Crystal Hayling

Elegant and well-heeled would be the best way to describe them. I smiled at these two women of indeterminate age who I had just met at the launch of the UBS-INSEAD Study on Family Philanthropy in Asia. As I moved to introduce them to one another, they both laughed and said, ‘We’ve known each other since…’ putting the flat of their hands forward at small child height.

‘We were neighbours,’ the petite Chinese woman said.

‘Our apartment was here, and their apartment was there,’ said the smiling Indian woman, pointing her finger in the upward diagonal.

‘Didn’t you play marbles?’ One asked the other with a mischievous grin.

‘Oh yes, all the time. And with the boys!’

‘And every day your mom – rest her soul. She was a real force of nature. She would go to the market over there on…’

‘And my father, he’s not well now, but we take care of him at home…’

‘Yes, we knew each other.’

‘But it’s not like that anymore.’

‘No, nothing is like that anymore.’

There was silence as I imagined them thinking about all the changes – education, jobs, marriage, kids, and clearly wealth – that had happened since those long-ago days. For a brief moment I could almost see the bustling apartments these women described, in the brand-new nation that Singapore was 30 or so years ago. Where families knew one another, children played in empty lots, and what bound everyone together was that they were all strivers.

We drifted apart as the 150-person crowd wandered into the auditorium to hear the current state of family philanthropy as described by the recently completed study. Despite the fact that we are all living in the midst of Asia’s economic engine, the stats were still mind-boggling.

China now has over 1 million US dollar millionaires.

In recent years, Indian households have witnessed the highest absolute gains in wealth in the world.

By the end of 2009 there were some 3 million Asian-Pacific high net worth individuals – equaling the number in Europe for the first time – and their wealth totalled US $9.7 trillion.

But the rising tide has not raised all boats.

In sheer numbers, the region is still the largest locus of poverty and deprivation in the world. In 2005 there were over 660 million people in India and China alone who lived on less than US $1.25 per day.

In India, the wealthiest 5% of the population control 40% of the country’s wealth.

All of these statistics from the report were only the prelude to the substance of the discussion. Through 200 quantitative surveys and over 100 in-depth interviews, the report’s author, Mahboob Mahmood, adjunct professor of entrepreneurship and family enterprise captured themes on motivations for giving, priorities and philanthropic approaches.

The image that emerges is a charitable sector led by closely held family businesses with a strong entrepreneurial ethos, complex intergenerational relationships, delicate succession and legacy challenges, and a deep awareness (particularly on the part of the patriarchs and older generations) of the power of education to change the course of lives in a single generation. Philanthropy is a useful mechanism for reinforcing shared values with the goal of supporting family cohesion and harmony.

Education is by far the largest area of investment, with poverty alleviation and health distant seconds and thirds. Arts/culture (4%), the environment (4%) and civil rights (1%) were small also-rans.

Among the challenges cited were lack of experienced staff, the perception (and sometimes reality) of a limited number of high-impact NGO partners, and difficulty in finding philanthropic co-investors who are aligned in mission.

The incredibly generous families who participated in the study are to be lauded for their leadership. They are impressive fonts of giving, but as yet there exist few networks of strategic philanthropy that can achieve what the authors called ‘sustained transformational impact in Asia’.

I was struck by the words of panellist Laurence Lien, CEO of Singapore’s National Volunteer and Philanthropy Centre and a member of one of Singapore’s most philanthropic families, when he said: ‘The most important use of philanthropy is social innovation and social change. Charity is important, but there is much more to do.’

His comments took me back to the conversation I’d had earlier with those two elegant, well-heeled ladies. Money provides privilege to those who possess it but it also changes everything. It can create fractures in families, as well as in societies. It can disconnect people from their broader community. And the relentless drive for economic growth can take a deep toll on cultural traditions as well as our physical environment.

The challenge ahead for philanthropists in Asia, indeed philanthropists everywhere, is to engage with communities in developing solutions. Charity is usually top-down, highly transactional and rarely transformative. It is important, but not enough. Transformational impact can be achieved by moving beyond charity with strategic analysis, community engagement and emphasis on our shared vision and common destiny. Networks and collaboration are required. Civil society can play an essential role in reweaving the fabric of society. But it requires more than charity. It requires vision more than just money.

The title of this post was at least partially inspired by the Jessie J song my kids adore, which is on a regular loop in our house…

Crystal Hayling is a consultant working with social enterprises and foundations in south-east Asia. This article was first published on her blog, http://www.crystalhayling.com