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More philanthropy funds focusing on climate change needed: Reports
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More philanthropy funds focusing on climate change needed: Reports

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To support green causes and efforts to further climate action, Mr David Heng, chief executive of a private equity fund, set up the Mind the Gap 200 – Sustainable Earth fund in 2019.

It is part of a project Mr Heng, who is in his 50s, undertook with nine friends and the Community Foundation of Singapore.

The fund, which supports charities and programmes that address some of the United Nations’ sustainable development goals, is one of the few set up by philanthropists to tackle climate change.

The cause attracts less than 2 per cent of philanthropic giving globally, according to global non-governmental organisation ClimateWorks Foundation.

A recently published 110-page guide by investment bank UBS is looking to change this by showing donors, philanthropists and investors how to fill the climate funding gap, and the benefits and impacts of “green philanthropy”.

The report, called On Thin Ice, comprises insights and tips from more than 40 experts in the areas of sustainability and investment.

The report also emphasises the importance of prioritising climate funding since the dangerous impacts of climate change will cut across other focus areas such as children’s health, mental well-being, inequality and food security.

“While the need to engage directly with climate change is now recognised, many who may have the means to take action are unclear on how to best use these resources to achieve the greatest impact,” said Ms Hannah Wood, one of the authors of the report.

Ms Wood, programme director of UBS Optimus Foundation, added that areas that need funding include the energy transition, agriculture and climate research.

“Investors may wish to consider investing in key sectors such as renewable energy and carbon capture, energy efficiency and smart mobility.”

Shifting to renewable energy and scaling up research are expensive. The International Energy Agency estimates that 70 per cent of clean energy investments over the next decade need to come from private investors, consumers and financiers.

Limiting global warming to 1.5 deg C by 2030 will require an extra US$4 trillion ($5.5 trillion) investment in clean energy projects and infrastructure every year.

Beyond money, philanthropists and investors can also use their influence as shareholders to push for positive environmental change in companies – especially for firms that are economically important but polluting, added Ms Wood.

ClimateWorks Foundation said that between 2019 and 2020, overall philanthropic giving grew by 3 per cent while climate funding grew by 14 per cent.

Mr Heng is the founder and CEO of $405 million impact investment fund ABC World Asia.

Impact investment funds aim to generate positive environmental and social impact while bringing good returns to investors.

For Mind the Gap 200, people can donate to it through the Community Foundation of Singapore, a charity that encourages and helps to enable philanthropy in Singapore by matching donors’ interests with various causes.

Ms Catherine Loh, chief executive of Community Foundation of Singapore, said interest in green philanthropy picked up here when the Singapore Green Plan 2030 – a movement to advance the national agenda for sustainable development – was announced early last year.

From this year to 2024, the foundation will prioritise five issues for grant-making, and one of them is climate and environment.

This covers environmental conservation efforts, research into climate-related phenomena and climate solutions, added Ms Loh.

“The inclusion of this as an area of focus stems from the recognition that a healthy natural environment is conducive to the well-being of a community,” she said.

She cited the Khurana Nurture Foundation, which supports the Institute of Technical Education’s green ambassadors, training them to be the next generation of environmental activists.

The philanthropic organisation also helps people with disabilities pursue a career in urban farming.

Those philanthropy efforts together address climate action, education, social welfare and jobs.

Charitable family foundations The Straits Times contacted declined to be interviewed because they prefer to keep a low profile about their philanthropic work.

Ms Wood said: “There are big returns to be made from environmental philanthropic and sustainable investments, and as the pace of change continues to speed up, the wisest will be out ahead of the curve driving the transition.”

This article was originally published in The Straits Times here. Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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News

Donor-advised funds can make a meaningful impact in Asia

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Such funds give donors more say in the philanthropic process, and can lead to donors being tipped off about underfunded causes. These funds also make it possible for non-millionaires to do their bit.

WHAT do Jack Dorsey, Larry Page, Elon Musk, Jack Ma and Mark Zuckerberg have in common in terms of their charitable giving?

All of them have used donor-advised funds (DAFs) in short. DAFs are popular in the United States, with over US$140 billion sitting in these accounts. In Asia, DAFs are relatively new with only Singapore, China, South Korea and Japan setting them up.

