Philanthrop i ind 201 - pcp.org.pkpcp.org.pk/uploads/Sindh.pdf · iii Philanthrop i ind 201 This...

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Philanthropy in Sindh 2014

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Individual Indigenous

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This study is an important milestone in Pakistan Centre for Philanthropy’s (PCP) mission to enhance the volume and effectiveness of indigenous philan-thropy in the country. Undertaking sound research projects to provide au-thentic information on various aspects of philanthropy is an essential element in fulfilling the Centre’s mission. Since its establishment in 2001, PCP has been conducting annual surveys and various researches on philanthropy across Pakistan. The current study is a part of an ambitious endeavour to document the amount, trends and patterns of indigenous philanthropy in the country; information that might lead to effective utilisation, better channelisation and increased awareness.

This study on individual indigenous philanthropy in Sindh is one of the first re-searches carried out in the province to study the volume, trends and practices related to philanthropy by its inhabitants. The Centre visualises this research playing a key role in raising awareness about the nature and potential of giv-ing as a supplement to government resources towards social development.

The findings of this study are a testament to the generosity of the people of Sindh. The amount contributed in the year 2013 amounted to Rs. 67.9 billion; Rs. 42.2 billion in volunteering time Rs. 21 billion in cash and Rs. 4.7 billion in kind. It is heartening to see that despite the increased economic pressures, 97 percent of the households were involved in some sort of philanthropic activity.

In addition to highlighting the household giving trends through quantitative figures, the qualitative analysis has also identified important motivating fac-tors, challenges, patterns of giving and ways to cope up with these challenges which will further enlighten the readers and lead to informed policies.

PCP anticipates that policy makers, philanthropic organisations and individ-uals will find the results of this report to be useful, which will enable them in identifying correct ways to enhance and channelise philanthropy for social development. It is also hoped that the recommendations put forward by PCP on the basis of this study will be of value to all stakeholders, which will enable them to find ways for increasing and channelising philanthropic activities in Sindh. My colleagues on the Board and in the management welcome sugges-tions for improvement in future research endeavours.

Dr. Shamsh Kassim-Lakha, H.I., S.I. Chairman Board of Directors, PCP

Foreword

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Foreword iii / List of Tables vi /

List of Figures vii / Acronyms viii /

Acknowledgements ix / Executive Summary xi /

Key Findings of the Study xii /Policy Actions xiii /

Introduction 1 / 1.1 Brief Profile of Sindh Province: 2 /

1.2 Objectives of the Study: 3 /

Literature Review 4 / 2.1. Philanthropy in Selected Countries 5 /

2.1.1 Philanthropy in the United Kingdom 6 / 2.1.2 Philanthropy in Sri Lanka 6 /

2.1.3 Philanthropy in India 6 / 2.1.4 Philanthropy in Pakistan 7 /

Conceptual Framework and Methodology 8 / 3.1 Conceptual Framework 8 /

3.2 Methodology 10 / 3.2.1 Sample Design 10 / 3.2.2 Research Tools 11 /

3.2.3 Data Collection and Processing 12 / 3.3 Method of Analysis 12 /

3.4 Data Limitations 13 /

Findings of the Study 14 / 4.1 Socio-demographic Characteristics of Respondents and Sampled Households 14 /

4.2 Magnitude and Patterns of Individual Giving 17 / 4.2.1 Prevalence 17 /

4.2.2 Magnitude of Individual Giving 18 / 4.2.3 Patterns of Individual Giving 19 /

4.2.4 Qurbani Hides 31 / 4.2.5 Donations to Shrines 32 /

Table of Content

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Motivations for Individual Giving 33 / 5.1 Hypotheses Development 33 /

5.2 Measures of Motivation for Giving 33 / 5.3 General Motivations for Individual Giving 34 /

5.4 Motivations for Cash Donations 35 / 5.5 Motivations for Volunteering Time and In-Kind Gifts 36 /

5.6 Determinants of Individual Philanthropy: Multivariate Analyses 37 /

Individual Philanthropy and Safety Nets: Awareness, Constraints and Complementary Mechanism 40 /

6.1 Understanding the Relationship between Grant Seekers and Grant Givers 40 / 6.1.1 Awareness and Reputation of Organisations 40 /

6.1.2 Role of Trust and Reputation in Organisational Philanthropy: A Multivariate Analysis 42 / 6.2 Constraints and Barriers for Individual Philanthropy 44 /

6.2.1 Pooling of Philanthropic Resources 44 / 6.2.2 Gaps in Government System 45 /

6.2.3 Inefficiency of Zakat and Bait-ul-Mal Systems 46 / 6.3 Philanthropy as Complementary Mechanism for Safety Nets and Poverty Reduction 47 /

Policy Recommendations and The Way Forward 49 / 7.1 Policy Actions 49 /

References: 55 /

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Table 3.1: Sampled PSUs and SSUs in total, urban and rural areas: IIPS Sindh 2013 11

Table 4.1: Percentage distribution of respondents by socio-demographic characteristics: Sindh 2013 14

Table 4.2: Proportion of respondents (%) by type of giving in total, rural and urban areas: Sindh 2013 18

Table 4.3: Estimated value of individual giving: Sindh 2013 19

Table 4.4: Percentage distribution of respondents for in-cash non-zakat donation by type of beneficiaries and socio-demographic characteristics: Sindh 2013 21

Table 4.5: Percentage distribution of respondents giving non-zakat money to individuals by socio demographic characteristics: Sindh 2013 23

Table 4.6: Average amount of Zakat paid and per-centage distribution of respondents by type of organisations and socio-demo-graphic characteristics: Sindh 2013 27

Table 4.7: Time volunteered to individuals and organisations by respondents during last 12 months by area and quintile: Sindh 2013 28

Table 4.8: Percentage distribution of respon-dents who volunteered time by type of beneficiaries and socio-demographic characteristics: Sindh 2013 29

Table 4.9: Proportion (%) of respondents who presented in-kind gifts to organisa-tions, average value (Rs.) of gifts and type of gifts by area and quintile: Sindh 2013 29

Table 5.1: Percentage distribution of respondents by motivation behind giving and so-cio-demographic characteristics: Sindh 2013 34

Table 5.2: Percentage distribution of respondents by motivation behind non-zakat giving to individuals and organisations by area and quintile: Sindh 2013 35

Table 5.3: Percentage distribution of respondents by motivation behind time volunteered to individuals and organisations by area and quintile: Sindh 2013 36

Table 5.4: Percentage distribution of respon-dents by motivation behind presenting in-kind gifts to individuals and organ-isations by area and quintile: Sindh 2013 37

Table 5.5: Determinants of individuals’ non-zakat giving: Sindh 2013 38

Table 5.6: Determinants of individual’s Time Vol-unteered in hours: Sindh 2013 39

Table 6.1: Percentage distribution of respondents who donated non-zakat and Zakat mon-ey by awareness of charitable organi-sations, and knowledge of prominent philanthropists: Sindh 2013 41

Table 6.2: Proportion (%) of the respondents who volunteered time and presented gifts to organisations by awareness of chari-table organisation and knowledge of prominent philanthropists: Sindh 201341

Table 6.3: Percentage distribution of respondents who donated in-kind gifts by type of or-ganisation and awareness of charitable organisations and knowledge of promi-nent philanthropists: Sindh 2013 42

Table 6.4: Determinants of individuals Time Volun-teered in hours: Sindh 2013 60

Table 6.5: Determinants of organisations Time Vol-unteered in hours: Sindh 2013 43

List of Tables

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Figure 3.1: Conceptual Framework 9

Figure 3.2: Percentage distribution of the sampled households by rural-urban areas: Sindh 2013 11

Figure 4.1: Percentage distribution of respondents by level of educational attainment: Sindh 2013 16

Figure 4.2: Percentage distribution of respondents by occupation: Sindh 2013 16

Figure 4.3: Social living standard index of the sam-pled households: Sindh 2013 16

Figure 4.4: Prevalence (%) of individual giving by rural / urban areas: Sindh 2013 17

Figure 4.5: Percentage of respondents (prevalence) by type and quintiles*: Sindh 2013 18

Figure 4.6: Percentage distribution of individual giving by type: Sindh 2013 19

Figure 4.7: Non-zakat amount donated per month on average by socio-demographic char-acteristics of respondents: Sindh 2013 20

Figure 4.8: Percentage distribution of non-zakat in-dividual beneficiaries: Sindh 2013 22

Figure 4.9: Percentage distribution of respondents giving non-zakat money to organisa-tions: Sindh 2013 24

Figure 4.10: Percentage distribution of respondents for Zakat giving by the type of benefi-ciaries and quintile: Sindh 2013 24

Figure 4.11: Zakat amount donated on average by socio demographic characteristics of respondents: Sindh 2013 25

Figure 4.12: Percentage distribution of respondents by type of beneficiaries of Zakat and socio-demographic characteris tics: Sindh 2013 26

Figure 4.13: Percentage distribution of respondents who volunteered time for organisations by type of organisations and socio-de-mographic characteristics: Sindh 2013 30

Figure 4.14: Percentage distribution of respondents by type of in-kind gifts donated to indi-viduals by area and quintile: Sindh 2013 31

Figure 4.15: Percentage of respondents who per-formed Qurbani by area, education and quintiles: Sindh 2013 32

Figure 4.16: Percentage of the respondents who donated to shrines by area: Sindh 2013 32

Figure 6.1: Percentage distribution of the respon-dents by intentions for future donations and socio-demographic charac teristics: Sindh 2013 48

Figure 6.2: Percentage distribution of respondents by preferred thematic areas for future donations in total, urban and rural areas: Sindh 2013 48

List of Figures

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ADB Asian Development Bank

SPSS Statistical Package for the Social Sciences

AKDN Aga Khan Development Network

SRCs Self Representative Cities

APPC Asia Pacific Philanthropic Consortium

SSUs Secondary Sampling Units

APWA All Pakistan Women’s Association

SWD Social Welfare Department

BOS Bureau of Statistics

TCF The Citizens’ Foundation

CAF Charities Aid Foundation

UNDP United Nations Development Programme

CDP Community Development Programme

CSO Civil Society Organisation

FGDs Focus Group Discussions

FPAP Family Planning Association of Pakistan

GDP Gross Domestic Product

IDIs In Depth Interviews

IIPS Individual Indigenous Philanthropy Survey

LRBT Layton Rahmatullah Benevolent Trust

MDGs Millennium Development Goals

NGO Non Governmental Organisation

NPO Non-Profit Organisation

PBS Pakistan Bureau of Statistics

PCP Pakistan Centre for Philanthropy

PPS Probability Proportion to Size

PSUs Primary Sampling Units

SBS Sindh Bureau of Statistics

SES Socio-Economic Status

SKMCH Shaukat Khanum Memorial Cancer Hospital

SPDC Social Policy and Development Centre

Acronyms

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This research study is the outcome of the collective efforts of a number of people, whose contribution the Pakistan Centre for Philanthropy (PCP) would like to acknowledge. PCP acknowledges the invaluable support extended by the Community Development Programme (CDP), Planning and Development Department, Government of Sindh to sponsor the study. The Centre expresses its deep appreciation for the trust reposed in it by CDP. A special acknowledgement is due to Mr. Aijaz Ahmad Mahesar, Additional Secretary, Planning and Development Department, Government of Sindh and Programme Director, CDP and his team for their continuous support, cooperation and guidance during the course of completion of this research work. PCP would also like to record its thanks to the Bureau of Statistics, Government of Sindh for designing the household sample and Mr. Moazzam Khalil, Chief Executive Officer, Development Strategies for conducting the survey to make study possible.

First of all, PCP owes its gratitude to Dr. Shamsh Kassim-Lakha, former Chairman of the PCP Board for his vital role in the initiation of this work and his constant support and perceptive input during completion of the study and all the Board members for their able guidance and oversight for the entire process of this work. PCP would also like to especially, thank the Research Committee members, Dr. Attiya Inayatullah, Mr. Mueen Afzal, Mr. Ahsan M. Saleem, Dr. Sohail H. Naqvi, Dr. Sania Nishtar, and Mr. Firoz Rasul for their continuous support, professional guidance and input for the of completion of this study.

The Centre would like to acknowledge and appreciate the untiring and committed efforts of Dr. Jennifer Bennett and Ms. Kanwal Qayyum, the two consecutive Senior Programme Managers, in the initial phase of data collection and its preliminary analysis, and Dr. Naushin Mahmood, the successive Senior Programme Manager of PCP, for her technical input and commitment to improve the contents and final composition of the study. In addition, the Centre would like to acknowledge the dedicated efforts of its

Research Unit including previous researchers, Mr. Ali Shoaib, Ms. Rabia Hasan, Mr. Syed Hassan Sagheer and Ms. Sarah J. Nasir and the current research team Mr. Muhammad Ashraf, Mr. Muhammad Ali, Mr. Ali Jadoon and Ms. Naina Qayyum. They have worked hard and put in long hours to bring this study to a successful conclusion. Special thanks are also due to the field survey team for their hard work and dedication to gather data in the field work and the PCP support staff who put in their share of work towards the finalization of this study.

More importantly, we would like to sincerely acknowledge the contribution of Dr. G.M. Arif, Joint Director at the Pakistan Institute of Development Economics (PIDE) and Dr. Nasir Iqbal, Research Economist at PIDE for their professional input in report writing. Our sincere thanks to both of them for critical analysis of the PCP survey data on individual philanthropy and for the final composition of the report.

We would like to especially, offer our gratitude to Mr. Tanwir Ali Agha, Former Executive Director of PCP for his constant support and guidance in the preparation and completion of this study during his tenure.

Finally, the Centre is especially indebted to Mr. Zaffar A. Khan, former chairperson of the Research Committee and presently, Chairman of the PCP Board of Directors for his constant support and professional guidance during completion of this study. We hope this study will be of use to researchers, development organisations, civil society and policy makers in understanding the issues and challenges related to philanthropy and improving its volume and effectiveness in Sindh province.

Acknowledgements

Shazia Maqsood AmjadExecutive Director,Pakistan Centre for Philanthropy

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TharparkarBaddin

T.M.K

Thatta

Hyderabad

Karachi

Jamshoro

T.A.Y

MirpurKhas

Umer Kot

SangharMatiari

Nawabshah

NoshehroFerozpur Khairpur

SukkurLarkana

Shikarpur

Jacobabad

Qambar

Shahdadkot Ghotki

Kashmore

Dadu

DISTRICTS OF SINDH

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Philanthropy or giving to the needy, is deeply embedded in the Pakistani ethos. It encompasses all segments of society that voluntarily give money, goods and time to others for their well being. Philanthropy has the potential to generate significant resources that can be tapped and channelled more effectively for social investment and poverty alleviation to reduce the social sector deficit in the country.

An essential first step is to understand the extent and patterns of philan-thropic activities, to get a better understanding of the underlying dynamics and determinants to be able to design knowledge-based policies, systems and practices in order to promote the effectiveness of philanthropy for Social Sector development in Sindh. To this end, the Community Development Programme (CDP) and Planning and Development Department of the Gov-ernment of Sindh commissioned Pakistan Centre for Philanthropy (PCP) to un-dertake a comprehensive study on Individual Philanthropy in Sindh Province. Sindh is the second largest province of Pakistan with an estimated population of 44.1 million people (reported in 2013). This quantifies 24 percent of Paki-stan’s total population with an urban population of 48 percent, compared to the country’s overall average of 34 percent in 2013. Its capital, Karachi, is the most populous metropolitan city and is the largest financial centre of the country. Rural Sindh, on the other hand, is less developed and is characterised by widespread poverty and poor levels of educational attainment.

This study, based on a household survey and qualitative research, documents the size, scope and patterns of individual indigenous philanthropy in Sindh and investigates the motivations behind giving as well as constraints that impede the optimal utilisation of this resource for social development. The findings provide useful information to all stakeholders including the govern-ment, civil society organisations, and donors that can serve as a basis for a policy dialogue aimed at improving the enabling environment for philanthro-py in social sector development and poverty alleviation in Sindh.

The methodology employed is a mix study design, using both, quantitative and qualitative techniques, to gather information on philanthropy in Sindh. Under the quantitative component, a representative survey of 3000 sampled households was undertaken in both rural and urban areas of Sindh in the year 2013; whereas, the qualitative survey consisted of Focus Group Discus-sions (FGDs) held with the community and in-depth interviews (IDIs) with key stakeholders, including government officials and Civil Society Organisations (CSOs), to seek answers to some questions on the effectiveness and con-straints of philanthropic activities in Sindh. It is important to reiterate that this study reports only on individual and indigenous philanthropy in Sindh. Total philanthropy would equate to much higher figure encompassing the different streams of philanthropy such as corporates, high net-worth individuals and family foundations etc.

Executive Summary

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Key Findings of the Study

1 Individual philanthropy is universal in Sindh. Ninety-seven percent of the sampled households are in-volved in some form of giving.

2 Total individual giving in Sindh is estimated at Rs. 67.9 billion in the year 2013. This includes in-cash giv-ing (Zakat and non-zakat) as well as the monetary value of gifts in-kind and time volunteered.

3Of the total giving, Rs 21 billion (31 percent) is given in-cash, Rs. 42.2 billion in time volunteered (62 percent), and only Rs. 4.7 billion (7 percent) in the form of gifts in-kind, indicating that volunteering time is the major form of total giving.

4 Of the total cash giving of Rs. 21 billion, non-zakat money has the major share equating Rs. 17.4 billion (83 percent).

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Giving to others in Sindh, on average, is less than Rs. 300 per month indicating small and unplanned donations. The variations among various socio-economic groups show that the average donation is higher amongst the respondents living in urban areas (Rs. 307) than in rural areas (Rs. 215). Respon-dents with graduation or higher level of education give about two and a half times more (Rs. 427) than the money given by illiterate donors (Rs. 185). The average donation of the richest group is three times (Rs. 459) the donation made by the poorest (Rs. 148).

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Religious reasons and altruism are the main motivations behind giving according to more than 90 percent of the respondents. More than two-thirds of the respondents who volunteered time for organ-isations did so because of ‘human compassion’. In-kind gifts are motivated by Islamic belief, altruistic reasons (humanity) and faith-based attitudes.

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Awareness and knowledge about the transparency, good reputation of organisations and prominent philanthropists motivated people for giving; Edhi Foundation is recognised as one of the most re-nowned organisations working for human welfare and social development. The thematic area or field of work of an organisation, especially in education and health, also influenced the selection of a charitable organisation for cash donations.

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Seventy-eight percent of the total individual giving is directed towards individuals due to lack of trust in organisations. Amongst individuals, beggars and the disabled are the major beneficiaries of non-zakat donations (76 percent). Amongst organisations,

9 A religious entities such as Mosques and Madrassahs are the top beneficiaries of cash donations (79 percent).

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Clothing, food and household items are the major types of in-kind goods given to individuals. Food, Qurbani hides and construction materials are donated as gifts in-kind to religious organisations. Volun-teering time is directed mostly towards individuals including a relative, neighbour or the needy, in the form of any kind of help as reported by 99 percent of participants.

11 Donations to shrines are very popular in Sindh, as reported by 78 percent of the respondents.

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A majority of the respondents reported that in the future, they would still prefer giving to individuals (59 percent). However, about one-third of the respondents (32.5 percent) would consider donating to both individuals and organisations, especially for education and health, if transparency, accountability and positive impact are ensured.

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Given the near universality of giving in Sindh, it is clear that philanthropy can play a key role in social sector de-velopment and poverty alleviation in Sindh. For this to materialise, it is essential that the concerns expressed by participants of the survey be addressed and pol-icy actions in some areas be initiated to improve the utilisation of philanthropic contributions in the province. Some key policy recommendations emanating from the study are summarised below. These are elaborated in Chapter 7 of the study.

The magnitude of the social sector deficit in Sindh (as in other Provinces) is such that the Government alone has not been able to bridge the gap. Philanthropy and civil society can provide significant additional resources to support social sector development and poverty allevi-ation, providing relief to the underserved and margin-alised. This has to be within a framework of partnership between Government, Business / philanthropists and civil society, embedded in knowledge and trust, within an enabling environment. This study aims to lay solid basis for a policy dialogue and to build effective part-nerships in the future.

