pragmatic philanthropy asian charity explained RUTH A. SHAPIRO with Manisha Mirchandani and Heesu Jang Foreword by Ratan Tata and Ronnie C. Chan Praise for Pragmatic Philanthropy “Charity has had a long and noble history in Asia. It has not, however, been the study of much research or documentation. Pragmatic Philanthropy makes an important contribution to understanding the way in which social investment in Asia takes place.” —Victor K. Fung, Group Chairman of the Fung Group “Kiva is working in 80 countries. While some aspects of our work are consistent throughout the world, we have learned that it is essential to have on the ground knowledge in each of the localities where we make loans available. We must have trustworthy local partners and be familiar with local laws and practices. Dr. Ruth A. Shapiro’s insights come from decades of work in Asia. This book provides a very helpful view into the way philanthropy and other types of social investment gets done in the region.” —Premal Shah, Co-Founder & President, Kiva “As every great social entrepreneur knows, and as the Skoll Foundation has learned from our work with them, context matters. What works in Bangladesh may not translate to Indonesia, and vice versa. Successful social investment depends upon local knowledge and uptake, as Ruth A. Shapiro demonstrates in this valuable volume. Here she shares insights gained from her work in Asia together with some of the world’s most promising philanthropists. Pragmatic Philanthropy: Asian Charity Explained is essential reading for change-agents working across the Asian continent, and for those seeking to support them.” —Sally Osberg, President and CEO, Skoll Foundation “We are beginning to see dramatic increases in interest and activity in philanthropy in China and throughout Asia. We also need to see a commensurate degree of research and understanding of the sector. This book is a worthwhile effort to help close the gap between interest and impact.” —Xiulan Zhang, Professor and Former Founding Dean, School of Social Development and Public Policy, Beijing Normal University, China “Although non-profit corporations have been in existence in a legal sense since 1898, the Kobe earthquake of 1995, which was followed by other natural disasters, has been a wake-up call for Japan. We see the need for citizens to be active in addressing our shared concerns, whether they are helping vulnerable people or reconstructing a dev- astated area. Studies like the one carried out by the Centre for Asian Philanthropy and Society help us to learn valuable lessons about what works in taking on these roles.” —Tatsuo Ohta, Chairman, The Japan Association of Charitable Organizations “This book exemplifies the reason that I agreed to go on the board of the Centre for Asian Philanthropy and Society—it provides world-class analysis to a field that is understudied and misunderstood. For too long, philanthropists have worked on the premise that the rigor and analysis they use in their businesses are not applicable to their charitable investments. The opposite is the case as these types of investments are more difficult to measure and can touch the lives of many. Dr. Ruth A. Shapiro’s book helps us to understand the dynamic nature of the Asian philanthropic sector and make more informed choices about how we invest our time and our resources.” —Elizabeth Eder Zobel de Ayala, Chairman Teach for the Philippines “More and more people are thinking about philanthropy in a more methodical, intelligent way. It is important to understand deeply the issues you are dealing with and support solutions that make the most impact. Grounded in research and evidence, this book helps us to see how this trend is accelerating across Asia.” —Jamshyd Godrej, Chairman, Godrej and Boyce “Our own Trust Barometer shows that trust is in crisis around the world. Nonprofit organizations tend to be more trusted than governments and companies but even their numbers are going down. In Asia, this lack of trust has significant ramifica- tions for philanthropy and the charitable sector. This book helps us to understand why trust is in such short supply, why this matters and what we can do about it.” —Richard Edelman, Chief Executive Officer, Edelman “The Djarum Foundation’s work is grounded in community help, tolerance and mutual assistance. These are values that are integral to who we are and are shared by many in Indonesia and throughout out Asia. Pragmatic Philanthropy explains how these values underpin programs and practices of helping each other in Asia.” —Victor Hartono, Chairman, The Djarum Foundation “We must create a civilization where we can realize the best of human potential. This book helps us to understand how this vision is being realized in Asia today.” —Muhammad Yunus, Nobel Laureate and Founder, the Grameen Bank “In today’s world, leaders must rely on partnerships that connect across business, gov- ernment and civil society. In Asia, partnerships are in evident display. Ruth A. Shapiro tells us how they help