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Pragmatic Reasons To Engage In Philanthropy

For those who are privileged enough to have the means to make a positive impact, embarking on a philanthropic journey could be the most effective way to change the world.

Pragmatic Reasons To Engage In Philanthropy
United Nations

Educator George Jacobs became involved in philanthropy because he wanted to put his money where his mouth is. As someone who feels strongly about contributing to greater food security in Singapore, the passionate advocate for a vegan lifestyle established the Relaxed Fund to promote horticulture in the little red dot.

“My wife and I wanted to encourage people to eat more plant-based foods, as these foods boost human health and address global warming issues. One way to convince people to change their diets is to immerse them in growing greens themselves, so they feel a sense of ownership. Thus, they want the greens to find a good home — in their stomachs,” he says.

In partnership with the Community Foundation of Singapore, which enables philanthropy by matching donors’ interests with causes, the Relaxed Fund has thus far spearheaded the launch of three edible community gardens. Jacobs regards these gardens as a tangible step towards increasing the country’s self-reliance on food, saying, “The government has a 30 by 30 goal, for Singapore to produce 30 per cent of our food needs by 2030. Everyone needs to help if we are to reach this goal and home and community gardening is one method of achieving the target.”

George Jacobs at a climate rally The educator created the Relaxed Fund, which has launched three edible community gardens.

Practically speaking, there is a need for the wealthy, particularly in Asia, to step forward the way Jacobs has. “Asia has amassed one-third of the world’s wealth, but still has two-thirds of the world’s poor,” says Dr Ruth Shapiro, chief executive officer of the Centre for Asian Philanthropy and Society (CAPS).

In the wake of the Covid-19 pandemic, international support is on a gradual decline, which means an “Asia for Asia” centric philanthropy has to fill the gap, the Doing Good Index, the latest study by CAPS indicates. “There is now a unique opportunity to use this newly created wealth to alleviate poverty, protect the environment and promote societal resilience,” Dr Shapiro adds.                                          

The advantage of philanthropy in its various forms is that it enables donors to steer the impact they hope to achieve in their field of interest. “Many donors who come to us already have a passion for a particular cause,” explains Catherine Loh, chief executive officer of the Community Foundation of Singapore (CFS). To date, its donors have given about $70 million to over 400 non-profit organisations in the areas of education, health, social and welfare, arts, culture, environment and more. “While charity is a natural, emotional impulse to an immediate situation and giving usually occurs in the short-term, philanthropy addresses the root cause of social issues and requires a more strategic, long-term approach.”

She cites former president SR Nathan, who established an education endowment fund with CFS after he stepped down as president, spurred by his personal experiences of overcoming hardships. The endowment fund has since helped many beneficiaries graduate with diplomas and degrees, hence securing a better future for these individuals and their families, an outcome that was close to his heart.

There are also business imperatives that spur some to engage in philanthropy. For starters, Singapore has the highest tax subsidy for charitable giving in the world at a rate of 250 percent for individuals and companies, which offers a strong incentive to give.

It also bodes well that many companies do care about the communities in which they operate, observes Dr Ruth Shapiro of CAPS — and philanthropy gives them an avenue to engage with these local communities in various ways. Funding social delivery organisations is one straightforward way of doing so. According to the Doing Good Index, the average social organisation in Singapore only receives 16 percent of their budget from companies, indicating there is potential for further monetary contributions.

CFS CEO Catherine Loh says philanthropy, unlike charity, addresses the root cause of social issues and is a long-term approach.

“Businesses can encourage their employees to volunteer and sit on boards of non-profit organisations and social enterprises,” Dr Shapiro adds. She notes that in Singapore, only 55 percent of non-profit board members have corporate experience, hence encouraging volunteering in this form would allow important skills and business rigor to transfer to the social sector. Taking on such roles may also provide individuals with an additional opportunity to develop leadership skills that can benefit the business in turn.

Philanthropy via the establishment of a foundation dedicated to a specific cause can also be instrumental in uniting successors of a business or a family with shared purposes. “This is one way to pass on one’s interests and values and an opportunity to make an impact now in their lifetime and beyond,” says Loh.

Ultimately, at the end of the day, the oft uttered trope that by doing good, one feels good too might be the most powerful motivating factor. This concept, which is advocated by French neuroscientist turned Buddhist monk Matthieu Ricard, has been proven in many studies that show people who give are significantly happier than those who spend only on themselves.

Jacobs of the Relaxed Fund could not agree more. He says, “My wife and I have already lived for over sixty comfortable years. Taking a little time from our schedules instead of watching Netflix and spending a little of the funds we have accumulated, instead of using them for some products we do not need, is a sweet feeling.”

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