Doing Good Index 2020: 18 economies | 4 sub-indexes (or 4 actionable policy areas) | 35 indicators.
HONG KONG (June 16, 2020)—The Doing Good IndexTM 2020, published today, reveals that with the right incentives and regulatory policies in place, Asia can unleash US$587 billion per year in the form of philanthropy and other types of private social investment. This is 40% of the US$1.5 trillion needed for the region to meet the United Nations’ Sustainable Development Goals by 2030.
The Centre for Asian Philanthropy and Society’s (CAPS) biannual Doing Good Index examines 18 Asian economies’ regulatory environment, tax incentives, public procurement and cultural conditions. Based on these four areas, the index and accompanying report analyzes how well the economies are catalyzing philanthropic giving. It also examines the progress economies have made two years on from the inaugural edition.
The index identifies six broad regional trends:
- Governments play an increasingly important role, both as a partner and as a policy implementor for the social sector.
- Increased regulatory oversight is making it harder for private social investment to circulate, resulting in half the economies performing worse on the regulations sub-index this year compared to 2018.
- Tax and fiscal policies continue to exert influence but are held back from realizing their full potential due to widespread confusion around procedures and applicability.
- There has been increasing social sector involvement in government policy consultations, a step in the right direction for making laws more understandable and functional.
- Private sector involvement is also gaining traction in Asia as corporates engage through corporate social responsibility and partnerships for social good.
- Government procurement is a missed opportunity.
New to this iteration, the Doing Good Index 2020 deep dives into the 18 economies to tell the story of each, providing context for its performance on the index and showcasing trends that indicate what lies ahead for the social sector. These economy profiles provide unique, on-the-ground insights and have been authored by CAPS’ regional partners.
“The Doing Good Index is a study of the environment in which private capital meets societal needs and showcases how Asian economies and governments can create a flourishing social sector,” said Dr Ruth Shapiro, Chief Executive of CAPS. “It has been designed to benefit a wide range of stakeholders, including policymakers, philanthropists, social delivery organizations (SDOs) and citizens, and to help them understand what levers can be pulled to best increase and enhance philanthropic giving in their economies.”
The Doing Good Index 2020 finds that by contributing 2% of GDP, Asian philanthropists can deliver 12 times the net foreign aid flowing into the region. However, Asian philanthropy is largely held back by a trust deficit in the social sector, as well as gaps in incentives to give more and effective strategies to deploy private resources more efficiently. Policies, programs and practices that can enhance philanthropy, and those that impede it are highlighted in this index.
“The social sector matters now more than ever as we grapple with the fallout from COVID-19,” explained Dr. Shapiro. “Asian governments must implement the necessary regulatory policies, incentives and operational environment which allows SDOs and private social investment to thrive, thereby supporting recovery and rehabilitation efforts.”
Index highlights
Economies are categorized into four distinct clusters, each of which can be thought of as the distance left to travel towards creating a conducive environment for doing good. As with the 2018 edition, even the top-performing economies do not score well enough to reach the “gold standard” of the Doing Excellent cluster, indicating room for growth.
Regulations
- Foreign funding is declining and is a concern for low- and middle-income economies where SDOs rely heavily on foreign capital.
- Most economies have accountability mechanisms in place but there remains room for improvement.
- Laws and regulations related to the social sector are complicated and not enforced consistently.
- The ease of setting up nonprofits varies across economies.
Tax and Fiscal Policy
- Performance on the Tax and Fiscal Policy sub-index mirrors overall performance on the Doing Good Index.
- Rates of tax deduction and income eligible for deduction varies across economies.
- Incentives for giving upon death in the form of charitable bequests is lacking in all but four economies—Japan, Korea, Philippines and Taiwan.
- SDOs can access government grants in most economies.
Ecosystem
- There is societal support for the social sector, but individuals need to give more.
- Governments and corporates offer awards for philanthropy in most economies.
- Recruiting and retaining talent is challenging as there remains a perception that nonprofit staff should be paid less than their for-profit counterparts.
- Boards of governance are mandatory in 15 out of 18 economies.
Procurement
- Government procurement from SDOs remains low.
- The procurement process is challenging with access to procurement information and transparency of the process remaining key concerns.
The full report is now available for download on the CAPS website.
About The Centre for Asian Philanthropy & Society (CAPS)
Established in 2013 and working across more than 17 economies in Asia, the Centre for Asian Philanthropy and Society (CAPS) is a nonprofit organization committed to improving the quantity and quality of philanthropic and private giving throughout Asia. Our mission is to maximize private capital for public good, conducting research, advisory, convening and capacity building to engage philanthropists, foundations, family offices, corporates, government bodies, social sector organizations and experts on best practices, models, policies and strategies to facilitate private giving and social investment in the region.