Philanthropy advice in emerging markets
As part of our special feature on philanthropy advice in the September issue of Alliance, we contacted a number of people involved in philanthropic ventures in emerging markets to find out what options were available in these parts of the world. Cultures of giving vary widely among continents, and accordingly the provision and take-up of advisory services is different in the various markets, so we have separated the replies into broad geographical areas. This is not a comprehensive guide, as it is based on replies from individuals rather than widespread research, but is intended to give an overview of the current situation across several emerging markets.
We will continue to update this page as more information comes in. If you have suggestions for organizations that should be mentioned in this article, please email alex@alliancemagazine.org
Click on the links below to read about philanthropy advice in the corresponding region:
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Philanthropy advice in Africa
Africa is a vast continent covering some of the world’s poorest countries as well as some more highly developed economies, and so it is impossible to generalize about such a wide area. However, our respondents suggest that South Africa is developing a strong support network for philanthropic work, while other countries are still finding their way.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in Africa?
One respondent suggested that African families tend to fund their own kin networks rather than set up something that reduces the personal interaction and social capital – he was therefore not sure how big the demand would be for advice. This view was backed up by others.
Perhaps unsurprisingly, the situation is best in South Africa, where those seeking advice have several options. One contributor said that she knew of a number of individual private consultants who will advise the corporate sector on corporate social investment, but she was not sure whether they also provide advice to private foundations or philanthropists. The sustainability and social investment consultancy Trialogue is advising and promoting corporations that are interested in CSR and CSI or want to establish philanthropic arms.
One non-profit that provides assistance is Inyathelo – the South African Institute for Advancement. However, a spokesperson from the organization said that local foundations and philanthropists tend to ‘do their own thing’ and don't seek advice very often. Inyathelo has been working towards building an informal network of local private foundations through a series of symposia and has funding to initiate a newsletter. Inyathelo is working towards a conference in November that will bring local foundations together with international foundations that are interested in South Africa or currently give to South Africa. Discussions there will focus on the support required by local foundations; issues raised will be used by Inyathelo to develop a comprehensive support service.
Another South Africa-based organization active in this field is CAF Southern Africa, which offers a range of advice services, including estate planning, matching donors with CSOs and helping to establish private trusts. They also offer a consultancy service for both individuals and corporates, to assist with all aspects of selecting and setting up a giving strategy.
A respondent from the law profession told us that the field of charity law was under-represented in the country, potentially because ‘most professionals consider that "nonprofit" (in relation to legal structures) denotes "non-profitable"!’ Grant-receiving organizations are well catered for by the Legal Resources Centre, which provides legal services for free to qualifying organizations and individuals, and a pro bono law adopted by the legal profession in general that demands that each practising member takes on at least 24 hours of pro bono work per year. Two Cape Town practices – Richard Rosenthal Attorneys and Ricardo Wyngard Attorneys – focus their work on the non-profit sector, both on the grant-receiving side and for aspiring philanthropists and family foundations.
Elsewhere in Africa, contributors suggested that established foundations, such as Synergos, also advise new foundations in southern African countries such as Mozambique, with a particular focus on community foundations. Another writer had heard that TrustAfrica’s African Grantmakers Network (www.africangrantmakers.org) was also starting to provide advice in this field across the whole continent.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Again, South Africa leads the way, and one bank in particular was mentioned frequently. BoE Private Clients (which used to be known as the Board of Executors) is a private bank/private client business that has been involved in looking after donor and charity clients since its inception in 1834. BoE started as a Widows and Orphans Fund itself and as a private client business it has for many years been involved in the management of clients' charitable trusts, whether set up in terms of their will or during their lifetime. The bank set up a philanthropy division six years ago, aiming to provide a ‘one-stop shop’ for would-be donors (both corporate and individual). Services include advising on establishing foundations, relevant tax approvals and investment services to ensure foundations meet fiduciary duties. The bank discounts fees for non-profits and has lowered the entry level for charities to ensure that services are accessible. A bank spokesperson said that there has been great interest in these services, and anecdotal evidence that giving in general is growing in the country.