address our shared problems in ways that create win-win solutions.” —Dominic Barton, Managing Director, McKinsey & Company Ruth A. Shapiro • Manisha Mirchandani Heesu Jang Pragmatic Philanthropy Asian Charity Explained Ruth A. Shapiro Manisha Mirchandani CAPS, Hong Kong, China CAPS, Hong Kong, China Heesu Jang CAPS, Hong Kong, China ISBN 978-981-10-7118-8 ISBN 978-981-10-7119-5 (eBook) https://doi.org/10.1007/978-981-10-7119-5 Library of Congress Control Number: 2017959588 © The Editor(s) (if applicable) and The Author(s) 2018 This book is an open access publication Open Access This book is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made. The images or other third party material in this book are included in the book’s Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the book’s Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the pub- lisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institu- tional affiliations. Cover image © Icon Depot / Noun Project Cover design by Samantha Johnson Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21- 01/04 Gateway East, Singapore 189721, Singapore Dedicated to my father Jerry Shapiro who taught me to think big F oreword Today, we often hear of the differences between India and China. And while there are differences, there are also some striking similarities. Both countries have extraordinary histories, great and enduring philosophies and have arrived in the twenty-first century having rekindled their impor- tance on the global stage. Both are moving past the damaging influences of colonial legacies as well as self-inflicted wounds while strengthening insti- tutions and recognizing the benefits of being part of a globalized world. As you read this book, you will see how much India and China have in common. In both countries, as in Asia more broadly, there is a tradition of taking care of one’s family, one’s clan, one’s village. It is a tradition of charity where the more fortunate are expected to step up and help take care of thoseless so. There are expectations that when you are in need, the affluent will lend a helping hand. The richer helping the poorer has a long and storied history in our countries. We also face similar challenges. Both countries have pulled millions out of poverty but both still have millions continuing to endure economic hard- ship. Both countries have created extraordinary wealth but wrestle with the challenge of extreme income inequality. Both countries are grappling with how to best organize local giving while at the same time dealing with the agendas of foreign donors. We are also trying to come to terms with China and India’s international influence increasing at a time when the world order that has been in place since the end of World War II is in a state of flux. There are other fundamental questions on the table. What does it mean to be part of a community? What are the responsibilities of those who have toward those who have not? And how does ancient ways of interacting with vii viii FOREWORD one another meld with modernity, technology and a cosmopolitan worldview? All of these big questions are embedded within the world of philanthropy. This book looks at how these questions play out in the choices people make about how to help each other in eleven Asian economies. Culture and history surely play a role as does information and data. Throughout Asia, societies are evolving and new models of governance are being tested. Some of them will succeed and others will not but in the iterative process of moving forward, we will all continue to explore and experiment with the relationship between governments, companies and people. Since the end of World War II, the United States has been the most dominant power in the world, with its soft power extending far beyond mili- tary and economic might. America has helped shape the way we think, the way we act, the way we dream and the way we treat one another. Much of this influence has been very positive and the world has welcomed the values prescribed in a Judeo-Christian set of principles. Now, at a time when India and China are once again becoming dominant world powers, the question is: what will be the influence of our soft power? This book, by casting a spotlight on Asian philanthropy, is coming at a pivotal moment in time. We are pleased to be part of this conversation. Both of us have long embraced our fortunate ability to make contributions to improving peo- ple’s lives and helping to progress societies. We see more and more of our peers coming to the realization that we have a role to play and we should do so with intention and with care. Post war modernity, globalism, educa- tion, and various reforms have accelerated job and wealth creation as well as philanthropy. This book fills the important need of shining a light on the patterns of philanthropy and volunteer organizations in Asia today. It provides mod- els and strategies of effective engagement as well as showcasing the changes now taking place. We are pleased to