As a practical step, it is suggested that a Taskforce be constituted to evaluate the enabling environment for philanthropy and civil society. This Taskforce should include representatives of stakeholders such as philan-thropists, Government, civil society and public officials to initiate a policy dialogue with stakeholders to im-prove effectiveness of philanthropy in Sindh province.

Policy Actions

1 Reducing the trust deficit among government, CSOs and individual givers through community involve-ment, public private partnerships and need-based activities.

2 Raising awareness about philanthropy and its positive outcomes through Public Service campaigns and better communication and advocacy in the community.

3 Mobilising and channelising philanthropy through Public-Private Partnerships in the social sector to provide an efficient mechanism to improve outreach to the public.

4 Formulating local social development plans at the Union Council level, in consultation with communities to attract local philanthropy.

5Adopting measures to ensure implementation of policies and laws enacted to eliminate beggary and vagrancy through the concerned departments in the province, and providing employment and skill development opportunities to that sub-group.

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Streamlining existing social welfare and safety net activities of the Government of Sindh and make them more transparent in order to enhance effectiveness and impact. In this regard, improvement in disbursement of the Zakat / Ushr funds through town and local level committees is required to ensure better access to the needy and the poor.

7 Ensuring fully funded priority schemes to get them completed in a timely and productive manner rather than increasing the portfolio of inadequately funded projects / programmes.

8Improving effectiveness of institutional giving through better utilisation of immense donations made to mosques, Madrassahs, and shrines through the involvement of local government departments to main-stream funds in social development projects.

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Philanthropy – love of humanity – takes place every-where, in all cultures and religions. It includes the act of voluntary giving by individuals or groups to promote common good. Philanthropy is rooted in the ethical notions of giving and serving those beyond one’s family and is often driven by religious traditions and shaped by cultural behaviours and practices (Ilchman, Katz, & Queen, 1998). It deals with important social and moral issues affecting society as well as our individual lives. It also has a significant influence on social, political, religious, moral, and economic spheres of life; the spectrum extends from efforts to limit air pollution to actions that define the rights of children. Philanthropy has been influential in shaping the outcome of issues in religion, education, health, social welfare, commu-nity services, and international relief and development (Payton & Moody, 2008), thereby encompassing a large scope of activities in different spheres of life. Philan-thropy, as voluntary action for the public good, appears in every civilised society and is considered an essential defining characteristic of civilised society (Payton & Moody, 2008).

Pakistan is ranked 53rd according to the World Giving Index - 2013 which looks at charitable behaviour of more than 130 countries across the world (Charities Aid Foundation, 2013). Religious factor provides a strong basis and incentive for people to donate to cater the needs of the poor, sick and marginalised communities. Hence, the guiding force behind social development and community welfare initiatives is the deep-rooted impact of Islam and the national patriotic feeling amongst people providing a strong incentive for volunteerism (Seljuq, 2005). In addition, joint family system, professional guilds and community living have channelised philanthropic activities for centuries (Iqbal et al., 2004), that has well manifested after indepen-dence of the country in 1947. The government and the people showed fortitude and sympathy in rehabilitating millions of Muhajir (immigrants) from India, providing them with money, food, shelter, education and health-care facilities. In 1950s, various welfare organisations came into being, including All Pakistan Women’s Association (APWA), an NGO open for all women across Pakistan irrespective of cast and creed. Various non-profit organisations focusing on health and social welfare activities have been working successfully for several years, including Family Planning Association of Pakistan (FPAP), Edhi Foundation, Hamdard Founda-tion, The Citizen Foundation (TCF) and Mary Adelaide

Leprosy Centre (Seljuq, 2005) amongst others. Keeping in view the above history, a study by Ismail (2003) notes that the total number of active non-profit organisations engaged in philanthropic activities in Pakistan is about 45,000 (both registered and unregistered). The services offered by these organisations span the full range of services envisaged in the internationally defined list of philanthropic organisations (Salamon & Anheiher, 1996), and voluntary donations from individuals support the activities of these organisations. Edhi Foundation is one of the most active philanthropic organisations generating ninety percent of its donations from within Pakistan including contributions in-kind, in the form of food, clothing, medicines and animal hides etc. The value of the pure voluntary services is not quantified in the financial records, but it is a significant part of the organisation’s strength.

There is a vast body of literature available on the determinants and socio-economic consequences of philanthropy in the developed world which has shown that religion, altruism, awareness of need, reputation and efficacy determine the giving behaviour of individ-uals (Bekkers & Wiepking, 2011). Donations are used for the development of communities, organisations and individuals by supporting projects that foster capac-ity-building and human dignity (Armand Bombardier Foundation, 2014).

In Pakistan, very few studies have quantified the indige-nous giving and their impact on socio-economic devel-opment. A study conducted by Aga Khan Development Network (2000) has estimated that the value of indi-vidual giving in Pakistan is Rs. 70 billion (2.2 percent of GNP), which includes in-cash donations (Rs. 30 billion), gifts-in-kind (Rs. 11 billion) and time-volunteered (Rs. 29 billion); 54 percent of all giving was given directly to individuals as opposed to 46 percent to organisa-tions. The study further reveals that giving behaviour is primarily determined by religion in Pakistan as more than 90 percent of the donations go to religious organ-isations citing religious faith as a motivation for a vast majority of the people. More recently, PCP (2010) con-ducted a study on philanthropy in Punjab which indi-cated that the total estimated individual giving was Rs. 103.7 billion in 2010. In addition, the role of corporate philanthropy is significant. Total donations by the Public Listed Companies (PLCs) in Pakistan increased eighteen folds from Rs. 228 million in 2000 to Rs. 4.8 billion in 2013 (PCP, 2013).

Introduction

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Over the years, the role of CSOs has evolved from the limited sphere of charitable and philanthropic activities to the wider public welfare-oriented activities to com-plement the state’s efforts in development. CSOs have become more involved in community-based initiatives to improve the quality of life, to help alleviate poverty, and advocate for access to basic human rights. Based on the evidence, CSOs in Pakistan can be categorised into four categories: (i) internationally funded policy research and advocacy organisations; (ii) well-endowed umbrella organisations at the national level which are catalytic and leaders in nature; (iii) the Rural Support Programmes as contractors for government, international donors sup-porting poverty reduction, thrift and saving associations, community development and micro-enterprise develop-ment organisations; and (iv) the foot soldiers - the small community-based organisations which implement and operate projects and schemes (Ismail, 2003). In addition, a number of CSOs of different scale are operating at national level. Most of these organisations are supported by local donors, community contributions and govern-ment funds to promote philanthropic activities at local level.

1.1 Brief Profile of Sindh Province:

Sindh, being the largest province in terms of its popula-tion size comprising of approximately 44.1 million people in 2013 and representing 24 percent of Pakistan’s total population, has a great potential to mobilise philanthro-py to be used for social, economic and cultural growth. Its capital, Karachi, is the country’s largest metropolitan city, and is also the financial and business centre of the country. Sindh has the highest concentration of urban population at 48 percent, as compared to an overall country average of 34 percent in 2013, making it the most urbanised province in the country. Sindh is rich in natural resources; around 60 percent of the country’s oil fields and 44 percent gas fields are located here and it contributes 56 percent oil and 55 percent of Pakistan’s daily gas production. It has one of the largest coal re-serves in the world (185 billion tonnes) and has a seaport that has the potential to generate huge trade, commerce and employment opportunities in the region.

Given a large demographic and socio-economic base, Sindh is still struggling to achieved the Millennium Development Goals (MDGs) by the year 2015. Only a few districts, with exceptional performance, are on track to achieving targets in education, in promoting gender equality, women’s empowerment, and increasing access

Key Indicators of Sindh Province*

• PopulationofSindhProvincehasincreasedtoanestimatednumberof44.1millionin2013from30.4millioninthe1998census.

• Theprovinceshares24percentofcountry’stotalpopulationwithanurbancomponentof48percent,andgeneratesabout33percentoftheNationalGDP.

• Theproportionofpopulationlivingbelowthepovertylineisestimatedat33percent.

• Averagehouseholdsizeisclosetothena-tionalaverageof6personsperhousehold.

• Morethanathirdofthechildrenintheprov-inceareunderweight.

• 54.7percentofmalepopulationaged15to19yearshaveenteredthelabourmarket,reflectinglowlevelsoftertiaryeducationalattainment.

• Employmentratevariessignificantlybygen-der,estimatedat51.5percentformalesand11.4percentforfemales.

• Literacyrateisestimatedat72percentformalesand47percentforfemalesintheyear2011-12withacompletionrateof63percentand41percentuptoprimarylevel,respec-tively.

• Primaryschoolsforgirlsconstituteabout30percentofthetotalnumberofnon-function-alschoolsinSindh.

*Source: (Planning Commission, 2013; Government of Sindh and UNDP Pa-kistan, 2012; Government of Sindh, Development Statistics, 2008, Table 2.9, p. 48).

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to safe drinking water. Poverty in Sindh has remained high with 33 percent of its population living below the poverty line. The proportion of underweight children below 5 years of age is large (40.5 % compared to Na-tional average of 31.5 %). The province also lags behind on other social indicators such as proportion of fully immunised children of 12-13 months (71 % compared to the national figure of 80 %). In fact, the achievements made so far, are already at risk of being undone due to the adverse economic and security situation in the country. Moreover, there are large inter-district varia-tions and gaps within indicators for all MDGs by urban / rural, standard of living index, and gender (Planning Commission, 2013).Given the magnitude of the social sector deficit and given the fiscal and institutional con-straints of the Government, there is a dire need to tap and channelise philanthropy to maximise its benefits for the poor and underprivileged subgroups of population.

This study, based on a household survey and qualita-tive research, aims to document the volume, patterns and motivations for individual indigenous philanthropy in Sindh estimated in the form of cash, in-kind, and time-volunteerism. This will help provide information and evidence for social development policy, especially in areas of social welfare and social safety nets for the poorer segments of society.

The rest of the report is structured as follows: A review of existing literature is presented in Chapter 2, followed by the presentation of conceptual framework and meth-odology in Chapter 3. The findings of both the quan-titative and qualitative research about the prevalence, magnitude and patterns of individual philanthropy in Sindh are reported in Chapter 4 as stated in objectives 1 and 4 of the study. Chapter 5 includes the motivations behind individual giving or why people give to others. Chapter 6 analyses individual giving and safety nets in the context of awareness, constraints, and complemen-tary mechanism, to address objectives 2, 3 and 8 of the study. The final Chapter 7, presents the policy recom-mendations and the way forward for further policy ac-tions to provide a base for future dialogue, and specific measures to boost philanthropy for social development in Sindh.

1.2 Objectives of the Study:

1. To document the extent, size, scope and contri-bution of individual indigenous philanthropy.

2. To examine the relationship between stakehold-ers (grant makers and grant seekers) and identify ways to facilitate productive equations.

3. To identify philanthropy as a complementary mechanism for social safety nets and poverty reduction in the province.

4. To improve and raise awareness of the concept of philanthropy for social investment.

5. To provide reliable and updated data and inform policy makers for designing appropriate policies.

6. To advance the efforts of citizen organisations to achieve and optimise the utilisation of the im-mense private indigenous resource pool for social development.

7. To provide a base for future dialogue, analysis and action for citizen led growth for social devel-opment.

8. To identify constraints and barriers to individual philanthropy and propose / recommend policy and action by the Government of Sindh to re-move such barriers.

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Philanthropy has been a subject of keen interest amongst academia, government bodies, general public and in particular, philanthropic organisations them-selves. A better understanding of the philanthropic be-haviour enables various stakeholders to fulfil their goals and commitment to the charitable sector. This section briefly reviews the existing literature relevant to the ob-jectives of this report to better understand philanthropy in other countries.

Philanthropy is an ancient practice, which is rooted in religious traditions and is the true willingness of an individual to help others. The concept of philanthro-py is broad in scope but the literal meaning is “love for human kind” (Fulton & Blau, 2005). Many scholars have attempted to define the concept of philanthropy through social, demographic, economic and other argu-ments, but religious factors play a vital role in defining individual philanthropic behaviour (Hamdani, Ahmed, & Khalid, 2004). There are countless forms of helping others like charity, giving money to mosque, helping someone in need, saving somebody from a fire, donat-ing body organ to a relative and helping a stranger in an emergency (Schwartz and Howard, 1980). All such acts are likely to ultimately benefit the economy and the society, giving a psychological satisfaction to the giver (Griskevicius et al., 2007; Dunn, Aknin, & Norton, 2008).

Voluntary giving and serving others is the widely ac-cepted definition of philanthropy, and yet there is no universal acceptance of values which promote and drive philanthropy because cultural values vary across societ-ies. Philanthropy, in some organised form, appears in all the major cultural and religious traditions, and it might be argued that philanthropy is an essential defining characteristic of civilised society (Payton, 1988).

Philanthropy is often confused with the related concept of charity, as both involve giving. Charity is used for the relief of an immediate need or lack of something. Philanthropy, on the other hand, has a wider context “for the public benefit.” Historically speaking, the role of temples increased to include the care of the sick, feeding of the hungry and sustenance for the wea-ry, and much later as places of learning and healing (schools and hospitals) as well. These activities were funded through charitable donations thus creating the confusion between charity and philanthropy, both terms often being used synonymously. Yet, this overlap in the meaning and use misses a crucial distinction between

the two words. Charity is aimed at providing immedi-ate relief to someone in need; it does not address the cause of suffering. This commonly occurs in the form of welfare disbursements, where people ‘in need’ are typically provided with food, shelter or money. Philan-thropy has a broad and long-term connotation of ‘social investing’ – actions that move beyond charity towards building human and social capital (Qureshi, 2000). The term Indigenous philanthropy recognises that the primary investors in society – those who channel their human and capital resources towards efforts that will give meaningful social returns – must ultimately come from within. It must also acknowledge the central role of participatory, citizen-led initiatives in effective devel-opment and the strengthening of civil society. Finally, it must reflect the need to foster cooperation and mutual understanding between the three sectors of society –business, citizen and government– to achieve sustain-able social development (AKDN, 2000).

Indigenous needs span areas as diverse as conser-vation, health, youth, education, housing, economic development, poverty, world peace, human rights, arts, employment, sustainable development and social justice. Evidence shows that philanthropy – and increas-ingly indigenous philanthropy – plays a much more significant role in funding non-profit organisations and civil society in the developing world than it does in industrialised countries. In any society, the culture of charitable giving is influenced by moral, social and reli-gious underpinnings. It relates to material conditions of wealth and standards of living which enable people to give for specific causes or purposes. The Asian Devel-opment Bank in its series, Investing in Ourselves: Giving and Fund Raising in Asia, drew on studies on the tradi-tion of giving in India, Philippines, Thailand and Indo-nesia (Asian Development Bank (ADB) and Asia-Pacific Philanthropy Consortium (APPC), 2002). Based on these studies, various comparative statistics were compiled. Similarities between the four countries extended to uniformly high rates of giving to religious organisations. Socio-economic status of the samples only had a small effect on the giving rate. “Feeling of compassion” as a motive for giving had the greatest effect on the aver-age amount given. The study also indicates that despite substantial amounts of donation, formally organised civil society organisations were not significant recipients of household giving.

Literature Review

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Religion has received ample attention in philanthropic studies. There is rich literature in the sociology of reli-gion on the relationship between religious involvement and giving (Hodgkinson & Weitzman, 1996). Philanthro-py or charity is clearly defined and encouraged by all major religions of the world. Buddhism promotes the practice of Thambun, or giving for merit-making reli-gious purposes, and Thamtaan, or giving to those in need. These concepts are considered the cornerstones of Buddhist philanthropy, as adherence to religious precepts is still a motivating factor for philanthropy amongst Buddhists (ADB & APPC, 2002). Hindus also espouse concepts of social contribution: Datra Datrtva and Daanam Parmrarth. More than this, however, they are also encouraged to perform voluntary service, as Seva is another Hindu concept. Christians practise reli-gious giving through donating a tenth of one’s income which supports a vast array of faith-based charities (Newland, Terrazas, & Munster, 2010).

In Islam, concept of giving is in different forms: a) Zakat, a mandatory tax on wealth meant to be used for pro-viding relief to the indigent, the widow and the orphan; b) Ushr, a mandatory tax on the gross produce from agriculture; c) Fitrana, a mandatory contribution on the occasion of Eid-ul-Fitr (the festival immediately after Ramadan) as a contribution to ensure that the poor and indigent also enjoy the occasion; d) Khairat, the volun-tary giving for charity’s sake; e) Sadaqa, the voluntary giving of charity in expiation of sins or to ward off evil; and f) Qurbani, an in-kind type of giving on the occa-sion of performance of Hajj (Eid-ul-Azha), are all en-shrined in the Holy Quran. The rules governing giving differentiate between charity and philanthropy. Khairat and Sadaqa are charitable in nature as these are to be distributed for the relief of an immediate need. Zakat and Usher, on the other hand, have connotations of philanthropy. These are meant to be used to empower the recipient such that (s) he is able to earn a livelihood, and is, therefore, not listed amongst the needy. This would make the recipient a productive member of soci-ety, thereby contributing to the larger public wellbeing (Ismail, 2003).

2.1Philanthropy in Selected Countries

Evidence suggests that local, indigenous philanthropy in the form of social entrepreneurship, corporate giving, and community foundations reflects local priorities and local needs (Axelrad, 2011). Local businesses in emerg-ing countries are creating formal philanthropic initia-tives, both in their own countries and other developing

country markets. Fundacion Bradesco, for example, is Brazil’s largest foundation and has inspired a wave of corporate foundations in Brazil that has built 40 schools to provide education for some 700,000 children from rural areas and has trained over 6,000 teachers through-out Central and South America. In Pakistan, the Lay-ton Rahmatullah Benevolent Trust (LRBT) is providing corrective eye surgery services to low-income Pakistanis that can save their sight. In Colombia, Fundación Pies Descalzos is helping children and families displaced by violence to rebuild their lives and receive an education. These organisations and thousands others are the face of global philanthropy targeted, immediate, local, and lasting (Adelman, 2009). Despite an overall trend to-wards the increasing number and quality of these foun-dations, there are numerous challenges to further the development of indigenous philanthropy, and, ultimate-ly civil society, in the developing world. In addition to capital accumulation, a sustained level of philanthropy requires passage of time and confidence in one’s politi-cal and economic security. Thus, in countries subject to fluctuating economic performance, private philanthrop-ic giving and indigenous contributions may be subject to change in the long term and must be organised in a way to ultimately help sustain essential social work and strengthen civil society (Axelrad, 2011).

In Asia, societies have developed around small rural communities, which have instilled in the members a sense of kinship and willingness to help each other in times of need. In Indonesia, for instance, a large portion of the population still lives in rural areas, and practises Gotong Royong, the concept of mutual aid. Likewise, the Nepalese have adopted many socio-cultural con-cepts of giving and volunteering. Amongst these are the Muthi Daan, Guthi and Parma. Muthi Daan, liter-ally “giving a handful,” consists mainly of separating a handful of rice or other food grain from the amount taken out for cooking the family meal, and saving it until the quantity reaches a reasonably useful amount to be given to the needy in its original form or converted by the donor into money before handing over to the receiving person or organisation. Guthi, on the other hand, is the concept of extending support to members of the clan or community to which one belongs. Last-ly, Parma is the custom of labour exchange amongst people of mixed age-groups or families, similar to the Indonesian practice of Gotong Royong. The concepts presented above demonstrate how socio-religious culture has influenced the practice and development of philanthropy and volunteerism in the Asian region (ADB & APPC, 2002).

Some further evidence on philanthropy in various de-veloped and developing countries is presented below to highlight factors influencing philanthropy and the motivation behind giving by demographic, gender, and socio-economic status.

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2.1.1

Philanthropy in the United KingdomThe Charities Aid Foundation (CAF, 2012b) survey findings reveal that the total amount donated to charity in 2011/12 was £9.3 billion, showing a decrease of £1.7 billion in cash terms and of £2.3 billion in real terms, after adjusting for inflation. Participation in charitable giving, nevertheless, remains relatively widespread with over half of adults giving in 2011/12, which is equivalent to 28.4 million adults.

