Who’s Doing Good?

19 March 2018 - 25 March 2018

THE GIVERS

Chinese philanthropist donates US$3 million to alma mater. Ming Mei, co-founder and CEO of GLP, a leading provider of global logistics solutions, is donating US$3 million to Indiana University. Half of the donation will endow a tenured chair in Chinese economics and trade in the Department of East Asian Languages and Cultures, while the other will establish a tenured chair position in logistics.

Singaporean philanthropists come together to develop facility for assisted living. A group of five philanthropists from Singapore have joined forces to set up the first purpose-built assisted living facility that will allow seniors with mobility issues to live independently.This announcement was made by Laurence Lien, chairman of the Lien Foundation, at the inaugural ASEAN Philanthropy Dialogue. The facility is expected to be completed by 2021.

THE THINKERS

“Philanthropy in Pakistan: Why civil society organizations get bypassed in favor of donations to individuals.” In this article, Shazia M. Amjad and Muhammad Ali of the Pakistan Centre for Philanthropy explain why Pakistanis prefer to donate directly to individuals over nonprofit organizations. Four major reasons are cited: 1. Compassion spurs in-the-moment giving in small cash. 2. Religious institutions receive the bulk of giving that goes to organizations. 3. There is a lack of trust in nonprofit organizations. 4. It is usually with more wealth that giving to formal organizations become more common.

Malaysian Sultan states Islamic finance can be combined with impact investing and philanthropy. Speaking at a forum themed “Enhancing the value of Islamic capital market through social and impact investment” co-organized by the Securities Commission Malaysia and the Oxford Centre for Islamic Studies, Sultan Nazrin Muizzuddin Shah said that the Islamic finance sector must remain relevant by being involved in the global agenda to alleviate poverty and inequality. Impact investing was one channel through which Islamic finance could contribute to social causes, while he also cited philanthropy as another area that can be combined with Islamic finance via institutions such as sadaqah (voluntary charity) and waqf (endowment).

“Money or Mission? The Fight about Big Tobacco’s Philanthropy” In this article, Erin Rubin discusses the International Labour Organization (ILO)’s conflict of interest with the tobacco industry. While tobacco companies provide roughly US$15 million in donations for social projects sucha s programs to end child labor, they are also notorious, according to the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations, for “poor working conditions, exploitation of workers, and abuse of their rights.”

THE NONPROFITS

Lien AID leads a collective effort to provide clean water access in rural Myanmar. Lien AID, a Singapore-based international nonprofit committed to enabling sustainable access to clean water and sanitation for Asia’s rural poor, is planning to create more clean water projects in Myanmar. To do so, Lien AID believes tackling the problem of sustaining access to clean water must be a collective effort. That is, it seeks to work in close partnership with governments, businesses, individuals, other nonprofits, and academia in order to increase the impact of its own programs.

THE BUSINESSES

AmorePacific hosts marathon for breast cancer awareness. AmorePacific, South Korea’s beauty and cosmetics conglomerate, hosted a marathon in Busan to raise public awareness about breast cancer. According to the company, about 5,000 participated in the marathon, and funds raised during the event from ticket sales have been donated to the Korea Breast Cancer Foundation to cover surgical expenses and medical examinations for cancer patients.

THE INNOVATORS

Three Southeast Asian social entrepreneurs win inaugural social impact award. Three social entrepreneurs were chose as the winners of the inaugural ASEAN Social Impact Awards in recognition of their social impact and innovation. Indonesia’s Tri Mumpuni won first place for her efforts in providing access to electricity, as well as training villages to run the plants independently. Cherrie Atilano from the Philippines and Somsak Boonkam from Thailand were runners-up. Atilano was recognized for her role in increasing farmers’ access to finance, technology, and information on the best farming practices for the purposes of fair trade, as well as working with farmers on sustainable farming methods to protect the environment and farmers’ future livelihoods. Boonkam was recognized for his work with local communities to build their capacity for community-based tourism.

THE VOLUNTEERS

Zhou Xun announced as TOMS giving ambassador. Zhou Xun, a renowned Chinese actress who is also a UNDP Goodwill Ambassador, will become the American footwear company TOMS’ Goodwill Giving Ambassador in Asia. Zhou and the company’s founder Blake Mycoskie went on a trip to Yunnan province late last year to donate shoes to primary school students.

