UBS-INSEAD Study on Family Philanthropy in Asia
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UBS-INSEAD Study on Family Philanthropy in Asia In partnership with: 2 Table of Contents Introductory Remarks 4 Acknowledgements 6 Executive Summary 8 Introduction 11 The Family and Giving 16 The Focus of Giving in Asia 24 The State of Institutionalized Family Philanthropy in Asia 42 Principal Findings and Outlooks 55 Country and Philanthropist Profiles 59 Research Methodology 115 Research Partners 118 Appendix 120 3 Introductory Remarks What characterizes Asian family philanthropy? 4 Dear reader, Almost no other region in the world has changed so funda- UBS has been offering dedicated philanthropic support mentally over the last few decades as Asia. Most prominently, to its key clients globally for over a decade. In Asia, we have its economic growth has developed from a noted but regional been serving clients for over 40 years. Answering these success story to an engine of global economic development, questions is essential to maintaining our role as a pioneer and most obvious in the recent financial and economic crisis. thought leader on the topic of philanthropy. Along with this economic success story came a fundamen- We hope that our findings will further Asia’s existing family tal change in the daily lives as well as underlying cultures of philanthropy, encourage many families to enter this exciting people in the region. Local communities have become more journey and help the public and civil sector in general and globalized, habits and customs have changed, and populations governments in particular to identify supporting measures to have become more urbanized. grow and develop philanthropy in Asia. But these changes have not been without challenges. Therefore, UBS is honored to present what can be con- Rapid economic development has not always led to sustain- sidered a fundamental contribution to the effort of furthering able or equitable distribution of wealth. Absolute poverty family philanthropy in Asia, the UBS-INSEAD Study of Family is still a daily threat to many and overexploitation of natural Philanthropy in Asia. resources remains a concern. We are proud to have conducted this research in partnership What has endured all change is the family as the prime build- with INSEAD, an academic leader globally and regionally on ing block of Asian societies and, consequently an exceptionally the topic of philanthropy and social innovation. This collabora- strong sense of responsibility towards enabling future genera- tion is a practical manifestation of what we consider a key tions’ well-being through sharing and engaging for social success factor in philanthropy – partnership. good. Our sincere gratitude goes also to all those who have con- And so it comes as no surprise that the growing awareness tributed to this research and the many Asian philanthropists of the topic of philanthropy which we have seen globally is who have openly shared their philanthropic vision, activities mirrored within Asia. Family philanthropy has had a long and and plans. With over 200 surveys and over a hundred per- distinguished history among Asia’s wealthy. sonal interviews, they have made this report the most com- prehensive insight into philanthropy among wealthy Asian But what exactly characterizes Asian family philanthropy? families to date. How much is it influenced by Asia’s rich philanthropic history – some of the region’s largest foundations trace their origins Finally, we hope that the transparency and insights this back to the early last century? Will it be a carbon copy of West- report provides on the current status of family philanthropy ern philanthropy, most prominent above all the highly visible in Asia, as well as the outlook on how to unlock further US philanthropy, or will there be the emergence of a distinctly potential, will contribute to the continued prosperity and different type of Asian philanthropy? And what will be sustainability of Asia’s development. required to enable the growth of family philanthropy in Asia not just in volume but even more in impact in the future? Sincerely. Kathryn Shih Dr. Mathias Terheggen CEO UBS Wealth Management Asia Pacific Head of UBS Philanthropy Services 5 Acknowledgements This report would not have been possible without the contribu- We are also thankful to all the professionals working for tion, time and patience of the many philanthropists, foundation family foundations who shared the successes and the chal- professionals and sector experts we interviewed. lenges they face in their daily work. In explaining their experi- ence of translating a founder’s vision into concrete under- We are very grateful to all the philanthropists, and their fami- takings on the ground, they provided us with many exciting lies, who agreed to speak to us and also took the time to and inspiring insights. respond to the survey. Many of these participants are featured in the report and many more have chosen to remain anony- Finally, we are also very grateful to all the experts who pro- mous. In agreeing to discuss openly with us their aspirations and vided us with an understanding of the social and institutional experiences, they have enabled us to better understand what contexts within which Asian philanthropists and their families drives and motivates Asian families to engage in philanthropy. operate. They have enabled us to broach the question of just what constitutes “Asian philanthropy.” Our thanks again to all the individuals who made this report possible. 