What exactly is it? In a DAF, the donor transfers money or other assets to another entity called the sponsoring organisation. While the sponsor legally owns the assets, the donor is given a huge say in determining when the fund is disbursed and causes to support, hence the name “donor-advised funds”. Typically, the sponsoring organisation will provide advisory services to the donor on how to effectively utilise the funds.

At this juncture, a reader may ask what is the difference between a DAF and an organisation like the Community Chest in Singapore, which raises funds for multiple charities?

The major distinction is the role of the donor in the DAF, as compared to the donor making an outright contribution to charity. In a DAF, the donor is an active participant, working in collaboration with the sponsoring organisation, in disbursing funds.

Let us say, we have a philanthropist who wants to make a S$1 million contribution to educational causes. While S$1 million is certainly a lot of money, it is insufficient to set up a private foundation due to the administrative costs involved. A donor who uses a DAF may direct the funds to support worthwhile causes in education, while being properly advised.

In many cases, the donor is a wealthy person who may not be familiar with what is happening on the ground. Therefore, the sponsoring organisation adds value by providing advisory services.

In this example, the sponsoring organisation may, after doing due diligence, recommend that the donor disburse funds to underfunded causes like pre-school, technical and special-needs education.

DAFs can also function as an emergency fund for a “rainy day”. For instance, there could be an emergency societal need like children living under Covid-19 lockdown conditions, who are now deprived of sponsored school lunches. Money from DAFs could then be channelled to fund food vouchers for their families during home-based learning.

In fact, this was the cause championed by The Recess@Home programme spearheaded by the Community Foundation of Singapore, a DAF.

BENEFITS OF DONOR-ADVISED FUNDS

A DAF is attractive to donors because of the many benefits it offers.

First, the DAF gives the donor a greater role in the philanthropic process. This sense of satisfaction that the donors get may encourage them to give more to charities in future and set up a private foundation. In fact, in setting up the first DAF in Singapore in 2008, then Minister for Community Development, Youth and Sports, Vivian Balakrishnan, described it as a “starter kit for foundations”.

Second, the donor is supported by DAF sponsors, who are intimately aware of the needs of the community. Therefore, the funds can support the causes that are desperately in need.

Third, the DAF, if properly used, may achieve maximum impact by making contributions to underfunded areas. Fourth, the donation to a DAF need not be a cash gift, but may take the form of company shares or other non-cash assets. Finally, some countries provide requisite tax breaks to donations to DAFs.

The biggest advantage of the DAF is democratisation of philanthropy from the ultra-high net worth families to individuals who have a modest sum to donate. A heart-warming example is the story of the late Kim Gun-Ja, who set up a fund with the Beautiful Foundation, a South Korean DAF. Ms Kim, a sex slave under Japanese rule, donated all her assets save for funeral costs to set up the Grandmother Kim Gun-Ja Fund to support college tuition for orphans. In Singapore, a DAF may be set up with a minimum sum of S$200,000.

Recently, DAFs have come under trenchant criticism in the United States; some quarters have called it a form of “zombie” philanthropy. The main critique is that donors enjoy tax breaks while disbursing too little to charities. Some have called for a law that mandates the DAF to pay out a certain percentage annually. While this criticism of DAFs is legitimate in the United States, it may not apply to DAFs in Asia, where tax breaks are not the primary motivations behind philanthropic giving.

DAFS IN SINGAPORE

There is anecdotal evidence, at least in Singapore, that the level of disbursements to charities is quite high. For example, the two DAFs in Singapore, the Community Foundation of Singapore and SymAsia Foundation Limited, show a high payout rate to charities. The Community Foundation of Singapore has collected S$192 million and disbursed S$114 million in grants. SymAsia Foundation Limited stated in its 2020 annual report that it collected S$170 million and disbursed S$120 million. In fact, donors are conscious that they ought to disburse more to charities.

RISING PAYOUTS DURING THE PANDEMIC

There is currently a campaign in the United States called #HalfMyDAF, where donors are committing to granting half of the money sitting in their DAFs to charities. During this pandemic, there are reports in the United States that payouts from DAFs to charities have indeed been higher, even as critics push for the payouts to be even more accelerated. In contrast to the cautious and structured giving inherent in DAFs, there is McKenzie Scott, ex-wife of Jeff Bezos, who upended the philanthropic world by donating US$6 billion in 2020.

