Who’s Doing Good?

02 March 2020 - 15 March 2020

THE GIVERS

Jack Ma to donate test kits, masks to US in fight against coronavirus. Chinese billionaire and Alibaba co-founder Jack Ma announced a donation of 500,000 coronavirus testing kits and 1 million masks to the United States, according to Nikkei Asian Review. Ma’s initiative, a collaboration between his eponymous foundation and Alibaba Foundation, also includes donating relief materials to Japan, Korea, Italy, Iran, and Spain. Ma has also urged for international cooperation and speedy, accurate testing to fight the health crisis. “The pandemic we face today can no longer be resolved by any individual country,” he said in a statement. As the number of cases rise in the United States, American billionaires Mark Zuckerberg and Bill Gates have also recently announced initiatives to expand testing in their localities.

THE NONPROFITS

Gates Foundation and Wellcome set up US$125 million coronavirus drug fund. The world’s two largest medical research foundations are committing US$50 million each in “seed funding” for a Covid-19 Therapeutics Accelerator, according to Financial Times. Mastercard’s Impact Fund charity is joining the effort with a US$25 million contribution. The Accelerator aims to develop treatments for Covid-19 and serve as a catalyst to draw in more funding. Wellcome director Jeremy Farrar expressed hope that other donors will see the Accelerator as an attractive vehicle to support research and development of Covid-19 treatments. Farrar sits on the board of the Global Preparedness Monitoring Board, which recently estimated that US$1.5 billion will be required for research and development of a portfolio of four Covid-19 treatments. The Accelerator will work with the World Health Organization, governments and the private sector to provide fast and flexible funding at all stages from research to scale-up.

Coronavirus-battered NGOs say Hong Kong’s charity sector needs government aid to keep doing their work, avoid redundancies. A group of larger Hong Kong nonprofits is calling for help as donations decline amid the coronavirus outbreak. The nonprofits told South China Morning Post that the sector is struggling to stay afloat as many fundraising events have had to be cancelled. This comes after a difficult year for nonprofits, who were already facing fundraising challenges amidst last year’s anti-government protests. While the government rolled out a HK$30 billion (approximately US$4 billion) relief package last month, nonprofits are saying the sector—which employs 52,000 people—is not among those benefiting from the relief package. Sue Toomey, executive director of HandsOn Hong Kong, a charity that connect volunteers with community needs, noted “In the same way as the government seems to be acting quickly to help small businesses, we’d like to see similar consideration given to nonprofit organizations.”

Which charities to donate to? Singapore’s new index to help public decide at a glance. Charities in Singapore could be “graded” by next year in a new initiative announced by the Senior Minister of State for Culture, Community, and Youth. The new regulatory compliance indicator is expected to be rolled out next year on the government’s charity portal website. Aiming to help donors make informed choices, the new indicator will show whether a charity has met the minimum 80% regulatory compliance prescribed in the Code of Governance for Charities and IPCs, and whether its audit opinion has been qualified. A national initiative will also be rolled out to encourage legacy giving (planned donation from a person’s assets). The Community Foundation of Singapore’s chief executive underscored its importance, saying, “There are donors interested in making legacy gifts, but they want more knowledge to make informed choices. They want accountability for their gifts and trust is important before they are willing to donate.” An online pledge system will also be introduced, streamlining the process.

THE BUSINESSES

Hong Kong’s social enterprise sector needs HK$40 million (approximately US$5.2 million) relief package to survive coronavirus crisis, government told. Similar to the nonprofit sector in Hong Kong, the social enterprise sector is also seeking assistance. The Hong Kong General Chamber of Social Enterprises (HKGCSE) surveyed 214 social enterprises, around a third of the city’s social enterprise sector, to showcase the challenges social enterprises are facing during the coronavirus outbreak. The survey revealed that nearly 20% had no revenue at all, and one in four had either closed or suspended operations. The average turnover of most companies interviewed more than halved in January and February, compared with the same period last year. With around 40% reporting that their cash flow will only sustain them for less than three months, the HKGCSE is urging the government to phase in a series of measures to help such as HK$80,000 (approximately US$10,000) for each social enterprise which has received government funding, rent waivers, and special subsidies to cover the salaries of handicapped staff. Perhaps in response, the Hong Kong government has just announced a HK$5.6 billion (US$722 million) “Retail Sector Subsidy Scheme” under the “Anti-epidemic Fund,” which is open to applications from social enterprises. The Scheme will provide a one-off subsidy of HK$80,000 to retailers facing financial difficulties amidst the coronavirus outbreak. Retail stores of social enterprises are eligible to apply through the Social Enterprise Business Centre (SEBC).

THE INNOVATORS

United Nations ESCAP and SEAF partner to unlock US$150 million in capital to advance female entrepreneurship in Asia. The United Nations Economic and Social Commission for Asia and the Pacific and the Small Enterprise Assistance Funds (SEAF) have partnered to “catalyze women’s entrepreneurship through impact investing in Asia.” The collaboration aims to unlock growth capital through the development and management of private equity impact funds focused on women. SEAF will launch and manage the SEAF Women’s Economic Empowerment Fund as well as expand SEAF Bangladesh Ventures. ESCAP will support SEAF with technical assistance and grant support. Together the two funds will collectively bring over US$150 million in capital towards catalyzing the women’s entrepreneurship ecosystem in ASEAN and Bangladesh.

THE VOLUNTEERS

Singapore sees spike in donations, volunteers in February. Giving.sg, a fundraising website run by the Singapore’s National Volunteer and Philanthropy Centre (NVPC), supports over 500 organizations in sourcing volunteers and donations. Donations to the site significantly increased last month amid the coronavirus outbreak, raising more than SG$2.2 million (approximately US$1.5 million). According to NVPC, this is 67%, or almost SG$900,000 (approximately US$650,000), more than that raised in the same period last year. The number of people who volunteered through the site in February also rose to over 1,000 volunteer sign-ups, a 10% uptick from February last year, according to Straits Times. The NVPC reported that 15% of the amount raised last month was from its 19 campaigns that are part of the SG United Movement—which the government launched on February 20th—to “streamline contributions to help those affected by the virus outbreak, including linking to coronavirus-related initiatives on the Giving.sg site.”

Who’s Doing Good?

25 November 2019 - 9 December 2019

THE GIVERS

Forbes announces Asia’s 2019 Heroes of Philanthropy. In its 13th iteration this year, the list honors Asia’s leading philanthropists who are helping solve some of the region’s most pressing challenges through donations and their personal involvement. The unranked list features 30 individuals including Azim Premji from India, Jack Ma from China, and Theodore Rachmat from Indonesia. Broadly, 6 individuals from China, 4 from India, 3 each from Indonesia, Singapore and Australia, and 2 each from Hong Kong, Japan, Korea and Thailand are featured. Korean singer and actress Lee Ji-eun, 26, known by her stage name IU, is the youngest honoree on the list.

Seal of Love Charitable Foundation donates HK$40 million (approximately US$5 million) to Hong Kong University of Science and Technology (HKUST). The gift, channeled into the “Seal of Love Foundation Innovation Service Fund,” is aimed at empowering HKUST students to solve real-world problems through innovation and technology. The fund’s first donation is to the pre-existing Student Innovation for Global Health (SIGHT) project, which has been devising creative and affordable solutions to global health issues since 2014. Inventions by SIGHT include a mobile electronic health record system for slums and rural areas in Cambodia and Ghana. The Seal of Love Charitable Foundation was established in 2010 by Lawrence Chan, the heir to Chan Chak-Fu, a pioneer in the global hotel industry.

THE THINKERS

Asia home to the majority of people fleeing ‘climate chaos,’ Oxfam study finds. The study examines the number of people displaced within their home countries by climate-fueled disasters between 2008 and 2018. While the study looks at the impact of ‘climate chaos’ globally, it offers timely insight into displacement finding that 80% of all people forced from their homes by weather disasters over the last decade were in Asia. The report also finds that people are three times more likely to be displaced by environmental disasters (such as cyclones, floods, or fires) than by conflicts. Large populations in some Asian countries, such as the Philippines and Sri Lanka, live in areas threatened by cyclones or flooding. For example, this past May, Cyclone Fani alone led to the displacement of 3.5 million people in Bangladesh and India.