One respondent said that ABSA bank also has a philanthropy service, but although she had met the person who runs it, it appears that it is not publicly active. A respondent from Kenya said that she was not aware of any consultancy services available in any bank locally, for this kind of need, either in Kenya or in any of the surrounding countries. To check on her theory, she consulted some of the leading banks, and two confirmed they don't have such services. They both thought she was talking about their CSR work and wanted her to talk to their Corporate Affairs Managers.
What are the greatest needs in this area in Africa?
Our Kenyan respondent, who had found few options for advice in the country, had many ideas of how to improve the sector. Education would be a good start, she said. Firstly, to show local civil society that it should be ‘more aware of the need to be more accountable to local givers, and not just to donors from abroad, as is the case at the moment’. Secondly, to educate people on what ‘good philanthropy’ is – trying to draw people away from the notion that simple handouts are enough, and from the idea that charity is something just for the very rich.
She also cited the need for an improved legal framework to provide incentives and safety measures for those willing to give to credible institutions, and to encourage people to write wills. Alongside this, she said: ‘There is a critical need to develop working mechanisms that make giving easy; i.e. the infrastructure needs to be developed such that people can give conveniently. Working post offices that are close to people in villages can help. Establishing a mechanism that makes it possible to give to a cause they are committed to where they are without travelling for a long distance. Mobile telephony has improved this in recent years, but access in rural areas is still a bit of challenge.’
South African respondents cited the need to build a stronger philanthropic community – ‘particularly among the new cadres of billionaires in the country, who have derived massive personal wealth from opportunities created through legislation requiring Black Economic Empowerment’ said one. In addition, said another, the current tax regimes are not adequately conducive to the encouragement and fiscal reward of philanthropy. Another said she would value more open discussions on basics such as reporting, evaluating and funding core costs.
Alliance would like to thank those who contributed to this article:
Alan Fowler, Centre for Civil Society, University of Natal, South Africa
Shelagh Gastrow, Inyathelo, South Africa
Janet Mawiyoo, Kenya Community Development Foundation, Kenya
Richard Rosenthal, Richard Rosenthal Attorneys, South Africa
Anna Vayanos, BoE Private Clients, South Africa
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Philanthropy advice in Australia
Australia is hardly an ‘emerging market’ but Alliance wanted to include the country in order to present a comprehensive view of the situation around the world. A major player on the world’s economic stage, Australia’s GDP per capita is greater than that of the UK, and the country has developed a thriving philanthropy market. We asked Gina Anderson, CEO of non-profit organization Philanthropy Australia, what advice services were on offer for would-be donors.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in Australia?
The philanthropic sector in Australia is going through a very dynamic phase. New vehicles and structures such as private ancillary funds (private philanthropic foundations), donor advised funds, community foundations, and a variety of investment products are emerging to meet the needs of a new class of donors who are seeking to invest money for social good. As a result there is now a growing group of intermediaries who are working in all parts of the philanthropic process to make giving easier: they cover things like investment, administration and grant-making
These intermediaries include legal firms, trustee companies, wealth advisors, accounting and business consultants and grantmaking/social investment consultants. A list of advisers who are members of Philanthropy Australia can be found on our website.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
A number of financial services organizations (banks, investment houses, trustee companies and boutique wealth advisors) provide advice and services for the establishment and management of philanthropic foundations and other structured giving programmes. They also assist in the management of philanthropic assets.
Are there other types of people or organization offering this sort of advice?
Increasingly in Australia we are seeing the growth of ‘Family Offices’ for the High Net Worth families. The Family Office usually evolves either out of the management of a multi-generation family to offer services to other HNW families; or an accountant’s practice (tax-driven) that develops its wealth management capability and then develops a full-service option for HNW families.
What are the greatest needs in this area in Australia?
‘Impact investing’ is under-developed in Australia. There are few advisers and intermediaries offering impact investing products. The immediate challenge is to develop impact investing opportunities while providing education and advice to potential impact investors.
