Cross border philanthropy

Cross-Border Philanthropy
Hudson Institute
Charities Aid Foundation
Presentation Agenda
• Yulya Spantchak – Hudson Institute, Center for
Global Prosperity
• Jane Arnott – Charities Aid Foundation
• Panel – Tao Ze, China Foundation Center; Fiona
Budd CAF Southern Africa, Paula Jansco Fabiani,
IDIS Brazil
• Conclusion
Center for Global Prosperity’s
Research Focus
• Index of Global
Philanthropy and
• Measures International
Philanthropy to from Donor
and Emerging Economies
to Developing Countries
• Provides a More Complete
Picture of Economic
Engagement by Reporting
on Investment,
Remittances, Philanthropy
and ODA.
• Index of Philanthropic
• Assesses the Barriers and
Incentives for Philanthropy
• Includes indicators on CSO
Regulation, Tax Policy, and
Cross-Border Flows.
Index of Global Philanthropy and
Remittances – U.S. Data
• Since 2005, CGP has been
documenting private flows from
developed to developing
• This table shows the total
private and public flows from
the US to developing countries.
CGP’s Emerging Economies Partners for the
2013 Index
• Brazil: Comunitas & Grupo de Institutos
Fundações e Empresas (GIFE)
• China: The China Foundation Center
• India: Sampradaan Indian Centre for
• South Africa: Charity SA & Inyathelo: The
South African Institute for Advancement
Index of Global Philanthropy and
Remittances – Emerging Economies Data
Billions of $
Billions of $
Billions of $
Billions of $
Billions of $
Official Development
Private Philanthropy
Private Capital Flows
Total Economic
Sources: OECD; Hudson Institute’s remittances calculations from emerging economies to DAC recipients based on data from the World Bank’s Migration and
Remittance Team’s Bilateral Remittance Matrix, 2011; Hudson Institute, 2013.
Philanthropy from Developed and Emerging Economies
to International Causes, 2008- 2011 (Billions $)
Remittances from Developed and Emerging Economies
to Developing Countries, 2011 (Billions $)
Philanthropic Flows and the Philanthropic
• Measuring the philanthropic flows is not enough without understanding the
environment for philanthropy and civil society
• How do you measure the philanthropic environment? What indicators do you
Overall Results
• Many high scoring nations are also high income.
• Emerging economies have higher than expected
policies for healthy civil societies and tax
• Low-scoring countries have tax incentives for
donors, but tighter restrictions on CSO activities
and cross-border flows.
Civil Society Registration Scores
• Highest scoring countries all demonstrate low
barriers for CSO registration and operations.
• Brazil, S.A., and India have conducive laws on
the books, but are hindered by cumbersome
• Turkey and Russia have barriers to CSO
registration and operations, and CSOs can be
involuntarily terminated.
• China and Egypt have the highest barriers to
CSO registration and operations, and least
transparent and most cumbersome bureaucratic
processes, which include involuntary CSO
Domestic Tax Regulation Scores
• High scoring nations have high incentives for
corporate and individual donations and allow CSOs
tax exemptions.
• India, Japan, and S.A. provide favorable tax
incentives, but have more restrictions on
exemptions for CSOs.
• Medium to low scoring countries provide fewer tax
incentives, and the process for receiving deductions
in Egypt and Russia is politicized and not
• Low scoring countries do provide tax incentives for
donors, but the process of receiving deductions is
very cumbersome. Only a fraction of CSOs receive
tax exemptions.
Cross-Border Regulation Scores
• High scoring countries have few costs and
restrictions on inflows or outflows.
• Countries with medium barriers have some costs
to sending money abroad and may require
reporting of inflows and outflows.
• Brazil, S.A., and India all require government
approval to send donations abroad.
• Low scoring countries have high barriers,
particularly for inflows from abroad. Strict
government reporting is required, and the
approval process is burdensome and unclear.
Future of Cross-Border
Philanthropy Research
• If you can’t measure it, you can’t improve it!
• Better measurement of domestic and international
philanthropy in emerging economies:
• Index of Global Philanthropy will expand from covering 4
emerging economies to 10.
• Better assessment of the environment for doing philanthropy:
• Philanthropic Freedom Report will expand from 13 countries
to 60 countries.
Cross border philanthropy:
In practice
Jane Arnott, Head of the Global Alliance
Charities Aid Foundation
About CAF
Charities Aid Foundation
(CAF) is a leading
international charity
registered in the UK. CAF
offices span nine countries
across six continents.
Our mission is to motivate
society to give ever more
effectively and help
transform lives and
communities around the
We do this by working
globally to increase the flow
of funds to the charity and
non-profit sectors through
the provision of philanthropy
advice and services.
CAF harnesses local knowledge and expertise to support
sustainable giving around the world.
Growing interest in cross border philanthropy – individuals
 Increase in international tourism
 Increases in migration
 Donors exposed to level and nature of philanthropic need and
 Donations to or from ‘home’ country
International migrants 1990-2013 (Millions)
Growing interest in cross border philanthropy – individuals
 Future World Giving – estimate that by 2030 a rapidly growing global middle class
could contribute $224bn per year to charity by donating just 0.4 per cent of their
income (approximately the annual average in the UK)
 Growing personal wealth/growth of middle classes in emerging economies – desire
to address inequalities
 The changing development context
Growing interest in cross border philanthropy – corporate
Multinational companies: CSR, CSI, shared value and corporate philanthropy
and sustainability
Licence to operate
Multi domestic vs global vs ‘glocal’
Variations in context
Mobility of staff
Top 10 Recipient Countries By Percentage of Companies Contributing
Trends in cross border philanthropy
Legislation for corporates and its influence on giving in different countries
Second generation wealthy – influence of education and travel on
philanthropic approaches
Entrepreneurial wealth – different models of philanthropy
Web based fundraising that is ‘borderless’
Challenges to global philanthropy
 Restrictions in transfer of funds across borders
 Brazil
 Restrictions in the availability of tax benefits for cross border
charitable donations
 India, Australia
 Restrictions on receipt of foreign funds
 Kenya, Russia, Sudan
 Still a strong desire to address domestic issues
 Lack of trust in institutions to spend funds effectively
 Emerging civil societies – lack capacity to receive donated funds
How CAF does it
 Cross border donors vs cross border fundraising
 £85m/$141m in tax efficient trans-national donations via CAF in UK and
America in 2012-13
 Transnational Giving Europe
 Validation for tax efficient giving
 AML checks on donors
 Engage donors across offices
 Friends of Funds
Cross border philanthropy
Cross border philanthropy: panel
Paula Jansco Fabiani
Executive Director
IDIS (Brazil)
Fiona Budd
Client Relations Manager
CAF Southern Africa
Tao Ze
China Foundation Center

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