With proper governance, DAFs yield a net-positive over the Asian philanthropic space, compared to an informal channel of giving that relies on one’s family and business contacts. A DAF provides a structured and cost-efficient vehicle that democratises philanthropy and identifies societal needs that are underfunded. It is hoped that there would be more properly governed Asian DAFs set up, with high payout rates to charities to tackle difficult domestic and pressing transnational problems of our time, like climate change.

To find out about donor-advised funds, read more about it here.

This article is written by Professor Tang Hang Wu, CFS Board Committee Member and a professor of Law at the Yong Pung How School of Law, Singapore Management University.

This translated article was originally published by The Business Times.  

Credit: The Business Times © Singapore Press Holdings Limited. Permission required for reproduction.  

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Stories Of Impact

Heart Of Goodness: The Vocal Prowess Of Stefanie Yuen Thio

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She stands out for her irreverence. Her saucy humour. Her no-holds-barred views on a gamut of issues from cryptocurrencies to shady KTV business owners. However, right now, flanked by vibrant Pop Art in her living room and two energetic dogs, Stefanie Yuen Thio is in “pensive mode”. In fact, she is downright disturbed.

As part of the Singapore Together Alliance for Action (AfA) to tackle types of online harm, the corporate lawyer has just come from a discussion about the growing harassment women face. “It’s not just sexual grooming and revenge porn,” she says. “Women, more than men, face a higher incidence of gender-based abuse on the internet such as cyberstalking, trolling and violent threats, and teenage girls are even more vulnerable. 

“We need to take a stand. It’s time the community took control,” she says. AfA is a government-led initiative, tapping youths, tech companies and academics, as well as corporate figures such as Yuen Thio, to come up with ways to make the online world a safer space. Foremost is to raise public awareness of the need for it, as victims typically have little idea what to do. 

Other goals are to create a code of best practice, to offer assistance and to scrutinise how social media is shaping online behaviour as well as mental wellness. A recent study from Nanyang Technological University, for example, found that the more time we spend on Facebook, the greater our risk of suffering from depression. 

A Voice For The Underprivileged

Yuen Thio knows well how social media can define us. Her voice is regularly heard on LinkedIn, where she has over 13,000 followers and was ranked one of Singapore’s top voices in 2020. She can also be heard on the BBC, where she is a guest commentator. Her tongue-in-cheek posts can be uninhibited, sometimes raising eyebrows and drawing flak. But this is not distracting Yuen Thio, who is clearly comfortable marching to the beat of her own drum, from championing the causes she believes in and sparking conversations that could galvanise change.

The online harms alliance, launched in July, is the latest of Yuen Thio’s advocacy work outside of her day job as joint managing partner at TSMP Law Corporation, a boutique corporate-law practice. She is also bringing her energy and savvy to the pandemic’s exigencies: as Singapore battled Covid-19, she has been driving efforts to help frontline workers and those hard hit by the cratering of the economy. 

“I read a story about an ambulance driver who was turned away from a chicken rice stall and about nurses who could not get a taxi home,” she says. It dredged up memories of SARS, when hospital staff were shunned during the 2003 outbreak for fear of them somehow carrying the virus. “I thought f— that! We’re not doing that again,” she says.

Empowering Others To Help

So, early on in the crisis, she helped put in motion the Sayang Sayang Fund with the Community Foundation of Singapore (CFS), a nonprofit that promotes philanthropy. Yuen Thio, who sits on the board of CFS, seeded the fund with a $20,000 gift. Managed by CFS, the Sayang Sayang Fund has since ballooned to over $9.6 million and supported more than 359,302 people in the Republic. 

Her law firm, too, has stepped up. With many of its staff working remotely via laptops, TSMP is donating unused desktops to the needy. The firm, which sets aside 10 per cent of annual profits for charitable giving, has been sponsoring meals and care packs for hospital workers. And, in Cheng San-Seletar constituency — its MP is Nadia Ahmad Samdin, a former TSMP lawyer — its staff have befriended and accompanied seniors to get vaccinations. 

This hands-on volunteering is in addition to the pro bono work the firm does. All its lawyers are encouraged to do 25 hours per year, to improve access to justice for the under-served. The firm takes a special interest in cases where migrant workers are treated badly and works with groundup initiatives such as Humanitarian Organisation for Migration Economics, Transient Workers Count Too and It’s Raining Raincoats

Yuen Thio, who was an advisory board member for the NUS Centre for Pro Bono & Clinical Legal Education from 2018 to 2020, recalls a tea that TSMP organised for foreign domestic workers. “We talked about their rights. And so many of them cried because nobody had ever looked at them with much humanity,” she says.