Women continue to be more likely to give to charity than men (58 percent compared to 52 percent). In 2011/12, women in the older age brackets (45 years or more) were identified as the largest group of givers (62 percent). The percentage of people giving in manage-rial and professional groups has decreased (66 percent compared to 70 percent in the previous year), as has the amount they give (£17 compared to £20). Giving by cash is the most common method of giving, used by half of all donors in 2011/12. It has been the most common method of giving through all eight years of the survey. As in previous years, the typical amounts given by cheque / card were the largest (£20), and direct debit accounted for the largest share of total donations, representing almost a third (31 percent) of the overall amount given in 2011/12. ‘Medical research’, ‘hospitals and hospices’ and ‘chil-dren and young people’ continue to attract the highest proportions of donors. In 2011/12, medical research was supported by 33 percent of donors and was the most popular cause, as for all previous years of the survey. ‘Religious causes’ attracted the largest donations, on average, with a median amount of £20 per month, and received 17 percent of the overall amount donated.

2.1.2

Philanthropy in Sri LankaThe findings based on a survey commissioned by Asia Pacific Philanthropy Consortium (APPC) in Sri Lanka indicate that 99 percent of the respondents made cash donations and on average, about three to four times a month in the twelve months preceding the survey (APPC, 2007). The percentage of those making in-kind donations about twice a month in the year preceding the survey was also high (93 percent). The majority of respondents (54 percent) volunteered their time, although less frequently (once or twice every month). Across gender and age, both male and female re-

spondents aged between 30-44 years showed higher frequencies of volunteerism across socio-economic classes with a slightly more frequent prevalence of volunteerism amongst males (58 percent vs. 53 per-cent). The highest and lowest socio-economic classes in urban areas were the least inclined to volunteer their time. Beggars (97 percent) and religious organisations (91 percent) are the largest and most-preferred recipi-ents of philanthropy. Majority of rural respondents give to beggars, while younger respondents (25-40 years) are more likely to give to friends and relatives. Older respondents and respondents from urban areas are inclined to give to organisations. The respondents reported giving 2.2 percent of their monthly household income, on average, to organisa-tions as opposed to 1.8 percent of giving to individuals. The most important sources of awareness of philan-thropy amongst the respondents were family traditions (90 percent) and religious traditions (67 percent); the latter being especially true amongst the older groups (45 to 60 years). Younger respondents tended to learn more about philanthropy in schools and from television. The reasons for lack of participation in philanthropic activities as listed by the respondents were lack of time (especially for volunteer work), not being approached properly, lack of information about the causes and not enough appreciation for their participation in philan-thropic activities.

2.1.3

Philanthropy in IndiaIt has been argued that philanthropy in India has tended to be considered synonymous with funding of temples and schools in their villages of origin (Blake et al., 2009). The Indian voluntary sector is large, includ-ing over 1.2 million Non-Governmental Organisations (NGOs). Records show that registered donations have increased by almost 150 percent between 2002/2003 and 2006/2007 from Rs. 50 billion to Rs. 123 billion (Bain & Co., 2013). Moreover, Trust activity in India has also increased and the recent financial boom has led to a new wave of family and corporate Trusts and Founda-tions. India still has a large number of people living under immense poverty, estimated at around 40 million below poverty line. With the recent global downturn, the chal-lenge of reducing poverty has become even more mon-umental, pushing an additional 25 million to 40 million below the poverty line. The massive challenge facing India ranges from providing primary education to chil-dren who often are homeless to widespread malnutri-tion and high mortality. The Bain and Co. report, 2013 shows that giving in India totalled close to $5 billion in

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the year 2006. The Indian philanthropy market when compared with the United States, the World’s leader in giving, shows that Americans make donations totalling more than $300 billion annually, - or about 2 percent of the US gross domestic product. Admittedly, the US is a far more developed economy and its comparison with India has its limits. India has a long way to go, especially as a growing economy with greater accumulation of wealth amongst individuals.

The number of wealthy individuals in India started increasing mostly after the economic reforms of the 1990s. Normally, it takes 50 to 100 years for philan-thropic markets to mature. Today in India, many of those with hard-earned new wealth are not eager to part with even a small amount of their money. As a society, charitable donations do not necessarily win social recognition. Instead, many of the newly wealthy individuals view increased material wealth as the key to improving their social standing. An analysis carried out of high net-worth individuals in India showed that,on average they contribute just around one-fourth of 1 percent of their net worth to social and charitable caus-es (Bain & Co., 2013; CAF, 2012).

Another factor impeding contributions is a belief by donors that support networks are not professionally managed, and as a result, their contributions would not be put to good use or are at the risk of being misappro-priated. Family-owned groups run much of corporate giving in India. Amongst the top 40 business groups, nearly 70 percent are family-owned or controlled enter-prises. It is likely that some families and individuals view corporate social responsibility initiatives as extensions of their own giving and that may curb their interest in making personal donations.

2.1.4

Philanthropy in PakistanPhilanthropy in Pakistan exists in multiple forms in-cluding Zakat, Sadqa, Fitrana, volunteering-time and in-kind gifts and is primarily determined by religion and faith-based giving. Various studies have documented evidence of philanthropic activities and its relation with socio-economic development in Pakistan indicating that giving practices of people generate an immense pool of resources that can be channelised for more pro-ductive purposes (AKDN, 2000;PCP, 2010;PCP, 2012). Moreover Non-profit organisations (NPOs) also play an important role in promoting philanthropic activities in Pakistan. A study conducted on NPOs in Pakistan shows that the annual cash revenue received by NPO sector is Rs. 16,400 million in cash and Rs. 135 million in-kind (Ghaus-Pasha, Jamal, & Iqbal, 2002). The indige-nous philanthropy component consists of 37 percent of

the total cash revenue, and the major contributors are private individuals with a share of 34 percent. The share of foreign private philanthropy is estimated at 6 percent of the cash revenue, while the public sector contributes only 4 percent of in-kind revenue. The major activi-ties carried out by these organisations are focused on education and research, health, housing, civil rights and advocacy.

Another notable feature of philanthropy in Pakistan is that a substantial amount of giving goes to individu-als as opposed to organisations. The Punjab study on individual philanthropy (2010) shows that 63 percent of all monetary giving in Punjab is directed to individ-uals and the remaining 37 percent to institutions. This preference for giving to individuals rather than organi-sations has certain implications for social development programmes which need to be studied further to better understand the barriers and constraints faced by the individuals in making philanthropic contributions. This study, therefore, aims to examine the patterns of indi-vidual giving in Pakistan and suggests ways to optimise the benefits of philanthropy through appropriate pro-grammes and policy actions.

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3.1Conceptual Framework The conceptual framework used in this study is based on the philosophy that in Pakistan (Sindh as well), like in other parts of the world, charity and philanthropy are often used interchangeably. According to Bekkers and Wiepking (2011) philanthropy is “the donation of money to an organisation that benefits others beyond one’s own family”. Charity tends to be short-term, and emotional with an immediate response, focused primarily on rescue and relief, whereas philanthropy is long term, more strategic, and is focused on rebuilding

– the means by which individuals and non-profit organ-isations achieve their mission of social well-being and development of society, at large. For this study, philan-thropy is defined as the individuals donation of mon-ey, time and in-kind goods to help others directly or through organisations, thereby estimating the volume of philanthropy in three major forms of giving. Accord-ing to this definition, there are two ways to help others i.e. direct from individual to individual and indirect from individual to organisations.

Religion creates a specific ‘morality’ in its believers and this morality is visible in every act of the individual believer. Davidson and Pyle (1994) find that stronger religious beliefs are positively related to religious contributions, whereas Hamdani, Ahmad and Khalid (2004) argue that religious factor plays a vital role in determining the individuals philanthropic behaviour in Pakistan. Islam has placed considerable importance to promote the philanthropic behaviour - charity is one of the highest virtues and is considered a means of cleansing oneself spiritually and materially. Admonitions on charity and philanthropy in the Quran stress familiar virtues: “They will question you concerning what they should bestow voluntarily. Say: ‘Whatever good thing you bestow is for parents and kinsmen, orphans, the needy and strangers and whatever good you do, God has knowledge of it” (Quran 2:211). “You will not attain true piety until you voluntarily give of that which you

love and whatever you give, God knows of it” (Quran 3:86). The sayings and doings of the Prophet Muham-mad (peace be upon him) also stress the importance of giving to others in the form of Zakat, Sadaqat, Fitrana, Khairat, Qurbani and other charities.

Islam encourages the rich to spend for the benefits of the collective good that ultimately promotes philan-thropy. Religion leads to charitable behaviour not only because of communal monitoring, but also because of the sense of supernatural monitoring (Israel & Brown, 2013). Such satisfaction is received in kindness, broth-erhood, co-operation and caring for human beings in the society. This, according to the teachings of Islam, is ultimately the source of receiving the pleasure of Allah. Islam guides its followers to a binding commitment to help others. Commitment is an enduring desire to maintain a valued relationship (Sargeant, Ford, & West, 2006), and it always involves some degree of self-sac-rifice. Figure 3.1 shows that commitment driven by religion encourages people to have an attitude to help others through charity / philanthropy.

Individual behaviour to help others is also shaped by other socio-economic factors. Factors that influence direct help include altruism, and an individual’s (giver’s) characteristics, whereas indirect help includes aware-ness of the needs and the attitude of the charitable organisations (Webb, Green, & Brashear, 2000; Pilia-vin & Chang, 1990; Hoge, 1995; Moore, Bearden, & Teel, 1985; Bennett & Sargeant, 2005; Sargeant et al., 2006; Bekkers & Wiepking, 2011). It is further argued by Sargeant et al. (2006) that direct help is mediated by the level of commitment while indirect help by the level of trust, particularly on charitable organisations. Both the level of commitment and trust determine the individual’s philanthropic behaviour. Trust refers to the extent of belief that a charity will be utilised as expect-ed and would fulfil its obligations. Hence, trust, com-mitment and giving behaviour are related sequentially

- higher levels of trust and commitment improve the likelihood that an individual would help others. Individ-ual philanthropy behaviour is, thus, mediated by both

Conceptual Framework and Methodology This chapter outlines the conceptual framework of the study deriving its major components from review of liter-ature on philanthropy and describes how individual giving behaviour is shaped and determined by a set of so-cio-economic and religious factors. The methodology of the study including the sample design, data collection process and methods employed to analyse data are also presented in detail.

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IndividualPhilanthropy

AwarenessOf Need

OrganisationalReputation

Trust

Altruism

Commitment

GivingBehaviour

IndividualCharacteristics

Religion

Figure 3.1:Conceptual Framework

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commitment and trust (Figure 3.1). Altruism plays a significant role in modelling philanthropy. Altruism is perceived as a cognitive activity, an attitude to help others (Brewer, 2003; Frydman et al., 1995) and a desire to improve another’s condi-tion (Karylowski, 1982). In essence, attitude towards helping others is called altruism. Altruism is driven by empathy, compassion, pity, sympa-thy and sentiment. These factors make you desire the good of other people because this augments your satisfaction. These also induce one to help the other person or to give something to him / her when the cost is compensated by the relief or sense of moral or social properness (Kolm, 2006). Altruism, influenced by religion and individual / house-hold characteristics determines the giving behaviour through commit-ment (Figure 3.1). Religious people are more tuned with compassion and sympathy. They are more likely to participate in welfare activities to enhance the collective welfare of the society (Chau et al., 1990). Hence, religion influences the giving behaviour of an individual directly as well as through altruism (Figure 3.1).

A variety of individual characteris-tics such as age, gender, socio-eco-nomic status, and education can also influence philanthropic be-haviour (Sargeant et al., 2006). Evi-dence shows that there is a positive relationship between the level of education and giving. Higher levels of education are also associated with giving a higher proportion of income (Schervish & Havens, 1997; Bekkers & Wiepking, 2011). Various mechanisms to explain the relation-ship between education and giving would include awareness of needs, socialisation, costs and values. Awareness of needs and the expo-sure to information about charitable causes and purposes are likely to be higher amongst the higher educat-ed. Brown (2005) found that higher education increases donations be-cause it draws people into member-ships, while Bekkers (2006) shows

that higher education is related to giving to a variety of specific causes through generalised social trust and enhanced confidence in charitable organisations. Thus, educated and well-off people are likely to be more committed to giving. The literature has shown that the relationship be-tween age and philanthropy is also positive, but the exact age at which the age gradient becomes weaker varied from study to study (Bekkers, 2006; Bekkers & Wiepking, 2011). These individual characteristics can influence philanthropy through commitment as portrayed in Figure 3.1. Educated and well-off people are likely to be more committed to giving.

Awareness of the need to support an individual or organisation is a prerequisite for philanthropy. A sur-vey study on intentions to donate to international relief organisations, reveals a positive effect of the awareness of need for philanthropic behaviour (Cheung & Chan, 2000). The relationship between individu-als and charitable organisations is mediated primarily by trust. People are more willing to donate to an organisation which they trust more. Figure 3.1 indicates awareness of the need either work through com-mitment for individual philanthropy or through trust for organisational philanthropy. The other important factor that influences the philanthro-py behaviour especially organisation at philanthropy is the reputation of the organisation. Charitable organ-isations with good reputation may attract more giving and vice versa. Figure 3.1 portrays that reputation generates the element of trust and confidence amongst the charitable organisations and the donors. If donors perceive that the donation is spent on the right cause, they are more willing to donate to organisa-tions.

In short, individual giving is influ-enced by Islamic belief (religion), mediated through altruism, trust and commitment. The Individual Indigenous Philanthropy Survey in

Sindh (IIPS), 2013 provides relevant information to examine the role of religion, socio-economic factors, altruism, trust and commitment on the giving behaviour of individuals.

3.2Methodology

To achieve the objectives of this study, a mix study design was employed using both quantita-tive and qualitative techniques to collect data on various dimensions of individual philanthropy in Sindh. Quantitative technique consisted of a cross-sectional household survey - named as the Individual Indigenous Philanthropy Survey in Sindh (IIPS) 2013. Information was collected at household level by a respondent aged 18 years and above in each household. Qualitative technique included Focus Group Discussions (FGDs) with prominent community stakeholders and representatives of the CSOs along with In-depth Interviews (IDIs) with the relevant government officials.

3.2.1

Sample DesignFor the household survey, PCP co-ordinated with the Sindh Bureau of Statistics (SBS), Karachi to prepare the study design and the sample frame of the Primary Sampling Units (PSUs). Based on the urban area frame updated through the eco-nomic census conducted in 2003, each city / town has been divided into mutually exclusive PSUs consist-ing of 200-250 households called Secondary Sampling Units (SSUs) which are identifiable through a sketch map. Each PSU in large cities (Karachi, Hyderabad and Sukkur) has been classified into three cat-egories of income groups i.e., low, middle and high, keeping in view

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the living standard of the majority of people. In rural areas, list of Goths / Dehs developed through the 1998 Population Census was used as sample frame, each one identifiable by its name.

A two-stage stratified sample design was adopted for the survey and stratification plan was divided into two domains described below: Karachi, Hyderabad and Sukkur were considered as large sized cities called Self Representative Cities (SRCs). Each of these cities constituted two strata, first, Karachi and, second, Sukkur and Hyderabad together. Both have further been sub-stratified according to low, mid-dle and high-income groups. After excluding population of large sized cities, the remaining urban popula-tion in each district in all the prov-ince has been grouped together to form a stratum called ‘other urban’. Each district of Sindh was treated as independent stratum.

To determine the sample size for this survey, analytical studies were used to calculate the sample size. Keeping in view the objectives of the survey, a sample size of 3,000 households comprising of 60 PSUs was estimated to provide reason-able and precise indicators of the survey. The allocation of the PSUs and the sampled households for urban and rural areas are shown below in Table 3.1. The PSUs were selected from strata / sub-strata with Probability Proportion to Size (PPS) method of sampling technique. Households within the sampled PSUs were taken as Secondary Sam-pling Units (SSUs). Latest household listing was prepared for this study in the selected PSUs. Fifty households

from each sampled PSU of rural and urban area were selected, using systematic sampling technique with a random start. In order to prevent bias and make the data representa-tive of the entire population, survey weights were applied to compen-sate for over- or under-sampling of specific areas or for disproportion-ate stratification. For this purpose, designed weights2 were used. The percentage distribution of sampled households is portrayed in Figure 3.2 for urban and rural areas in Sindh. The figure shows that 55 percent of households (1650) were interviewed from rural areas, and 45 percent from urban areas (1350).

3.2.2

Research ToolsA structured questionnaire was used after the pilot test, to gather information at the household level on: (i) socio demographic charac-teristics of the survey households, (ii) awareness about the religious / social organisations and institutions / personalities for philanthropy, (iii) preference / attitudes for various types of organisations / institutions, (iv) philanthropic practices includ-ing (a) involvement with religious / social organisations-volunteered or paid, (b) worked voluntarily himself / herself for the welfare of individuals, (c) Zakat and Ushr to organisations / institutions and to individuals in cash or kind and (d) donations other than Zakat made to organisations / institutions and to individuals in cash or kind.

Table 3.1: Sampled PSUs and SSUs in total, urban and rural areas: IIPS Sindh 2013

Unit of selection Urban Rural Total

Primary Sampling Units (PSUs) 27 33 60

Secondary Sampling Units (SSUs) households 1350 1650 3000

55%

45%

Rura

lU

rban

Figure 3.2: Percentage distribu-tion of the sampled households by rural-urban areas: Sindh 2013

2. ‘Designed Weight’ is the product of the inverse probabilities of selection of PSU within domain and selection of HH within listed HH in a particular block, finally this product is multiplied by the number of segment(s) generated.

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For the qualitative component, separate structured guidelines were prepared for FGDs and IDIs. In all, six FGDs were conducted in three major SRCs of Sindh namely, Kara-chi, Hyderabad and Sukkur with two FGDs in each city.

The target population of the FGDs was members of local communi-ty. The average size of a FGD was comprised of 10-20 participants. In addition, six IDIs with CSOs, and six with relevant government officials were carried out to seek answers to some questions relevant to the objectives of the study.

3.2.3

Data Collection and ProcessingFor the purpose of data collection from the 3000 sampled households, four teams were formed and each team consisted of 1 supervisor and 11-12 enumerators. Data collection was completed in a time period of 4 months (February to May 2013). For qualitative data collection, research team members from PCP carried out FGDs and IDIs. The field supervisors were deputed to monitor data collection. They were responsible for ascertaining timely completion of the survey question-naires, spot checking to ensure that each questionnaire was correctly filled and completed, and editing of the questionnaires at the end of the day. The team leader / senior programme officers were involved in monitoring and questionnaire editing. The project staff of PCP performed on-site monitoring and supervision.

The data collected was first edited and validated in the field by the enumerators themselves, and then by the field supervisor to rectify any misreporting or other errors. Cod-ing, editing and data cleaning by a qualified data processing profes-

sional in Islamabad followed the process. The data was entered in Statistical Package for Social Scienc-es (SPSS). Data was collected in the field using specific questionnaires by the research team and was checked regularly to ensure minimal data entry errors. Afterwards, data was analysed using SPSS, STATA and Microsoft Excel.

3.3Method ofAnalysisThe quantitative analysis was carried out in three steps. The first was the estimation of the size and volume of individual giving in Sindh consisting of cash donations (Zakat as well as non-zakat payments), time volun-teered and in-kind gifts. Besides cash donations (Zakat and non-zakat), volunteered time was re-ported in hours by the respondents in the sample households which was converted into monetary value

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using an average rate of Rs. 50 per hour based on account of the minimum daily wage of a worker. An approximate monetary value was given to in-kind donations to get the total magnitude of individual giving. Thus, the total individual giv-ing in Sindh is the sum of the above mentioned three components: cash donations (Zakat and non-zakat), value of time volunteered and value of in-kind gifts. Weights, based on urban and rural population of the province were applied to get the total volume of individual giving in Sindh.