Gina Anderson is CEO of Philanthropy Australia. For a list of service providers active in the field of philanthropy in Australia, see www.philanthropy.org.au/sector/serviceproviders
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Philanthropy advice in Central and Eastern Europe (CEE)
Since the fall of the Berlin Wall, much has changed for central and eastern Europe, with responsibility for society shifting from government to the individual. With increasing wealth and greater interaction with the west, have CEE countries followed European models of philanthropic structure? It seems that progress is being made, slowly but surely, with country-based donors’ forums being popular across the region.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in CEE?
Our Russian respondent divided the market of philanthropy advice in the country into three segments. Firstly, individual consultants, of whom there are very few, mostly working in the area of CSR and programme evaluation. The second group is for-profit companies: usually multinational consultants (auditors, lawyers, strategy) would not refuse clients, but in reality have little expertise in the field. The third group is non-profits: only a few operate in Russia, but they are a lot more competent in the field. This category includes big names like Charities Aid Foundation Russia and the Russian Donors Forum, and smaller organizations working in the regions (community foundations, NGO resource centres etc.) The Russian Donors Forum provides informal advice to its members, while CAF Russia is the biggest provider in the area of foundation strategy, programme development and administration, donor education, staff development and legal issues.
Having said all this, she does report that there is not currently a great demand for philanthropic advice: ‘Foundations are yet to realize that they need professional advisers and be prepared to pay for the services.’
In Slovakia, our respondent writes that it is possible to hire individual advisers (often experienced ex-NGO people) who now work as freelancers. There are also some organizations (eg Slovak Donors Forum, Business Leaders Forum and Centre for Philanthropy) that provide services for corporate donors. On the other hand, she says, service delivery to individuals and family foundations (which are not so common in Slovakia) is just emerging, and she did not know of anyone providing services to individual philanthropists.
In Hungary and the Czech Republic, one contact told us they did not know of anyone providing advice to individuals, and that aspiring philanthropists would most likely approach existing foundations for peer-to-peer advice, or consult a group such as the Hungarian Donors Forum. Country-specific donors' fora are popular in the CEE area, and would be a good first port of call for any aspiring philanthropists. Contacts for many countries can be found on the WINGS website.
However, another respondent said that Hungary is experiencing a surge of individual philanthropy, as the first generation of successful businesspeople reach retirement age. The Nonprofit Information and Training Centre Foundation (NIOK), founded in 1993, provides information and legal advice to philathropists and foundations, and would be a good first port of call for interested parties. The same respondent also named two organizations, Summa Artium and the Poland-based Commitment to Europe, which work in the field of the arts to match donors with suitable projects, and may be able to offer advice to would-be donors. However, another respondent reminded us that these and other similar organizations would most likely promote their own projects and therefore donors may wish to take further advice before committing.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Our Slovakian contributor knew of two private banks offering services in the field of philanthropy, but suggested that their knowledge of philanthropy is probably quite basic, and therefore they do not yet create much value in the development of philanthropy. In Russia, family offices of private banks has an intention to engage with the issue, but our respondent has not seen any evidence of this so far. She believes that in general, international wealth managers who have Russian clients provide this kind of service from their European offices (as in other areas, UBS is particularly known for this).
Across the rest of Eastern Europe, our respondents were not aware of any banks offering official advice services.
What are the greatest needs in this area in CEE?
Common themes included improving the legal framework and tax incentives, strengthening mutual trust between donor and charities, and, in turn, creating stronger partnerships between NGOs. Respondents in Hungary and Slovakia talked of a need for a better relationship with the media, while our contact in the Czech Republic suggested further scope for peer-to-peer education. A pilot seminar organized by the Via Foundation two years ago was believed to be the first of its kind in the country, and the first encounter with the subject for many bankers and tax advisers that attended.