The Law Firm That Gives

The firm has also established the TSMP Law Foundation to allow more structured giving, something Yuen Thio is hoping to prod more wealthy Singaporeans into doing. With husband Thio Shen Yi, who co-founded TSMP with his mother, the couple has created a #GivingBack Foundation through CFS, which helps individuals set up and manage funds and grants. The foundation also works with over 400 charity partners in Singapore. 

Through these plans, she hopes philanthropy will be less ad hoc and will become more a part of the Singaporean DNA. As part of their legacy gifting outreach, for instance, CFS is encouraging everyone to leave something in their wills to charity, be it properties, equities, art or wine. But beyond that, she wants Singaporeans to start on their philanthropic path earlier in life. 

“Charity should start early and not only after you die,” says Yuen Thio. CFS can help set up foundations within as little as 24 hours and is reaching out to the well-off through private bankers and family offices. 

She also advocates getting the next generation involved to further institutionalise giving. “The tragedy of this generation is a sense of purposelessness. There are too many safety nets,” reckons Yuen Thio, who has a son studying in London. 

However, she notes that the youth of today also have an altruistic streak and can be swayed by causes such as climate change and social inclusion. Their motivations, compared to “my generation whose goal was to make money first”, will undoubtedly shape the future of philanthropy.

What is also firing her up at the moment is how women are reshaping philanthropy. She describes the no-strings attached, big-ticket giving by MacKenzie Scott, ex-wife of Amazon tycoon Jeff Bezos, as inspiring. In her opinion, “…Women are more concerned about impact, not control. We look at needs and, in my experience, are much more ready to open our wallets when a cause resonates with us. We tend to give from the heart, men from the head. Men are less emotional, they think of data and longevity of legacy,” she says.

Another generous giver is Melinda French, the ex-wife of billionaire Bill Gates. Both Scott and French are donating to causes that empower women and boost education — things that Yuen Thio believes could turn the tide for gender equality. Reflecting further on how these women have come into their own after their divorces, she says, “Sometimes, when the wife has lived in the shadow of her husband, you need a marriage to break down for a woman to really shine.” 

Strength in Solitude

For herself, she has found solo travel to be empowering. Yuen Thio embarked on her first one three years ago and chose Beirut. “I had never lived by myself or had my own space. I wanted to feel how it was to be my own person in the world, out of my comfort zone,” she says.

Armed with her telephoto lens, the photography enthusiast made her way to the Lebanese capital and was thoroughly struck by the city’s contrasts. A memory of the bombed-out Holiday Inn rubbing battered shoulders with the palatial Intercontinental Phoenicia stands out for her, attestation to the resilience and durability of the human spirit.

Women, more than men, face a higher incidence of gender-based abuse on the internet such as cyberstalking, trolling and violent threats, and teenage girls are even more vulnerable. We need to take a stand. It’s time the community took control.

When she turned 50, she packed her bags for a solo trip to Bordeaux and then to Auschwitz-Birkenau. She chose the wine region in the southwest of France because she speaks French, and the concentration camps in Poland to try and comprehend the past. “I wanted to understand human history,” she says, adding that we shouldn’t run away from confronting terrible things. Walking through the extermination chambers, she was shaken by the banality of evil. “I remember thinking, ‘This is what evil feels like. It creeps up on us.’” 

Covid-19 has halted her travels, both for work and for leisure, but it has also given her time to slow down, connect more, write more. 

“I’ve always liked writing,” says Yuen Thio, who spent one holiday during her university days as a cub reporter for The Straits Times Life!. Whether advocating for clients, the under-served, or simply musing on an issue that moves her, Yuen Thio makes an impact with her inimitable, eloquent voice.

If you would like to begin your journey of giving back, get in touch with us.

This article was originally published in A Magazine here. Permission required for reproduction.