In the second step, patterns of individual giving were examined by differentiating between giving to individuals and organisations, controlling for socio-demographic characteristics of the givers. Mo-tivation behind giving or why do people give to others was analysed in the third step using both the bivariate and multivariate tech-niques. In the bivariate analysis, five socio-demographic characteris-tics of the respondents and their households were used i.e gender, area or place of residence (rural / urban), age, educational attainment and expenditure quintile. Per capita expenditure was used to construct five expenditure quintiles repre-senting different socio-economic status. The first quintile represents the poorest household, while the fifth represents the richest house-holds in the sample. Pearson Chi Square test was used to find out any significant association between the socio-demographic characteristics of the household and preference or motivation for giving. The findings of the qualitative research were used extensively to support the information gathered through the questionnaires from the household survey.

Multivariate analyses were also carried out to quantify the de-terminants of individual giving to both individuals and organisations. Conceptual framework provides the basis for multivariate analysis.

The following empirical model was used for the analysis:Two types of giving - Non-zakat payment and time-volunteered to individuals and organisations were used in multivariate analyses as dependent variables. In this regard, commitment was represented by religion and altruism, while trust referred to awareness about charita-ble organisations and their reputa-tion.

For the qualitative data, thematic content analysis was applied to the FGDs and IDIs. This was done in a step-wise method. At first, the data was segmented according to the questions asked and was filtered out i.e., the information related to the research objectives was extract-ed from it. At the second stage, the responses of the people were put together and the data was coded. These codes were grouped together to develop sub-categories, major categories and finally the themes. At the final stage, the themes were interpreted and described accord-ing to the views given by the re-spondents. To ensure the quality of analysis, the codes were developed from the condensed meaning units followed by subcategories, catego-ries and the final themes.

3.4Data Limitations

No research can claim to be with-out limitations. Two types of errors affect the estimates from a sample survey: non-sampling errors and sampling errors. Non-sampling errors arise in compiling and pro-cessing the data, while the sampling errors are the result of shortcomings

in the sample selection of the study. Some limitations in the present study need to be kept in mind while interpreting the results; these are:First, in urban Sindh, particularly Karachi where about half of Sindh’s total population resides and has large potential of philanthropic contribution seems to be under-rep-resented in the sample. As reported earlier only three PSUs were includ-ed in the sample reflecting that the representation of Karachi in total urban sample of the study is low. It is likely that the response rate of high-income groups not only from Karachi but also from other major cities of Sindh was low, thereby un-derestimating the volume of philan-thropy in Sindh.

Second, the geographical coverage of the Sindh Study, which consists of only 33 rural and 27 urban PSUs seems to be low (Table 3.1). In each selected PSU of the survey, 50 households were interviewed, whereas in other nationally rep-resentative surveys, less than 20 households were generally inter-viewed in one PSU for better geo-graphical spread and coverage. The coverage of 27 PSU in urban Sindh with 50 households in each PSU has limited spread and heterogeneity in selected households.

Third, it is important to note that this study does not give a full picture of philanthropy in Sindh, because its scope is limited only to individual giving. Other sources of giving in Sindh, e.g. family foun-dations, corporate giving, Zakat disbursed by the Zakat department of Sindh Government are not part of the individual giving reported in this study.

Giving = f ( personal character-istics, education,

commitment, trust )

14


Findings of the StudyThis chapter presents findings of the Individual Indigenous Philanthropy Survey in Sindh (IIPS)-2013 including sample characteristics of respondents and households, and the three important dimensions of individual giving: prevalence, magnitude and patterns. The prevalence and magnitude of individual giving for this study refers to the amount given in terms of cash donations, volunteering time or in-kind gifts. The pattern of individual giving ex-amines whether the givers differ in terms of the selection of an individual or an organisation for their donations by socio-demographic factors. The findings of the Sindh survey, where possible, have been compared with the results of the PCP Punjab study, 2010. While comparing the giving behaviour in Punjab and Sindh, two factors need to be kept in mind. First, the level of urbanisation in Sindh is higher than in Punjab; and second, rural poverty in Sindh has consistently been higher than in rural Punjab which may have some effect on the individual philanthropy be-haviour. Before looking into the magnitude and patterns of philanthropy in Sindh, a brief description of the sample characteristics is presented below.

4.1Socio-demographic Characteristics ofRespondents and Sampled HouseholdsTable 4.1 presents the distribution of sampled households and the respondents by selected character-istics. The results of the quantita-tive survey show that the majority of the respondents (97 percent) are males with an average age of 38 years. About 62 percent of the respondents were 18-40 years old at the time of the survey, while the proportion of 60 years and above was only 6 percent. Furthermore, 90 percent of the participants are Muslims, 9 percent Hindus and 1 percent Christians. The majority of the respondents (85 percent)

were married at the time of survey. Household size is found to be large with an average of 9 persons per household. This is reflected by the fact that 40 percent of respondents have 8-12 members and 30 percent have 5-7 members in their house-hold, whereas 17 percent have 13 or more household members. More than half of the sampled households have an average monthly income of Rs. 10,000 and below, and this proportion is higher for rural house-holds (62 percent). Only 30 per-cent of the respondents reported 10,000 or above monthly household

income and 15 percent chose not to respond (Table 4.1).The distribution of monthly income as reported in the survey reflects that a majority of respondents belong to household with low economic status. This, on one hand, is a reflection of the wide-spread poverty in Sindh, especially in rural areas and on the other hand, points towards the possibility of un-der reporting of monthly income of the households. Given the situation, it is likely that the large proportion of low income sampled households may also affect the magnitude of philanthropic giving.

Table 4.1: Percentage distribution of respondents by socio-demographic characteristics: Sindh 2013

Characteristics Urban (%) Rural (%) Overall (%)

Gender

Male 95 98 97

Female 5 2 3

Age (years)

18 – 30 32 32 32

31 – 40 29 31 30

41 – 50 23 19 21

51 – 60 10 12 11

Above 60 5 7 6

15


Household Size

2 to 4 13 14 13

5 to 7 32 28 30

8 to 12 40 40 40

13 or more 15 18 17

Monthly Income in Rupees*

Up to 6,000 18 36 28

6,001 - 10,000 28 26 27

10,001 - 20,000 28 14 20

Above 20,000 14 6 10

No Response 13 17 15

Religion

Muslim 92 89 90

Christian 1 1 1

Hindu 7 11 9

Total 100 100 100

Marital Status

Unmarried 19 11 14

Married 80 88 85

Widow 1 1 1

Total 100 100 100

N 1316 1604 2920*

Source: IIPS Sindh 2013; *80 respondents who were not involved in giving were excluded from the analysis

Figure 4.1 shows the educational attainment level of respondents indicating that about one-third have no formal education, this percent-age is 40 in rural areas and 22 in urban areas. About 23 percent have reported Primary level and Matric level of education, while only 11 percent of the respondents have graduation or higher educa-tion. As expected, the level of ed-ucational attainment level is lower in rural than in urban areas for all categories of education (Figure 4.1).

As for the occupation of the respon-dents, majority of them reported working as farmers on agriculture lands in rural areas (39 percent), followed by daily labourers (27 percent). In urban areas, the two dominant occupations were daily labourers (28 percent) and business

owners (25 percent), followed by 17 percent of government employees (Figure 4.2).

Based on the socio-economic characteristics of the households and the ownership of materials, the standard of living index was calcu-lated which refers to the level of wealth, comfort, material goods and necessities available to respondents in a household. This was further cat-egorised into low, middle and high categories3. Figure 4.3 indicates that overall, 45 percent of the sam-pled households have low standard of living, whereas as 50 percent have middle level of social stan-dard index, and only 5 percent are categorised in high social standard index. Within urban settings, 70 per-cent of the households belong to middle living standard index com-

pared with 24 percent in low living standard category. On the other hand, 63 percent of respondents in rural areas belong to low living standard index compared to the 34 percent in middle category of living standard. In all, majority of the sampled population have middle level of socio-economic standard of living in urban areas, and low living standard in rural areas.

3. The standard of living index (SLI) is a level of material comfort as measured by the goods, services, and luxuries available to an individual, group, or nation. To analyze individual components of giving by SLI, the sample was divided into three groups: Low, middle and high. This index gives each household a score of 0-1 or 0-2 on each of the following: Source of drinking water; toilet

16


Figure 4.1: Percentage distribution of respondents by level of educational attainment: Sindh 2013

40

30

20

10

0

none

upto

pri

mar

y

up t

o m

atri

c

inte

rmed

iate

gra

dua

te

mas

ters

Figure 4.2: Percentage distribution of respondents by occupation: Sindh 2013

40

30

20

10

0

reti

red

oth

ers

unem

plo

yed

go

vern

men

t

pri

vate

bus

sine

s

arg

ircu

ture

dai

ly la

bo

ur

Figure 4.3: Social living standard index of the sampled households: Sindh 2013

70

60

40

20

0

urb

an

rura

l

ove

rall

low

middle

high

Source: IIPS Sindh 2013

urban

rural

overall


urban

rural

overall


3 1 2

22 40 32 17 28 23 27 20 23 15 7 10 12 3 7 7 2 4

24 70 6 63 34 4 45 50 5

5 3 4 5 5 5 17 6 11 16 7 11 25 12 17 2 39 22 28 27 28

facilities; availability of electricity; ownership of a sewing machine; ownership of a radio; ownership of a TV; ownership of a refrigerator and means of transportation.

17


4.2.1

Prevalence Individual giving in Sindh is univer-sal; almost all the sampled respon-dents (96.4 percent) have reported some contribution in the form of cash payment (Zakat and non-zakat), volunteering time, or presenting in-kind gift to others. This universal-ity is found in both rural and urban areas of the province (Figure 4.4).

Furthermore the community rep-resentatives added that despite higher poverty, giving to others continues to increase which is influenced by a feeling of brother-hood, compassion and unanimity, widely prevalent in all communities of Sindh.

The findings of FGDs held in dif-ferent parts of Sindh also support the survey results:

All of the community members present in FGDs were involved in some sort of giving. It was inspiring to note that although some of these people had low income brackets, they were still actively engaged in giving. People give charity to beggars and the needy, make regular small donations every Friday to the local Mosque and give in-kind constantly. Community members consider giving as a religious duty and obligation.

However, the prevalence of giving varies by the type of giving. Non-zakat cash donations, probably in small amounts, are very common in Sindh as 90 per cent of the

total respondents have made such donations with no big difference between the urban and rural areas. Zakat’s overall prevalence is esti-mated at 21 per cent, 22 percent in urban and 20 percent in rural areas (Table 4.2). It appears from these simple statistics that in Sindh, about 21 percent of households reported giving Zakat which is comparable to the corresponding share in Punjab where 25 percent of the survey respondents reported Zakat dona-tions (PCP, 2010).

Table 4.2 shows that the prevalence of donating in-kind gifts to others is higher in rural areas (62 percent) than in urban areas (45 percent). It is worth noting that the proportion of respondents volunteering time is about 66 percent with a significant difference in urban and rural areas (57 percent vs. 73 percent, respec-tively). The proportion of respon-dents reporting payment of Ushr is 17 percent, 21 percent in urban and 15 percent in rural areas. The higher prevalence of Ushr payment in urban areas may be due to the fact that many migrated households in Sindh have settled in urban centres, and agriculture remains one of their main livelihood sources.

A further variation in Ushr payment by quintile groups is more evident and in the expected direction as only 7 per cent of the respondents in the first quintile have reported giving Ushr to others compared to 28 percent of in the fifth-the rich-est quintile (Figure 4.5). However, the variation across the quintiles in time-volunteering is relatively small. Although a higher proportion of the rich (62 percent) have reported giving in-kind gifts to others, its prevalence is also high amongst the poor (lowest quintile)-around 54 percent (Figure 4.5).

4.2Magnitude and Patterns of Individual Giving

overall

urban

rural

96.496.296.5

Figure 4.4: Prevalence (%) of individual giving by rural/urban areas: Sindh 2013

18


In the qualitative survey, the par-ticipants viewed that giving time to others is an important way of giving, but due to time constraint and daily routine responsibilities, people end up giving in-cash and in-kind to appease and clear their conscience. The advantage of giving time, how-ever, should not be undermined, and wherever possible, this kind of giving should be ardently practised. People try to be aware of the needs of those around them and make sure that everyone is provided with what they require. Time volunteer-ism has been observed during past floods in Sindh in the form of rescue activities, food distribution and rehabilitation activities by the local members of their own community.

4.2.2

Magnitude of Individual GivingThe total size and volume of giving in monetary terms is estimated on the basis of cash giving as well as the monetary value of gifts in-kind and the time-volunteered4. Table 4.3 shows that total annual ‘indi-vidual giving’ in cash (Zakat / Ushr and non- zakat), gift in-kind, and time-volunteered by individuals is estimated at around Rs. 67.9 billion in the year 2013. Of this, 26 per-cent (Rs. 17.4 billion) was donated to others as non-zakat payment, compared to only 5 percent or Rs. 3.7 billion as zakat money. The monetary value of time volunteered

is estimated at Rs. 42.2 billion, while the value of gifts in-kind is estimat-ed at Rs. 4.7 billion (Table 4.3).

1. To obtain aggregate estimates of giv-ing, weights provided by Sindh Bureau of Statistics were used.

2. This includes both zakat and non- zakat giving. Respondents were asked separately about amounts deducted as zakat” by their bank or any other source “and amounts of zakat paid by the respondents themselves” “other than the amounts deducted by their bank or any other source.” This is based on the estimates provided by the respondents themselves.

3. This includes zakat deducted by bank and also zakat and Ushr given to organ-isations.

The percentage distribution of total giving in three different forms is portrayed in Figure 4.6 which shows that 31 percent was given in-cash, 62 percent in time-volun-teered, and only 7 percent in the form of gifts in-kind. As reported earlier, other sources of giving in Sindh, e.g. family foundations, corporate giving, zakat disbursed by the zakat department of Sindh Government are not part of total individual giving.

The proportion of respondents reporting payment of Ushr is 17 percent, 21 percent in Urban and 15 percent in rural areas. The high-er prevalence of Ushr payment in urban areas may be due to the fact that many landed households in Sindh have settled in urban centres, and agriculture remains one of their livelihood sources. While compar-ing the findings of Sindh (2013) with Punjab Study on individual

Table 4.2: Proportion of respondents (%) by type of giving in total, rural and urban areas: Sindh 2013

Type of giving All areas Urban areas Rural areas

Cash donations

Non-zakat 90 91 89

Zakat 21 22 20

Ushr 17 21 15

Time-volunteered 66 57 73

In-kind gift 54 45 62

*Per capita expenditures are used to construct expenditure quintile. Five quintiles are used to divide the total sample into five groups representing different development status. The first quintile represents the poorest households, while the fifth represents the richest households in the sample.

Figure 4.5: Percentage of respondents (prevalence) by type and quintiles*: Sindh 2013

1st

2nd

3rd

4th

5th

1st

2nd

3rd

4th

5th

1st

2nd

3rd

4th

5th

1st

2nd

3rd

4th

5th

1st

2nd

3rd

4th

5th

Non-Zakat vs. Q

uintileZakat vs. Q

uintileU

shr vs. Quintile

Time-volunteered

in-kind gift

9190929395

2119191724

713152327

6413716771

5452535962

4Value of volunteered time has been estimated using an average rate of Rs. 50 per hour based on account of the minimum daily wage of a worker, and is not based on the respondents’ own estimates.

19


philanthropy, (2010) both surveys are similar in showing that the major kind of giving is in the form of time volunteered, followed by non-zakat monetary giving. However, the differences are quite large. For ex-ample, the contribution of time-vol-unteered in total individual giving in Sindh is 62 percent compared to only 35 percent in Punjab. More-over, the share of Zakat in Sindh is only 5%, while it is 17 percent in Punjab. However, it is beyond the scope of this study to find out the reasons behind these differences, but they can largely be attributed to differences in socio-economic status of two populations, particularly in rural areas. In Sindh, where poverty is higher than in other regions, time volunteered and cash donations as non-zakat payments (generally in small amounts) are significant components of philanthropy, while in Punjab, being a relatively pros-perous province, the contributions of Zakat and gifts in-kind are on the higher side.

This study has also estimated another important dimension of individual giving in Sindh – what proportion of it goes to individuals and the non-profit organisations? The findings show that more than

three-quarter of the total individual giving (78 percent) is contributed as charity to individuals, while the remaining 22 percent is directed towards different organisations (Table 4.3). This behaviour persists for non-zakat donations, gifts in-kind and time volunteered, but in case of Zakat money, organisations are preferred over individuals as 57 percent of Zakat money is given to organisations as 43 percent given to individuals. These findings are quite comparable with the Punjab survey which shows 71 percent of giving being directed to individuals and 29 percent was channelled through or-ganisations. However, the difference exists when the type of donations are examined. In Sindh, more Zakat money is channelled through organ-isations, while in Punjab relatively more non-zakat money is given to organisations.

4.2.3

Patterns of Individual GivingThe results of the Sind study show that giving behaviour of individu-

Table 4.3: Estimated value of individual giving: Sindh 2013 (Rs. in billions)

Types of giving

Type of recipients

Organisations Individuals Total

Rs. Percent Rs. Percent Rs. Percent

In cashb4.8 32 16.2 31 21 31

_ (22.9) (77.1) _ (100)

Zakat2.1 43 1.6 10 3.7 5.4

_ (56.8) _ (43.2) _ (100)

Value of gifts in kind1.5 10 3.2 6 4.7 7

_ (31.9) (69.1) (100)

Value of times volunteered8.8 58 33.4 63 42.2 62

_ (20.9) (79.1) _ (100)

Total giving15.2 100 52.7 100 67.9 100

_ (22.4) _ (77.6) _ (100)


62%

26

%

5%

7%

time value

non zakat

zakat

gifts in kind value

Figure 4.6: Percentage distribution of individual giving by type: Sindh 2013

20


als is affected by their background characteristics such as age, gender, education; rural-urban origin as a community variable; and quintiles based on per capita household consumption. It must be noted that subsequent analysis is based on the information provided by the respondents in the interview and no weights are applied to study the patterns of giving.

Non-zakat Donations

Looking at Non-zakat cash giving, Figure 4.7 presents an average amount of per month donations as reported in the Sindh survey, 2013. The table shows that the overall av-erage donation is less than Rs. 300 per month, indicating an amount of Rs. 10 per day. The average dona-tion is higher amongst the respon-dents living in urban areas (Rs. 307) than in rural areas (Rs. 215), showing a relatively greater financial capacity of urban population for giving than their rural counterparts. Age has a positive association with non-zakat donations up to 50 years; for later age groups the average donation shows a declining pattern. However, level of education shows a positive

effect on non-zakat cash giving indi-cating that more educated people have a greater tendency to donate to others. As shown in Figure 4.7, the givers with graduation or higher level of education donated about two and a half times (Rs. 427) more than the money donated by illiterate people (Rs. 185). A similar pattern is found by quintile groups where the average donation of the richest group is three times (Rs. 459) more than the donation made by the poorest (Rs. 148).