THE NONPROFITS

Piramal Foundation and Gates Foundation join hands in tribal health collaborative. The partnership leverages support from the Gates Foundation and other stakeholders including the Indian government to achieve SDG 3, “ensure healthy lives and promoting well-being for all at all ages.” India’s tribal communities are home to more than 150 million people and have poorer health standards than the national average. For instance, the average maternal mortality rate in India is 130 per 100,000 births while it can be as high as 230 deaths per 100,000 in tribal communities. The goal of the partnership is to build a high-performing and sustainable health ecosystem to address the needs of these marginalized populations. Speaking at the occasion, Bill Gates, co-chair of the Bill & Melinda Gates Foundation said, “Given the complexity and magnitude of the problem, we believe that partnerships with like-minded, values-based organizations such as Bill & Melinda Gates Foundation, that seek to complement the Government’s efforts, will provide the much needed impetus.”

THE INNOVATORS

Hong Kong millennials are investing family wealth sustainably, but the learning curve can be steep. Young heirs of family wealth want their money to do more than just generate returns—they want to make a difference. But doing so has not been straightforward. According to Michael Au, the managing director of District Capital, “One of the hurdles is the lack of advisers who understand the contemporary impact investing dialogue from an Asia perspective.” On the other hand, Ronnie Mak, the managing director of RS Group, states that they have been able to build and manage a fully sustainable portfolio and achieve a net annual return of 5 percent over the last 10 years. The old-guard is viewing these experiences with caution, according to Au, since they continue to believe that generating returns and doing good are mutually exclusive. CAPS’ newest report, “Business for Good: Maximizing the Value of Social Enterprises in Asia” challenges this perception. Viewing social enterprises as a critical vehicle for doing good, it offers actionable strategies to investors and philanthropists to maximize their impact.

World Bank’s catastrophe bonds provide US$225 million cover to the Philippines for dealing with natural disasters. Two tranches of the catastrophe-linked bond (CAT bond), the first of its kind, were released last week. The bond will provide immediate liquidity and insurance cover to the Philippines for three years. Issued by the International Bank for Reconstruction and Development, up to US$150 million will be channeled towards tropical cyclone-related losses while the remaining US$75 million will cover losses from earthquakes. The bond transfers risks related to natural disasters from developing countries to capital markets. According to Mara K. Warwick, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand, the CAT bond “demonstrates the Philippines’ capability to develop innovative financial solutions to mitigate impacts of extreme climate and weather-related events as well as major earthquakes.”

UNDP and Government of India launch accelerator to champion innovative approaches to development challenges. The India chapter of “Accelerator Labs,” a new UNDP initiative, will be part of a global network of 60 labs where innovative and homegrown solutions to global challenges such as climate change and inequality will be tested and scaled. The labs will employ real-time data and experimentation to quicken progress towards meeting the SDGs by 2030. The Government of India’s Atal Innovation Mission, part of a national effort to harness the potential of entrepreneurship, serves as the lab’s key partner in the country. At the launch, Mr. R. Ramanan, Mission Director of the Atal Innovation Mission said, “We remain committed to finding local solutions that can be scaled up not only in India, but also across the Accelerator Lab network.” The launch also featured #DateForDevelopment, a matchmaking activity aimed at fostering collaboration and knowledge sharing. Policymakers, impact investors, experts from civil society, scientists, and members of the private sector interacted in the activity to iterate over proposed innovations.

Social stock exchange in the works in India. A 15-member working group, constituted under the Securities and Exchange Board of India (Sebi), is likely to present a blueprint for a stock exchange for the social sector this month. According to Vineet Rai, co-founder of Avishkaar, a pioneering social enterprise, the social stock exchange will help potential donors find and fund credible organizations that are doing good. As these efforts proceed apace some concerns have also arisen. Former Sebi chairman, UK Sinha, opines that robust impact measurement will be a critical ingredient in the exchange’s success, and yet there are few metrics that combine social impact and financial success and can serve as an effective basis for qualification on the exchange. Despite these hurdles, however, Sinha agrees that the social stock exchange is a step in the right direction.

IN OTHER NEWS…

China’s star healthcare crowdfunding portal, Waterdrop, mired in scandal. The South China Morning Post (SCMP) reports that an undercover media report has shed light on a series of lapses and wrongdoings on the part of Waterdrop and its staff. SCMP reports that Waterdrop staff asked hospital patients to initiate crowdfunding projects and exaggerate their stories to garner sympathy. Waterdrop’s model incentivizes project creations according to one staff member who said he would lose his job if he did not meet the target of 35 projects initiated per month. The report also states that the financial situations of targeted families was not being verified and patients were not required to submit proof of how they were using the donated money. According to SCMP, verification and supervision are the most frequently raised issues about crowdfunding platforms in China. Shen Peng, 32, founder of Waterdrop, has vowed to transfer ownership of the platform to an NGO if he cannot manage it better in the future. Waterdrop had raised CNY1 billion (approximately US$145 million) in June this year.

Environment for NGOs likely to become grim under Sri Lanka’s new president. In an interview for the The Diplomat, Taylor Dibbert, an adjunct fellow at the Pacific Forum, opines: “I wouldn’t be surprised to see NGOs throughout the country–particularly in the heavily militarized north and east–getting visits from security personnel. Offices may be raided.” Gotabaya Rajapaksa was sworn in as the island nation’s eighth president earlier this month.

Who’s Doing Good?

11 November 2019 - 24 November 2019

THE GIVERS

Seoul City facilitates donation procedure upon death for unaffiliated persons. The Seoul Metropolitan Government has set forth a new initiative that encourages unaffiliated individuals—citizens who have no heirs or are living in isolation from heirs—to bequeath their wealth to society. Unaffiliated individuals will receive assistance from KEB Hana Bank and the Korea Federation of Centers for Independent Living of Patriots with Disabilities to aid in this process. The Bank will be in charge of the contract and operation of the will-only trust, and the centers will be in charge of the donation system and supervision of the management subject to the donation. All individuals using self-help living centers in Seoul are eligible for support.

THE THINKERS

Shift gears and accelerate: SDGs 2030 depend heavily on India’s progress. Neera Nundy, co-founder of Dasra, highlights the need for a step increase in Indian philanthropy to realize the SDGs. India faces a US$60 billion price tag to achieve just five of the 17 development goals, and the country contributes to 20% of the global SDG gap in 10 of the 17 goals. According to Nundy, philanthropy can play a key role by prioritizing investments in the most vulnerable; focusing on outcomes; and taking an aggregated approach. While the government continues to be the largest development player for India, Nundy calls on philanthropy to be a positive disruptor by supporting fresh perspectives, testing innovations, and taking proven solutions to the government for systemic integration. 

Do mobile payment games spur green living? Alipay’s social game Ant Forest has received praise—and two United Nations awards—for scaling up public climate action. The app, which has more than 500 million users, gamifies climate action: users participate in “low-carbon action,” like walking and biking, to gain “green energy.” After feeding virtual trees with “green energy,” users can have Alipay plant a real tree or adopt a patch of protected land. As of August, Ant Forest has planted 122 million trees offsetting 7.9 million tons of carbon emissions, according to China’s Ministry of Ecology and Environment. As other countries begin to replicate this model, this article explores its strengths and limitations as a platform for public climate action.

THE BUSINESSES

Tata Power and The Rockefeller Foundation partner for 10,000 microgrids in rural India. The Rockefeller Foundation has been working with a network of partners in India to increase access to power and energy for rural communities. Its most recent partnership with Tata Power to develop 10,000 microgrids in India will help 25 million households, especially those in rural areas, gain access to affordable electricity. The Rockefeller Foundation is also exploring opportunities to step up collaboration in the health space and to invest in India’s startup space.

Southeast Asian companies jump on impact investment bandwagon. According to the chairman of the Singapore Venture Capital & Private Equity Association, Asia-focused funds accounted for half of the approximately US$14 billion raised in impact and ESG investments globally between 2016 and 2019. Asia is now also home to 10 exchanges that require listed companies to report ESG investments—more than in Europe where ESG-linked lending is more common. Asian businesses such as Olam International, the Thai Union Group, and Singapore’s state-backed investment fund, Temasek Holdings, are among those leading the charge. As Asian businesses grow conscious of their impact, a wave of new strategies is emerging. Olam International, for example, announced plans to sell business units in sugar, rubber, and wood products and use the anticipated US$1.6 billion in proceeds to establish “greener” businesses.

