Global InstitutionalPhilanthropy
A PRELIMINARY STATUS REPORT
Authored byPAULA D. JOHNSON
THE PHILANTHROPIC INITIATIVE, INC (TPI)
Advisory Group
ATALLAH KUTTAB, ARAB FOUNDATIONS FORUM
AKWASI AIDOO, TRUST AFRICA
ANA FEDER, EUROPEAN FOUNDATION CENTRE
JACQUELINE BUTCHER DE RIVAS, CEMEFI
MATTHEW NELSON, COUNCIL ON FOUNDATIONS
MICHAEL LIFFMAN, SWINBURNE UNIVERSITY
STEVEN LAWRENCE, FOUNDATION CENTER
Copyright © 2010 by WINGS/TPI. All rights reserved.
Overview• Study aims and
approach• Global themes and
trends• Legal and tax
environment• Institutional models• Challenges and
obstacles
Study Aims and Approach• Goals, methodology
and framework
• Advisory group
• Survey respondents
• Data limitations
Copyright © 2010 by WINGS/TPI. All rights reserved.
Goals, Methodology and Framework
• Study Goals– Gather WINGS members’ knowledge– Illuminate knowledge gaps
• Study Methodology– Exploratory– Survey of WINGS membership– Review of regional data, literature
review
• Study Framework– Part A: overview and summary– Part B: individual country profiles
Advisory Group
• Akwasi Aidoo, Trust Africa• Jacqueline Butcher de Rivas, CEMEFI• Ana Feder, European Foundation
Center• Atallah Kuttab, Arab Foundation Forum
(chair)• Steven Lawrence, Foundation Center• Michael Liffman, Swinburne University• Matthew Nelson, Council on
Foundations
Survey Respondents and
Country Profile Authors
Hamid AbidinSylvia AdmansGina AndersonClare BrooksRob BuchananMaria ChertokKyung-In ChoiNoshir H. DadrawalaAndre DegenszajnDr. Hans FeischRosa GallegoShelagh GastrowAnna Gulevska-Chernysh
Luma HamdanPilar HernandezLenka IlanovskaYosephine Dian IndraswariErika JoubertSafi Rahman KhanSteven LawrenceZeynep MeydanogluKatarina MinarovaChris MkhizeMercedes MosqueraDr. Pradeepta Kumar NayakIwona Olkowicz
Miriam OtienoMonica PattenHilary PearsonAmita PuriLourdes SanzRobyn ScottDina SherifKwok Shook YeeBenjamas SiripatraBoris StrecanskýSukich UdinduJane WalesFran Walker
Data Limitations• Data on global philanthropic sector limited
– Few centralized entities collect data– Limited number of published reports– Cultural and political sensitivities
• Data within countries often incomplete and inconsistent– Small sample sizes– Different frameworks and methodologies– Few baseline studies
• Data across countries not comparable– Differences in legal definitions, study
methodologies – No standards or norms
Global Themesand Trends• Unique heritage and
historic pathways• General philanthropic
growth• Different views on
philanthropic roles
Unique Heritages and Historic Pathways
• Long-standing religious beliefs and cultural practices
• Changing political powers• Distinct economic courses• Patterns of migration and immigration• Sometimes strong external influences
Global Philanthropic Growth
• Little question that it is on the rise
• Factors vary but include– Growth in global wealth– Political reform and policy changes– Shifting roles of the state, market
and civil society– Escalating challenges– Growth of CSR– Increased visibility of philanthropic
leaders
Roles of Philanthropy
• Sectoral roles
• Strategic roles
• Philanthropic partnerships
Policy and Tax Environment• Legal identity
• Government oversight
• Limitation on activities
• Tax policy
Legal Status of Philanthropic
Institutions• Often imprecise • Creates uncertainty (e.g., re permissible
activities, allowable partnerships, tax treatment)
• Challenges development of enabling or encouraging policy
• May be disincentive to create philanthropic institutions
Government Oversight and
Intervention• Can be burdensome and complex
– Often a patchwork of regulatory standards that are difficult to navigate
• Can be highly controlling
• Creates disincentive to create philanthropic institutions
Limitations on activities
• Legal and tax policies can limit range of philanthropic and nonprofit activities
• Difficulty with registration
• Can result in limited support for some issues
Tax environment• Varies widely; many countries
debating
• Limited fiscal incentives in many countries– Kinds of nonprofits able to receive
contributions– Level of deductibility
• No clear consensus around impact of tax incentives
Institutional Models, Assets, and Expenditures• Prevalent models
• Key variations
• Assets and expenditures
Prevalent models• Prevalent models
– Independent (private) foundations– Corporate foundations– Community foundations– Government-linked foundations– Host-controlled foundations/funds– Philanthropic aggregators
• Distinction between models not always clear
• Balance among models varies• Operating models differ
Institutional Assets and Expenditures
Challenges and Obstacles to Institutional Philanthropy• Legal and policy
environment
• Lack of reliable data
• Public perceptions
• Demonstrating impact
Need for Reliable Data
• Better data may lead to – Increased philanthropic capital– More effective giving practices– A more favorable policy
environment– Stronger civil society– “reallocation of the global giving
portfolio”
Public Perceptions • Philanthropic roles
– Sectoral roles– Strategic roles
• Trust and transparency
• Confidence in future
• Giving as a private vs. public act
In Closing“(The study) highlights the world’s intricate philanthropic tapestry while also identifying its common threads. It demonstrates the wealth of existing knowledge around institutional philanthropy while illuminating its critical data gaps. And it demonstrates the ability of a collective, collaborative effort to bring forward new and important knowledge.”
Ata KhuttabChair, Advisory Group