Alliance would like to thank those who contributed to this article:
Istvan Arnold, Summa Artium
Jiri Barta, Via Foundation, Czech Republic
Nilda Bullain, European Center for Non-profit Law
Maria Chertok, Charities Aid Foundation Russia
Rayna Gavrilova, CEE Trust
Lenka Ilanovska, Slovakian Donors Forum
Klara Molnar, Hungarian Donors Forum
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Philanthropy advice in India
As reported in the Indian Philanthropy Forum’s contribution to the September issue of Alliance, Bill Gates has predicted that India will one day be second only to the US in terms of philanthropic activity. For this to become reality, the country will no doubt need to develop a support system as wide-ranging as the one in the US. How far has India got so far? According to our contacts, more work is needed to consolidate and professionalize philanthropic efforts.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in India?
One of our respondents stated: ‘As articulated so well in the NPC report on Giving in India, there are very few organizations providing advice to individual philanthropists or family foundations.’ Non-profits appeared to be the best-known sources of advice – names mentioned included GiveIndia, Dasra (which covers the Indian Philanthropy Forum and Dasra Giving Circles), Centre for the Advancement of Philanthropy and United Way. However, one writer commented somewhat ruefully: ‘There is none in the league of Geneva Global, TPI, RPA or Arabella in the US. All philanthropy support organizations provide advice as a part of their product portfolio and are not involved in any major education or awareness building exercise.’
One contributor was aware of a greater range of options, mentioning consulting firms as well: ‘As a spin-off from their auditing work, the major firms (Ernst & Young, KPMG, McKinsey, etc) have started aid and development services departments but tend to focus more on corporate social responsibility or the large international foundations, rather than individuals or families. The major family houses have taken on people to head up their foundations so some have been getting more strategic advice; however, very often the decisions sit with the family members or within human capital management. In India there is a particularly thin line between corporate and family philanthropy in the many family-run businesses and this results in more of a CSR approach as opposed to a strategic philanthropic approach.’
A further option is provided by individual advisers, and one respondent singled out two people offering services: ‘Noshir Dadrawala of Centre for Advancement of Philanthropy has been advising families in and around Mumbai-Pune on structuring their philanthropy. Sanjay Agarwal of AccountAid is the other professional providing advice. These are largely around structuring their philanthropic aspirations.’
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Most of our contacts knew of banks that have included philanthropy advice in their portfolio for high net worth clients but many believed that they have not arrived at the right offering yet – the services are mainly focused on legal and tax advice. NGOs have brought up the idea that philanthropy advice could be a powerful tool for the banks, and there has been some take-up of this idea, but banks themselves say that there has yet to be a high level of demand from clients.
In terms of international banks, HSBC and Standard Chartered have been supporting the Indian Philanthropy Forum, and Barclays Wealth is planning to extend its philanthropy services, now offered largely in the UK and Ireland, to India. The bank is launching a client philanthropy service in Mumbai, working with three third-party advisers: Dasra, CAF India and Give India. A bank spokeperson said although there will not be a dedicated adviser within the bank, there is someone in Mumbai who is committed to the idea of offering a philanthropy service and will drive it forward.
What are the greatest needs in this area in India?
Our contacts generally agreed that the most important issue was to raise the profile of philanthropy in India, both spreading the idea that you can start with just a small amount and, as one writer put it, ‘awareness that giving is cool and should come naturally after you become wealthy!’ Other aspects mentioned included education ‘on giving wisely rather than emotionally’, stronger tax incentives and the establishment of more giving circles and philanthropy forums. Some suggested that a recognition system, along the lines of the Forbes rankings in the US, and promotion of role models would encourage involvement.
One writer did point out the culture of traditional giving in India: ‘a large proportion of philanthropy from individuals is also done individual to individual – villagers look out for one another, and wealthier individuals see looking after their staff personally as philanthropy.’ Another warned: ‘Increasing wealth and the number of HNWIs in India and Asia will remain just a statistic unless we find ways and means of strategically engaging them in a philanthropic journey.’ Learning from the advisory resources of Europe and the US would be a way forward, she suggested.