Honda Foundation donates motorcycles to Philippine Red Cross to boost life-saving services. The corporate social responsibility arm of the leading motorcycle manufacturer donated a total of 21 motorcycles last week to the Philippine Red Cross (PRC). The Honda Foundation has committed to donating a total of 104 motorcycles to PRC offices nationwide. This commitment follows Honda’s “ONE DREAM” campaign, which aims to “make Honda products serve as tools in achieving one’s dream and to unite Filipinos through meaningful action.” The PRC, the country’s premier humanitarian organization, will use the motorcycles to bolster on-time delivery of services, particularly in emergency situations. Similarly, as featured in the last edition of Who’s Doing Good, Korean conglomerates Samsung and LG have been donating their own signature products to meet societal needs in more tangible ways.

THE VOLUNTEERS

Once beneficiaries themselves, Singaporean volunteers pass on the baton of “doing good.” The Straits Times profiles two individuals—Mr. P. Ramesh and Ms. Callie Ng—who received guidance from volunteers and are now giving back to society themselves. Mr. Ramesh grew up in a troubled neighborhood, but at 15, he met his mentor at a football intervention program for youth. He credits his mentor for teaching him important life skills and guiding him. Three years later, Mr. Ramesh volunteered at a similar initiative and, now 39, has continued his commitment to giving back ever since. Ms. Ng, 17, now volunteers at the “Light Up Children’s Initiative,” through which she met her mentor when she was in school. Ms. Ng stated that she is committed to having the same positive impact on her mentee.

THE INNOVATORS

Rabo Foundation partners with USAID Green Invest Asia to cut global carbon emissions. The partnership will pilot a carbon monitoring methodology in Indonesia, one of the world’s top five greenhouse gas-emitting economies. Results from the pilot will assist the Rabo Foundation in shaping climate mitigation policies for loans it offers to cooperatives and to small- and medium-sized businesses. The Rabo Foundation’s portfolio of such investments spans 22 economies across the globe, including seven in Asia. The USAID Green Invest Asia platform, which was launched in 2018, is mobilizing investments worth US$400 million to reduce global carbon emissions by 20 million metric tonnes. The platform supports companies sourcing sustainably and connects companies to funders investing in sustainable agriculture businesses in Southeast Asia. 

IN OTHER NEWS…

India’s federal police raid local Amnesty International offices. Reuters reports that according to the Central Bureau of Investigation, India’s federal investigative agency raided the Bengaluru and New Delhi offices of Amnesty International earlier this month. The federal agency explained the raid as a probe into alleged violations of foreign funding rules. It noted that the Indian offices had received contributions from Amnesty International UK, despite government restrictions under the Foreign Contribution (Regulation) Act 2010. Amnesty has issued a statement questioning the motivation behind these raids.

Who’s Doing Good?

22 July 2019 - 4 August 2019

THE GIVERS

Tin Ka Ping Foundation donates HK$5 million (approximately US$640,000) to The Hong Kong University of Science and Technology (HKUST). Dr. Tin Ka Ping’s eponymous foundation has reinforced the late philanthropist’s lifelong commitment to education through its most recent donation. Made to the Tin Ka Ping Education Fund—a permanent fund established in 2008 for HKUST’s Institute for Advanced Study (IAS)—the donation raised the Fund’s principal to a total of HK$11 million (approximately US$1.4 million). The university plans to use the new funds to support its “Dream Chaser Scholarship Fund” aimed at meeting the financial needs of students from disadvantaged backgrounds. HKUST President Prof. Wei Shyy remarked, “I am sure this donation would help foster whole-person development for students—especially those in need, and help attract more excellent young scholars to our university, further expanding the realms of academic and knowledge frontiers.”

Donations to Kyoto Animation surpass ¥1 billion (approximately US$9.4 million) after tragic arson attack. Support for Japanese anime studio Kyoto Animation has poured in from inside and outside the country in the wake of the July 18th arson attack which resulted in 35 casualties. Over 48,000 donors, including individuals and companies, donated US$9.4 million in just five days after the studio opened a bank account specifically for receiving donations. Outside Japan, Sentai Filmworks, a U.S. company that distributes Japanese anime, managed to raise US$2.3 million for the studio via crowdfunding. Kyoto Animation will use the money to help injured victims and deceased victims’ families as well as aid reconstruction efforts. The firm plans to report the use of these funds to the public.

Hui Ka Yan, Chairman of Evergrande Group, tops Forbes’ China Philanthropy List for the fourth time. The chairman of one of the world’s most valuable real estate companies retained his top position on Forbes’ China Philanthropy List after receiving the accolade in 2012, 2013, and 2018. Yang Guoqiang, Chairman of real estate company Country Garden, and Jack Ma, co-founder of Alibaba, were second and third respectively. Hui Ka Yan led with total cash donations worth ¥4.07 billion (approximately US$586 million) followed by ¥1.65 billion (approximately US$237 million) donated by Yang and family, and ¥980 million (approximately US$141 million) under Ma’s name. Donations across the hundred entrepreneurs featured on the list totaled ¥19.17 billion (approximately US$2.8 billion), a seven-year high and a 10.7% increase year-on-year.

Hong Kong billionaire Lui Che Woo offers insight into his philanthropic efforts. One of the richest men in Hong Kong, Lui Che Woo, established the Lui Che Woo Prize for World Civilization in 2015 through a donation of US$1.2 billion. Nine laureates have received the prize’s cash award of HK$20 million (approximately US$2.6 million) each so far. In this Forbes interview Lui states that motivation for establishing the prize came from his own experience of World War II, which led him to question why conflict and development gaps continue to exist. The prize focuses on “the appreciation and recognition towards sustainability of world resources, determination in betterment of people and the society, and demonstration of positivity which enables mankind to withstand different challenges.” Lui’s philanthropy is rooted in an idea of being “gifted” by society, and he vows to never forget to contribute back to it.

THE THINKERS

Impact investment rising in Asia, but challenges remain. CAPS’ Director of Research, Mehvesh Mumtaz Ahmed, argues that impact investment in Asia has evoked wide interest but commensurate capital deployment is yet to be witnessed—Asia accounts for less than 10% of global impact investment assets under management. She cites the newness of impact investing in Asia as one inhibitor. According to a poll of ultra- and high-net-worth individuals, 98% of respondents looked to increase their allocations to impact investment, but over half had not made a single impact investment. A mismatch between the types of financing needed by social enterprises and those on offer from impact investors has also surfaced as a gap. But, Mehvesh Ahmed argues, the thinking around impact investment in Asia is constantly evolving and the future for the financing mechanism appears bright. CAPS will be releasing a detailed study on social entrepreneurship and impact investing in Asia this fall.

Increasing inheritance tax levels could boost giving in Asia. Sumit Agarwal, Professor at the National University of Singapore, opines that Asia can do more to spur its ultra-rich to be more philanthropic. Asia has been home to incredible wealth creation in recent years: the number of billionaires in China rose to 819 in 2018 from 571 in 2017, far outpacing growth in the United States. Yet, Agarwal notes, only 10 out of the 182 total signatories of the “Giving Pledge” come from Asia. Low or nonexistent inheritance tax exacerbates the situation, allowing Asians to pass all or most of their wealth to their descendants. Agarwal cites recent research from the U.S. which finds that repealing the inheritance tax for a year led to a decline in charitable giving by US$6 billion. He concludes that the introduction of even a modest inheritance tax could incentivize Asian high-net-worth individuals to donate their growing share of global wealth. (CAPS highlighted the importance of inheritance tax for Asian philanthropy in the 2018 Doing Good Index.

Brookings India releases report on the Indian impact investment landscape. India faces an annual financing gap of US$565 billion towards meeting the Sustainable Development Goals. Impact investment is emerging as one answer: it can help champion innovative ideas in social service delivery, test their effectiveness, and help them scale up. This report from Brookings India surveys market trends and finds that impact investment is beginning to take off. The sector attracted US$5.2 billion from 2010 to 2016 with US$1.1 billion invested in 2016 alone. The report concludes with actionable recommendations for creating an effective social financing ecosystem in India.

THE NONPROFITS

Social donations in China exceed ¥90 billion (approximately US$13 billion) in 2018. Figures from the Chinese Ministry of Civil Affairs have also shed light on the growing importance of online donations for China’s third sector. The 2018 “September 9 Charity Day,” an event backed by internet-giant Tencent, saw 28 million online donors donating ¥830 million (approximately US$120 million) through 20 officially designated online charity platforms. For some major foundations as much as 80% of their donations are now originating from online and social sources. Overall, official figures hold the number of registered charity organizations in China at 7,500 with their net assets totaling ¥160 billion (approximately US$23 billion). 

