New Asian wealth leads to 'strategic' charitable giving

As Asia grows its wealth, more people want to give back to society but in a strategic way.

This is according to business research group Economist Intelligence Unit, which recently published a report commissioned by European bank Credit Suisse titled The Road Ahead: Philanthropy's Evolving Role in Asia.

Its researchers found that the region has a long tradition of charitable giving based on cultural, religious and social responsibilities but that has tended to be on informal.

However, as wealth in Asia rises and more people decide to donate to charity, there is a growing need for a more strategic approach.

Donors require good governance, transparency and tangible results when it comes to their contributions.

This is especially true when it comes to philanthropy, which the EIU report defined as "the organised process of making, monitoring and evaluating financial donations to achieve specific objectives, rather than simply writing checks and hoping the money will do some good".

This has prompted a need for a more formal "strategic philanthropy", which involves setting specific social objectives, finding expert partners, measuring the effects of contributions and helping the projects become self-sustaining.

One form of this is impact investing, and a good example of that is the Hong Kong-based Green Monday organization, co-founded by entrepreneur David Yeung, who spoke at a Credit Suisse forum.

Green Monday is a social enterprise that promotes green and sustainable lifestyles such as vegetarianism.

While Green Monday was launched in Hong Kong, it is gaining traction in the United States and the Chinese mainland as well.

Singapore is also a possible location for international expansion, Yeung said.

"When it comes to the environment and sustainability, these are global issues. It applies to people anywhere in the world. We will take it globally," he said.

As well as being a social enterprise, Green Monday is also an impact investor, as it has an incubator fund that invests in green and eco-friendly start ups.

But cash is not the only solution, Yeung said.

"Sometimes, there is not only a lack of capital but also of other resources like people, innovation, creativity and social networks.

"During the last 10 years, I have been applying business know-how to social issues."

(China Daily 11/25/2014 page7)