THE TRUSTBREAKERS

Former Korean President’s private foundation comes to the spotlight amidst corruption allegations. Founded by former President Lee Myung-bak, Lee & Kim Foundation (known as “Cheonggye Foundation” in Korean) was recently criticized for receiving tax benefits as a charitable organization when only 0.7% of its total assets were used for scholarships. This criticism comes at a time when President Lee is currently under investigation for a corporate corruption scandal involving his family members and cronies.

Who’s Doing Good?

19 February 2018 - 25 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

Lead singer of Thai rock band helps raise money for public hospitals. Athiwara “Toon” Khongmalai, the lead vocalist of Bodyslam, ran 2,000 kilometers across Thailand to raise money for public hospitals in the country. On February 25, 2018, Toon handed a check for a THB1.37 billion (approximately US$43.73 million) donation to 11 public hospitals, nearly doubling his initial goal of THB700 million.

Indian businessman announces Rs 200 crore (approximately US$30.1 million) donation for cancer hospital. With his wife Amrita Tata, Vijay Tata, a real estate entrepreneur in Bangalore, India, announced his donation of Rs 200 crore to his family’s self-funded NGO “New India” to build a “cashless cancer care super-specialty hospital” for the underprivileged. The announcement was made to celebrate their daughter’s birthday in a memorable way. Half of the donation will be 50 acres of land, while half will be in payment for the building and equipment. According to the businessman, those in need will also be able to enjoy the benefits of the hospital free of cost if they convince the hospital’s assessment panel that they were running short of money.

Singaporean investor donates SG$3 million (approximately US$2.3 million) to the Singapore American School. Lim Kaling, Singaporean business magnate and investor most known for his investment in Razer Inc., donated SG$3 million to the Singapore American School to help establish a fully personalized curriculum in the school’s coursework.

THE THINKERS

Dasra Philanthropy Week 2018 hosts thinkers and presents publications. Dasra Philanthropy Week 2018 was held from February 20 to 24 in New Delhi and Mumbai, India, hosting speakers from various sectors and organizations and publishing a suite of knowledge products. For example, in collaboration with Bank of America Merrill Lynch, Dasra launched a white paper titled “Collaborative Force: Empowering 10 to 19,” which highlights the significance of the collaborative approach to tackling problems surrouding India’s adolescents.

THE NONPROFITS

Local NGOs create online test to educate Japanese teen girls about sexual violence. Shiawase Namida (“Happy Tears” in English), a Tokyo-based nonprofit organization that supports sex crime victims, and the Life and Birth Studies Association co-developed the SHE Kentei (“Sexual Health Education Test” in English), a 10-question web-based quiz that will help educate teenagers how to avoid falling prey to sexual crimes and violence. The test can be accessed via she.shiawasenamida.org.

THE BUSINESSES

Starbucks Korea supports restoration of Korean Empire heritage in the United States. Starbucks Korea has donated ₩100 million (US$92,217) in preservation funds for the Korean Empire legation headquarters in the United States. In the previous year, the company had already donated ₩200 million for the same purpose in commemoration of the 120th anniversary of Emperor Gojong’s proclamation of the Korean Empire in the early 20th century. The company also unveiled a limited-edition tumbler with pokerwork describing the legation building in the United States.

THE INNOVATORS

Indian billionaire brothers launch artificial intelligence research institute to solve global development challenges. Romesh and Sunil Wadhwani (founder, chairman, and CEO of Symphony Technology Group; and Managing Partner at SWAT Capital, respectively) announced the establishment of a US$30 million nonprofit research institute in Mumbai that will study ways to use artificial intelligence to tackle development-related issues such as healthcare, education, and agriculture. The institute will be led by Dr. P. Anandan, a researcher in computer vision and artificial intelligence and founder of Microsoft Research India.

THE VOLUNTEERS

In Singapore, more young volunteers come to help senior citizens with groceries. NTUC FairPrice is a supermarket chain based in Singapore, and its corporate volunteer programme is expected to be joined by more than 100 young volunteers from the Youth Corps Singapore. The volunteers will help senior citizens with shopping for and carrying groceries and educating them on making healthier food choices. The company also announced its donation of SG$200,000 (approximately US$150,000) via its charity arm, FairPrice Foundation, to Ren Ci Hospital and Thye Hua Kwan Moral Society.