THE INNOVATORS

Indian clean energy producer raises US$950 million in Asia’s largest green bond sale. Global investors oversubscribed by three times a green bond issued by Greenko Energy Holdings, which currently operates assets totaling 4.2 gigawatts of energy generation capacity and has another 7 gigawatts under construction. The bond sale followed an additional US$329 million commitment from two sovereign wealth funds, Singapore’s GIC Private Limited, and the Abu Dhabi Investment Authority, which itself had come on the heels of a previous infusion of US$495 million by sovereign wealth funds for Greenko to build power storage projects. India has set ambitious clean energy targets: it plans to achieve 175 gigawatts by 2022 and 500 gigawatts by 2030. Meeting these goals is estimated to require north of US$250 billion in investments from 2023-2030.

Who’s Doing Good?

25 March 2019 - 31 March 2019

THE GIVERS

Singaporean government to match donations given to registered charities. From April to March next year, donations to Institutions of a Public Character (IPCs), certified charities in Singapore, will be matched dollar for dollar through the new SG$200 million (approximately US$147.5 million) Bicentennial Community Fund. Each IPC will be entitled to up to SG$400,000 (approximately US$295,000), and the fund will be administered by the National Volunteer and Philanthropy Centre with support from the Ministry of Culture, Community and Youth. “Through the Bicentennial Community Fund, we hope to further encourage all Singaporeans to continue the philanthropic and community self-help spirit of our forefathers, 200 years on and 200 years forward,” said Grace Fu, Minister for Culture, Community and Youth.

THE THINKERS

Asian philanthropists have the potential to fuel the new model of philanthropy. As the Doing Good Index 2018 highlights, Asian philanthropists have the capacity to contribute US$500 billion in charitable giving. With recent economic growth comes the potential for a new era of charitable giving focused on seemingly intractable issues, and China is leading the way as it harnesses the highest number of millionaires engaged in environmental, social, and governance-related investing. As collaboration is strengthening with the development of consortiums and alliances, and a new generation of globally minded and mission-driven rich is taking the helm of the exponential growth in capital, Asia is positioned to fuel a new model of philanthropy that can make the biggest bets in bridging the US2.5 trillion funding gap needed to achieve the 2030 Sustainable Development Goals.

THE NONPROFITS

Hong Kong nonprofit helps residents with disabilities fight prejudice and break into the workforce. In Hong Kong, the poverty rate among people with disabilities in the city is more than twice the level of the general population. CareER, a local nonprofit dedicated to helping students and graduates with disabilities find jobs, is working to break down the barriers facing disabled jobseekers. After a few years working in human resources for multinational companies, Walter Tsui Yu-hang founded CareER in 2013 to help graduates with disabilities find suitable jobs instead of the low-skill work they are usually offered. CareER now has more than 450 members with disabilities and has worked with over 100 employers to create more than 200 jobs. In efforts to keep growing its impact, CarER launched a two-year career development program last week, sponsored by the Hong Kong Jockey Club Charities Trust, which provides occupational skill training, consultation services, and leadership development.

THE BUSINESSES

Support from Alibaba Foundation empowers United Nations (UN) Women flagship programs. Two major initiatives of UN Women—Making Every Woman and Girl Count and Buy from Women—are receiving significant support from the Alibaba Foundation as part of its five-year, US$5 million commitment to UN Women. The Foundation’s contribution will help expand the Making Every Woman and Girl Count program in Asia, which seeks to bring about a radical shift in how gender statistics are used, created, and promoted at the global, regional, and country level. The Foundation’s contribution will also support the Buy From Women digital platform, which empowers women farmers in Liberia and the Democratic Republic of Congo to access new markets and services and increase production and revenues.

Cancer initiative benefits thousands of women in China. ”Make Up Your Life,” a project launched in South Korea in 2008, has provided free cancer-screenings and examinations for 54,000 women in China. Amorepacific, a South Korean cosmetics company, has invested ¥8 million over the past three years in the initiative, and according to a joint report published by China Women’s Development Foundation, free checkups for breast and cervical cancers for underprivileged women has received a positive social return on investment. Each ¥1 (US$0.15) spent in this project turned out a ¥1.52 worth of impact as the initiative effectively raised awareness of such diseases for women in remote areas where medical resources are scared. With enhanced awareness and access to screening, women can take early action for disease prevention and treatment, leading to enhanced general wellbeing of women and their families.

THE INNOVATORS

Female tech boss launches drive to empower women. Virginia Tan, co-founder of Lean in China, announced the launch of Nvying program for WeChat. Nvying is a short video platform for women to share their personal stories and communicate about their work life. The application is designed based on the needs of young women in China. “We wanted to do this because I think the market lacks quality content—there is a lot of entertainment and gossip, but we wanted to set a professional standard to answer some of the questions,” Tan said. According to Tan, the program will start with female users of the messaging platform, but later grow to include men as well.

China’s first charity store steps into 11th year in style. Chinese nonprofit, Roundabout, works to promote the eco-conscious lifestyle of the 3Rs—reduce, reuse, and recycle—with its free pick-up service over Beijing. In addition to this, the company opened China’s first charity distribution store to raise funds for vulnerable social groups (orphans, children with critical sicknesses or physical challenges, women, elderly, and earthquake victims) and to connect those who want help those in need. “We hope to create a charming place where people feel good and have a pleasant experience when they step inside—whether to buy a gift for a loved one or to find something they need—so they would like to come back,” said Charlotte Beckett, the charity’s volunteer director.

THE VOLUNTEERS

Two Cathay Pacific pilots raise money to buy rice for charity Feeding Hong Kong. Through a crowdfunding campaign, two Australian pilots, Glen Clarke, and Matthew Brockman, raised HK$10,000 (US$1,270) to buy rice for Feeding Hong Kong, a local charity that rescues edible food from producers, manufacturers, distributors, and retailers and redistributes it to other charities. Both Clarke and Brockman moved to Hong Kong four years ago, and after fundraising money for Australian foundations, they decided to give back to a Hong Kong charity this year. Clarke and Brockman were inspired to raise money to buy rice for Feeding Hong Kong after spending time at the charity’s warehouse in Yau Tong and noticing a lack of rice among the non-perishable food donations. While their campaign for Feeding Hong Kong extends till June, the duo is already brainstorming more ways to give back to the Hong Kong community.

THE TRUSTBREAKERS

Man held for forging charity commissioner’s signatures. The detection of crime branch in India has arrested a man for forging signatures and stamp of the charity commissioner and preparing bogus documents related to land in Bil village on the Vadodara city’s outskirts. In the process of selling a piece of land he did not actually own, the accused claimed that the land belonged to a temple trust and that he had bought it from them, producing bogus documents with the charity commissioner’s forged signatures and stamp.

Charity laws being enacted in all provinces across Pakistan. With the visiting delegation of the Financial Action Task Force (FATF) in the country on Wednesday, various Pakistani government officials briefed the FATF on steps taken by Pakistan to curb money-laundering. The officials of the National Counter Terrorism Authority (NACTA) were also present on the occasion, briefing the FATF regarding laws on model charities and that laws on charities were being devised in all provinces.

Who’s Doing Good?

11 March 2019 - 17 March 2019

THE GIVERS

Azim Premji boosts total philanthropic commitment to Rs1.45 lakh crore (US$ 21 billion). Last Wednesday, Wipro’s 73-year-old billionaire chairman announced a fresh bequest to his eponymous philanthropic initiatives. Premji stated that he will be giving 34% of his shares in Wipro, India’s fourth-largest software services exporter, to an endowment that supports the Azim Premji Foundation. This new bequest is worth about US$7.5 billion, making his endowment fund one of the five largest private endowments in the world and the largest in Asia. The India Philanthropy Report, which was released by Bain earlier this month, highlighted that India’s proportion of ultra-rich grew by 12%, and Premji’s largesse serves as a model for other ultra-high-net-worth individuals to follow and enhance their philanthropic giving.

K-pop star of the boy band BTS celebrates his birthday with US$90,000 donation. Suga, whose real name is Min Yoon-gi, celebrated his 26th birthday last Saturday with a US$90,000 donation to the Korean Pediatric Cancer Foundation. The nonprofit foundation helps fund treatment and surgery as well as provide emotional and learning support for child cancer patients. The K-pop star presented the donation, along with 329 dolls he personally designed, under the name of “ARMY,” his band’s fan club. Since debuting in 2013, the band has promoted giving back and recently expanded its worldwide anti-violence campaign in partnership with UNICEF. The band has inspired many of its loyal fans to donate to charitable organizations when it is one of its seven member’s birthday.