Alliance would like to thank those who contributed to this article:
Alison Adnitt, Dasra
Pushpa Aman Singh, GuideStar India
Venkat Krishnan, GiveIndia
Emma Turner, Barclays Wealth
Priya Viswanath, Charities Aid Foundation India
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Philanthropy advice in Latin America
Latin America has experienced something of an economic boom in recent years, and philanthropic money now comes from within the region as well from foreign countries. Perhaps because of its links to the US, which has plenty of role models, the philanthropic support network in Latin America has developed more quickly than in other emerging markets, to the extent that some contributors from the rest of the world are slightly envious.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in Latin America?
A contact in Mexico says that it is not common for individual philanthropists and family foundations to take advice on their donations: ‘Most often, they donate in an informal manner and receive advice in the same way. Usually, individuals give to organizations their families have a tradition of supporting, or to organizations led by people they know.’ However, she and other Mexican respondents go on to report that there is something of an emergent market here. Alternativas y Capacidades provides training workshops such as the Seminar in Corporate Philanthropy and Social Investment; it also produces a grantmakers’ handbook, aimed primarily at the corporate arena. FUNDEMEX (Mexico Business Foundation) is a vehicle for businesses all over the country to make small donations in an easy way; these are then channelled through different social or grantmaking programmes. Other names mentioned were Vivian Blair y Asociados, which offers both CSR advice and help for individuals, and RedEAmérica, which focuses on non-profit organizations.
One groundbreaking idea in Mexico is the Consultant Certification Program run by CEMEFI (Mexican Center for Philanthropy; www.cemefi.org), which aims to ‘offer civil society organizations, foundations and companies the identification and certification of consulting services specialized in the nonprofit sector, with high standards of quality and relevance according to their needs’. Participation in the certification process can be individual or institutional. Participating firms, in addition to receiving certification for the firm, are awarded certification for up to three of their consultants. It may well be this sort of work that prompted a respondent from the Middle East to comment that ‘Latin America is leading the field of philanthropy advice in emerging markets’.
Respondents in Brazil are optimistic: the economic development of Brazil in the last 15 years has spawned a wide and growingly wealthy philanthropic sector, they say. With this there has been a ‘boom’ in support organizations. Says one writer: ‘International aid and NGOs, such as Synergos, refocused their activities in the country, instead of channelling funds to Brazil from the north, to provide (and sell) advice for rich Brazilian individuals and families. A similar process also happened in other Latin American countries, especially in those that had faster and more sustainable economic growth, such as Colombia and Chile.’
In Brazil, GIFE remains a popular port of call for foundations, institutes and businesses, who often make contact, particularly for tools to evaluate effectiveness. IDIS, in São Paulo, is well known around the continent for its philanthropic services, which include advice on strategic planning, evaluation and governance. However, one writer said that he was mainly aware of such services coming from US-based organizations, although he did mention Compartamos con Colombia (www.compartamos.org) as an active local institution.
Across the area it was suggested that there are several individuals starting to offer advice – these may be millionaires building giving circles to pass their knowledge on to others or retired consultants with a banking or marketing background. Their knowledge of civil society can vary wildly, as can their effectiveness.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Most of our contacts were not aware of any banks or other financial institutions providing any services related to philanthropic activities. One Mexican contact suggested: ‘There is no tradition of making bequests or creating funds for philanthropic purposes in Mexico and the laws don´t encourage it either. Usually, the only mechanisms available for creating funds for philanthropic purposes are, as mentioned, through some community foundations.’
In Brazil, it has been seen that banks are at least talking about offering such services but currently it is only the international banks, especially those that deal with wealth management, such as UBS and Credit Suisse, that are doing so. UBS has also made an important step forward with its philanthropy service in Mexico, but according to one source in the country, ‘it has not achieved the success they would expect’.
What are the greatest needs in this area in Latin America?
