Greater Good Blog

One of my favorite parts of my job as an advisor to funders and nonprofits is having opportunities to immerse myself in new communities, learn about new topics, and meet inspiring changemakers. The recent AVPN Global Conference, held in Abu Dhabi this past April, offered the perfect confluence of these activities.

I was immediately struck by how familiar the topics were (philanthropists around the world are fighting poverty and global warming), yet how these issues and the methods of addressing them are unique in the Asian context. To deepen my own learning and offer more of Arabella’s partners the opportunity to expand their understanding (especially on the heels of Asian American, Native Hawaiian and Pacific Islander Heritage Month), I sat down with Madhavika (Maddy) Bajoria, Partnerships Director at AVPN and a conference organizer, to gather her perspectives on what makes Asian philanthropy unique and what US-based funders should know. The below is an edited and condensed version of our conversation.

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Jessica: This was my first time attending the AVPN conference, and it was huge. I was impressed by the breadth of the 1,500 participants: individual donors, foundation leaders, NGOs, governments, sovereign wealth funds. With such diversity, I’d love to hear what unites the group. What are some characteristics that you see as unique to philanthropy in Asia?

Maddy: Asian philanthropy is a unique blend of deeply rooted values, hands-on approaches, and an increased appetite for collaboration. Asia has a deep historic and cultural connection to philanthropy due to religious traditions and a spirit of pluralism. Asia ranks third globally in the World Giving Index, led by Indonesia—the world’s most generous country for the sixth consecutive year. People are more inclined to donate money and volunteer their time. In India and China, total private giving reached an estimated US$13 billion (in 2022) and US$21 billion (in 2020), respectively.

Deep cultural and spiritual traditions drive a significant portion of philanthropic activities in Asia. There is, in multiple countries, a strong belief that everybody has something they need but also something they can give. This relational approach plays a significant role in directing philanthropic efforts toward domestic causes rather than international ones.

Additionally, Asia continues to experience fast-growing wealth and will see an unprecedented intergenerational wealth shift by 2030. Asia’s wealthy population is expected to grow faster than any other region in the world, with a growth rate equivalent to approximately 35 new UHNWIs each day. The changing demographic is a critical indicator of the shift from more traditional, private charitable practices to more catalytic and strategic approaches, leveraging technology and innovation to achieve greater impact. The younger generation is also more comfortable with their philanthropy being open and transparent. They see this not as a rejection of the modesty of previous generations, often a core value in Asian cultures, but rather a nod to the urgency of the current moment, recognizing that exposure helps leverage learnings and enable meaningful collaborations.

Jessica: What are some primary ways the philanthropic sector in Asia looks different than in the United States?

Maddy: In Asia, high numbers of family-owned businesses blur the lines between CSR and private philanthropy. Business and philanthropy are inherently linked; most high-net-worth families in Asia still control the enterprises that generate their wealth and fund their philanthropy. It’s almost like a seamless blend of purpose and profit. Also, overall, Asian philanthropy is more hands-on than its Western counterpart, with a local lens. Asian philanthropists are more engaged with local communities. They don’t just write checks; they walk the ground, listen to local needs, and engage deeply.

Along with this deeper involvement comes a much higher prevalence of operating foundations. This preference for operating their own programs is in part due to the more nascent local NGO sector in Asia as well as a desire to have more direct influence. And in general, philanthropy is not as motivated by tax incentives. In Asia, the motivations are more focused on legacy building, religious traditions, and proximity to social issues. It is less about changing the system and more about nurturing the ecosystem, fostering positive change from the ground up.

Jessica: That resonates with what I observed at the conference—one of my core takeaways was “it’s all connected.” It struck me that there is a real focus on collaboration between governments, philanthropists, and the private sector. What are some examples of that trend that excite you?

Maddy: Asian philanthropists have a predisposition toward collaboration, both with one another and with the government. It is less about replacing government efforts than about complementing them, filling in gaps, and enhancing what is already there. This collaborative approach with government is a cornerstone of Asian philanthropy, and collaboration with other stakeholders is becoming increasingly popular, as well. Donors are increasingly aware that if they want to see the change they desire on issues like gender equality, climate change, and poverty, they need to take a holistic, systems lens and work with others to design long-term, effective solutions. Investor platforms are a key pathway to bring stakeholders together. For example, the Asia Investor Group on Climate Change (AIGCC) represents the perspective of the Asian investor in global discussions on climate change and the transition to a net-zero emissions economy.

At the AVPN Global Conference 2024 in Abu Dhabi, we saw the launch of several such multi- stakeholder collaborations. For one, the UAE announced a US$50 million commitment to the second phase of the Lives and Livelihoods Fund 2.0, a multi-donor development initiative that supports Islamic Development Bank member countries in building sustainable pathways out of poverty. As another example, AVPN launched a social investing system, Impact Collab, with the support of the Monetary Authority of Singapore. Tailored for financial institutions, family offices, ultra-high-net-worth individuals, and impact organizations across Asia, the system aims to facilitate philanthropic giving and impact investing. In its first phase, Impact Collab’s platform will provide an unbiased way to calculate the outcomes of what impact organizations do. This will provide social investors with access to reliable data to use in decision-making. It will first be available to family office advisors, wealth advisors, and private bankers in Singapore.

 Jessica: What advice do you have for US-based philanthropists who are looking to expand their reach to Asia?

Maddy: My advice would be to work closely with intermediaries who have a strong footprint on the ground and can grease the wheels and enable them to maximize impact. Working collaboratively with intermediaries will lead to a multiplier effect. With growing momentum in the diverse and evolving philanthropy landscape, which is populated with a range of stakeholders ready to take on the next phase of progress, it is an exciting time to take part in shaping the growth of social investment in Asia. We would invite everyone reading this to consider becoming a member of AVPN, which plays a crucial role in forging a united approach to tackling Asia’s most urgent issues. We also invite US-based philanthropists to join one of our thematic communities of practice, Climate Pathfinders or the Asia Gender Network. These communities of practice will enable them to cross-pollinate regionally relevant ideas and learn together.

Finally, I would strongly encourage anyone looking to deploy capital in Asia to join a collaborative funding mechanism or work with a regranting partner. These partnerships offer the benefit of local and regional expertise, ensuring your investments are well-informed. The collaborative pooled funds that AVPN has piloted in the region have been a great example of how working in a group of funders, with support from subject-matter experts, is an effective way to increase the impact of each dollar spent, reach more marginalized communities, and allows one to embrace calculated  risks for greater potential rewards. With these suggestions, US-based philanthropists can navigate the Asian landscape more effectively, collaborate strategically, and make a significant contribution to positive social change in the region.