The next pattern of non-zakat giving is examined to see who receives those donations – individuals or organisations? Table 4.4 shows the percentages of respondents by the type of recipients grouped into three categories, individual, organisation or both. The results show that individuals are the major beneficiaries as only 2-3 percent of donors reported giving money only to an organisation, while the percentage of exclusive giving to individuals is as high as 79 percent. Moreover, about 18 percent of the respondents gave their non-zakat donations to both individuals and organisations. This pattern of giving has shown no significant difference by socio-economic characteristics of

Table 4.3: Estimated value of individual giving: Sindh 2013 (Rs. in billions)

Types of giving

Type of recipients

Organisations Individuals Total

Rs. Percent Rs. Percent Rs. Percent

In cashb4.8 32 16.2 31 21 31

_ (22.9) (77.1) _ (100)

Zakat2.1 43 1.6 10 3.7 5.4

_ (56.8) _ (43.2) _ (100)

Value of gifts in kind1.5 10 3.2 6 4.7 7

_ (31.9) (69.1) (100)

Value of times volunteered8.8 58 33.4 63 42.2 62

_ (20.9) (79.1) _ (100)

Total giving15.2 100 52.7 100 67.9 100

_ (22.4) _ (77.6) _ (100)


Note: This is reported amount by the respondents without using any weights

Area and G

enderA

ge Group

257307215258205

218259322233268

all givers

urban

rural

male

female

18-30

31-40

41-50

51-60

60+

Education Group

Quintile G

roup

185

249

276

427

148190226281459

no

prim/mid

sec/h.sec

grad/hig

1st

2nd

3rd

4th

5th

Figure 4.7: Non-Zakat amount donated per month on average by socio-de-mographic characteristics of respondents: Sindh 2013

21


givers and type of recipients: indi-viduals, organisations or both (Table 4.4). This finding has relevance for PCP’s advocacy policy based on the assumption that giving directed from individuals to organisations could be more productive in terms of investments in primary education and public health. In this regard, PCP’s role needs to be expanded

to perhaps encourage more NGOs to support its efforts in institution-alising philanthropy so that donors who give exclusively to ‘individuals’ (79 percent) may be approached to divert some of their donations to entities and organisations.To identify the individual beneficiaries of non-zakat donations in cash, the present study shows an interesting

pattern. More than three-quarters of the giving (76 percent) goes to only beggars and disabled persons (Figure 4.8). Only one-tenth of the givers helped their relatives and friends which are small in size (Rs. 257 per month or less than Rs. 10 a day) as shown earlier in Figure 4.7. So, major part of non-zakat giving goes to beggars and disabled who

Table 4.4: Percentage distribution of respondents for in-cash non-zakat donation by type of beneficiaries and so-cio-demographic characteristics: Sindh 2013

Characteristics of Respondents

Type of Beneficiaries(N)

Individual Organisation Both All

All areas 79.2 2.3 18.4 100 [2698]

Urban 78.2 3.8 18.0 100 [1233]

Rural 80.1 1.1 18.8 100 [1465]

x^2 (LR)=22.2*

Gender

Male 79.1 2.3 18.6 100 [2621]

Female 83.1 5.2 11.7 100 [77]

x^2 (LR)=4.4*

Age

18-30 81.2 2.4 16.4 100 [866]

31-40 79.7 2.9 17.5 100 [806]

41-50 76.7 1.6 21.8 100 [570]

51-60 78.6 1.7 19.5 100 [292]

60+ 76.8 3.0 20.1 100 [164]

x^2 (LR)=10.4*

Education

No education 79.4 2.6 18.0 100 [839]

Primary / middle 80.0 1.5 18.5 100 [910]

Secondary / higher secondary 77.6 3.0 19.4 100 [625]

Graduation or higher 79.9 2.5 17.6 100 [324]

x^2 (LR)= 5.1

Quintile (Based on per Capita Consumption Expenditure of the Sampled Household)

First 77.9 2.6 19.5 100 [461]

Second 78.3 2.6 19.1 100 [456]

Third 76.7 2.4 21.0 100 [467]

Fourth 79.7 1.7 18.6 100 [472]

Fifth 76.9 2.7 20.4 100 [481]

x^2 (LR)= 2.6

22


are generally open to accept very small amounts. Keeping in mind the universality of giving and high rural poverty levels in Sindh, it appears that the majority of popu-lation offers small donations to help the needy satisfy their impulse for charity.

Table 4.5 shows the pattern of non-zakat money donations to individ-uals rather than organisations by socio-demographic characteristics of respondents. The results show no significant variations in patterns of giving, indicating a clear mes-sage that beggars / disabled are the major beneficiaries of non-zakat charity in Sindh. This pattern of giv-ing raises a few questions for policy consideration i.e. is it, indeed, the best way to assist those in distress? Should the government intervene, and if so, how to intervene? These questions have to some extent, been addressed in the policy rec-ommendation section of this report.

76%

1

0%

8

%

6%

beggars & disabled

relatives & neighbor

others

unknown needy

Figure 4.8: Percentage distribution of non-Zakat individual beneficia-ries: Sindh 2013

Beggars and the disabled/needy per-sons are the major beneficiaries of non-zakat donations

23


Table 4.5: Percentage distribution of respondents giving non-zakat money to individuals by socio demographic char-acteristics: Sindh 2013

Characteristics of

Respondents

Beneficiaries of non-zakat Giving

Relatives/

neighbor only

Disabled/

beggar only

Unknown needy only Others Total

All areas 10.3 75.8 5.7 8.2 100

Urban 6.7 74.6 9.1 9.5 100

Rural 13.3 76.9 2.8 7.1 100

x^2 (LR)= 75.9*

Gender

Male 10.3 75.8 5.6 8.3 100

Female 8.8 76.5 8.8 5.9 100

x^2 (LR)= 1.7

Age

18-30 8.7 77.0 6.0 8.3 100

31-40 12.8 73.7 5.8 7.8 100

41-50 10.3 74.7 5.1 9.9 100

51-60 10.6 75.5 5.5 8.4 100

60+ 6.4 84.7 5.7 3.2 100

x^2 (LR)= 19.6

Education

No education 11.1 76.0 4.7 8.2 100

Primary/middle 10.6 77.4 3.5 8.4 100

Secondary / higher secondary 9.0 75.0 8.5 7.6 100

Graduation or higher 9.9 72.9 8.6 8.6 100

x^2 (LR)=22.3*


First 13.4 75.4 1.4 9.8 100

Second 13.7 77.0 3.8 5.5 100

Third 9.8 78.3 4.0 7.9 100

Fourth 6.5 80.0 7.0 6.5 100

Fifth 10.3 67.6 13.9 8.1 100

x^2 (LR)=87.9*

Source: IIPS Sindh 2013; *Significant at 5% or less level of confidence

24


Looking at non-zakat donations by the type of organisations, the respondents reported a significant amount of money given mostly to mosques (63 percent), followed by Madrassahs7 (16 percent) and CSOs (14 percent). Very little in-cash giving was directed towards other organisations such as schools, community centres, etc (Figure 4.9). It appears that non-zakat cash dona-tions (27 percent of the total indi-vidual giving), are small in size given mostly to beggars and disabled persons probably on daily basis. The share of organisations in non-zakat giving is small, as donations are largely made to local mosques and Madrassah, again perhaps on regular basis e.g. during Friday prayers.

Zakat Giving

As described earlier, 21 percent of the respondents paid Zakat during the year 2013 and the preference for giving Zakat money is exclusively to individuals rather than to organi-sations showing 82 percent of total giving (Figure 4.10). This compares well with the Punjab study estimate of 86 percent. The proportion of Zakat giving money to both individ-uals and organisations is about 13 percent compared to 18 percent in case of non-zakat giving, while Zakat donations to only organi-sations is as low as 6 percent as against 14 percent in Punjab (PCP, 2010). Looking at the differentials by expenditure quintiles, Figure 4.10 shows that there is preference for giving Zakat money to individuals in all quintile groups. However, the proportion of richer respondents in fifth quintile donating Zakat money to individuals is greater than those in the first and second quintiles representing poor households.

The issue of preference for giving to individuals or to organisations was discussed in detail during the FGDs in the qualitative survey. The participants agreed with the com-mon practice of giving to individuals and stated that there are a number of reasons for less preference given Note: Ushr and Zakat ptaid through banks

are not included

63%

7%

16%

14%

mosque

others

madrassa

CSO

Figure 4.9: Percentage distribution of respondents giving non-Zakat money to organisations: Sindh 2013

100806040200

individuals

organisations

both

Figure 4.10: Percentage distribution of respon-dents for Zakat giving by the type of beneficiaries and quintile: Sindh 2013

4th

5th

3rd

2nd

1st

all

7. A place where Islamic teachings are carried out

25


Note: This is reported amount by the re-spondents without using any weights

Educ

atio

n G

roup

Qui

ntile

Gro

upA

ge g

roup

Are

a &

Gen

der

1500

1000 50

0 0

all givers

urban

rural

male

female

-

1500

1000 50

0 0

18 - 30

31 - 40

41 - 50

51 - 60

60+

no

pri / mid

sec / hi.sec

grad / high

first

second

third

fourth

fifth

2500

2000

1500

1000 50

0 0

2500

2000

1500

1000 50

0 0

13031117165612061074

2170

1179

1041

1045

8961267146610191253

233115031466

881939

Figure 4.11: Zakat amount donated on average by socio demographic characteristics of respondents: Sindh 2013

to organisations. The most import-ant of these, as identified by the respondents is religion because people feel religiously obligated to give to individuals and derive satisfaction and gratification of having done a good deed as well as giving immediate relief to the needy. Contrary to this, the process of giving to organisations is often long and painstaking with less visible results for the beneficiaries. Some observations of the participants of FGDs are:

“You see an individual in bad shape, poor, hungry, or suffering and you au-tomatically reach out to them. You see an organi-sation with a strong man-date and achievements, and you think ‘well they seem to be doing fine”.

- IDI with CSOs representative -

“This preference for indi-viduals is primarily owing to the fact that Pakistan is an impoverished country and there is so much suf-fering on the streets and everywhere we look that we cannot help but reach out to those around us that we see as worse off than ourselves”.

IDI with CSOs representative

Another reason as to why people are inclined to give more to indi-viduals is the increasing persuasion skills of beggars to seek money.

“You’re out trying to have a meal with your family, they will come knocking

at your window, giving speeches about how they also deserve decent food and haven’t eaten in days. They will not leave till they get something from your car; only to move on to the next car, and victimise the next family. I cannot tell you the amount of times I have handed over money with zero good in-tention, just to make them go away”.

- IDI with Govt representative -

The FGD participants further shared that there is a trust deficit when giving to organisations; people are not very keen to do this as they cannot be sure of where and how their contributions will be used. This is especially true for organisations that do not have an explicit moni-toring and evaluation mechanism or a transparent reporting system. To examine the share of Zakat dona-tions by socio-economic charac-teristics in Sindh, the results show that on average, rural respondents paid more Zakat money (Rs. 1466) than the urban donors (Rs. 1019) at household level. The reported aver-age amount of Zakat paid is higher amongst male respondents than by their female counterparts, and level of education and economic status (quintile) show a positive impact on the Zakat money donations; high-er the education of respondents or economic status of households, higher is the amount of zakat paid (Figure 4.11).

26


To further look into the type of ben-eficiaries of Zakat money, Figure 4.12 shows that about 38 percent of the respondents reported that they paid Zakat to relatives and neighbours, and 35 percent gave it to beggars and disabled per-sons. If ‘unknown needy’ for Zakat payment is combined with “beg-gars / disabled”, then it seems that around half of the respondents selected non-relative / neighbour for their Zakat distribution. Looking at the Zakat money donations by socio-demographic characteristics of respondents, no major difference is evident across the education and age categories; however, house-holds with low economic status have preferred to give to beggars, while rich households have shown preference for the unknown needy persons (Figure 4.12).

Table 4.6 shows the average amount of Zakat money donations to organisations amongst different socio-demographic sub-groups of the respondents. The results show that annual donations are reported to be small, directed primarily to Mosques and Madrassahs, followed by CSOs. The effect of level of educational attainment is significant, indicating that the proportion of more educated respondents paying Zakat money to CSOs is higher than those with no education, with a corresponding decline in giving to Madrassahs (Table 4.6).

One important observation in Zakat donations by type of organisation is that about sixty percent of the respondents have donated Zakat money to mosques with the as-sumption that Zakat cannot be used for the construction of a mosque or its management. Traditionally, mosques are funded by commu-nities who use their services. It is likely that the huge amount of Zakat money is also spent on Madrassahs, which are usually attached to a mosque. Zakat is given to the Imam to be used to fulfil the needs of Madrassah students. If we consid-er this explanation as appropriate, then more than 80 percent of Zakat Source: IIPS Sindh 2013

Figure 4.12: Percentage distribution of respondents by type of benefi-ciaries of Zakat and socio-demo-graphic characteristics:Sindh 2013

relative / neighbour

disabable / beggar

needy

others

Area and G

ender

100806040200

female

male

rural

urban

all

100806040200

Age G

roup

60+

51 - 60

41 - 50

31 - 40

18 - 30

100806040200

Quintile G

roup

5th

4th

3rd

2nd

1st

100806040200

Education Groupgrad / high

sec / h.sec

prim / mid

no

27


Table 4.6: Average amount of Zakat paid and percentage distribution of respondents by type of organisation and socio-demographic characteristics: Sindh 2013

Characteristics of Respondents

Average amount donated per Month (Rs.)a

Type of organisation

Mosque CSOs Madrassah Other Total

All givers 150 60.2 18.6 20.8 0.5 100

Urban 204 61.6 18.2 19.5 0.7 100

Rural 100 59.0 18.9 21.9 0.3 100

x^2 (LR)= 1.1

Gender

Male 150 60.3 18.3 20.9 0.5 100

Female 140 58.3 25.0 16.7 0.0 100

x^2 (LR)=0.9

Age

18-30 159 60.2 18.4 20.9 0.5 100

31-40 154 63.1 18.9 17.5 0.5 100

41-50 119 62.1 13.6 23.5 0.8 100

51-60 174 56.3 19.7 23.9 0.0 100

60+ 136 41.9 35.5 22.6 0.0 100

x^2 (LR)=11.3

Education

No education 154 57.0 18.3 24.6 0.0 100

Primary / middle 128 65.1 11.5 23.0 0.5 100

Secondary / higher secondary 182 58.2 23.3 18.0 0.5 100

Graduation or higher 129 58.3 25.0 15.6 1.0 100

x^2 (LR)=17.4*


First 133 56.5 22.2 21.3 0.0 100

Second 178 58.9 14.7 26.3 0.0 100

Third 107 66.3 18.9 13.7 1.1 100

Fourth 202 53.9 20.2 25.8 0.0 100

Fifth 175 52.0 17.1 30.1 0.8 100

x^2 (LR)=14.8

a. This is reported amount by the respondents without using any weights. *Significant at 5% or less level of confidence

28


Table 4.7: Time volunteered to individuals and organisation by respondents during last 12 months by area and quintile: Sindh 2013

Characteristics

Individuals Organisations

% of respondents w

ho volunteered tim

e

Average tim

e volunteered (hours) in

a month

% of respondents w

ho volunteered tim

e

Average tim

e volunteered (hours) in

a month

All givers 67.4 4.4 18.4 3.4

Urban 58.4 4.1 15.9 2.9

Rural 74.9 4.5 19.5 3.7

Quintile

First 64.0 4.6 21.5 3.9

Second 60.6 4.5 14.3 3.8

Third 71.5 4.4 16.8 3.4

Fourth 66.9 4.3 20.5 3.4

Fifth 71.3 4.1 18.9 2.7

money is directed to organisations with mosques and Madrassahs com-bined in Sindh (Table 4.6).

Time- volunteered

The survey results show that about 67 percent of respondents volun-teered time to other individuals or organisations with a marked variation between rural (74.9%) and urban areas (– 58.4%) as shown in Table 4.7. It is very common in rural Sindh to volunteer time for unpaid help. The monetary val-ue of this type of giving in Sindh province is estimated at Rs. 42.2 billion, constituting 62 percent of the total individual giving in 2013. The findings of FGDs also show that giving time is regarded as the most important form of giving by the community members in Sindh. One respondent expressed the view that even respected Abdul Sattar Edhi considered time volunteering far more important than other kinds of giving. Table 4.7 shows that while 67 percent of the respondents volunteered time for individuals, only 18 percent volunteered time for organisations. However, the duration of time-volunteered for individuals is more than 4 hours on average in a month, and 3.4 hours for organisations. The respondents in low economic status households, on average, volunteered more time for individuals and organisations than the better-off households (Table 4.7).

The available evidence shows that time-vol-unteerism as part of philanthropic work is quite common in other countries of the world and, Sindh is no exception in this re-gard. Various organisations and institutions encourage people to devote time for their programmes that saves the cost and man-agement of activities in various ways. Given that a major contribution of total philanthro-py in Sindh comes from time volunteered, It is important to utilise and reallocate this re-source to areas and activities where needed to gain a better impact.

In terms of the individual beneficia-ries of time volunteered, relatives / neighbours are at the top of the list (51 percent urban and 48 percent rural), followed by help to disabled / beggars and unknown needy (27

percent) with no marked difference between urban-rural areas and expenditure quintiles (Table 4.8). However, the preference of educated persons for volunteering more time is for unknown needy, beggars and disabled than the uneducated respondents, while there is a negative relation between level of education and volunteering time to relatives and neighbours (Table 4.8). Figure 4.13 shows the time volunteered by type of organ-isations and the variations amongst different socio-economic categories of respondents. The survey results show that about half of the respon-

dents who volunteered time for or-ganisations did so for local mosques seen as common practice in Sindh. However, more than 40 percent of the respondents spared time for CSOs and community centres as well. There is a marked variation in volunteering time by rural-urban areas, education of the respondents and quintile group. Time-volun-teered by urban respondents is the highest for CSOs compared to their rural counterparts, who preferred to give more time to local mosques. Mostly literate persons volunteer their time for CSO as compared to illiterate. Moreover, mosques are

Zakat donations are made mostly to mosques and Madrassah primarily to fulfil religious commitment

29


Table 4.8: Percentage distribution of respondents who volunteered time by type of beneficiaries and socio-demo-graphic characteristics: Sindh 2013

Characteristics of respondents Relatives / neighbor only

Disabled / beggar only

Unknown needy only Others Total

All areas 49.2 27.3 23.0 0.6 100

Urban 50.7 27.0 22.4 - 100

Rural 48.2 27.5 23.3 1.0 100

x^2 (LR)= 11.7*

Education

No education 52.3 26.6 20.7 0.5 100

Primary / middle 51.9 26.0 21.3 0.8 100

Secondary / higher secondary 45.7 29.0 24.9 0.5 100

Graduation or higher 41.0 29.5 29.1 0.4 100

x^2 (LR)=15.3*


First 44.0 38.4 16.3 1.3 100

Second 46.9 24.8 27.9 0.3 100

Third 51.9 25.9 21.9 0.3 100

Fourth 42.0 28.2 28.5 1.3 100

Fifth 46.4 26.1 27.5 - 100

x^2 (LR)=40.6**Significant at 5% or less level of confidence

Table 4.9: Proportion (%) of respondents who presented in-kind gifts to organisations, average value (Rs.) of gifts and type of gifts by area and quintile: Sindh 2013

Type of area Quintile

Urban Rural First Second Third Fourth Fifth All

% of respondents who presented gifts 12.1 17.5 23.2 13.8 13.1 13.5 11.4 14.9

Value (Rs.) of gifts 756 523 556 525 657 614 811 646

Type of gifts

Clothing 2.4 5.4 6.3 2.2 3.4 4.4 0.6 3.2

Food 4.8 23.4 42.3 20.2 10.2 8.9 4.6 15.8

Medicines 0.0 4.1 0.9 1.1 6.8 1.5 1.2 2.0

Animal hides 84.3 60.8 44.1 70.8 67.0 74.1 87.9 71.0

Construction material 6.3 6.0 6.3 5.6 10.2 7.4 5.2 6.7

Household items 2.1 0.3 0.0 0.0 2.3 3.7 0.6 1.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

x^2 (LR)=88.3* x^2 (LR)=110.8*

*Significant at 5% or less level of confidence

30


Area and G

ender

100806040200

all

urban

rural

100806040200

Education Group

no

prim / mid

sec / h.sec

grad / hig

100806040200

Quintile G

roup

1st

2nd

3rd

4rd

5th

Figure 4.13: Percentage distribution of respondents who volunteered time for organisations by type of organisations and socio-demo-graphic characteristics: Sindh 2013

mosque

CSOs

sch / com

mudrassa


the main choice of the respondents in the three lower quintiles (50 to 69 percent), while it shifts to CSOs in case of the highest quintile (Figure 4.13).

The findings of the FGDs support the survey results as people seem to be aware of the needs of indi-viduals and organisations and try to volunteer time where required. For example, a local teacher may volunteer at a public school, as his / her skill set is appropriate for the task to be able to use time more effectively. This is supported by the fact that the tendency of people for time-volunteerism has been manifested during the past floods in Sindh in the year 2010 in the form of rescue activities, food distribution and rehabilitation services by local members of the community.

