Asian family philanthropy is ‘a lot more hands-on’—and more corporate—than the West

Asia's wealthiest families manage their philanthropic efforts with a hands-on approach, in contrast to the more detached style seen in Western philanthropy, according to a new report by the Bridgespan Group. The report, released at the Philanthropy for Better Cities Forum in Hong Kong, reveals that 95% of Asia's middle-income families give through their businesses, while only 28% of high-income Western families do the same.

The report attributes this difference to the continued ownership of the families' business interests, which shapes their philanthropic approach.

Gwendolyn Lim, head of Southeast Asia at Bridgespan, notes that Asian families are accustomed to managing extensive business operations, so they prefer to maintain control over their charitable endeavors. This contrasts with Western philanthropists who, having established mature civil-society groups, are more comfortable simply providing funding through grants.

Asian family philanthropy also tends to involve closer collaboration with governments, with over three-quarters of Asian families partnering with the state, compared to 58% of their counterparts elsewhere. This willingness to work with the government stems from Asian families' familiarity with dealing with ministries through their businesses. As a result, Asian families often fund pilot programs to test ideas before scaling successful models to the government level.

The report also highlights that Asian families are more likely to report their outputs, such as the number of schools built or teachers trained, compared to Western families, who are less inclined to disclose such details. However, both Asian and Western families report outcomes less frequently, which is a crucial aspect of evaluating the impact of philanthropic initiatives.

The bridgespan report, commissioned by the Funders' Council, aims to shed light on the unique characteristics of Asia's family philanthropy and the challenges it faces in addressing the growing gap in global development funding.