7 Executive Summary Much is known about the growth in wealth in Asia over the past few decades. Yet the accompanying transformation of Asian philanthropy remains largely undocumented. UBS and INSEAD investigated the changing face of family giving in the region to shed new light on family philan- thropy and support its development. Almost no region in the world has changed so fundamen- The rapid pace of change across Asia has led to the emer- tally over the last few decades as Asia. Despite its newfound gence of families with several generations whose experiences wealth, however, the region continues to be beset by serious and aspirations have been molded by vastly different lives. social and environmental issues. This new climate has con- This is reflected in how different generations engage in phi- tributed to a growing awareness of the role of philanthropy, lanthropy: and family philanthropy, in the region, as well as to growing • The older generation feels more responsible to the local scrutiny of the subject. community and is more influenced by tradition, while the younger is increasingly geared to national and international Family philanthropy has a long history in Asia, but what char- causes (while 32% of the older generation gives to the acterizes Asian philanthropy? Does it resemble philanthropy in local community, only 20% of the younger does). other parts of the world, or is there a distinct “Asian way” • The older generation focuses on sectors such as educa- of giving? tion, health and poverty, while the younger is more open to sectors such as the arts, civil rights and the environment. Building on over 200 quantitative surveys and over 100 in- • While the older generation tends to see giving as an end in depth interviews, the UBS-INSEAD Study on Family Philanthropy itself, the younger generation tends to be more interested in Asia highlights the philanthropic aspirations and challenges in measuring the impact of giving. of Asian families. It provides one of the most comprehensive insights to date, key outcomes of which are outlined below. In spite of these differences the families interviewed explained that philanthropy plays an important role in generating cross- A Multitude of Motivations generational cohesion, which is critical to the success of the The “urge to give” is a universal human trait and families family, of its philanthropy and even more so of the family busi- in Asia, like their peers across the globe, have multiple motiva- ness – as these are very often closely linked. tions to get involved in philanthropy: the urge to give back to the community, to realize religious or ethical convictions The Focus of Giving in Asia or to better society as a whole. Beyond these self-evident con- Looking at where Asian families direct their philanthropy, siderations, the number one reason for engaging in philan- affiliation plays the most important role. Families give most thropy – cited by 42% of the people and organizations to their home country (70% of family giving is directed to surveyed – was “ensuring the continuity of family values or national-level causes), to the country they emigrated from or creating a lasting legacy.” to their own ethnic or socio-linguistic communities. However, this is changing, and philanthropists in wealthier Asian coun- The family unit plays an important role in driving philan- tries are increasingly looking to act in less advantaged regions, thropy in Asia, and families also reap many benefits from even where no affiliation exists. philanthropy, which they often actively seek out: • It teaches principles like compassion, courage and Asians give by far the most to educational causes (36% of tolerance. giving in 2010), followed by poverty alleviation and develop- • It fosters capacities for leadership, innovation and ment (10%), health (9%) and disaster relief (5%). This empha- responsibility. sis on education is not surprising considering the extremely • It supports family cohesion by providing a common activity important role education plays in many Asian cultures. Despite and goal for the family to pursue as a unit. the importance placed on engaging in poverty alleviation and development, government bodies and non-governmental agencies that dominate this sector are not geared to accom- modating family philanthropies, thus hampering their impact. Families across Asia make relatively low levels of contribu- tion to sectors such as the arts and culture (4% of giving in 2010), civil rights (1%) and the environment (4%). Religious conviction and sensibilities are major motivators for Asian philanthropists.