THE THINKERS

Research highlights public unease about doing social good and making a profit. The British Council’s latest report on social enterprises in Malaysia shows a surge in the number of social enterprises launching in the past five years; however, unfamiliarity with the concept of social entrepreneurship has stemmed the flow of capital into the growing sector. The nascent social enterprise sector, coupled with the lack of an official legal definition, has resulted in a public unease about doing social good and making a profit. While close to all of the social enterprises surveyed for the report said that they plan to grow, the flow of capital was cited as one of the biggest challenges for growth. More education on and awareness of social enterprises will be pertinent in assuaging distrust in profit-making social delivery organizations and encouraging more investment into the burgeoning sector.

Singapore’s finance minister encourages closer partnerships and more donations for building an inclusive society. The Straits Times reported last month that only an estimated five out of 100 people with disabilities are employed, and Singapore’s growing elderly population poses a greater demand for services for people at risk of age-related visual impairment. At a fundraising dinner for the Singapore Association of the Visually Handicapped (SAVH), Finance Minister Heng Swee Keat encouraged volunteers, companies, and donors to forge closer partnerships in building a more inclusive society. He also highlighted the importance of supporting organizations like SAVH to expand their services that improve the lives of the visually impaired. The government aims to also encourage more donations through its Bicentennial Community Fund, an initiative included in the 2019 Budget that will devote SG$200 million (approximately US$150 million) to the dollar-for-dollar matching of donations to registered charities in the coming financial year.

Bangladeshi Prime Minister Sheikh Hasina encourages charitable work to spark social change. Last Thursday, four national celebrities were awarded the Danveer Ranada Prasad Shaha Smarak Gold Medal for their contributions to society: politician and former Pakistani Prime Minister Huseyn Shaheed Suhrawardy, national poet Kazi Nazrul Islam, language movement veteran Rafiqul Islam, and painter Sahabuddin Ahmed. Prime Minister Hasina recalled the contributions of philanthropist Ranada Prasad Shaha, after whom the award is titled, and called others to take up charitable work and engage in philanthropy to propel social change in Bangladesh. As the country celebrated its National Children’s Day this past weekend, Prime Minister Hasina continued to affirm her government’s commitment to ensuring a brighter future for the country’s children through development initiatives.

THE NONPROFITS

Indian government’s regulations on foreign funding of nonprofits results in 40% decline in funds. The Modi government has tightened surveillance on foreign-funded nonprofits regulated under the Foreign Contributions Regulation Act (FCRA), and since 2014, more than 13,000 organizations have lost their licenses. Nonprofits have played an invaluable role in uplifting India’s social sector, and while a recent report by Bain shows an increase in private funding in the social sector, domestic funding in its current state is insufficient compared to the flow of funds from large foreign foundations and international organizations.

Taiwanese environmental group showcases the role of nonprofits as agents of social change. The Ministry of the Interior revealed that there were more than 60,000 nonprofits operating at national and local levels in Taiwan by the end of 2018. One leading Taipei-based nonprofit, Society of Wilderness, is an exemplar of the pivotal role of nonprofits as agents of social change. Since its establishment in 1995, the nonprofit has helped reshape government policies, business practices, and public attitudes around environmental protection and conservation. With 11 branches nationwide, 6,000 paid-up members, 3,000 volunteers, and partnerships with various government agencies, the nonprofit has achieved noteworthy reach and social impact.

THE BUSINESSES

Top Korean conglomerate donates 10,000 air purifiers to elementary, middle, and high schools. In a recent executive meeting, LG Group and its chairman, Koo Kwang-mo, decided to have LG Electronics provide 10,000 large-capacity air cleaners to schools nationwide. In addition, LG will support Internet of Things-based air quality alert services and provide artificial intelligence speakers. The total price of the donation and support services amounts to around ₩15 billion (approximately US$13 million), and this comes after a donation of 3,100 air purifiers to 262 child welfare facilities earlier this year. An LG Group official highlighted the group’s understanding of its role in society and its aim to ensure children and teens have a healthy environment to live and study in.

THE INNOVATORS

Yue-Sai Kan to launch online sustainable fashion training for Chinese executives. Television producer, entrepreneur, and fashion icon Yue-Sai Kan has announced her decision to launch an executive education program in sustainable fashion for Chinese fashion executives. The free online course will be funded jointly by the Yue-Sai Kan China Beauty Charity Fund and WeDesign Group. The program is tailored to executives and professionals of Chinese companies engaged in fashion, beauty, and lifestyle products and services and aims to impart knowledge on necessary tools to integrate strategies that support the environment while growing successful businesses. “Yue-Sai Kan is a visionary who understands that the future of fashion depends on sustainability,” said Simon Collins, co-founder, and CEO of WeDesign, adding that “China will play a very, very important role. It has the scale, the capacity, and the enthusiasm to impact sustainability on a global level.”

THE VOLUNTEERS

A new program in Singapore to encourage youth volunteerism in institutes of higher learning will begin in June. First announced by Minister for Culture, Community and Youth Grace Fu during the 2019 Budget debate, the volunteer training program is the result of a partnership between Youth Corps Singapore (YCS) and various institutes of higher learning. President Halimah Yacob, who is also the patron of YCS, said, “YCS will connect these youth with the larger volunteerism ecosystem to sustain youth volunteerism even after they graduate. Through the program, we hope that the youth will rally more of their peers to give back to society and to continue to volunteer beyond their studies.”

THE TRUSTBREAKERS

Korean animal shelter nonprofit chief grilled over alleged euthanizing of stray pets and other suspected malpractices. Allegations against Park So-yeon, chief executive of the Coexistence of Animal Rights on Earth (CARE), first surfaced two months ago. While her charity ostensibly advocated for animal rights to raise donations, it was revealed that 250 stray pets were euthanized secretly. Police are now questioning Park for the first time since they launched a probe into the allegations two months ago. On top of the alleged euthanizing of stray pets, Park is also suspected of embezzling funds from CARE sponsors and keeping them for her personal use such as real estate purchase and insurance payments. Despite the controversy, Park pledged not to resign from her role, citing “concerns over a power struggle by former workers.” Since the allegations, more than 1,000 sponsors have withdrawn their support.

Former mosque chairman in Singapore admits misappropriating more than SG$370,000 (approximately US$274,000) from donations over seven years. Ab Mutalif Hashim, 58, pleaded guilty to six criminal breach of trust charges, with another eight charges taken into consideration. Alongside his then role as chairman of a mosque’s management board, Mutalif was the executive director of the Just Parenting Association (JPA) which he had set up and president of registered charity Association for Devoted and Active Family Men (ADAM). During this time, Mutalif used mosque donations to pay for the expenses of the ADAM charity, as well as depositing funds into his own account and the JPA’s account in amounts ranging from SG$2,200 (approximately US$1,600) to SG$39,000 (approximately US$29,000). These funds were primarily spent for his personal and household expenses, while the JPA-directed funds are suspected to have covered his own monthly salary of SG$7,000 (approximately US$5,200) as the charity’s executive director.

Who’s Doing Good?

14 January 2019 - 20 January 2019

THE GIVERS

Henry Sy, Philippine’s’ wealthiest man and notable philanthropist, passes away. The “Retail King”, as Sy was cordially known, immigrated from China and transformed a small shoe business into a thriving retail empire over the years. His company, SM Investments, owns three of the most valuable companies in the Philippines today, spanning extensive retail, banking and real estate operations. Sy was also regarded for his philanthropy. In 1983 he founded the SM Foundation to undertake efforts mainly in education which the he saw as a way out of poverty. The foundation’s generous scholarships to thousands of deserving but underprivileged Filipino youth enabled them to attain college education. Sy was aged 94.

Chinese scientist Qian Qihu to donate science award worth ¥8 million (US$1.2 million) to children’s education. Two Chinese scientists, Qian Qihu and Liu Yongtan, were honored the highest science and technology award by President Xi Jinping at the Great Hall of the People earlier this month. Each received ¥8 million (approximately US$1.2 million) for the award. Qian, who was recognized for his work on the country’s underground defense infrastructure, has decided to use the award money to set up a fund to help low-income children gain access to schools in his hometown of Kunshan. Qian has a history of charitable giving to education: since 2006, he has personally donated more than ¥200,000 (approximately US$29,500) to 17 low-income students.

