Cultural Factors and Global Philanthropy
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May 2011, Grant Managers Network, New York City
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Cultural Factors and Global Philanthropy
- 1. Cultural Factors and Global Philanthropy May 18, 2011 Andrew Ho Manager, Global Philanthropy Council on Foundations
- 3. COF Global Philanthropy Program Major Program Areas Global Philanthropy Leadership Initiative United States International Grantmaking (www.usig.org) Global Grantmaking Institute NGOsource (www.ngosource.org)
- 8. Growth of International Giving Since 1988 Billions of US$
- 9. Growth of International Giving Since 1998 by U.S. Foundations
- 10. Is the American model of philanthropy exportable? “As in all international matters, deference to cultural differences and sensitivities will elevate [philanthropy] to a truly international science, ensuring its success well into the future.” Katherine Crawford-Gray, NYU Source: http://www.philanthropynyu.org/polIssueStory.cfm?Doc_id=67
- 11. “Cultural competence is the core competence.” Culture consists of: • Values • Behaviors • Beliefs Awareness and acceptance of the culture of others Adaptation of institutions and environments
- 12. Factors Affecting a Country’s Culture of Philanthropy Country tax laws Views on government and the civil society / NGO sector Views on donating money vs. time Sense of community Religion Communication The planning and publicity of donations
- 13. Country Tax Laws Source: International Comparisons of Charitable Giving, 2006. Charities Aid Foundation.
- 14. Views on government and the civil society / NGO sector
- 15. Views on donating money vs. time Source: 2010 World Giving Index, Charities Aid Foundation
- 16. Sense of community Regional associations Clans
- 17. Religion
- 18. Communication
- 19. Public vs. private Planned vs. unplanned
- 20. So what can you do? • Acknowledge “knowing what you don’t know” • Connect to those in the philanthropic community who are granting in your geography of interest • Increase your identification, empathy, and sensitivity to factors affecting cultures of giving • Ensure events and publications are culturally sensitive
- 21. Contact Information Andrew Ho Council on Foundations Manager, Global Philanthropy Email: Andrew.Ho@cof.org Phone: (703) 879-0743 Twitter: @andyho www.cof.org www.usig.org www.ngosource.org
Editor's Notes
- Thank you to the GMN staff for this opportunity to share with you about cultural factors and global philanthropy. I think all of you in this room, to one degree or another, recognize the increasing globalization of society and by extension to philanthropy. I’d like to talk to you today about what I think some of the cultural factors are that affect philanthropy in other countries, and what we might do to increase our knowledge and understanding of these cultural factors so that our work is more culturally appropriate, no matter what country we might be operating in. But before I go into that I’ll give a little bit of background about the Council and set the context for where we are as a sector in global philanthropy.
- COF is a membership association…. We have nearly 1,800 members…Mostly family and community… Roughly 5% of our members are non US foundations, and that’s where my role in the global philanthropy department comes in.
- I work with both non US foundations as well as US foundations with global grantmaking interests across all types of foundations. We work with members to answer their questions about global philanthropy, as well as connect funders to one another with similar interests. NGOsource.. My colleague Marty Schneiderman will share later on about more the mechanics of culturally sensitive grantmaking through our NGOsource project .
- How the Council defines international grantmaking: The Council on Foundations defines “international grantmaking” to include grants made by U.S. foundations and corporations to overseas recipients as well as grants made to U.S.-based organizations operating international programs. This includes grants made toward activities wholly within the Unites States that have significant international purpose and impact.International support rose from 22% to 24.4% of overall giving between 2006 and 2008. By share of number of grants, however, international giving remained almost unchanged at 9.1%.
- The growth of international giving is outpacing overall giving for all foundation types. Community foundations’ international giving grew the fastest. Independent foundations reported the slowest growth in international giving, nonetheless their rate of growth in international funding surpassed the growth in grant dollars overall.
- Giving to U.S. based international programs grew faster than all other types of giving between 2006 and 2008. Historically this has been true of foundations to rely more heavily on U.S. based agencies, though there is also the more difficult environment for funding overseas post 9/11. And in fact, more than half of sampled foundations provided international support. Foundation Center surveys show that the more demanding post 9/11 regulatory environment is discouraging foundation giving outside the U.S.
- Of the nearly $2.1 billion in cross-border giving reported in 2008, global programs coordinated by Western European organizations – such as Switzerland-based World Health Organization – ranked first with over 26% of these dollars. An additional 17.6% supported the work of Western European organizations in specific regions of the world outside of Western Europe. Among grant dollars going directly to the regions of benefit, Asia and the Pacific accounted for the largest share at 18%, followed by Sub-Saharan Africa.