Gifts in-Kind

As reported earlier, more than half of the sampled individuals (or households) donated in-kind gifts to people in need, and the monetary value of these donations is estimat-ed at Rs. 4.7 billion, constituting 7 percent of the total individual giving in Sindh. Figure 4.14 shows that do-nations to individuals are primarily in the form of clothing (38 percent) and food (35 percent) with no big difference between urban and rural areas. Animal hides (12 percent) and household items (11 percent) are

The monetary value of time-volunteerism in Sindh province is estimated at Rs. 42.2 billion, constituting 62 percent of the total individ-ual giving in 2013.

31


* Significant at 5% or less level of confidence

Area

100806040200

all

urban

rural

100806040200

Quintile G

roup

1st

2nd

3rd

4rd

5th

Figure 4.14: Percentage distribution of respondents by type of in-kind gifts donated to individuals by area and quintile: Sindh 2013

food

clothing

medicine

animal hides

other


also amongst the reported gifts in kind. Larger proportions of respon-dents gave animal hides to others in urban than in rural areas, while donating household items is more common in rural areas (Figure 4.14). The major beneficiaries of in-kind gifts are close relatives / neighbours and disabled or beggars in the community.

Table 4.9 shows the distribution of in-kind donations to organisations which are mainly in the form of animal hides (71 percent), food (16 percent) and construction material (7 percent). Food is given primarily in rural areas and by the lower quin-tiles, while animal hides donation is very common in urban areas and amongst the better-off households. It may be noted that most of in-kind gifts are given to Mosques and Madrassahs, followed by CSOs as reported by majority of the respon-dents (Table 4.9).

4.2.4

Qurbani HidesThe survey also asked a set of questions regarding qurbani on Eid-ul-Azha and the donation of hides. The results show that the overall prevalence of qurbani in Sindh was 39 percent in the year 2013, with no major difference between rural and urban areas. As expected, high-er proportion of more educated persons (39 percent) performed qurbani than uneducated ones (27 percent). Similarly, 53 percent of richer households performed qurbani compared to 32 percent in low status households (Figure 4.15). Performing sacrifice (qur-bani) of animals Eid-ul-Azha is a religious activity performed widely amongst Muslims across Pakistan as well as in the Muslim world. The survey results show that almost all of animal hides were donated equally amongst the organisations and individuals, implying that half of qurbani hides are given directly to needy individuals, notably relatives

and neighbours, while the other half goes to organisations. The issue of donating qurbani hides needs to be explored further and the impli-cations of this finding are discussed in Policy Recommendations of the study.

32


Figure 4.16: Percentage of the respondents who donated to shrines by area: Sindh 2013

100 80 60 40 20 0

urban

rural

all78

82

73

4.2.5

Donations to ShrinesDonating to shrines in any form is very common in Sindh. The re-sults of the survey indicate that 78 percent of the sampled households have reported donating to shrines, 73 percent in urban and 82 percent in rural areas (Figure 4.16). These donations are generally made during the visits to shrines, the amount of which is not covered in the survey. However, in-cash giving was reported by about 72 percent of the respondents, fol-lowed by in-kind gifts and volun-teering time by 18 and 10 percent of respondents, respectively.

In sum, the pattern of philanthropy behaviour of individuals in Sindh is in the expected direction reaffirm-ing their preference for giving to individuals rather than to organi-sations, and that the beggars and the disabled / needy persons are the major beneficiaries of Non-zakat donations. For organisations, Zakat donations are made mostly to mosques and Madrassahs primarily to fulfil religious commitment.

Area

all

urban

rural

6040200

6040200

Education Group

No

pri / mid

sec / h.sec

grad / hig

6040200

Quintile G

roup1st

2nd

3rd

4th

5th

Figure 4.15: Percentage of respondents who performed Qurbani by area, education and quintiles:

39

39

38

28

38

47

39

32

35

33

42

53

33


Motivations for Individual GivingBased on the survey findings, this chapter identifies a set of motivat-ing factors for philanthropy given the fact that individual giving is universal in Sindh. To examine the strength of various motivating factors for giving behaviour, a set of hypotheses are developed in the section below.

5.1Hypotheses DevelopmentReligious factor plays a vital role in defining the individual’s phil-anthropic behaviour in Pakistan. Religion is also likely to have a pos-itive effect on altruistic behaviour. Altruism is thus viewed as a helping motive embedded in cognitive structures including belief (Islam), values and other attitudes. Altruis-tic reasons, like ‘wanting to return something to society’, ‘responsibili-ty as a citizen’ (or citizenship), or ‘hu-man compassion’ (humanity) cause people to donate money and / or volunteer time. It is, thus hypothe-sised that:H1: Religion has a positive effect on attitude towards helping others (altruism).

H2: Religion and altruism will have positive effect on intention to donate.

As argued earlier in the conceptual framework, awareness of the needs leads to philanthropy through chari-table organisations. The relationship

between individual (grant makers) and charitable organisation (grant seekers) is mediated primarily with trust, which is measured by aware-ness about the charitable organisa-tions and knowledge of the famous philanthropist such as Abdul Sattar Edhi. In this study it is hypothesized that: H3: Awareness about chari-table organisations and knowledge about the philanthropists have a positive effect on inten-tion to donate to charita-ble organisations.

Similarly, organisational philanthro-py is likely to be influenced posi-tively by the good reputation of an organisation. A charitable organi-sation with good repute can attract more giving and vice versa. It is therefore hypothesised that: H4: Good reputation of or-ganisations has a positive effect on intention to do-nate to such organisations.

Bekkers and Wiepking (2011) argue that there is a positive relation between the level of education and giving. Higher levels of education are also associated with giving a higher proportion of income (Schervish & Havens, 1997). Various mechanisms explain the relation-ship between education and giving. Such mechanisms could include awareness of need, socialisation, costs and values. It is hypothesised that:

H5: Educational attainment has a positive effect on intention to donate

5.2Measures of Motivation for GivingSome questions were asked in the survey under the heading of ‘motivation behind giving’ which provides the possibility to see if ‘religiosity’ was the motive behind making cash donations, volunteer-ing time and in-kind gifts to others. Respondents giving statements like ‘wanting to return something to soci-ety’, ‘responsibility as a citizen’ (or citizenship), or ‘human compassion’ (humanity) represent the influence of religion and ‘altruism’ in this study.

The measures of trust for donating to charitable organisations were derived from the questions asked about the awareness and knowl-edge of the names of three such organisations or any prominent philanthropists. Furthermore, repu-tation was measured as a response option against the question related to ‘reason for selecting an organisa-tion’ for any type of giving.

Based on measures of motivat-ing factors, the analysis through cross-tabulation is undertaken to study the effect of socio-demo-

34


graphic characteristics of respon-dents on giving to individuals and organisations. Hypotheses are also tested through multivariate analyses.

5.3General Motiva-tions for Individual GivingTo study the motivation behind giving to others, without identifying the type of giving (Zakat, non-zakat, time-volunteered or in-kind gift), a set of six questions asked in the survey was used for analysis. The re-sults of the survey show that 94 per-

cent of the donors stated religion1 as their motivation behind giving to others. Almost a similar proportion, 92 percent also described ‘human compassion’ or humanity as the driving force for donations to others. Return to society (44 percent) and citizenship (70 percent) were the other important motivations behind giving to others. However, only a small proportion of the respondents selected ‘tax deduction’ (5 percent) or ‘praise in society’ (5 percent) as the motivation for donation to others. It appears from these simple statistics that religion and altruism

Table 5.1 further shows that humanity only or citizenship and humanity (or responsibility as citizen) motivates people of Sindh to help others either in cash, kind or time. This altruistic behaviour persists even when controlled by socio-demographic characteristics of the respondents. Based on these data, it may be concluded that, the general attitude of Sindhi population towards helping others is determined by Islamic belief mediated through altruistic reasons as hypothesised earlier. Table 5.1: Percentage distribution of respondents by motivation behind giving and socio-demographic characteristics: Sindh 2013

Characteristics of respondents

Motivations for Giving Giving and Altruism

Religion and altruism Religion Altruism

only AllCitizenship

and humanity

Humanity only Others All

All areas 91.2 4.3 4.4 100.0 69.8 27.4 5.5 100.0

Urban 90.7 6.3 3.0 100.0 67.4 28.2 4.4 100.0

Rural 91.7 2.7 5.7 100.0 71.8 21.9 6.3 100.0

x^2 (LR)=32.2* x^2 (LR)=17.7*

Gender

Male 91.3 9.4 4.4 100.0 70.2 24.2 5.6 100.0

Female 90.5 4.2 5.3 100.0 58.9 38.9 2.1 100.0

x^2 (LR)=0.5 x^2 (LR)=11.3

Age

18-30 90.5 5.1 4.4 100.0 75.7 20.0 4.3 100.0

31-40 91.6 3.8 4.6 100.0 69.8 24.4 5.9 100.0

41-50 90.9 4.9 4.2 100.0 65.6 27.9 6.5 100.0

51-60 93.8 3.3 2.9 100.0 63.2 30.8 6.0 100.0

60+ 89.9 3.0 7.1 100.0 67.1 28.2 4.7 100.0

x^2 (LR)=8.5 x^2 (LR)=27.8

Education

No Education 89.7 4.7 5.6 100.0 68.4 24.3 7.2 100.0

Primary / Middle 91.5 4.2 4.2 100.0 67.8 25.9 6.2 100.0

Secondary / H. Secondary 91.4 4.4 4.2 100.0 74.1 22.9 3.0 100.0

Graduation or higher 94.4 3.4 2.2 100.0 71.2 25.7 3.1 100.0

x^2 (LR)=8.6 x^2 (LR)=22.2*

1. The phrase used in the PCP questionnaire was ‘to make my religious faith stronger’.

35


(humanity, return to society etc.) are the major motivating factors for philanthropy in Sindh.

It has been argued earlier in this study that altruism in Sindh is influ-enced by Islamic faith which con-siders charity as one of the highest virtues and a means of cleansing oneself spiritually and materially. To examine this phenomenon, an anal-ysis of religion and altruism as mo-tivations behind giving is presented in Table 5.1, controlled by socio-de-mographic factors. The results show that more than 90 percent of the re-spondents were motivated to help others by both religion and altruism, while a small proportion of donors opted ‘only religion’ or ‘only altru-

ism’ as their motivation for giving to others. The effect of rural-urban residence as well as quintile group is statistically significant for reasons of religion and altruism, but not significant for age, gender and level of educational attainment of the respondent (Table 5.1).

5.4Motivations for Cash Donations

Cash donations include giving to others as Zakat or non-zakat money. It has been reported earlier that non-zakat cash donations are very common in Sindh where 90 per cent of the respondents made such donations, while the prevalence of Zakat was estimated at 21 per cent. In monetary terms, Rs. 17.4 billion was donated to others as non-zakat payment, compared to Rs. 3.7 billion given as Zakat mon-

Quintile

First 91.7 2.5 5.8 100.0 77.5 18.6 3.8 100.0

Second 92.9 4.0 3.1 100.0 67.0 26.6 6.4 100.0

Third 90.0 4.8 5.2 100.0 67.3 25.3 7.5 100.0

Fourth 88.9 7.5 3.6 100.0 71.0 23.3 5.7 100.0

Fifth 91.5 5.7 2.8 100.0 72.1 21.6 6.3 100.0

x^2 (LR)=23.1* x^2 (LR)=19.6*

Table 5.2: Percentage distribution of respondents by motivation behind Non-zakat giving to individuals and organisa-tion by area and quintile: Sindh 2013

Area / quintile

Individuals Organisation

Religion and

altruism

Religion only

Altruism only All

Religion and

altruism

Religion only

Altruism only Others All

All areas 74.2 6.2 19.7 100.0 55.9 16.9 22.3 4.9 100.0

Urban 73.8 7.0 19.2 100.0 49.3 26.3 20.7 3.7 100.0

Rural 74.5 5.5 20.0 100.0 61.3 9.2 23.6 5.8 100.0

x^2 (LR)=2.2 x^2 (LR)=31.6*

Quintile

First 80.5 6.4 13.0 100.0 49.5 15.0 22.4 13.1 100.0

Second 77.2 5.6 17.2 100.0 67.6 17.6 10.2 4.6 100.0

Third 67.7 8.8 23.5 100.0 56.2 18.1 24.8 1.0 100.0

Fourth 69.3 6.7 24.0 100.0 54.2 20.9 20.9 3.6 100.0

Fifth 67.0 6.4 26.7 100.0 50.0 21.3 26.9 1.9 100.0

x^2 (LR)=40.1* x^2 (LR)=33.5*


36


ey. Religious obligation is the only reported reason for Zakat donation; the respondents intend Zakat as a fulfilment of their religious duty to purify their wealth.

Table 5.2 presents data on moti-vations behind non-zakat giving to individuals and organisations separately. Religion and altruism are the two motivational factors for giving either to individuals or to organisations as one-fifth of respon-dents made donations to individ-uals or organisations because of altruistic reasons. Its importance is greater in rural areas than in urban areas where, in the case of giving to organisations, religion and altruism have equal motivational strengths. Furthermore, higher socio-econom-ic status of the sampled households (expenditure quintile) has a positive effect on donating non-zakat money to individuals through altruism (Table 5.2). For example, 26 percent amongst the richest (fifth quintile) gave cash to other individuals due to altruism, while 81 percent of the lowest quintile gave non-zakat do-nations to individuals due to religion and altruism combined.

5.5Motivations for Volunteering Time and In-Kind Gifts

The contribution of the monetary value of time-volunteered in total individual giving in Sindh is the highest estimated at Rs. 42.2 billion out of the total of Rs. 67.9 billion. Ta-ble 5.3 sets out data on motivations for time-volunteered to individuals as well as organisations. More than two-thirds of the respondents who volunteered time to organisations did so because of ‘human com-passion’, while for individuals, the motivating factors are religion and altruism. For the richest households, altruism is more important than other factors for volunteering time for other individuals.

This pattern of time-volunteering is not unusual; it is rather a common feature of contemporary philan-thropic activities in both developed and developing countries. In fact, people’s time volunteering con-nects them with other people in terms of responding to others in times of need which also inspires them to increase their contribution in different activities.

In case of in-kind gifts, important motivating factors are Islamic belief, human compassion (humanity) and good faith. Humanity is more important than other factors in donating in-kind gifts either to other individuals or to organisations (Ta-ble 5.4). It appears from the analysis that religion, altruism and philan-thropy go hand in hand in Sindh. Religion creates a specific ‘morality’ in people and this morality is visible in their giving behaviour for individ-uals as well as organisations.

Table 5.3: Percentage distribution of respondents by motivation behind time volunteered to individuals and organisa-tion by area and quintile: Sindh 2013

Area / quintile

Individuals Organisation

Religion and altru-

ism

Religion only

Altruism only All Religion

Human compas-

sionGood faith All

All areas 52.3 13.8 33.9 100.0 12.7 69.7 17.6 100.0

Urban 42.2 21.1 36.7 100.0 13.8 69.3 16.8 100.0

Rural 57.3 10.1 32.6 100.0 11.9 70.0 18.0 100.0

x^2 (LR)=9.6* x^2 (LR)=1.6

Quintile

First 62.9 10.0 27.1 100.0 20.7 61.1 18.2 100.0

Second 68.2 13.6 18.2 100.0 12.4 69.1 71.3 100.0

Third 46.0 28.0 26.0 100.0 8.8 71.3 19.9 100.0

Fourth 48.3 19.0 32.8 100.0 10.7 67.1 22.3 100.0

Fifth 33.9 9.7 56.5 100.0 12.8 71.9 15.3 100.0

x^2 (LR)=29.8* x^2 (LR)=28.0*


37


5.6Determinants of Individual Philan-thropy: Multivariate Analyses

To test the hypotheses empirical-ly, multivariate analyses were also carried out. In view of the concep-tual framework of the study and the hypotheses developed, empirical models were specified, focusing on (i) non-zakat giving (in rupees) to individuals; and (ii) time-volun-teered (in hours) to individuals. The determinants of individual giving to organisations are analysed in the next Chapter. For models of individ-ual giving, educational attainment of the respondents, per capita household expenditure and com-mitment, measured through religion and altruism, are used as the inde-pendent variables. Five models are

estimated. In model (1), only individ-ual and household characteristics are entered as explanatory variables, while in models (2) and (3), religion and altruism are added respectively. Model (4) includes both religion and altruism as independent variables. In model (5) religion and altruism are entered as an interactive term to see their joint effect on charity to individuals. The results are present-ed in Tables 5.5 and 5.6.

Model (1) shows that age and gen-der (male=1) of the respondents and their place of residence (urban=1) have a statistically significant and positive impact on individual charity (Table 5.5). Educational attainment of the respondents also has a posi-tive and significant impact on Non-zakat giving to individuals; higher the level of education, higher would be the impact on giving. These results support the hypothesis (H6) which states that educational attainment has a positive impact on individual giving.

In model (2), religion as motivation for donation has a positive impact on Non-zakat giving, indicating that religion plays an important role in

determining the giving behaviour of individuals. This supports the hypothesis (H1) which states that religion has a direct positive effect on intentions to donate. Model (3) shows that altruism has a positive but statistically insignificant impact on Non-zakat giving, indicating a weak direct relationship between altruism and charity. Model (4) includes both religion and altruism and shows that religion plays a dominant role in determining the individual giving behaviour; religion has a significant positive relation with in-cash non-zakat giving, while the effect of altruism is not statis-tically significant. To test the joint impact of both altruism and religion, an interactive term (religion*altru-ism) has been added in model (5). It is found that religion and altruism jointly play significant role in de-termining a Non-zakat giving. This supports the hypothesis that the attitude towards helping others (altruism) in Sindh is influenced by religion.

Table 5.4: Percentage distribution of respondents by motivation behind presenting in-kind gifts to individuals and organisation by area and quintile: Sindh 2013

Area / quintileIndividuals Organisation

Religion Human compassion

Good Faith

All Religion Human compassion

Good Faith

Duty All

All areas 16.4 66.4 16.4 100.0 35.6 38.0 25.2 1.2 100.0

Urban 17.8 66.3 15.8 100.0 61.6 23.3 15.1 0.0 100.0

Rural 15.5 66.5 18.0 100.0 24.9 44.1 29.4 1.7 100.0

x^2 (LR)=2.4 x^2 (LR)=30.9*

Quintile

First 23.6 58.7 17.8 100.0 10.9 46.9 40.6 1.6 100.0

Second 16.4 63.1 20.5 100.0 43.2 27.0 29.7 0.0 100.0

Third 13.6 68.9 17.4 100.0 45.7 28.6 22.9 2.9 100.0

Fourth 13.2 68.0 18.8 100.0 43.9 36.6 17.1 2.4 100.0

Fifth 17.8 66.0 16.2 100.0 61.1 22.2 16.7 0.0 100.0

x^2 (LR)=15.6* x^2 (LR)=38.2*


38


Table 5.5: Determinants of individuals’ Non-zakat giving: Sindh 2013

Variables (1) (2) (3) (4) (5)

Individual characteristics

Gender 0.362 0.345 0.362 0.345 0.343

(0.16)** (0.15)** (0.16)** (0.15)** (0.16)**

Age 0.003 0.003 0.003 0.003 0.003

(0.00)** (0.00)** (0.00)** (0.00)** (0.00)**

Area 0.267 0.262 0.268 0.260 0.261

(0.04)*** (0.04)*** (0.04)*** (0.04)*** (0.04)***

Education

Primary / middle 0.182 0.178 0.182 0.179 0.178

(0.05)*** (0.05)*** (0.05)*** (0.05)*** (0.05)***

Secondary / Higher secondary 0.245 0.235 0.245 0.237 0.237

(0.06)*** (0.06)*** (0.06)*** (0.06)*** (0.06)***

Graduation or higher 0.488 0.469 0.488 0.471 0.468

(0.08)*** (0.08)*** (0.08)*** (0.08)*** (0.08)***

Expenditure 0.000 0.000 0.000 0.000 0.000

(0.00)*** (0.00)*** (0.00)*** (0.00)*** (0.00)***

Commitment

Religion 0.400 0.407 0.142

(0.08)*** (0.08)*** (0.17)

Altruism 0.007 -0.037 -0.337

(0.07) (0.07) (0.18)*

Religion*Altruism 0.343

(0.19)*

Constant 4.137 3.786 4.131 3.813 4.042

(0.17)*** (0.18)*** (0.18)*** (0.19)*** (0.23)***

Observations 2,190 2,190 2,190 2,190 2,190

R-squared 0.090 0.099 0.090 0.099 0.100

F. Stat 23.77 25.30 20.79 22.58 20.81

Note: Robust standard errors in parentheses: *** p<0.01, ** p<0.05, * p<0.1

Results of four models presented in Table 5.6 show the determinants of time-volunteered to individuals. Gender (male=1) of the respondents has a positive impact on volun-teering time, while their place of residence (urban=1) is negatively associated with time-volunteered, suggesting that urban popula-tion is less likely than their rural counterparts to volunteer time for others. Educational attainment has

a significant positive impact on time allocation for others (H6). Religious behaviour motivates individuals to spend more time to help others. Another important finding is that altruism has a significant impact on the time-volunteered independently as well as in the presence of reli-gious motivation (models 3 and 4). These findings indicate that altruism is more effective in personal help, especially in time-volunteering rath-

er than monetary help. One reason could be the weak financial position of the sampled households. Poverty in rural Sindh is high; people want to help others in any case, even if not possible through money.