The 2018 edition of Operation Santa Claus raises more than HK$17 million (approximately US$2.2 million). The latest edition of the Christmas fundraising drive, organized by the South China Morning Post and public broadcaster RTHK, included a variety of fundraising events held across the city from mid-November 2018 to mid-January 2019. The 13 charities receiving the funding offer an array of services ranging from supporting vulnerable youths and the elderly to bringing therapeutic art to hospitals. The drive has now raised more than HK$300 million (approximately US$38 million) in total since its inception in 1988.

THE THINKERS

Education and digitization key to reducing poverty in China, argue Alibaba co-founders Jack Ma and Joe Tsai. Leaders of the world’s fifth-biggest internet company, Alibaba, put forth the argument at two annual philanthropy events in Sanya and Hangzhou, China. Ma said the use of new technologies allows farmers to become more competitive and in turn boost profits. For example, an analysis of shoppers’ preferences on Alibaba’s platform revealed a consumer preference for sweet melons weighing around two pounds. This insight was passed to farmers who altered their practices to meet these demands and were subsequently able to generate much higher revenues. Tsai quoted government figures which state that 42% of the 14 million middle-school graduates in China move straight to low-skilled jobs instead of high school. He argued skills training can make this transition smoother. Ma added further that these problems can only be solved if Chinese business leaders and the government work together.

THE NONPROFITS

India relaxes requirements on nonprofits looking to receive foreign donations. Nonprofits registered under the Foreign Contribution Regulation Act (FCRA) are no longer required to sign-up to a government portal to receive foreign donations. Before the changes to the FCRA, organizations were required to undergo a tedious registration process before being able to receive foreign donations. This requirement was instituted in October 2017 to enhance accountability of organizations receiving foreign funding. The move will provide relief to thousands of nonprofits who faced difficulties in fulfilling this requirement.

THE BUSINESSES

The Independent lists Singaporean social enterprises making an impact. The enterprises on the list – CrushXO, I-Drop and Bookshare – achieve social objectives through their business models. CrushXO is a beauty startup which sells vegan-friendly makeup products. It donates 5% of its total sales to charities working on a range of social missions, including breast cancer awareness. I-Drop sells purified water through dispensing machines in grocery stores. Users fill their own multi-use water containers allowing prices to be as low as one-fifth of the cost of a traditional water container. Bookshare provides customized reading experiences to individuals facing health issues such as blindness and cerebral palsy. The platform boasts a library of over 670,000 books and charges S$1 (approximately US$0.74) for a weekly subscription.

“Breaking Bread Together” campaign provides freshly baked bread to children of low-income families in Korea. More than 400,000 children in Korea are estimated to be at risk of being underfed or malnourished. In response, Sun-in Co., a leading Korean specialty food manufacturer and distributor, partnered with Goldman Sachs and the Korean Red Cross to launch the “Breaking Bread Together” campaign. This campaign distributes fresh bread to children of low-income families on a weekly or bi-weekly basis. A pilot program had been running since last year, and this month the campaign will expand the program to 16 cities across Korea. As a result, the number of families receiving freshly baked bread is expected to exceed 1,100 households.

THE INNOVATORS

Billionaire donors team-up for collaborative impact fund, Co-Impact. The impact fund is supported by 25 backers including Bill and Melinda Gates and Indian billionaires Rohini and Nandan Nilekani. As part of the effort, partners will fund and provide technical assistance to projects aimed at driving large-scale impact in Africa, South Asia and South America. The fund’s first US$80 million in grants will support five projects. One of these is an implementation of an education program developed by Pratham, one of India’s largest nonprofits, in Cote d’Ivoire and Nigeria. Around 3 million students are expected to benefit from Pratham’s knowledge of boosting reading and math proficiency. Together, the five programs are expected to impact over 9 million lives.

THE TRUSTBREAKERS

Korean animal rights leader refuses to step down despite euthanasia scandal. Park So-youn, the head of one of Korea’s largest animal rights groups, Coexistence of Animal Rights on Earth (CARE), was accused of euthanizing more than 250 dogs earlier this month. Park claims the move was driven by mercy towards sick animals, however CARE staff and other animal rights groups reject Park’s view and have called for her resignation. According to one of the staff members: “Park is trying to justify her indiscriminate behavior (of administering euthanasia). Instead she is saying she will lead the social discussion on animal euthanasia.” Funding for animal rights groups in Korea is reported to have fallen drastically in the wake of the incident.

Who’s Doing Good?

10 December - 16 December 2018

THE GIVERS

Hong Kong Tatler names top 50 Asian philanthropists. The list features 50 of the most notable Asian philanthropists who have established charities or contributed generously to society through their donations. This year sees Li Ka-shing, Hong Kong’s richest person, topping the list. Through his foundation, Li has committed to donating approximately US$10 billion, a third of his fortune. Other notable philanthropists on the list include Ronnie Chan, Lui Che-woo, and Peter Woo. Chan, chairman of the Hang Lung Group, made the largest donation to Harvard University when he donated US$350 million in 2014. Contributions from these 50 individuals span a variety of domains, including the arts, education, cancer research, disaster relief, and poverty alleviation.

THE THINKERS

Mainstreaming of impact investment necessary to meet funding gap in achieving Sustainable Development Goals. A podcast hosted by Knowledge@Wharton featured observations from Fran Seegull, executive director of the United States Impact Investing Alliance, and Jonathan Wong of the United Nations Economic and Social Commission for Asia and the Pacific. The experts argue that private investment can not only meet the current funding gap, but also do so in a more sustainable fashion. According to Seegull, however, only the right mix of supportive and mandatory policy instruments can encourage this investment. Governments, therefore, must balance providing incentives and simultaneously preventing unnecessary bureaucratic hurdles. Wong adds that greater rigor in measuring social impact can assist governments in creating relevant evidence-based policy instruments, as well as informing and motivating investors with a clearer idea of potential returns.

Ronnie Chan and Ruth Shapiro’s pioneering journey to understand and promote Asian philanthropy. Ruth Shapiro, chief executive of CAPS, credits Ronnie Chan, one of Asia’s leading philanthropists, for his generous support in establishing CAPS. As per the interview published by Hong Kong Tatler, the modern Asian context served a precursor to CAPS. Chan and Shapiro saw that the exponential increase in private wealth across the region brought with it an increasing desire to give back to society. In order to facilitate this growing interest in philanthropy, CAPS launched its inaugural flagship research, the Doing Good Index, which seeks to measure the regulatory, fiscal, and societal infrastructure and ecosystem that makes it easier to “do good.”

Regaining public trust key to businesses and governments meeting societal goals. At two events organized in Singapore by French business school INSEAD, participants agreed that alleviating a rampant trust deficit was essential to creating social impact. The 2018 Edelman Trust Barometer finds that trust in businesses, governments, and media remains dismal, as 60% agree globally that CEOs are driven by greed rather than a desire to “do good.” Singapore’s Minister for Trade and Industry, Chan Chun Sing, recommended that businesses and governments embrace rules-based trading, implement meritocracy, and place societal interests before personal ones to regain trust. Peter Zemsky, deputy dean of INSEAD, argued that training business leaders to understand the relationship between business and society rigorously would also help regain lost trust.

THE NONPROFITS

Habitat for Humanity to raise funds through Indonesia Masters to support tsunami and earthquake victims. Founded in 1976, Habitat for Humanity, an international nonprofit, is serving as the sustainable partner for the 2018 Asian Golf Tour. As part of this partnership, Asian golfers took upon the role of ambassadors during the season to raise awareness about the nonprofit’s work. At the Indonesia Masters, spectators and golf enthusiasts will be able to contribute by purchasing merchandise and participating in charity games. The defending champion of the event, English golfer Justin Rose, has already donated US$50,000 to the nonprofit’s work in Indonesia for rehabilitating those affected by the recent tsunami and earthquake in Sulawesi and Lombok.

THE BUSINESSES

Impact investment asset manager Aavishkaar-IntelleCap Group receives ₹32 crore (approximately US$32 million) in investment from Nuveen, an American asset management firm. Nuveen’s investment will be used by Aavishkaar-IntelleCap to further increase its stakes in its subsidiaries. Nuveen is the investment arm of the Teachers Insurance and Annuity Association (TIAA) and holds over US$950 billion in assets. Aavishkaar-IntelleCap, based in India, is considered one of the world’s largest impact investing firms and offers a range of services including microfinance, equity financing, and consulting. The current investment by Nuveen follows Aavishkaar-IntelleCap’s efforts to raise US$300 million for its fund focused on Southeast Asia, which scouts opportunities in Vietnam, Indonesia, Myanmar, and Laos. Founded in 2001, Aavishkaar-IntelleCap currently manages a portfolio worth US$155 million spanning high-impact businesses at various stages of growth.