- The next two slides show different statistics but share the same story. This slide shows the growth of international giving overall since 1988 – a rise to $13.3 b in 2008 – this is giving by foundations and individuals.
- This slide from the Foundation Center shows how foundation giving internationally has also increased significantly since they started keeping track. Numerous factors helped to moderate the overall decline in giving – including international giving, including the decision of funders to reduce operating expenses, continuing gifts and bequests from donors into new and existing foundations, and increased giving by the Bill and Melinda Gates Foundation. Excluding Gates, estimated foundation giving would have decreased by over 9%. How increases in international grantmaking will affect the philanthropic field: Foundation giving will likely show modest growth in the short-term, but in the longer term the overall philanthropic pie is going to get bigger, and the share of international grantmaking is likely going to increase. Relatively younger donors who are more globally focused will continue to build their foundations over coming years, bringing additional resources to the field. Many critical priorities, such as the climate crisis, improving the world’s health and nutrition, and supporting human rights and greater political stability through cross-cultural engagement and understanding – will only grow in importance. COF’s approach: not giving advice on NGOs to fund, but rather 1) information on specific countries’ laws and cultures around philanthropy, and 2) connecting funders to one another with similar interests
- So now that we have some context as to where global philanthropy has been and we see the trends in terms of where it’s going from a U.S. donor perspective, what will philanthropy look like around the world, and what will the cultural contexts look like? It’s important to recognize that yes, American philanthropy and our model of philanthropy is just one model – and not the only model. What is this American model? Katherine Crawford-Gray of NYU says that this nexus of entrepreneurship and philanthropy, combined with a view that government is best which governs least, is unique to the U.S and firmly entrenched in the American psyche. Understanding cultural differences and sensitivities will elevate philanthropy and ensure its success well into the future. While the American model of philanthropy is undoubtedly an international success story, it will not be successfully exported unless it is, first recognized for being particular to the United States, and second, modified for export. And of course, while the American philanthropic model is unique, philanthropy is not unique to America. So if we are to engage in philanthropy in other countries and cultures, it is imperative that we understand the factors making up a country’s culture of philanthropy.
- Cultural competence is fundamental to understanding and supporting successful philanthropic engagement in these communities. The practice of cultural competence suggests an awareness of one’s own culture (values, behaviors, beliefs), awareness and acceptance of the culture of others, and the adaptation of institutions or environments to allow them to work together successfully. As one person put it, “Cultural competence is the core competence.” As a recent Chronicle of Philanthropy article put it, it’s more than just understanding terms and how different cultures might describe philanthropy -- We must become familiar with the cultural influences that affect how people and institutions aggregate, deploy, and discuss money.It can be argued that global philanthropy inherently begins with a greater degree of cultural competence — because it potentially involves people with closer knowledge, understanding of issues and motivations, relationships, mutual respect, empathy and cultural sensitivity. Global philanthropy builds upon the notion of “identification,” described by Paul Schervish, where donors are motivated to “take care of others for whom I have empathy.
- There are many factors affecting the culture of philanthropy in any given country, each with varying weights depending on the culture being discussed. So I preface this list with the disclaimer that this is not a comprehensive list and is in no particular order. I’ll go through these one by one.
- These statistics are from the Charities Aid Foundation. Country tax laws can significantly affect the behavior of donors in a given country. US has the highest amount of giving as a % of GDP. The pattern among these countries is that the higher the social security contributions, the less is donated to charity, and the lower the social security contributions, the greater the donations to charity are. For instance, in France and the Netherlands, for example, which have proportionally high levels of employee and employer social security contribution, had lower levels of individual giving as a proportion of GDP. Conversely in the UK and Ireland, where proportionally lower levels of employers’ social security contribution through tax were seen, higher rates of giving are found. Granted, some of this might be attributed to the fact that as countries with a high SS contribution, people may be more likely to think that the State will provide the welfare, and there is less of a need for private philanthropy. How countries encourage tax deduction of charitable contributions is also a factor in affecting the behaviors of donors in particular countries.
