Photo by Nathan Cima on Unsplash
By Theresa Cua, Senior Communications Manager, Asia Philanthropy Circle
Despite a long tradition of giving in Asia, the philanthropy sector in the region is relatively nascent. While small, and even informal, philanthropy’s contribution towards tackling social challenges is no less significant. Part of our mission at Asia Philanthropy Circle (APC), a network of over 60 philanthropists across 12 markets in the region, revolves around strengthening and deepening the practice of philanthropy amongst our members.
In 2023, we launched ‘A Philanthropist’s Guide to Giving’, a ‘how-to’ guide covering various stages of the philanthropy journey, from structuring and strategising to executing, evaluating, and collaborating. We created this guide simply because we could not find existing resources with a focus on Asia.
‘How-to’ guides are nothing new. There are, in fact, plenty of excellent resources already available. However, most of them lacked relevant application to the unique context of Asia. The region’s immense socio-economic diversity, ethnic and cultural variations, post-colonial legacies, and distinct relationships with government require that philanthropy be practised differently from the West.
In putting the guides together, drawing from the rich collective experience of our members, and reflecting upon what defines the ‘Asian’ practice of philanthropy, we find several hallmarks:
1. As Asia grows richer, there is an even greater need to tap private wealth towards philanthropy
Asia is a rapidly emerging hub for private wealth. In Singapore alone, some 1,400 family offices have been set up to cater to private wealth, according to the country’s Economic Development Board. The Economist estimates there are some 894 billionaires presently in Asia, with a combined wealth of US$3.4 trillion in assets.
Hong Kong-based think-tank Centre for Asian Philanthropy and Society (CAPS) projects that 26% of the world’s billionaires will come from Asia within the next decade. At its recent Doing Good Index 2024 launch, CAPS also noted that harnessing just 2% of their GDP will unlock an astounding US$702 billion annually—enough to fund a quarter of the annual costs needed to achieve the region’s Sustainable Development Goals by 2030.
The 2024 Doing Good Index also highlighted a steady decline in foreign aid towards Asia ever since the Index began tracking the sector in 2018. This shortfall further highlights the urgent need to tap the region’s growing wealth and to capitalise on philanthropy’s potential to fund risk and innovation in addressing increasingly complex social and environmental challenges.
2. There is growing interest in strategic collaboration in Asia, as problems grow more complex and borderless
The growth of regional networks like APC and AVPN, and more recently Accelerate Indian Philanthropy, the Philanthropy Asia Alliance, and the Institute of Philanthropy, have shown an increasing interest within the philanthropy sector in working collaboratively. At the same time, global funders like the Gates Foundation, the Wellcome Trust, Tara Climate Foundation, and the EarthShot Prize have been increasingly interested in supporting interventions in the region–such as around climate solutions, pandemic preparedness, or access to education for refugees.
There is an increasing recognition that complex issues affect not only individual countries, but also have regional and global implications. These issues are deeply interconnected with other challenges to human development.
3. Philanthropy and the social sector have an ambivalent relationship with the government
Governments in Asia view civil society differently. While there are policies that encourage philanthropic giving—such as in Singapore, where philanthropic funding can garner up to 250% in tax deductions—in other places, restrictive regulations limit foreign funding to flow into local NGOs, as in India.
Rather than acting as a check on power, civil society is often expected to complement government efforts. This dynamic similarly extends to philanthropy, where philanthropists are often expected to align efforts with government agendas to scale interventions and remain relevant. In some cases, interventions are co-opted into government programmes, if they prove successful.
However, while governments recognise the magnitude of social issues and the need to collaborate with private wealth and civil society, relationships with the sector remain uncertain.
4. An increasing interest in research and data
Data is increasingly seen as a public good that can help different stakeholders inform their actions. Philanthropists have been increasingly interested in funding research and data collection to support evidence-based interventions. For instance, in 2023, a Regional Early Childhood (ECD) Landscape Research study, which maps ECD programmes and policies across China, Indonesia, the Philippines, and Singapore, was funded by twelve APC members and partners. The research helped to identify gaps for future interventions by other ECD stakeholders—currently, the research is making headway as the subject of discussion within the Philippine Senate.
Similarly, in 2017, several APC Indonesia members funded a mapping of education interventions across the country, which helped to inform subsequent collaborations, such as the Tanoto Foundation and Djarum Foundation’s support for the school leadership development programme INSPIRASI.
5. Trust is in short supply, but remains the main currency of collaboration
Building trust remains a significant hurdle in the sector, despite a willingness to collaborate. Lack of trust in a nascent and fragmented social impact sector means philanthropists often prefer to run operating foundations that create and manage their own programmes, rather than give grants to the non-profits that do the work. While this approach ensures funders have closer involvement in programmes, it can also limit the scale of their impact.
This lack of trust stems from deficiencies—perceived or real—in the sector’s transparency, accountability, and governance. To combat the lack of trust, many funders have also preferred supporting organisations with personal affiliations—such as clan, religious, or family ties, or those validated by other funders they know and trust.
To address the lack of trust, regional intermediaries such as the Asia Community Foundation are being set up to encourage giving—either by increasing awareness of credible and viable non-profits to fund, or by simplifying the giving process for donors with fewer resources to figure out the complexities of cross-border giving.
We cannot overstate how building trust between funders is crucial and takes time. Over the past decade, APC has built a strong community by providing a safe environment that fosters trust and collaboration among members. Trust enables individual funders to look beyond personal agendas, compromise towards joint action, and allow others to lead where they have the most expertise.
Trustees of the future
Asia’s philanthropy sector is rapidly developing, with an increasing appetite for risk and innovation. However, much remains to be done to strengthen the ecosystem and encourage more giving. We must continue to foster trust, build strategic collaborations, and leverage private wealth.
There is no shortage of social problems to solve, and only by working together can we solve these challenges and build a prosperous, flourishing future for all.
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A Philanthropist’s Guide to Giving has been subsequently translated into Chinese (launched in Feb 2024) and Bahasa Indonesia (to be launched in August 2024) in order to reach broader audiences across the region.
Asia Philanthropy Circle (APC) is a community of philanthropists collaborating to chart a better future for Asia. Founded in 2015 by Asia-based philanthropists to encourage peer exchange, APC has grown to over 60 members across 12 markets.
We are home to a diverse network of philanthropists—across generations and interests—seeking collective impact together. Our members give in financial and human capital, champion social innovation for public good, and pioneer collaborative initiatives to build the social impact ecosystem and address systemic challenges.
APC is a registered charity headquartered in Singapore with roots throughout the region. www.asiaphilanthropycircle.org
Theresa has worked in international, non-profit environments in her dedication towards making a difference in the world. Her previous roles include managing the communications for the Asia-Europe Meeting (ASEM), an intergovernmental dialogue, under the Public Affairs Team at the Asia-Europe Foundation. She also headed branding, communications, and marketing at several charities and impact investing firms, and helped develop engagement strategies for the Cultural Exchange team during its inception years at the Singapore International Foundation.
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