A Mexican contact had five points to improve the sector: professionalize philanthropic activities; promote individual giving; focus more on solving problems and not only on tending to immediate needs; build bridges and partnerships between people that give or can give, at whatever level, and the organizations that are doing the work on the ground, who are familiar with the needs and the people involved, and have good projects; and make donations more transparent, by collecting information from donors and making it accessible to the public.
Similarly, in Brazil, a contributor said: ‘There is the need for a cultural change, promoting a more systemic and complex approach to social change and social justice; more stable and better planned state policies, such as tax incentives related to certain fields; a better distinction between the family’s business, its business’ philanthropy and its family’s philanthropy.’ Encouragingly, he predicted a family foundation boom in the next ten years, but warned against too many organizations competing in the same market. Another Brazilian contact bemoaned the lack of training programmes for consultants – a need that will only get greater as the market expands in coming years.
Alliance would like to thank those who contributed to this article:
Patricia Carrillo, Alternativas y Capacidades, Mexico
Marcos Kisil, IDIS, Brazil
Leonardo Letelier, Sitawi, Brazil
Felipe Medina, Goldman Sachs
Fernando Rossetti, GIFE, Brazil
Andrés Thompson, W K Kellogg Foundation, Uruguay
Jorge Villalobos, CEMEFI, Mexico
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Philanthropy advice in the Middle East
Partly due to the religious requirements of paying zakat, charity is alive and well in the Middle East. But with centuries of tradition influencing the majority of giving, is there any demand for an advisory service? Recent attempts to set one up have not taken off as hoped, respondents told us, but a greater degree of professionalism and transparency would improve the impact of charity work in the region.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in the Middle East?
Until recently, reported one respondent, the Middle East has had little infrastructure support to promote and advance philanthropic work. In 2005, the Gerhardt Center was established at American University in Cairo, with the main emphasis on better understanding of trends in philanthropy in the Arab region. In 2006, the same respondent spearheaded the founding of the Arab Foundations Forum as another piece in the support infrastructure for philanthropy in the region. But despite those two efforts, he said, the infrastructure is still lacking a one-stop place for funders to seek advice on the best ways to contribute funds; for emerging foundations to seek better practices; and for charities to find ways to achieve greater impact. These needs have become more pressing with the recent economic downturn where everyone is expected to do more with less money.
A recent attempt by one respondent to set up an advisory service in the region met with little positive feedback. Two respondents had the impression that most high net worth individuals obtain their philanthropic advice from sources in Europe (especially the UK and Switzerland) or the US through banks, investment firms or private philanthropic advisory services. One suggested that the involvement of business consultants was not surprising, given the close link between corporate and private philanthropy in the region.
One unique feature of the region is that many of the social sector organizations (NGOs, foundations, etc.) have some connection to the royal families, through board members, founders and contributors. One respondent said that these people act as an informal network to share best practices and give advice.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Our respondents were not aware of any local banks offering such services, saying only that global banks serve Middle Eastern clients through their worldwide networks on philanthropy. UBS was singled out as being active in this area.
What are the greatest needs in this area in the Middle East?
One respondent said that, despite the region having a lot of money and some great philanthropic visions, so far the actions often do not live up to the expectations. There is a need, she said, for some local success stories to become role models for others in the region to inspire strategic and impact-oriented philanthropy.
Other needs pointed out were for organizations to professionalize and become lasting institutions, as they are currently often dependent on the founding individual. A clear regulatory framework would help this – most countries in the Gulf Cooperation Council don't have any legislation on non-profits, foundations, etc. so there is a lot of uncertainty about what it takes to create and operate such an organization. There is also little in the way supervision or transparency requirements.
Alliance would like to thank those who contributed to this article:
Karen Hadem, McKinsey
Barbara Ibrahim, John D Gerhardt Centre for Philanthropy and Civic Engagement, Egypt
Attalah Kuttab, Welfare Association, Jordan
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Philanthropy advice in South-east Asia
With some of the world’s biggest financial centres situated here, there is a great deal of wealth in South-east Asia, but also huge amounts of poverty. Cultures of giving are quite traditional in much of the region, so how much has the advice market developed here? Most of our respondents suggested that demand has not been overwhelming, with many would-be donors turning to international banks for help. However, comprehensive services in two different countries - Singapore and Pakistan - provide role models that may inspire efforts elsewhere.
