust to several factors, including a murky regulatory environment around NGOs and the prevalence of headline-grabbing stories of fraud and fiscal abuse. In Hong Kong, the laws have been and remain clear and there has been a noticeable absence of scandals involving non-profit organisations. Hong Kong people trust social delivery organisations to carry out legal, helpful and important work.

Many of the things that make Hong Kong successful are unique – its geography, its governance, its people. But there are factors in place in Hong Kong which are helpful to foster philanthropy in any economy. Philanthropy thrives under the conditions it promotes: belief in education, government support of non-profit efforts, and the strong rule of law. Together, they encourage the giving and receiving of philanthropy to allow an easy and transparent way for those who want to improve society, both in Hong Kong and around the world.

This article ran originally in the South China Morning Post.

A Virtuous Economy

Hong Chi Association: Creating Green Opportunities for Hong Kong’s Disabled Workers

Through a unique tri-partite collaboration, Hong Chi Association has kick-started a glass bottle recycling project that has provided disabled workers with valuable life skills while changing public attitudes to the environment.

Hong Chi, formerly known as the Hong Kong Association for the Mentally Handicapped, was established in 1965 as a school and care site for just four students, the parents of whom championed the cause for an educational center and environment for their handicapped children. In 1997, the name of the association changed to Hong Chi: in Chinese “Hong” means “to assist,” and “Chi” refers to “the intellect,” reflecting the organization’s founding mission to assist mentally handicapped people to develop their potential as valuable members of society.

Within three years of Hong Chi’s founding, the school had expanded to 70 students across two campuses. With the help of dedicated teachers and the early recognition of these students’ potential, some graduates went on to find work. At a time when there were no resources to support mentally handicapped individuals, nor was there a support system for their families, Hong Chi stepped into the breach. Today, it is dedicated to serving over 7,000 people of all ages and levels of intellectual disabilities. It operates 81 services that provide special education, job training, sheltered and supported employment, and adult education, among other things that are vital to supporting Hong Kong’s people with intellectual disabilities (PID) to live their lives to the fullest.

Haven of Hope: Helping the Elderly, Sick and Handicapped of Hong Kong

Care for the Body and of the Spirit

The case of Haven of Hope Christian Services (Haven) tells how a faith-based organization can stay true to its founding mission and values while responding to the tremendous growth of the community it serves. It tells how committed leaders, managers and staff integrate medical and social services to help comfort people in need, physically and spiritually.

Today, Haven of Hope Christian Service’s integration of medical and social services occurs at 46 locations, and has so far benefited about 100,000 people. It employs doctors, nurses, occupational therapists, physical therapists, social workers and personal care workers. Many reverends lead regularly scheduled services at its facilities, which often include chapels. Medically, it focuses on chronic disease and mental or physical disability rather than acute illness. It also focuses on mental and spiritual counseling, and operates many different home-based and community-based programs aimed at the elderly and mentally challenged people.

Haven’s approach and philosophy remain rooted in the beliefs of Sister Annie Skau, a Norwegian nun and missionary who “saw the need of not only providing medical care, but also psychological and physical care” for the people it serves, said Dr. Lam Ching Choi, Haven’s CEO.

Curing Blindness and Building Trust

Lifeline Express: Transforming Eye Care and NGOs in China

The case of Nellie Fong and Lifeline Express tells the story of the creation and expansion of a unique social delivery organization in China. The story illustrates how one person can bring about meaningful change by building partnerships with government in China and by recognizing the need to grow and evolve as circumstances and opportunities arise.

Lifeline Express was founded to provide mobile eye care – delivered by Eye Trains – in China which has a history of chronic cataract disease and where access to treatment for most people was nonexistent.  Lifeline’s other programs include the development of a network of 36 cataract surgery centers in hospitals in cities visited by the Eye Trains that are staffed by surgeons partly trained on the Eye Trains and the creation of a network of 15 eye care training centers for doctors and would-be doctors in capital cities of less developed provinces, and providing them learning resources, scholarships and lectures and training by
visiting ophthalmologists from around the world.

Blending her business acumen, people skills, public positions and relationships with top government authorities on the mainland and in Hong Kong, Nellie Fong enabled Lifeline to overcome barriers that traditionally hinder civil society development in China. It formed partnerships with two state-level ministries and with multiple provincial and local officials and with doctors and nurses and others with the potential to support Lifeline’s trains and programs and its “Mission of Light.” All the while, Lifeline retained its non-governmental identity, a unique accomplishment for a charity on the mainland. It became a model for what a NGO can be in China today.

Improving Choices and Outcomes

Saving Newborns in China’s Countryside

By focusing on a single mission, Children’s Medical Foundation shows how an organization can form partnerships with government and hospitals to help train doctors and nurses to improve care for babies in China who are in danger of dying from treatable and curable diseases during the first weeks of their lives.

Partnerships between hospitals in China and a small non-profit organization in Hong Kong, Children’s Medical Foundation (CMF) has helped to improve neonatal care in 12 provinces and is currently focusing on three – Sichuan, Yunnan and Guizhou – where it has determined the need for care is the greatest.  With its partners, CMF has extended quality care from hospitals in capital cities to hospitals in regional population centers by creating special neonatal care units and by helping train the specialists to staff them as well as by establishing emergency ambulance service to the units for babies from the countryside and  by providing assistance for families in particularly acute financial distress.

With a staff of only five and with only about US$530,000 a year to fund its current programs at eight locations, CMF has fought beyond its weight class, thanks in part to a strategic decision it made in 2007 to move away from its other programs and focus exclusively on neonatal care. It also has succeeded in spite of a challenging fund-raising environment in Hong Kong, where quality neonatal care is taken for granted, making it difficult to raise public awareness.