THE TRUSTBREAKERS

UNICEF’s deputy executive director resigns after complaints of inappropriate conduct. Following complaints of inappropriate texts and comments on what young female staff were wearing during his time at Save the Children, UNICEF’s number two Justin Forsyth resigned from his position at UNICEF. Forsyth made clear that he was not resigning because of his past mistakes at Save the Children which he claim were properly dealt with back then, but because of the danger of damaging both UNICEF and Save the Children.

23 Red Cross staff resigned or were dismissed since 2015 due to sexual misconduct. Amidst a wave of allegations of sexual misconduct within the aid industry, the International Committee of the Red Cross (ICRC) said 23 staff members had left the organization since 2015 over sexual misconduct.

Oxfam Hong Kong loses donors due to sexual misconduct scandal. Just in less than two weeks, Oxfam Hong Kong lost 715 local individual donors, most of whom were long-time supporters and who collectively gave donations worth HK$1.1 million (approximately US$140,000) per year.

In an effort to crack down on scammers, China creates a credit system to reward or penalize charities and donors. Charities and donors will now receive incentives or disciplinary action from up to 40 government bodies based on their credit scores. Charities with ratings of at least 4A (the second highest level) are eligible for rewards such as favorable taxation rates and priority status for government procurement bids, and the same will apply to corporate donors with good records. Organizations that have violated laws and regulations will be placed on a blacklist, but they may be removed from the list if they rectify their misconduct or passed through punitive time frames. Punishments include higher taxation rates and exclusion from government procurement bids. Individual perpetrators can even face restrictions in purchasing airline and train tickets. Specific information related to the credit scores can be obtained at creditchina.gov.cn, gsxt.gov.cn, cishan.chinanpo.gov.cn, and mca.gov.cn.

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.

*Please note that for Korea the 10% rate of tax deduction for corporate donations refers to the limit on corporate income eligible for deduction. The rate of tax deductions for corporate donations in Korea is 100%, with a 10% limit. This change has no effect on the results of the index. For further information, please contact us.

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.

Civil Society Briefs

Asian Development Bank

Introduction: Civil society is a very important stakeholder in the operations of the Asian Development Bank and its borrowers and clients. It is distinct from the government and private sector and consists of a diverse range of individuals, groups, and nonprofit organizations. They operate around shared interests, purposes, and values with a varying degree of formality and encompass a diverse range—from informal unorganized community groups to large international labor union organizations. These Briefs provide an overview of civil society organizations (CSOs), with a particular focus on nongovernment organizations (NGOs). These Briefs were first published by the Asian Development Bank (www.adb.org).”

Click here to read the Briefs.

Bright Young Sparks

Songkhla Forum: Empowering Thailand’s Youth for the 21st Century

An innovative model developed in collaboration with the Siam Commercial Bank Foundation allows young people in Songkhla Province to design and implement community development projects to develop life skills and a sense of civic-mindedness.

In 1991, the Songkhla Forum (SF) was established  as a communications platform to share information and raise awareness so that the people of Songkhla, a strategically important province on the border with Malaysia, could participate in the development of the province and country at large.

In 2012, SF received help in the form of a new partner, the Siam Commercial Bank Foundation (SCBF). This collaboration has resulted in an innovative new model for young people to contribute to Songkhla’s development while growing their self-confidence and capacity as engaged citizens. Since then, some 300 youth have come together through SF to work on more than 60 community development projects, some of which have made a significant contribution to civic life in the province.

A Nursery for the Urban Poor

Foundation for Slum Child Care: Providing Childcare Services in Bangkok’s Slums

With the patronage of a royal princess, two women from different sides of the railway track came together to establish a daycare center in one of Thailand’s most notorious slums to change the lives of poor urban families.

The Foundation for Slum Child Care (FSCC) was officially started in June 1981, and through a series of fortuitous events would come under the royal patronage of the late HRH Princess Galyani Vadhana. For nearly 35 years, it has worked to improve the quality of life of Bangkok’s slum children: in 2014 alone, 2,133 children less than five years old were cared for by FSCC, whose operations have extended to four other slum communities in the capital.

Beyond the delivery of daycare services for the urban poor, the FSCC has established itself as a benchmark for child-care services and early childhood education in Thailand through its affiliate network and cutting-edge training programs, which include certification courses for informal nurseries and general early child-care development courses.