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