- According to the Barclays wealth report in 2010, A lack of state support in providing essential services is another key factor driving philanthropy among the wealthy in India today. Many believe that the Government is not capable of providing the basic infrastructural requirements and feel that if they personally don’t do something about it, it will not get done.“There is more of a perceived need for funding or starting your own non-profit because you don’t have that government ‘net’, whether it is aid, quality education, healthcare, roads, water, etc. I don’t think anyone in the country, rich or poor, would assume that the Government has the ability to provide all these resources.”
- Enormous variation is seen in how countries and regions ‘give’. The incidence of giving money to charity ranges from as low as 4% in Lithuania to as high as 83% in Malta. Incidence of volunteering lies in a range from 2% in Cambodia to 61% in Turkmenistan. Each country has its own unique footprint and its own way to give. In Liberia, less than one tenth (8%) of the population give money to charity every month. Yet over three-quarters (76%) of Liberians help a stranger every month, more than any other country in the world.For example, those who work with African or Caribbean communities should know that susu collectors are popular in these cultures, and they made theidea of giving small loans popular long before microfinance became trendy. And if we work with Muslim communities, we must understand that Islamic law, known as Sharia, prohibits the acceptance or payment of interest fees on loans.
- Many countries, particularly Asian countries, pride in reciprocal obligation. Also regional associations based on town or district of origin, are popular. The sense of collective duty vs enlightened self-interest.Example: The only diaspora association model whose philanthropic contributions have been studied in any depth is the “hometown association” (HTA), particularly those in Mexico, Central America, and the Caribbean. Hometown associations are small voluntary associations organized by migrants from the same hometown in their country of origin who reside in close proximity to each other in the United States. Until fairly recently, most HTAs were primarily associations committed to creating solidarity and providing support. HTAs raise funds from their members and extended social networks and use such funds to undertake charitable projects in their hometowns. The focus of HTA projects vary, but are often related to education, health, and infrastructure development. In some Asian cultures a “clan,” or a group of families or households, makes decisions about the welfare of the community, determining resource requirements and allocations.
- For many Hispanic, Latino, or Chicano communities (yes, how people identify themselves is important), the church often takes leadership in acquiring and dispensing financial support.In many countries, including Mexico, church, synagogue, or temples are the important center of philanthropic activity.
- So how people communicate, particularly about their philanthropy, can also vary from country to country. There are many cultural considerations – in some countries prospect research is considered “impolite”, while in others it is “unethical”. Direct mail in some countries is outright illegal. In many Asian countries, donors prefer to be solicited in indirect ways as a direct ask is viewed with potential for conflict and losing face. Face to face meetings are very important, while in the West it is more acceptable to build a relationship through just phone and electronic contact. In Australia, people are cynical of individuals who make large donations. Many countries view the American way of fundraising as pushy and vulgar. (Katherine Crawford Gray)
- In Britain, philanthropy is typically private and in small amounts unplanned, while in the US giving is planned and public. In Asia, it is small amounts, unplanned, but public. This is a picture of Chen Guangbiao, a wealthy entrepreneur in China. You might have read about him in a recent Fast Company story. Today, he says he has donated more than $100 million to charity. But Mr Chen does not only donate cash. He may be the only billionaire philanthropist in the world who personally flies to disaster zones to carry out aid work. Instead of donating his money to a specific cause, Mr Chen donates the vast bulk of it directly to the needy, in small packets of cash - anywhere from $40 to $100. But while the money is welcome, there is a question mark over what sort of legacy Mr Chen will leave behind. Is it wrong for us Americans to criticize his approach to philanthropy? Or do we accept it at its face value and move on?
- Awareness and acceptance – first 3First it’s about humility in recognizing that we have much to learn about different cultures of philanthropy. You may think you know everything there is to know about philanthropy because you’ve been in it for such a long time, but it’s not true. Connect to those in the philanthropic community who are granting in your geography of interest. A great way to do this is by connecting to the many ethnically based affinity groups such as HIP and AAPIP who may have people and/or resources to help. Increase your identification, empathy, and sensitivity to factors affecting cultures of giving. Take a look at your foundation’s grantmaking process and ask yourself at each step – is what we are doing appropriate for a global audience? Would this make any sense to someone not from the US? Adaptation – last oneThe last one is about adaptation of behaviors. 4. Ensure events and publications are culturally sensitive – this includes providing language support for publications and events where appropriate. We at the Council have been getting a lot of requests for translation of our publications – and we’re looking at ways to make translation a regular part of our publications cycle moving forward – recognizing that we are increasingly writing for a global audience and not just an American one.
- So thank you very much. I’m happy to answer questions later on during the Q&A session, or you can contact me at the Council as well. Thank you!