be part of bringing this important book to the grow- ing number of donors and philanthropists, government policymakers, non-profit leaders, teachers and students who may be drawn to social ser- vice and philanthropy and who can really use the information and insights contained here. For while we are living in extraordinary times, our human- ity is what makes our world worth living in. Chairman, Hang Lung Properties Ltd. Ronnie C. Chan Hong Kong, China Chairman, The Tata Trusts Ratan Tata Mumbai, India A cknowledgments This book is based on a 2-year project that could not have been pulled off without the support and teamwork of a great many people. This space is where I get to thank them. Great thanks go to my co-authors Manisha Mirchandani and Heesu Jang. Manisha managed the case study project, edited a number of the cases, and wrote the one on the SEE Foundation herself. Her insights, her superb writing skills, the amazing way she befriends everyone and pulls them into our joint work will always be appreciated. Heesu jumped into the deep end with his chapter and pulled it off with great insight and aplomb. Mehvesh Mumtaz Ahmed stepped up as a great help with research when we most needed it. Sandy Collaco helped to make sure all appoint- ments were made and kept in an always upbeat and positive manner. I want to thank our board of trustees (Ronnie Chan, Daniel Tsai, Jamshyd Godrej, and Lizzie Zobel) and advisory board (Ratan Tata, Nazir Razak, Shin Dong Bin, and Vichit Suraphongchai), who agreed to take on this role due to a sincere desire to further our mission of improving the quality and quantity of private social investment in Asia. They also believed in me, for which I am incredibly grateful. I especially want to thank our Chairman Ronnie Chan. I have worked with Ronnie for 20 years, and it has been a very rewarding partnership. Together we built the Asia Business Council and now CAPS (Centre for Asian Philanthropy and Society). Ronnie is my boss (as he often reminds me!), my friend, and my collabora- tor, all enabling me to take on big goals and succeed with them. We could not have done the case study project and built CAPS without our donors. There are very few independent research organizations in ix x ACKNOWLEDGMENTS Asia, and thus little familiarity with funding these types of endeavors. Our donors took the risk because they saw the opportunity and benefit that top- notch research could bring to the sector. Our donors to date are: The Aboitiz Foundation, Husodo Angkosubroto, Rahul Bajaj, Ronnie Chan and Hang Lung Properties Ltd., Fang Fang, Jamshyd Godrej and the Godrej Trust, Liu Chuanzhi, Azman Mokhtar and Yayasan Hasanah, Manny Pangilinan and the PLDT Foundation, Nazir Razak and the CIMB Foundation, Anthoni Salim, Stan Shih, Shin Dong Bin, Thapana Sirivadhanabhakdi and the Thai Bev Foundation, SK Corporation, Vichit Suraphongchai and the Siam Commercial Bank Foundation, Tessie Sy-Coson and the BDO Foundation, George Tahija, Ratan Tata and the Tata Trusts, Daniel Tsai, Mary Ann Tsao, C.C. Tung, Zhang Lei and Hillhouse Capital, Susan Zhu, Jaime Zobel de Ayala and the Ayala Foundation and most recently, the Bill and Melinda Gates Foundation. Victor Fung of the Victor and William Fung Foundation not only underwrote a case study but also supported me both financially and spiritually in writing this book. I would like to thank our many partners throughout Asia who helped write the case studies. These individuals and organizations worked with us to identify and write about exceptional nonprofit organizations and social enterprises whose stories and achievements help us to understand what it takes on the ground to bring about meaningful change. Among our part- ners, I would especially like to thank Tatsu Ohta at the Japan Association of Charitable Organizations, Jia Xijing and the Institute of Philanthropy at Tsinghua University, Wang Zhenyao and the China Philanthropy Research Institute, Jennifer Chen at Nanhua University, Huang Ping-der of the National Chengchi University, Danny Lam at Hong Kong University, Terence Yuen at the Chinese University of Hong Kong, Zhu Jiangang at the Sun Yat-sen University, Felix Tonog at Philippines Business for Social Progress, Carn Abella and her team at the Ramon Magsaysay Foundation, Kemal Soeryadja and his colleagues at Company-Community Partnerships for Health in Indonesia (CCPHI), Maria Radyati at Trisakti University, Professor Lam Swee Sum and her colleagues at the Asia Centre for Social Entrepreneurship and Philanthropy at the National University of Singapore, Madame Juree Vichit-Vadakan at the Center for Philanthropy and Civil Society at the Thai National Institute for Development Administration, Martin Tan at the Institute of Societal Leadership at Singapore Management University, Deval Sanghavi and his colleagues at Dasra, Tata Institute of Social Sciences, Kiran Pasricha at the Ananta Center, Lisa Dacanay and the Institute of Social Entrepreneurship in Asia, and Nini Daing and her colleagues at MyHarapan.