Are there individuals or consultancy organizations, for-profit or non-profit, dedicated to providing advice to individual philanthropists and family foundations in South-east Asia?
A contact in Singapore writes that ‘there are very few private organizations that have been set up to assist private philanthropies except for some law firms that help to set up foundations’. Non-profit organizations established for charitable and philanthropic purposes are heavily regulated in Singapore. Private foundations (usually set up by wealthy families) have to abide by strict income disbursement rules in order to qualify as a foundation/charitable organization, but qualified organizations are allowed tax breaks. Due to the heavy governmental involvement in regulating philanthropy, it is not surprising that a few years ago, the Singapore government set up the National Volunteer & Philanthropy Center in Singapore (NVPC). The Community Foundation of Singapore (an affiliate of NVPC) helps donors who seek independent advice on which causes and organizations to support, and proactively source innovative projects in consultation with non-profit leaders and other experts to achieve donors’ intent.
In Pakistan, the Pakistan Centre for Philanthropy (PCP) has been in existence since 2001. It was set up following a round of deliberations between relevant stakeholders in government, the CSO sector, donors and the corporate sector with the express aim of strategizing philanthropy in the country. Although not exclusively an advisory service, the PCP offers a range of services to help donors make informed choices and ensure effective giving. The PCP also has a scheme to encourage in-kind giving from corporates, and a list of projects that would-be volunteers can get involved with.
In Hong Kong, one writer says that there are individuals and consultancy services but no clearing house/directory, to her knowledge, that provides ease of access in sourcing such services. Some service providers have head offices elsewhere and work on engagements for Asian clients, while some, such as Global Philanthropic and Social Venture Group, have set up offices in Asia.
To what extent, if any, are banks and other financial institutions starting to provide this type of advice?
Several financial institutions (especially the global banks) in the area market themselves as having the capacity to advise on philanthropy. Names mentioned here were UBS, RBS Coutts and HSBC. However, says one respondent, ‘their services are not very comprehensive’. She goes on to say: ‘The former Chase Manhattan Bank was well-placed in helping clients get to know the key advisory organizations; that was how we got to know Rockefeller Philanthropy Advisors. After merging with JP Morgan, the bank has not devoted as much resources to philanthropic advisory and execution as it did before.’ Another contact says: ‘Typically the range of service differs between financial institutions with those having dedicated staff in Asia being the most active in delivering these services.’ She says that much advising is done through private banks ‘due to existing relationship with wealthy families and individuals; unique access and position relative to consultancy and non-profit organizations. Trustees, law firms and a few accounting firms have also shown an interest in this type of service.’
Are there other types of people or organization offering this sort of advice?
According to one contact, there have been a few individuals who have tried to set up consultancy-type services but they have not taken off because ‘their experience is not substantial or global enough for them to add any value’. The Institute for Philanthropy offers training programmes, and some consultants, such as McKinsey and Boston Consulting Group, are starting to work with would-be donors.
What are the greatest needs in this area in south-east Asia?
Across both Hong Kong and Singapore, respondents suggested a need for more education on strategic philanthropy. As one said: ‘A lot of people are still engaging in cheque-book philanthropy and respond only to those who ask them for donations.’ In addition, many donors tend to be quite secretive, which hinders information sharing and potential collaborations. Other themes that emerged were having dedicated staff to source opportunities; greater emphasis on regulation, transparency, accountability and due diligence; the growth of donor advised funds; and a shift to private giving rather than reliance on government.
Alliance would like to thank those who contributed to this article:
Cynthia D’Anjou Brown, HSBC Private Bank, Hong Kong
Chew-Mee Kirtland, Mornington Partners, Singapore
Amanullah Khan, Pakistan Center for Philanthropy
Kevin Lee, National Volunteer & Philanthropy Centre, Singapore