39


Table 5.6: Determinants of individuals’ Time Volunteered in hours: Sindh 2013

Variables (1) (2) (3) (4)


Gender 3.692 3.546 3.708 3.568

(0.94)*** (0.93)*** (0.94)*** (0.94)***

Age 0.008 0.007 0.007 0.006

(0.02) (0.02) (0.02) (0.02)

Area -3.864 -3.896 -3.792 -3.837

(0.57)*** (0.57)*** (0.58)*** (0.58)***

Education

Primary / middle 1.448 1.401 1.406 1.371

(0.64)** (0.64)** (0.64)** (0.64)**

Secondary / Higher secondary 1.947 1.846 1.862 1.786

(0.80)** (0.80)** (0.80)** (0.80)**

Graduation or higher 5.091 4.921 4.979 4.845

(1.03)*** (1.03)*** (1.05)*** (1.05)***

Expenditure 0.000 0.000 0.000 0.000

(0.00)* (0.00)** (0.00)* (0.00)**

Commitment

Religion 3.749 3.497

(0.80)*** (0.82)***

Altruism 1.813 1.413

(0.79)** (0.80)*

Constant 4.321 1.000 2.695 -0.043

(1.35)*** (1.48) (1.52)* (1.59)

Observations 2,539 2,539 2,539 2,539

R-squared 0.028 0.032 0.029 0.033

F. Stat 13.50 14.19 13.03 13.39

Note: Robust standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1

40


6.1Understanding the Relationship between Grant Seekers and Grant GiversAwareness, reputation and trust are the key factors that may attract givers’ donations to grant seeking organisations. These elements are likely to provide a solid foundation to strengthen the relationship be-tween grant seekers (organisations) and grants givers (individual giv-ers). This section has first examined the awareness amongst the givers about the charitable organisations and their reputation. The role of trust and reputation on individual donations to organisations is also analysed in this section through a multivariate analysis.

6.1.1

Awareness and Reputation of OrganisationsTable 6.1 shows data on awareness about the charitable organisations and knowledge of the prominent philanthropists. About 22 percent of the respondents have awareness regarding a charitable organisation including Edhi Foundation, Alkhid-mat Foundation, Silani and Chhipa. The same percentage of the respon-dents (22 percent) have knowledge about the prominent philanthropists of the country, but the reported names were primarily from local communities except Abdul Sattar Edhi and Imran Khan. The findings of the FDGs are similar:

“When the participants were asked about any awareness regarding CSOs, community members knew about Shaukat Khanum Memorial Cancer Hospital (SKMCH), Al Khid-mat and Edhi foundations. Though no other names were specified in

the course of the discussions, all participants agreed that various other NGOs had approached their communities and sought their feed-back on a number of different social issues. These included the prob-lem of clean drinking water, family planning, gender equality as well as education. However, despite taking time to recollect, participants could not name the NGOs. People know about CSOs but do not really give them much thought or importance. They prefer to focus on the commu-nity. Organisations are considered to be catering to city people, and rural area residents felt that their needs are not prioritised by them.

Examining the effect of the knowl-edge about charitable organisations and prominent philanthropists, and on making more donations to organisations, the results show a positive impact (Table 6.1). In the case of non-zakat donations, the proportion of those who had no knowledge about charitable organ-isations is 15 percent compared to 29 percent of those who had knowledge about organisations. A similar pattern is found when the

Individual Philanthropy and Safety Nets:Awareness, Constraints & Complementary Mechanism

It has been shown in the analyses presented in earlier chapters that individual giving or philanthropy in Sindh is directed primarily to needy individuals such as beggars and disabled. Only a small proportion of individual do-nations is given to organisations. The private charity, according to Irfan (2003), is not only ad hoc, depending on free will of givers, but it also does not improve the capacity of the poor for permanent exit from poverty. The dominance of inter-individual transaction also reflects general lack of awareness as well as of confidence in social organisations. It can be considered as a barrier to make philanthropy a complementary source for safety nets and poverty reduction. This Chapter first examines the relationship between grant seekers and grant givers, where the former refers to social or charitable organisations, while the latter refers to individual donors (objective 2 of the study). It then identifies the constraints and barriers to individual philanthropy (objective 8 of the study). The Chapter also provides deeper insights on how to make individual giving a complementary source for safety nets in Sindh (objective 3 of the study). The analyses in this Chapter are based on both the findings of the household sur-vey and qualitative research e.g. Focus Group Discussions (FGDs) conducted in different urban and rural communi-ties in Sindh and in-depth interviews of senior government officials from relevant departments.

41


respondents had the knowledge of prominent philanthropists. Interest-ingly, awareness about the chari-table organisations or knowledge about philanthropists has no effect on Zakat donation to organisations. Even amongst those who have such knowledge, preference is given to individuals over organisations for giving Zakat money (Table 6.1). This behaviour seems to have been greatly influenced by the teachings of Islam.

However, the awareness about the charitable organisations and prom-inent philanthropists had a positive impact on volunteering-time as well as giving in-kind gifts to organisa-tions (Table 6.2). The table clearly shows that 38 percent of respon-dents volunteered time if they had awareness about the organisation as compared to 12 percent with no

awareness. Similarly, 27 percent donate gifts in-kind to organisations if they had knowledge against 12 percent with no knowledge. Simi-larly, differences are visible in case of knowledge about prominent philanthropists.

Both awareness about charitable organisations and knowledge of prominent philanthropists has an impact on the selection of organisa-tions. Data presented in Table 6.3 show that about three-quarters of the respondents who had no such awareness and knowledge donated money to mosques and Madras-sahs, whereas the corresponding percentage was 40 for those who had such knowledge. The latter preferred to donate money to CSOs (Table 6.3). Thus, awareness campaigns by charitable organisa-tions may attract more non-zakat

donations, time of individuals and gift in-kind, but not necessarily the Zakat money. For Zakat money, preference may remain for needy individuals and Madrassahs. For a productive equation between the givers and organisations, awareness and knowledge about the organ-isations, which are doing welfare work in local community seems to be a necessary condition to attract individual donations.

Table 6.1: Percentage distribution of respondents who donated non-zakat and Zakat money by awareness of charita-ble organisations, and knowledge of prominent philanthropists: Sindh 2013

Type of beneficiaries

Non-zakat Zakat

Awareness of charitable organisation

Knowledge of prominent

Philanthropists

Awareness of charitable organisation

Knowledge of prominent

Philanthropists

Yes No Yes No Yes No Yes No

Individual 67.4 82.8 73.6 80.9 82.8 81.2 87.6 79.5

Organisation 4.0 1.8 1.8 2.5 4.3 6.4 2.0 7.1

Both 28.6 15.4 24.5 16.6 12.9 12.4 10.4 13.4

All 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

x^2 (LR)=64.3* x^2 (LR)=19.0* x^2 (LR)=1.8 x^2 (LR)=12.6* Source: IIPS Sindh 2013; *Significant at 5% or less level of confidence

Table 6.2: Proportion (%) of the respondents who volunteered time and presented gifts to organisations by aware-ness of charitable organisations and knowledge of prominent philanthropists: Sindh 2013

Awareness / knowledge Volunteered time (%) for organisation Gift to organisation (%)

Awareness of the organisation

Yes 38.1 27.0

No 12.1 12.1

Knowledge of the Prominent Philanthropists

Yes 30.6 21.9

No 14.2 13.4


42


Table 6.3: Percentage distribution of respondents who donated in-kind gifts by type of organisations and awareness of charitable organisations and knowledge of prominent philanthropists: Sindh 2013

Type of organisationsAwareness of charitable organisations Knowledge of prominent Philanthropists

Yes No Yes No

Mosque 35.5 63.0 40.3 56.1

CSOs 52.9 15.8 45.8 25.5

School / Community Center 6.4 9.2 7.6 8.0

Madrassah 5.2 12.0 6.3 10.4

Total 100 100 100 100

x^2 (LR)=57.5* x^2 (LR)=16.3*


6.1.2

Role of Trust and Reputation in Organisational Philanthropy: A Multivariate Analysis

In addition to individual charac-teristics of the respondents, trust measured through awareness of organisations, knowledge of philan-thropists and reputation of the or-ganisation, are used as independent variables to measure their effect on non-zakat giving and time volun-teered to organisations.

Tables 6.4 and 6.5 present the results on the effect of motivational factors on organisational giving. The results show that higher edu-cational attainment is likely to have

a significant positive impact on non-zakat giving to organisations. This shows that as level of education increases, people become more aware about the importance of giving to organisations. This finding is supported by Bekkers (2006) who argues that awareness of need and the level of exposure to information about charitable organisations are likely to be higher amongst the edu-cated. Similarly, Brown (2005) found that higher education increases donations, because it drew people into memberships.

Table 6.4: Determinants of individuals Time Volunteered in hours: Sindh 2013

Variables (1) (2) (3) (4)


Gender 0.364 0.314 0.432 0.386

(0.30) (0.29) (0.31) (0.30)

Age 0.005 0.005 0.005 0.005

(0.00)* (0.00)* (0.00)* (0.00)**

Area 0.251 0.204 0.249 0.201

(0.07)*** (0.07)*** (0.07)*** (0.07)***

Education

Primary / middle 0.035 0.070 0.031 0.066

(0.08) (0.08) (0.08) (0.08)


(0.10) (0.10) (0.10) (0.10)


(0.12)*** (0.12)*** (0.12)*** (0.12)***

43


The results also indicate that trust (good reputation of organisations) is positively linked with giving to organisations. This supports the hypothesis which states that good reputation of organisations has a positive effect on the intention to donate to such organisations. The finding shows that knowledge about the existence of an organisation

alone does not motivate people to donate. It is the reputation of an organisation that encourages donation for them. Thus, knowl-edge is a necessary but not suffi-cient condition to attract money for organisations: knowledge combined with good reputation of an organ-isation can influence the giving behaviour of individuals. Most of

the organisational donations go to mosques and Madrassahs in Sindh as reported in the previous chapter. This reflects that people believe that their donations are utilised in proper ways due to the reputation of these institutions.

Trust

Awareness of organisation 0.099 0.100

(0.08) (0.08)

Knowledge of Philanthropy -0.395 -0.397

(0.08)*** (0.08)***

Reputation 0.173 0.181

(0.10)* (0.11)*

Constant 4.007 4.125 3.923 4.036

(0.33)*** (0.32)*** (0.34)*** (0.33)***

Observations 706 706 706 706

R-squared 0.048 0.050 0.051 0.052

F. Stat 5.328 4.814 4.785 4.387


Table 6.5: Determinants of organisation’s Time Volunteered in hours: Sindh 2013

Variables (1) (2) (3) (4)


Gender 0.885 0.902 4.902 4.375

(0.52)* (0.53)* (1.86)*** (1.81)**

Age 0.019 0.020 0.061 0.063

(0.02) (0.02) (0.06) (0.06)

Area -0.631 -0.975 -1.747 -1.885

(0.40) (0.43)** (1.37) (1.47)

Education

Primary / middle 1.044 0.783 2.689 2.414

(0.36)*** (0.35)** (1.16)** (1.14)**


(0.64)** (0.60) (2.33)* (2.17)*


(0.78)*** (0.73)*** (1.59)*** (1.53)**

Trust

Awareness of organisation 3.806 3.284

(0.78)*** (1.78)*

44


Knowledge of Philanthropy -0.748 -0.871

(0.57) (1.69)

Reputation 4.231 4.241

(4.08) (4.06)

Constant -0.330 -0.540 -4.121 -4.199

(0.85) (0.85) (3.60) (3.55)

Observations 3,000 3,000 706 706

R-squared 0.008 0.027 0.019 0.026

F. Stat 4.617 4.545 4.076 2.894


6.2Constraints and Barriers to Individual Philanthropy

There is no straightforward method to identify constraints and barriers to individual philanthropy. Individual giving is universal in Sindh, but cash donations are small directed primar-ily to the needy. Volunteering time for others is very common as well. However, based on the information compiled in this study, three major constraints and barriers to individ-ual philanthropy are identified that can limit its effectiveness for social development and poverty reduction in the province. (i) lack of capacity of givers to pool their philanthropic resources, (ii) lack of confidence in both social organisations and gov-ernment system in general, and (iii) inefficiency of Zakat and Bait-ul-Mal systems. While the confidence in or-ganisations has been addressed in the previous section, the pooling of philanthropic resources, trust deficit in the government system and inefficiency of Zakat and Bait ul Mal systems are discussed below, using mainly the qualitative findings.

6.2.1

Pooling of Philanthropic ResourcesAll of the participants of FGDs agreed that the individuals, espe-cially youth, should pool in their philanthropic resources and direct them towards a specific cause, provided that the deliverables are clearly stated and the impact can be assessed. People are generous and willing to give, but only if they are satisfied with the impact of their giving. Participants informed that people in the community already pool in money, on a smaller scale, to help someone in distress in the village, but feel that such an initia-tive could be up-scaled for more visible outcomes. People felt that a sense of unity and team work needed to be encouraged amongst the masses as improvement in their own welfare depends on the overall progress of the country. Many par-ticipants are of the view that if few villages are willing to pool in their resources and work together to jointly address development issues, the system could be made effective to formally channelise giving for so-cial development. People said that they would, perhaps, take a chance and support such a system, and a repeat contribution would depend solely on the results and impact of the first donation. Participants felt that if such a system is successfully

developed and implemented, the country would be rid of widespread beggary and poverty.

The participants also suggested that union council level development systems should be established where individuals may be request-ed to contribute their resources. Industrial homes may also be set up to increase employment and local population would happily contrib-ute to supporting that cause. ‘The promise of a better future’ would effectively attract philanthropy from individuals. It was suggested that a local committee needed to be created, responsible for one to two villages, so that the burden of addressing development needs can be effectively managed. Commit-tees should comprise of honest and dedicated people committed to improving the standards of the vil-lage and the community, along with provision of basic necessities for the less privileged.

Furthermore, the support of the government was emphasised through the provision of a system-atic local development plan so that citizens could direct their giving towards it with a provision for tax incentives. An important concern raised by community was that their individual efforts were recognised neither by the civil society nor by the government. This demoralises a lot of people in the community, especially the youth who work with a spirit to improve the living con-ditions of the community. If their

45


efforts are highlighted and acknowl-edged, they would be willing to go an extra mile to contribute towards the social development of Pakistan. The participants further stated that people need to work with the indigenous resources to come out of self-pity and a sense of helpless-ness. People would accept advice on where to direct their giving if it is backed by rational reasoning and the benefits and outcomes are clearly outlined.

6.2.2

Gaps in Government SystemQuestions were asked pertaining to government systems and their role towards social development. The respondents shared that there was a major trust deficit and lack of confidence in the government and that immediate attention is required to address this issue and to improve the government’s reputation. The respondents also shared that the trust deficit between the people and the government has increased in recent years.

“Take a moment to think about it, everyone says we are ALL corrupt, and it may be true that some of us are, but the real ques-tion is why? The answer is simple; the pay scale is so unrealistic that many offi-cials can barely make ends meet on their wages. They have no choice but to resort to other measures of making money. If sala-ries were satisfactory, this would not happen, or at least the problem would be reduced significantly.”

Participants shared that there is substantial corruption in the govern-ment system due to gaps in gover-nance and policy implementation. Despite the fact that most govern-ment employees are aware of these gaps, no one is willing to take the first step towards fixing and remov-ing them.

“We all know where the problem lies, we all know how to start solving it and we just need to take a jump, united, and make a difference.”

- IDI with government representative -

One respondent further said:

“Today, many citizens see the government as a black hole, sucking the hope and life out if its people. This may sound extremely dramatic, but ask anyone out there and they will undoubtedly agree.”


Furthermore, a majority of respon-dents gave unanimous response that the government needs to im-prove its governance system to gain good reputation and win back the trust and support of its people. One respondent said that the damage done was so great that the required change could perhaps be achieved only by a revolution. One respon-dent also said that government officials needed to be reminded that they are rather ‘public servants’ to serve the country and its people.

In FGDs with the community, people expressed disappointment and discontent with the attitude of local government officials who lack professionalism and capacity to ad-dress the basic issues of the locality. They hoped that reforms would take place to improve the living condi-tions in the villages. It was stated

that if Zakat were to be distributed intelligently, towards sustainable and productive goals like increasing employment for income generation, poverty could be alleviated effec-tively.

The respondents felt that presently all sectors of society were working in isolation with little impact on achieving the development goals, and suggested that a sense of unity needs to be inculcated amongst Pa-kistani people with the spirit to work together, and use their strengths to resolve issues confronting them. They further added that there is a need to change the mindset of government officials, to encourage them to work selflessly and without seeking direct personal benefits which has become the norm. The respondents also shared that there is insufficient research and ground work done by the government in the process of planning develop-ment programmes and initiatives. Usually, the goals and funding needs are exaggerated largely to meet their personal benefits. With respect to the Social Welfare De-partment (SWD), there were differ-ent views about the gaps in delivery of services of the department.

“The department of Social Welfare seems only to be concerned about fighting for its own employee’s rights and salaries. De-velopment issues are not given any priority or im-portance.”


The respondents observed that the SWD was a highly marginalised department of the government. At present, the capacity of human resource needs to be developed, and monitoring and supervision with clear reporting lines needs to be put in place. The Government needs to give more attention to this department to improve its function-ing. A structural blunder identified


46


by one respondent was that the SWD was separated and made independent to increase focus on the subject of social welfare and development without sufficient planning. He was of the opinion that an additional department was not needed, and even today, based on the reason that it was created, this department’s focus has barely been on improving social welfare and development and has only created jobs for some people instead. He said that the department receives meagre allocations in the budgets and there is a lot of corruption as well as misappropriation of funds.

“Take the example of a project to house orphan females; when asked over telephone how many girls are in the facility, initially we were told 15. When it was implied that the facil-ity would be visited, the statement was changed and the representative said that there is only one child currently in the or-phanage. The house was visited a few days later by officials and there was only one girl, and who’s to say that even she wasn’t brought in only for the duration of officials vis-it? However, funding the project was meant to care and provide for 15. So the facility receives the funding, employs mini-mum staff and keeps no accountability of the left over funds.”


A number of suggestions were made for improving the government system. The participants proposed that Public Private Partnerships (PPP) should be one viable option as this was an arrangement in which government intervention may be supported and people’s donations could be attracted effectively. Furthermore, a systematic develop-ment plan should be in place so that the citizens could direct their giving towards it with some tax incentives. Policy making process should have active involvement of local commu-nities. Government should increase training and employment opportu-nities specifically for the lesser privi-leged areas of society. Cross-sector partnerships should be formed, identifying and deriving from the strengths of each stakeholder.

To improve efficiency and working mechanisms, it was pointed out at higher tiers in the government where decisions are made; the strategy should be to increase efficiency of the on-going with stringent monitoring to ensure that the outcomes reach out to the ben-eficiaries, instead of abandoning things midway to start a new plan. At present, no one seeks feedback or wants to monitor a project, but everyone is ready to point fingers when a project is not complet-ed. A database system needs to be formed to maintain records of citizens; this system should contain information on current standards of living, employment status, income bracket if employed, educational qualification etc. to enable decision makers to determine and verify the deserving beneficiaries and follow a credible mechanism for delivery of social services.

