Asian philanthropists to have big impact on region, report

Asian philanthropists are likely to have a big impact on the social and economic development of the region, as they adopt a new structured approach to charity focusing on innovation, scale and sustainability.

This is the main finding of Something’s Gotta Give: The State of Philanthropy in Asia, a report carried out by the Economist Intelligence Unit for HSBC.

According to the study, which is based on interviews with academics, consultants and philanthropists from China, Hong Kong, Singapore, Indonesia and the Philippines, philanthropic donations in Asia are growing quickly, driven by increased prosperity in the region, now home to more than 3.3 million high net worth individuals.

In Singapore, individual charity contributions have more than doubled since 2004, reaching $847 million (€636.7 million) in 2010 from $348 million six years earlier.

In China, there has been a large increase in the number of private foundations, thanks to the liberalisation of the sector and low public trust in charities. In just one year - between 2009 and 2010 - giving in China went from $4.9 billion to over $10 billion.

According to the research, tax incentives, friendlier regulatory climates and the emergence of role models, such as Putera Sampoerna in Indonesia and John Gokongwei in the Philippines, are the main drivers of philanthropic growth in Asia.

The report also found that Asian philanthropists are now often adopting a strategic approach to charity, which focuses on innovation and measurable results, and aims to make a long-term impact on the region’s social issues.

A charitable tradition has existed for a long time in Asia, said Sudhir Vadaketh, who wrote the report. "But the concept of philanthropy as an organised approach … to achieve specific benefits for society is only now really taking off."

The study suggests that Asian philanthropists have the potential to have a big impact on Asia’s social and economic development. With many areas of the region going through important cultural, political and social changes, governments are often unable to match rising citizen expectations - the non-profit sector, says the report, could fill this void.

“This report underscores a powerful truth – philanthropists in Asia can become a key force for social and economic development in the region,” said Russell Prior, head of philanthropy at HSBC private bank UK.