# 2017-58 Philanthropic Foundations In Asia: Insights from Singapore, Myanmar and China Pauline TAN1 Swee-Sum LAM2 October 2017 Please cite this paper as: TAN, P. and S.-S. LAM (2017), “Philanthropic Foundations in Asia: Insights from Singapore, Myanmar and China”, AFD Research Papers Series, No. 2017-58, October. Contact at AFD: Charles SELLEN ([email protected]) 1 Asia Centre for Social Entrepreneurship & Philanthropy (ACSEP), NUS Business School, Singapore. 2 Ibid. Agence Française de Développement / French Development Agency Papiers de Recherche de l’AFD Les Papiers de Recherche de l’AFD ont pour but de diffuser rapidement les résultats de travaux en cours. Ils s’adressent principalement aux chercheurs, aux étudiants et au monde académique. Ils couvrent l’ensemble des sujets de travail de l’AFD : analyse économique, théorie économique, analyse des politiques publiques, sciences de l’ingénieur, sociologie, géographie et anthropologie. 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The opinions expressed in this paper are those of the author(s) and do not necessarily reflect the position of AFD. It is therefore published under the sole responsibility of its author(s). AFD Research Papers can be downloaded from: http://editions.afd.fr/en/ AFD, 5 rue Roland Barthes 75598 Paris Cedex 12, France [email protected] ISSN 2492-2846 1 Philanthropic Foundations in Asia: Insights from Singapore, Myanmar and China Pauline Tan, Asia Centre for Social Entrepreneurship & Philanthropy (ACSEP), National University of Singapore, Business School, Singapore, e-mail: [email protected] Swee-Sum Lam, Asia Centre for Social Entrepreneurship & Philanthropy (ACSEP), National University of Singapore, Business School, Singapore, e-mail: [email protected] Abstract This study looks at an emerging trend in which wealthy families, individuals, and corporations in Asia set up foundations to institutionalise their giving. This giving is motivated by a myriad of factors beyond prestige and status, including the desire to give back to society, religion, family and personal values, the desire to drive change, personal experience, and/or affiliations. This study finds that philanthropic foundations in Asia can be characterized by their operational model, governance structure, and philanthropic focus. In emerging economies in Asia like Myanmar and China, these foundations tend to give nationally and operate their own programmes. On the other hand, foundations in developed economies like Singapore and Hong Kong tend to give both regionally and nationally via grants to civil society organisations that operate programmes, as opposed to running programmes themselves. Further, families tend to retain significant control of foundations in Singapore and Hong Kong, while programme funding serves as the preferred funding mode. This study also discusses the various challenges and opportunities faced by the nascent philanthropic sector in Asia that can address some of the developmental and structural gaps left by the public, private, and people sectors. Keywords: Philanthropy, Private foundations, International Giving, Asia, Singapore, Myanmar, China. JEL Codes: D64, F35, F63, L31, N35, O19, O53, P33. Disclaimer: This work was supported by Agence Française de Développement. However, the analyses and conclusions presented in this document are the responsibility of the authors only. They do not necessarily reflect the position of AFD or its partner institutions. Original version: English Accepted: October 2017 ACSEP The Asia Centre for Social Entrepreneurship and Philanthropy (ACSEP) is an academic research centre at the National University of Singapore (NUS) Business School, staffed by an international multi- disciplinary research team. Formally established in April 2011, the Centre has embraced a geographic focus spanning 34 nations and special administrative regions across Asia. ACSEP aims to advance understanding and the impactful practice of social entrepreneurship and philanthropy in Asia through research and education. Its working papers are authored by academia and in-house researchers, who provide thought leadership and offer insights into key issues and concerns confronting socially driven organisations. For full details on ACSEP’s work, please see http://bschool.nus.edu/acsep About the Authors Pauline Tan Pauline Tan, CFA is an Asia Centre for Social Entrepreneurship and Philanthropy (ACSEP) research associate and founder of Soristic (www.soristic.asia), a social impact consulting firm with a Southeast Asia focus. She has co-authored several publications, including Innovation in Asian Philanthropy (2013), Landscape of Social Enterprises in Singapore (2014), Philanthropy on the Road to Nationhood in Singapore (2015), and Effective Social Incubation (2016). She also developed the Social Value framework for social enterprises in Singapore. From 2012 to 2014, she was responsible for evaluating and shortlisting charities for the Charity Governance Award. Her research interests include impact evaluation, financial inclusion, poverty alleviation, markets for the poor, social entrepreneurship, and philanthropy. Prior to joining the social sector, Pauline spent over nine years in the financial industry. [email protected] Associate Professor Swee-Sum Lam Swee-Sum Lam, PhD, CA, CFA, is an associate professor of finance at the NUS Business School and the director of the Asia Centre for Social Entrepreneurship and Philanthropy (ACSEP). She is an accountant by training, having earned her doctorate degree in finance from the University of Washington. Prior to joining NUS, Associate Professor Lam had diverse work experiences in corporate banking, corporate finance, and real estate. Since assuming the directorship of ACSEP in 2011, she has curated the addition of six new modules – on leadership, entrepreneurship, investing, and consulting at the intersection of the business and social sectors – for both the BBA and MBA curricula at the NUS Business School. To build business and societal leadership in the people, public and private sectors, she seeded the Social Impact Prize Awards and Scholarships in Social Entrepreneurship and Philanthropy for both BBA and MBA students. She also oversaw the launch of the ACSEP Case Series on Social Entrepreneurship and Philanthropy in order to advance impactful practices through formal education and executive training. In addition, she introduced the ACSEP Working Paper Series on Social Entrepreneurship and Philanthropy to foster thought leadership with the desired outcome being the reallocation of scarce resources to those who can deliver impact for social good. [email protected] Contents Contents v Acknowledgments viii Glossary ix Overview x Executive summary xii 1 Introduction 2 2 Philanthropy 3 2.1 Introduction 3 2.2 Method 5 2.3 Limitations 6 3 Motivations for Giving 7 3.1 Desire to Give Back to Society 7 3.2 Family and Personal Values 8 3.3 Religion 8 3.4 Desire to Drive Change 8 3.5 Personal Experience 9 3.6 Personal Afliation 9 3.7 Prestige and Status 9 4 Foundation 10 4.1 Introduction 10 4.2 Foundation in Asia 11 4.3 Characteristics of Foundation 13 4.3.1 Operational Model 13 4.3.2 Governance Structure 16 4.3.3 Philanthropic Focus 17 4.3.4 Spectrum of Foundations 18 v 4.4 Foundation at Work 20 4.4.1 Causes Supported 20 4.4.2 Strategic Giving 21 4.4.3 International Agenda 21 4.4.4 International Cooperation 23 5 Discussion 24 5.1 Challenges 25 5.1.1 Lack of Credibility and Transparency 25 5.1.2 Lack of Quality Data 25 5.1.3 Foundation’s Operational Weaknesses 26 5.2 Opportunities 26 5.2.1 Strengthening the Philanthropy Ecosystem 26 5.2.2 Catalytic Governmental Engagement 27 5.2.3 Catalytic Philanthropy and Risk Taking 29 5.2.4 Collaboration and Collective Impact 29 6 Conclusion