Indian personal care company, Himalaya, releases film to raise awareness about cleft-affected children. Titled “Ek Nayi Muskaan” (loosely translated to “A New Smile”), the film documents the story of Munmun, an eight-year-old girl from a village near Lucknow, India. Each year, over 35,000 babies are born in India with cleft lip and/or palate, and fewer than half receive treatment due to ignorance or poverty. Children with this condition are known to face difficulties in eating, breathing, and speaking. The surgery required is considered safe, immediate, and transformative. Munmun is shown in the film to receive support from “Muskaan,” an initiative of Himalaya in partnership with Smile Train, a global nonprofit headquartered in New York City. As part of the initiative, money from every purchase of a Himalaya lip-care product will be donated for this cause.

THE TRUSTBREAKERS

Ex-Malaysian Deputy Prime Minister charged for criminal breach of trust involving charity organization. Beleaguered former Malaysian Deputy Prime Minister Ahmad Zahid Hamidi was found to have misappropriated funds worth RM10 million (US$3.2 million) originally meant for Yayasan Akalbudi, his personal charity organization. The loan was discovered to have been passed to Armada Holdings, a Malaysian conglomerate. The current Criminal Breach of Trust ruling sees the number of charges against Hamidi swell to 46, amounting to a total of RM223 million (approximately US$53 million).

Chinese businessman jailed for running a pyramid scheme in the name of the poor worth RMB 20 billion (approximately US$2.9 billion). Zhang Tianming and 17 other individuals associated with him have been found guilty of running a pyramid and multi-level marketing scheme, which affected nearly six million people. Zhang’s company had lured investors with promises of high rates of return on projects that were meant to help the poor, but had instead paid out early members purely using funds from new joiners, a court investigation found.

Sexual abuse in the Nepali aid sector puts children at risk. The arrest of five foreign aid workers over the last year for alleged sexual abuse of children in Nepal has escalated fears that the country has become a target of pedophiles. These individuals are thought to be working under the cover of aid work or philanthropy. The most high-profile case of this alarming trend is that of Canadian aid worker Peter Dalglish. After spending nearly 20 years helping some of the world’s poorest children, Dalglish was arrested this year, and police found two boys, aged 12 and 14 respectively, inside his residence. Lori Handrahan, a veteran humanitarian worker, opines that these cases are merely the tip of the iceberg, suggesting that more or such incidents are to come and to be revealed.

Who’s Doing Good?

3 December 2018 - 9 December 2018

THE GIVERS

Singapore-based Vietnamese private equity veteran champions social entrepreneurship as his area of philanthropic focus. Lam Nguyen-Phuong, who was co-founder and senior managing partner of the private markets division of the Capital Group before his recent retirement in January, supports social entrepreneurship as his area of philanthropic focus. However, Nguyen-Phuong is not in it for profit, steering clear of impact investments for his personal portfolio: “I’ve been approached by social impact [investment] firms to invest, and I refused… Impact investments have a built-in conflict, as investors may say—why can’t we limit the social impact for a higher return? But profit has to come after purpose, and only to make it self-sustainable. When I used to make investments for [private equity] clients, the main objective was to make a profit. If in the process there was a social benefit, that was good.” In his personal capacity, Nguyen-Phuong has supported Ashoka and is a donor through an Ashoka endowment fund set up in his family’s name to support entrepreneurs in emerging markets, as well as personally mentoring social entrepreneurs under organizations that he personally supports.

Samsung Welfare Foundation names tycoon’s daughter as new chief. Stepping down from her position as president of the fashion division of Samsung C&T Corporation, Lee Seo-hyun, a daughter of hospitalized Samsung Electronics Chairman Lee Kun-hee, will now assume a new role as chairman of the Samsung Welfare Foundation. She will start her four-year term on January 1, 2019. Samsung Welfare Foundation, one of Samsung’s four foundations, was established in 1989 by Lee Kun-hee in an effort to expand Samsung’s charity projects and initiatives.

Japanese actress’ fund helps renovate school in Nepal. A fund run by Japanese actress Norika Fujiwara has been used to renovate a high school in Nepal. Fujiwara’s “Smile Please World Children’s Fund” helped provide the previously dilapidated Shree Ganesh High School with five new classrooms and a water facility for its 447 students. Nepal represents the third country after Afghanistan and Cambodia where the actress has helped build schools. It is uncommon for Japanese actresses to do charity work, she said, adding, “I want to tell the reality of the world to the Japanese society.”

K-Pop girl group member donates ₩50 million to charity. Seol-hyun of K-Pop girl group AOA recently donated ₩50 million (approximately US$44,385) to the Community Chest of Korea for supporting children from low-income families. This particular donation marks the third donation that Seol-hyun has individually made to various causes. In the previous year, she made two donations of the same amount to help victims of an earthquake in Pohang, Korea, and to help deaf children in Seoul.

Lego Foundation grants US$100 million to help refugee children. In its first major humanitarian project, the Lego Foundation announced its decision to provide US$100 million over the next five years to Sesame Workshop’s work with the International Rescue Committee and with the Bangladeshi relief organization BRAC. The aim is to create play-based learning programs for children up to the age of six in Lebanon, Jordan, Iraq, and Bangladesh. “We do risk losing a whole generation if we don’t help the children who find themselves in these emergency settings,” said John Goodwin, the chief executive of the Lego Foundation.

THE THINKERS

“A few NGOs are getting a lot of bad press. What’s the overall track record?” Having observed an increasing number of nonprofits coming under fire, The Washing Post explores recent cases and incidents that may explain why. From multiple sexual abuse scandals in developing economies to lack of accountability to meet organizational goals and targets, nonprofits dominated many frontpage headlines throughout the year. At the same time, there were several favorable polls that attested to society’s positive perception of and trust in the nonprofit sector. To figure out the true impact of nonprofits beyond perception, the authors studied a random selection of 300 published articles and reports on nonprofits and found that nearly 60% of them reported solely favorable effects of nonprofits on development outcomes, while just 4% reported that they had only unfavorable effects.

“Impact investing can be next growth and job engine for India: Amit Bhatia, Global Steering Group.” In this e-mail interview with The Economic Times, Amit Bhatia, global chief executive officer of the Global Steering Group for Impact Investment, speaks about the growing market of impact investing and its significance. Most notably, Bhatia shares how the impact economy is now worth US$23 trillion—US$16 trillion in responsible investing, US$6 trillion in sustainable investing, and US$0.25 trillion in impact investing. In terms of the future growth trajectory, Bhatia refers to his organization’s recent study with KPMG, sharing that by 2020, impact investments will cross US$468 billion.

Noteworthy talks and sessions at this year’s Yidan Prize Summit. Now in its second year, this Hong Kong-based education-focused forum brings together thought leaders—policymakers, business leaders, philanthropists, politicians, and educators—to formulate strategies to ensure today’s education meets the needs of tomorrow. In this feature article, Hong Kong Tatler previews and spotlights seven sessions at the event—from conversations with this year’s laureates to “Growing the Right Talent for Tomorrow” with Hong Kong philanthropist and Hang Lung Group chairman Ronnie Chan.

THE NONPROFITS

Filipino government awards Singaporean nonprofit helping foreign domestic workers. President Rodrigo Duterte conferred the Kaanib ng Bayan (Nation’s Partner) Award to the Foreign Domestic Worker Association for Social Support and Training (Fast). The organization, a charity supported by the Singapore Ministry of Manpower, was recognized for its “exception or significant contribution… to advance the cause or promote the interests of overseas Filipino communities.” Seah Seng Choon, the charity’s president, told The Straits Times, “It’s a recognition of the work that Fast is doing, and we’re glad that we have been recognized. This encourages us to do more.” Since its founding in 2005, Fast has been organizing courses and programs to help domestic workers learn skills that can add value to their work and enhance their future employability. These include cooking, baking, infant- and eldercare, foot reflexology, computer literacy, English, stress management, and entrepreneurship. Over 25,000 foreign domestic workers go through these courses each year.

Korean President invites major charity groups to top office and promotes culture of giving. President Moon Jae-in invited and hosted on Friday 15 of the country’s major charitable organizations at the Blue House. These charities included, for example, Salvation Army Korea, Good Neighbors, World Vision, and Child Fund. The Blue House said the event was arranged to imbue the public with the spirit of sharing and giving toward underprivileged neighbors during the year-end season, noting it is the first such gathering of the major charities. President Moon and First Lady Kim Jung-sook also delivered their donations to each of the participating groups.