6.2.3

Inefficiency of Zakat and Bait-ul-Mal Sys-temsParticipants of both FGDs and IDIs were asked about their views on the Zakat deduction system that the government currently has in place. Most of the participants from the community acknowledged the fact that Zakat deduction at source is beneficial. People felt that their obligatory giving was being man-aged by the system relieving them of the hassle of donating Zakat money to the needy and the de-served ones. However, they felt that the Baitul Mal needed to improve its functioning in terms of spending more effectively and efficiently. The message coming out of the FGDs was that the Baitul Mal does not perform its duty in a transparent way. If the Baitul Mal was doing its job efficiently, poverty and the con-sequent corruption would not be a major issue. People suggested that the system needs to be streamlined better, so that the disbursement of the Zakat collection is done in an organised, transparent and timely manner.

Some of the community members showed discontent regarding the collection of cheques from Baitul Mal as they had to stand in long queues and face many hurdles. This is disturbing as they felt that the needy and impoverished masses deserve the help and the govern-ment should not have any issue in allocating the collected Zakat with the ultimate objective to improve the well-being of its citizens. How-ever, this does not seem to happen and problems continue to increase year after year.

Some people were against the working of the Zakat and Baitul Mal system and felt they would be better off if left to their own plans about deciding where to give Zakat as the government systems continu-

47


ously fail to deliver despite deduct-ing large amounts of Zakat from the people of Pakistan. Some partici-pants shared stories of their money being in the bank for only two days from which Zakat was deducted whereas deductions should be made after one year of the savings being deposited in the bank.

6.3Philanthropy as Complementary Mechanism for Safety Nets and Poverty ReductionA majority of the participants of FGDs observed that it was the responsibility of the government to provide its citizens with basic neces-sities of life including food, shelter, clean drinking water, education, health and better environmental systems. Further, the government only made promises without any concrete, visible attempt to solve these basic issues and problems of the public. Education and health were considered to be the most important and insufficiently funded areas that need government’s atten-tion in the future. They said that if education was imparted in a proper manner, people would be able to take care of themselves better in the future.

“If education is given due attention, we will be able to make our people self sufficient in addressing the remaining develop-ment issues that affect our country.”


However, participants viewed phil-anthropic activities as a complemen-tary source for safety nets, poverty reduction and social development. Other important areas that required attention were food, shelter, safe drinking water, garbage disposal, drainage and sewerage facilities. Community organisations or CSOs underlined the need for sufficient fi-

nancial resources to strengthen their capacity to deliver these services.

As shown earlier, the direction of individual giving is primarily towards individual needy persons. The ques-tion is how to direct it to CSOs / NGOs for poverty reduction, safety nets and overall social development initiatives in the future. In the Sindh survey (2013), the respondents were asked about their intention for future donations in terms of where they would prefer to give and their motivation behind giving. The findings reveal that majority of the respondents would prefer to give to individuals in future (59 percent); but about one-third of the respondents (32.5 percent) expressed their wish to donate to both individuals and organisations, provided their concerns regarding transparency, good governance and the visibility of impact were ad-dressed. No major difference could be found when the choices of future intentions are controlled by socio demographic characteristics includ-ing age, education and quintile of the givers. However, more educat-ed and richest givers expressed their preference to donate to both individuals and organisations than less educated and the poorest sub-groups (Figure 6.1).

48


Majority of the respondents ex-pressed that education and health are the preferred areas for future intentions for giving. This suggests that benefits of giving for social development should be actively ad-vocated through public service cam-paigns as people want to see quick results and impact of their giving for the purpose they have contributed for (Figure 6.2).

The participants of FGDs also re-ported that during times of natural disasters and other emergency situations, people rushed to extend philanthropy support to organisa-tions on the perception that or-ganisations have better capacity to manage and disburse their philan-thropy in a natural calamity. This awareness and practice need to be tapped effectively to enhance do-nations for social development. The respondents were asked what could motivate them to donate more to organisations, and almost all respondents mentioned transparen-cy mechanism of organisations and the knowledge of thematic areas in which they work.

Area &

Gender

100806040200

100806040200

Age G

roup

all

urban

rural

male

female

18 - 30

31 - 40

41 - 50

51 -60

60+

Education Group

100806040200

100806040200

Quintile G

roup

no

prim / mid

sec / h.sec

grad / hig

1st

2nd

3rd

4th

5th

Figure 6.1: Percentage distribution of the respondents by intentions for future donations and socio-de-mographic characteristics: Sindh 2013

mosque

CSOs

sch / com

mudrassa

100806040200

all

urban

rural

Figure 6.2: Percentage distribution of respondents by preferred thematic area for future dona-tions in total, urban and rural areas: Sindh 2013

education

health

disaster relief

envionment

other

49


This study makes it evident that individual philanthropy in Sindh is universal (97 percent) and that the amount of giving is significant. It also indicates that the potential for philanthropy is huge which can be a force multiplier in social sector development and poverty allevia-tion. For this to happen, the con-clusions drawn from survey findings and the concerns and suggestions made in the FGDs / IDIs need to be taken into consideration by the Government of Sindh and the civil society. In fact, it is imperative to build partnerships between gov-ernment, philanthropists and CSOs that can have a significant impact on reducing the social sector deficit and poverty alleviation in Sindh. This partnership can be effective only if it is embedded in trust within an enabling environment.

The findings of this study point to-wards a number of areas for policy actions by the Government of Sindh to streamline philanthropic activities in the province. The policy impli-cations are drawn mostly from the results of the Individual Indigenous Philanthropy survey (IIPS) in Sindh and also from PCP’s own experi-ence in this area.

Policy Actions

1. Need for Reducing Trust Deficit:

The issue of trust deficit amongst different stakeholders is a recurring theme throughout the survey. The propensity of household giving to individuals rather than to organ-isations is constrained by lack of awareness and credibility of organ-isations. Trust deficit stands out in two areas. First, a lack of confidence in the Government, and secondly the trust deficit in relation to CSOs, both amongst givers and also within the Government. It is important to note that the trust deficit is not peculiar to Sindh or Pakistan; it is a phenomenon that prevails in many parts of the world, both in develop-ing and developed countries.

Based upon several responses in the survey and PCP’s own experi-ence over the past thirteen years, there are various ways to deal with the issue of trust deficit between the givers and the CSOs. Firstly, it is important to enhance awareness about institutionalised giving and strengthen the institutional and le-gal framework for regulating CSOs to improve their credibility that may result in diverting philanthropic giv-ing towards organisations. Secondly, lack of trust amongst general public on the government-run schemes and programmes is another import-ant area that needs attention. The findings show that lack of profes-sionalism and transparency, and lim-ited capacity of the public service delivery departments inculcates mistrust amongst the beneficiaries.

Some policy initiatives relevant to address the issue of trust deficit are:

• The government should focus on development programmes that would enhance involve-ment of people in the process to create a sense of ownership and trust in the local govern-ment. The Union Council Based Poverty Reduction Programme (UCBPRP) has been a pioneer-ing initiative by the Sindh Rural Support Organisation (SRSO) and the Government of Sindh for reducing poverty through the people-centred approach. An assessment study of the SRSO showed that there is a sense of achievement, own-ership, confidence, and trust amongst the mobilised house-holds (SDPI, 2010).

• Trust deficit between individual / private givers, and the govern-ment departments can also be managed and reduced by pro-moting public-private partner-ships as best practice models aimed to enhance transparency and efficiency of development programmes. PPP ensures regular monitoring by both par-ties, circumvents bureaucratic procedures, and improves the implementation of initiatives. PCP has played a pioneering role in bridging the trust gap between the government, pri-vate sector and the people in the community through build-ing public-private partnerships in the education sector of Sindh, showing significant improve-ment in school environment and quality of education. There is a

Policy Recommendations and the Way Forward

50


need to replicate such initiatives in other sectors as well.

• For effective utilisation of phil-anthropic contributions, CSOs and the local level government should conduct need assess-ment surveys which are free from pre-conceived donor-driv-en agendas to eliminate the mistrust and dissatisfaction prevalent in the community. The community would be satisfied with the development initiatives that are meant to address their needs of social service provi-sion.

2. Creating Awareness about

Philanthropy and its Positive Outcomes:

One of the reasons behind the trust deficit issue is lack of awareness in the general public about the CSOs and philanthropic organisations working in the community. It is imperative that CSOs increase the visibility of their work either through mass-media or cost-effective inter-active sessions in the community to familiarise people with their initia-tives. CSOs traditionally focus on high net worth individuals and or-ganisations and neglect the general public in their awareness campaigns. The qualitative analysis of this study shows that the general public can be a valuable financial contributor to increase the sustainability and success of development initiatives if provided with the relevant infor-mation. It would be worthwhile to direct some resources of an organ-isation towards creating awareness and providing access to information on the accomplished work. It is important to note that the CDP, Government of Sindh has taken some pioneering steps to ascertain the credibility of its CSO partners. CDP entrusted the task of evalu-ating small CSOs working in Sindh and PCP was assigned this task in 2012, where 35 such CSOs were evaluated under PCP’s Certification Model and 12 small CSO’s were cer-tified adding to the list of credible CSO partners after going through a rigorous certification process. This makes it easier for philanthropists to identify credible CSOs for their grants and donations.

3. Enhancing Public-Pri-vate Partnerships:

As the magnitude of the social sec-tor service delivery is beyond the fiscal and institutional capacity of the government, other alternatives must be considered to help achieve social development goals. Exam-ples from other countries show that efforts to create productive and viable linkages with key stake-holders such as the private sector donors and the civil society prove to be fruitful and effective to enhance development, and this may also be a viable option for social sector development in Pakistan.

Public-Private Partnership (PPP) model is based on shared respon-sibilities and shared rewards for all participants. Skills and assets of each sector (public and private) come together in delivering a ser-vice or facility for civic benefit, mul-tiplying inputs to achieve sustain-able development outcomes. Most importantly, the PPP model ensures long-term success, by engaging the coalition of partners including the beneficiaries in planning, implemen-tation and monitoring process.

PCP’s initiative to develop and successfully execute a PPP project for education in Sindh has been a best practice model in this regard. PCP facilitated and led the process of development of “Operational Policy” for PPPs in education which was approved and owned by the Government of Pakistan.

Following the 18th amendment, Gov-ernment of Sindh has taken policy initiatives to enhance partnerships

51


with corporate donors and private sector for education. A committee was set up to review Sindh PPP Act, 2010. Based on the committee’s recommendations, Government of Sindh developed and approved a policy on Adopt-A-School Pro-gramme (AASP) in 2011. Though the Sindh Education Foundation is successfully running AASP, there is still a need to further improve and upscale the AASP model, given the education gap, especially in rural areas of the province. The recent reviews of development policy and Sindh Education Plan, 2013-16 bring to light various implementation gaps in the existing PPPs for educa-tion policy of the Sindh government that need to be addressed in order to improve the effectiveness of these programmes.

Given the fact that the volume of annual individual indigenous philan-thropy in Sindh is Rs. 21 billion (in cash), and the additional estimated annual amount donated by public listed companies of corporate sec-tor in Pakistan is Rs. 4.8 billion (PCP, 2013), the Government of Sindh may tap this substantial resource of philanthropy through an effective policy on PPP for social develop-ment. Similar policy actions should be undertaken for other areas such as health and poverty reduction to bring much needed improvements in areas of social development in the province.

4. Effective Legislation and

Implementation of Policies:

Given the findings of this study that beggars and disabled are the major recipients of Non-zakat donations (76 percent), it becomes important to adopt measures for improving the effectiveness of such giving. De-spite the legislation by the provin-cial government to make Beggary or Vagrancy illegal in Pakistan, its implementation has been very weak as beggary remains widespread in the whole country including Sindh. Concerted efforts are needed to get rid of this social ill by taking specific actions to mainstream the begging families into the socio-eco-nomic system. This, on one hand, requires proper implementation of Vagrancy Law, either by the police or the Interior / Home department of the provincial government, and on the other hand, the provision of employment opportunities for the poor. A large part of donations, especially non-zakat money, going to beggars can be directed towards capacity building of these begging families through the involvement of charitable and philanthropic organisations. There are examples around the world, specifically in neighbouring India of establishing rehabilitation centres for beggars. These centres provide food, shelter, and technical training to provide alternative options to beggars. A taskforce comprising of government representatives from social welfare and Zakat and Ushr departments, CSOs and corporate donors should be created to devise a plan for the establishment of rehabilitation centres for beggars. This will help to channelise individual giving into a sustainable solution for regulating beggary in Sindh.

5. Improving Efficiency of Social Service Delivery Mechanisms in Public

Sector Institutions:

There is clear lack of trust in govern-ment institutions and the process of disbursement of Zakat / Ushr funds, although various commit-tees are constituted by Law2 at the provincial, town and local levels to regulate and distribute Zakat funds amongst the deserving and needy people. Even government officials interviewed in the qualitative survey expressed concerns about corrup-tion, lack of groundwork, and poor utilisation of Zakat funds for the under-privileged people. There are also serious concerns about the wastage of resources, ineffective-ness of social sector institutions and safety nets run by the Government of Sindh.

To deal with these issues, the con-cerned provincial departments need to undertake special measures to achieve positive outcomes such as ensuring the completion of ongoing activities by fully funding projects instead of initiating new ones, con-ducting regular financial audits, and regular monitoring and supervision of activities by senior management of the concerned departments. The implementation gaps of the current laws regarding Zakat and Ushr need to be given serious consideration to have a positive impact on people’s well-being. One possible solution is to associate both philanthropists and credible CSOs in the manage-ment and funding of these insti-tutions. A forum of PPPs could be designed to take this concept for-ward. This will provide the required oversight guidance and ensure additional financial resources from the private sector. There could be some other alternate solutions such as privatisation of social service delivery institutions within an appro-priate regulatory policy framework. However, improving the efficiency and impact of these institutions and their processes need to be consid-

2. The Sindh Zakat and Ushr Act, 2011

52


ered carefully in consultation with all stakeholders. A starting point could be a third party evaluation of such public sector institutions that sifts the facts carefully and identifies weaknesses and issues in service delivery mechanisms. Obviously these cannot be a one-size fit-for-all solution. Better transparency and accountability are, however, com-mon strands to improve efficiency and effectiveness of philanthropy in Sindh.

There are many good examples of improving social sector delivery mechanisms and reaching out to extremely poor households which can be replicated and sustained in the selected areas. For example, Pakistan Poverty Alleviation Fund (PPAF) Social Safety Net Programme provided income generating and skill development opportunities to the poor, resulting in raising both incomes and worth of assets owned (IDS, 2012). The government’s cur-rent practice of giving cash hand-outs in the form of Zakat or other welfare funds is not perceived as effective or helpful as reported by community people in the qualitative survey of this study. Policies and programmes to utilise those funds in a manner similar to the PPAF Social Safety Net Project may prove to be far more beneficial for the community.

6. Capitalising on Giving In-kind:

Significant amount of resources are being given in philanthropy through gifts in-kind (worth Rs. 4.7 billion a year). A major component of giving in-kind in Sindh is the hides of sacri-ficial animals, essentially at the time of Eid-ul-Azha. Amongst various items of in-kind donations, animal hides form a significant proportion donated to religious organisations (71 percent). Given this huge po-tential source of philanthropy and the income generated from it, the relevant departments of the provin-cial government need to tap this re-source into productive investments to fully capitalise on in-kind giving in Sindh.

7. Optimal Utilisation of

Time-volunteerism:

The survey results suggest that spar-ing time to help others is common in Sindh as a significant contribution to the total amount of philanthropy comes from “Time volunteerism”. Of the total giving, the monetary value of in-time philanthropy is Rs. 42.2 billion indicating a major share (62 percent) of total giving. The study results also show that volunteering time is directed more towards individuals including any kind of help to a relative, neighbour or a needy person as reported by 99 percent of participants. More-over, religious reasons and altruism are identified as main motivating factors behind time volunteerism. It appears that some of the time volunteering activities in Sindh are mostly not well coordinated and may not be a readily available resource for its reallocation. There is a need to identify and study how voluntary time is utilised and for what purposes to be able to chan-nelise it to the socially deprived sectors. Hence, optimal utilisation of volunteerism through large-scale organisations should be a policy ob-jective of the provincial government to harness the existing potential for more productive outcomes. Given this situation, what can the government do to identify the us-able part of this resource and chalk out some strategy to tap, harness and utilise this potential for useful purposes? Keeping in view the social and economic conditions in Sindh, it is recommended that PPPs need to be developed in rural areas to reallocate some of the time for social development initiatives, espe-cially in two sectors: education and health. Some organisations work-ing in the community may involve volunteers, through PPP mechanism, in bringing out-of-school children to schools. Similarly, in the health sector, volunteers may be utilised in child immunisation campaigns to identify the non-immunised children and then ensuring the provision of immunisation services to them. The

53


policy framework should provide basis to develop cooperation be-tween voluntary organisations and education and health departments in information sharing, mechanisms of joint working, planning and deliv-ery of social services to the needy. Moreover, as practiced in other parts of the world, awareness about time-volunteerism for social devel-opment initiatives may be raised and encouraged amongst public and private sector employees, especially to address challenges of universal primary education and universal child immunisation in rural parts of Sindh.

8. Improving Effectiveness

of Institutional Giving: This study has shown that the people in Sindh have a greater tendency to direct their giving to individuals rather than to organisa-tions, indicating Rs. 52.9 billion (78 percent of total) given to individuals. This amount, if channelled through efficient, transparent and regulated organisations can have a much big-ger impact on social sector devel-opment, compared to the impact it is making in its current form.

Amongst institutions, Mosques and Madrassahs are the major recipi-ents of individual philanthropy that needs to be utilised more effective-ly to improve education and skills of its trainees and students. There is lack of awareness and accountability regarding the utilisation of this huge resource and its impact on the bet-terment of people in the communi-ty. To improve the effectiveness of faith-based giving, these institutions should be engaged in the broader agenda of social development. In this regard, government’s monitor-ing of curricula of these institutions, to ensure both religious and worldly teachings, is imperative to equip Madrassah students with the skills required to become productive citizens of society. Specific policy actions require partnerships and coordination between Madrassahs / Mosques and the education sector, and labour and manpower depart-ments in order to utilise philan-thropic donations in an effective manner.

Moreover, to institutionalise the philanthropic activities in the prov-ince, it is essential to create a chain amongst social welfare institutions and local social welfare organisa-tions, particularly Madrassahs. In this connection, local government should be involved to mainstream these religious organisations in social development projects. In sum, the foregoing recommen-dations and policy actions require

efforts and reforms at all tiers of ad-ministration, especially at commu-nity level where general public may be the direct beneficiary of philan-thropic contributions. As there are many schemes with overlapping mandate and little coordination and information-sharing on utilisation of funds for the poor, it appears that improvement in one policy action would reinforce change in other related areas as well. Given the fact that people in Sindh contribute large sums in charity and philanthro-py and there is need to organise and improve its management, it is suggested that Sindh Government may form a “Philanthropy Forum” with an opportunity to bring all stakeholders, e.g., government officials from relevant departments, philanthropists, civil society and public representatives, at one plat-form to share their views on pros-pects and challenges of improving effectiveness of philanthropy and evaluate the enabling environment for philanthropy and civil society in Sindh. This suggests that bring-ing all stakeholders at a common platform will raise awareness about philanthropy and increase coordi-nation between the government and the non-government sectors for tapping philanthropic resources more effectively at the provincial level. It may be noted here that the Chief Minister’s Secretariat, Govern-ment of Punjab has recently taken the initiative to form “Punjab Philan-thropy Forum” with the mandate to reduce trust deficit between the government and non-government sector, to increase its collabora-tion for poverty alleviation, and to evolve a consensus-based strategy to promote philanthropy and its impact on society. A similar initia-tive by the Sindh government may be useful in terms of increasing collaborative learning and partner-ship between the government and non-government sector at local and provincial level. The Forum may organise and plan annual meetings and events to discuss and deliber-ate on issues related to philanthrop-ic giving and identify areas and programmes for further action.

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