LEG A CY
philanthropy is bringing business practice into the process, our bottom lines are social rather than financial but they are clearly identified and measurable by milestones built into the proposal. “We distribute funding on a six-month basis and our
partner NGOs are required to put in a financial and narrative report before we release the next set of funds,” he says. Well aware of the potential pitfalls in the sector,
the only means by which one can conduct due diligence,” she says. “There are a lot of trust issues so using
personal networks and family connections is what most donors fall back on.”
A FINE BALANCE The biggest issue preventing many philanthropists from giving more is a lack of trust in the social sector, says Shapiro. Out of the 15 economies in the DGI,
10 of them said they had front page scandals in the last two years, which had significantly affected giving. “The problem with the region is that there
are not really any formal mechanisms to do due diligence on the supply or demand side of philanthropy and both are very opaque,” she says. But Lavender says, most dangers can
be largely avoided by using a hands-on approach to control the progress of a project. “The problem in all the countries we
fund in is that there are varying degrees of corruption so we spend a lot of time making sure we are working with good partners—checking their references, making regular field visits, encouraging frequent communication and building confidence, to ensure that the agreed project objectives are being met,” Lavender says. Lavender says his foundation uses
customised application forms that seek clear objectives and milestones they can use to evaluate progress. “My view is that the hallmark of better
90
CAMPDENFB.COM
governments across Asia have also started to reform their laws and tax codes, strengthen non-profit transparency mechanisms, and provide more tax incentives for charitable giving, all with the aim of boosting local philanthropy. China’s recent NGO Law
placed foreign donor’s activities under close state supervision and created additional layers of regulations to navigate. At the same time the government put in place a new Charity Law, which
Top: The inaugural ASEAN Social Impact Awards were presented in Singapore in 2018.
Above: The launch of Asia Philanthropy Circle’s Indonesia Education Giving Guide: Catalysing Productive Livelihood, in Jakarta in 2017.
focuses on domestic philanthropy and charities. It was largely welcomed by local NGOs for making the previously opaque rules more transparent. Meanwhile, Hong Kong has given less tax subsidies, but
gives philanthropists the freedom to donate to any cause they want. This has led to many top universities in the US and UK benefitting from donations, but has been criticised for not encouraging local causes. Stacey Choe, director of the Asia Philanthropy Circle, says
the stark differences in approach show Asian governments have been “doing a dance” with philanthropy and the social sector to find the right balance between too much and too little regulation. “Regulation is like cholesterol—there is good regulation and
there is bad regulation,” Choe says. “Governments tightening regulation will help the sector
become more transparent, but they also have to be careful they do not make things so difficult that donors decide to go elsewhere. “On the other hand, letting philanthropists do whatever they
want could lead to foreign firms funding terrorism and money being laundered all under the guise of charitable giving.”
THE PROBLEM IN ALL THE COUNTRIES WE FUND IN IS THAT THERE ARE VARYING DEGREES OF CORRUPTION
ISSUE 75 | 2019
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