Delhi city government bars Bloomberg-funded charity from tobacco control work. According to a city government official and a memo seen by Reuters, a small Indian nonprofit funded by Bloomberg Philanthropies will not be allowed to carry out tobacco control work in New Delhi after it failed to disclose its funding. The same official also added that other foreign-funded organizations will need to seek prior approval in the future for anti-tobacco activities. The Delhi city government’s decision comes amid similar moves by the Indian government, which has since 2014 tightened surveillance of foreign-funded charities. An anonymous anti-tobacco activist commented, “This is sending a wrong message. They are basically deterring tobacco control.”

Pakistani government officially announces expulsion of 18 charities. Pakistan announced on Thursday it was expelling 18 international charities amid growing paranoia that Western aid agencies are being used as a front for espionage. Umair Hasan, the spokesman for the Pakistan Humanitarian Foundation, an umbrella representing 15 of the 18 charities, said those charities alone help 11 million impoverished Pakistanis and contribute more than US$130 million in assistance, adding, “No organization has been given a clear reason for the denial of its registration renewal applications.” However, Shireen Mazari, the country’s human rights minister, said on Twitter the 18 groups were responsible for spreading disinformation. “They must leave. They need to work within their stated intent which these 18 didn’t do,” she said.

Number of new charities in Singapore down to 10-year low. The number of new charities in Singapore hit a 10-year low last year. According to the Commissioner of Charities’ latest annual report, only 39 groups registered as charities last year. This is down from 49 a year before and 59 in 2008. Various experts have explained this decline could be due to the rise of informal help groups and the sector reaching a saturation point. Charity Council chairman Gerard Ee said, “There are so many charities out there fighting for the same donation dollar, and it is very difficult for new charities to raise funds. So people may think it’s easier to volunteer at existing charities, doing the work they were thinking of doing, instead of starting a new charity.”

THE BUSINESSES

UBS streamlines efforts to address the rising importance of gift-giving to the world’s wealthy. Switzerland-based global bank UBS has recently streamlined its group-wide philanthropic efforts, consolidating them into a single 45-member team. Phyllis Costanza, a veteran who has served at the bank for seven years, has been tasked with leading the team. Costanza also heads the UBS Optimus Foundation, which successfully launched a high-yielding bond linked to the learning development of young girls in Rajasthan, India, in 2016. UBS executives, Hubertus Kuelps and Joe Stadler, were confident the team would achieve “measurable social impact through their philanthropic activities, while also generating enhanced business growth for UBS.”

A look at HSBC’s philanthropic activities and how it approaches maximizing social impact. Cynthia D’Anjou-Brown, Asia head of philanthropy and family governance advisory services for HSBC Private Banking, details in this interview the bank’s extensive work in advising and supporting its private banking clients in regards to the charitable and philanthropic sectors. According to D’Anjou-Brown, the bank has learned that matching donors with causes they feel passionate about and tapping into their expertise help maximize impact.

THE INNOVATORS

Recent seminar in Thailand discusses the importance of social enterprises in boosting sustainable development. At “Thailand Social Enterprise: The Way Forward,” various stakeholders and experts gathered to discuss the role of social enterprises in contributing to Thailand’s sustainable development and growth. Kittipong Kittayarak, executive director of the Thailand Institute of Justice, noted that building a supportive ecosystem is important: “The law alone cannot govern every part of the ecosystem. Cooperation from all sectors, namely incubators, education sector, financial institutions, entrepreneurs’ associations, and public sector are key for the successful implementation and development of social enterprises.” Sarinee Achavanuntakul, co-founder of Sal Forest, Thailand’s first “sustainable business accelerator,” said that the biggest challenge is social entrepreneurs abandoning their mission or having very little social impact and that as such, the most important thing is evaluating the enterprise’s social impact, as well as the pressure it can have on the public. This seminar hosted by the Thailand Institute of Justice occurred amidst a recent public hearing on the Social Enterprise Promotion draft bill, which has now reached the final stage before being handed over to the National Legislative Assembly for consideration.

THE VOLUNTEERS

Student charity run in Malaysia collects RM200,000 (approximately US$50,000) to support victims of human trafficking. The race was organized as part of the global charity event, “24-Hour Race,” and saw participation from over a thousand people who completed over 15,000 laps. This year’s race was the event’s eighth iteration and increased the total amount collected by the event to RM4.85 million (approximately US$1.2 million). The money will be channeled to The Exodus Road, a nonprofit organization that will train and equip 24 national local law enforcers and help fund 24,000 hours of investigation across 2,400 locations to support victims of human trafficking.

THE TRUSTBREAKERS

 Self-proclaimed Thai philanthropist organizing anti-drug campaign arrested for drug trafficking charges. Kalyakorn Siriphatarasomboon, better known by her nickname as Jay Lin, was arrested in Phrae province in northern Thailand for drug trafficking charges. The police found and seized 1.6 million tablets of methamphetamine and 10 kilograms of crystal meth aboard a pickup truck which she was driving. The suspected drug trafficker had launched an anti-drug campaign among local teenagers, especially youth soccer players, in Chiang Mai, Thailand, and donated money to impoverished people in the region, but the police suspected such charitable acts and events were merely a cover-up for her drug trafficking crimes.
Seoul city government-backed foundation accused of various corruption incidents and organizational malpractices by current and former employeesThe Seoul Digital Foundation, founded by the Seoul Metropolitan Government and funded by its taxpayer money, was accused of various questionable practices by current and former employees. For one, the foundation’s chairman used a corporate card under the foundation 37 times—mostly on Friday nights—for personal meals near his apartment, totaling an amount of approximately US$2,719. In public audit hearings, the foundation’s chairman would resort to the excuse of funding security and cleaning staff’s meals. It was also revealed that the chairman used the corporate card to watch professional baseball games and to pay for meals and drinks at these games. Covering up and disguising these payments was considered a daily practice within the organization, as staffers were ordered to record fake meeting minutes.
Various side effects appear for Japan’s hometown tax donation (furusato nōzei) system. What was originally intended to be a system to encourage and incentivize individual giving to local governments turned out to be a tax loophole and a profitable trade in goods and services. Over the years, some local governments began offering gifts in return for donations. The law does not prohibit gift-giving, but in principle, items on offer should be produced in the area represented by the local government in question. However, more and more governments are offering expensive gifts that have no relation to their local industry or agriculture, with competition heating up to the degree that dozens of websites have appeared to help consumers choose among gifts that are available. Some have also pointed out how the system is particularly advantageous for the wealthy who pay higher residence taxes, as they can claim a part of their residence tax payment as a deductible donation.

India’s CSR reporting survey 2018

KPMG India

Foreword: The combination of a forward-thinking corporate sector and the propulsion generated by Section 135 of the Companies Act, 2013 (Act), companies in India are at the forefront of deploying financial and technical expertise to improve the lives of millions throughout the country.

Now, with the fourth edition of the India Corporate Social Responsibility (CSR) report titled, “India’s CSR reporting survey 2018,” KPMG in India has once again provided crucial and detailed evidence that the visionary strategy of India’s Companies Act is gaining extraordinary traction and creating meaningful impact.

In the four short years since the implementation of this groundbreaking legislation, Indian companies have moved swiftly up the learning curve. This report shows that compliance has become near universal with 99 percent of the N100 companies putting their CSR policy up in action from 55 percent during 2014-15, an increase of over 73 percent.

While these reporting statistics are impressive, the real story lies in the governance, programmatic, and financial commitments made. More than 90 percent of companies have standalone CSR committees, elevating the prominence of these efforts to the highest rungs of the company. Independent directors are serving on these committees, and 64 percent include at least one woman.

Education and health continue to receive great attention with 65 percent of the projects and 61 percent of the expenditure. As expertise evolves, there is clear evidence of companies making more strategic and impactful CSR decisions increasingly aligned with the SDGs (Sustainable Development Goals).

The report shows that during this past year, companies have spent INR7536.3 crore which is 47 percent higher as compared to 2014-15, a highly laudatory increase.

KPMG’s important contribution through this report does more than inform that CSR activities in India are going from strength to strength, it showcases for the rest of the world the potential and reality of the constructive role companies can play in addressing our shared societal challenges. With India’s example and the realization of the need for partnerships and hybrid solutions, governments and companies throughout Asia and indeed globally are looking to emulate India’s leadership.

Ruth A. Shapiro, Ph.D.
Founder and Chief Executive
Centre for Asian Philanthropy and Society