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Stories Of Impact

2023 Goh Soon Tioe Centenary Award Winner Megan Low: Music is her Ikigai

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Congratulations to Megan Low, this year’s winner of the Goh Soon Tioe Centenary Award, which supports young Singaporean musicians who have consistently demonstrated outstanding musicianship and performance. The Goh Soon Tioe Centenary Fund, a donor-advised fund which CFS has managed for over a decade, honours the legacy of Mr. Goh Soon Tioe, a pioneering and accomplished violinist, conductor, and teacher.

Megan is thrilled to be joining the community of previous award winners and is excited about the performance opportunities that come with the award. The prize money will help defray the cost of a Master’s Degree in Violin Performance, which Megan hopes to pursue after graduation.  She is currently in her final year of a Bachelor of Music (Honours) degree in Violin Performance at the prestigious Yong Siew Toh Conservatory of Music, under the tutelage of internationally-renowned violinist Zuo Jun.

Of her success, she says, “My parents have been my biggest inspiration in my music journey and have supported me every step of the way. They taught me that success only comes with hard work. They also taught me the concept of Ikigai – where one’s passion, mission, vocation, and profession overlap and becomes your reason for being.”

It was her parents who filled their home with classical music and inspired her to ask for violin lessons at the age of three and then piano lessons at seven. At sixteen, she made her solo debut with the Orchestra of the Music Makers.

Megan’s passion for performance has taken her to many stages locally and abroad, from Asia to Europe and the US. Most recently, her piano trio won the first prize at the 17th Cecilia International Music Competition 2023 in Japan.

The young musician is most accomplished at playing Romantic music, yet her most memorable experience was performing the complex Baroque masterpiece, Bach’s ‘St John’s Passion’. Megan says, “I most enjoy collaborative music-making in chamber music and small ensemble groups. I would love to dive deeper into that in the future.”

A believer in the restorative power of music, Megan also harnesses her musical talent as a gift to uplift others. During the Covid-19 pandemic, she and her peers held a workshop for the staff at Sengkang General Hospital, in which they introduced music as an avenue for stress relief and creative expression. The tunes created during the workshop were sampled and turned into an original soundtrack, which was then played in the hospital lobby. During the Christmas season, Megan and her friends also brought cheer to the residents at the All Saints Home by performing familiar tunes.

As she embarks on a promising music career, this young lady hopes to continue performing and teaching music – her ikigai – for as long as she can.

Learn how you can work with CFS to support talented musicians like Megan and boost Singapore’s arts scene –  https://www.cf.org.sg/giving/ways-to-give/

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Opinion

Leaving a Legacy for Future Generations

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Legacy giving is a powerful way to inspire and enable future generations to create a better Singapore. By including a donation to charity in your financial and estate plans, you can ensure that the causes and communities you cherish continue to thrive. A recent survey showed that more than 60% of respondents would leave a legacy gift to help others in the community, but only 20% of respondents knew how to make a legacy gift. We hope this article helps demystify legacy giving.

What can you give?

As part of planning a legacy gift, you could choose to give:

  • Cash via a will
  • Non-cash assets such as marketable securities (publicly traded shares, bonds and unit trusts) via a will
  • Portion of CPF monies via CPF nomination
  • Portion of the insurance payout via insurance policy nomination

Who can you give to?

Whether you have a diverse range of charitable interests or a particular cause in mind, you can leave your legacy gift to The Community Foundation of Singapore (CFS). CFS’s grantmaking expertise and exemplary governance standards ensure that your legacy gift will be in safe hands, enabling you to make a difference just as you have planned. Alternatively, you could also leave your legacy to a specific charity of your choice.

How do you plan an estate gift to CFS?

To leave a legacy gift from your estate to CFS, you could specify the gift in your will, or nominate CFS as a beneficiary of your CPF monies or insurance policy. Dr Ang Beng Ti and Dr Audrey Looi plan to leave their legacy gift to CFS in their wills, in order to set up an endowment fund that will support the charity iC2 PrepHouse well beyond their lifetimes. You can read their inspiring story on our website or watch their story on YouTube.

What is a memorial fund?

A memorial fund is a fund that is named after a loved one to commemorate them and continue supporting causes close to their heart. Dr Lim Boon Tiong’s daughters understood how passionate their father was about urological cancer research, palliative care and eldercare, so they established a donor-advised fund in his name with CFS using a bequest from his will. Read about how CFS helped the sisters to carry on their father’s legacy.

Is it possible to start making an impact now and still leave a legacy gift later?

Yes. CFS makes it easy for you to give both now and later. You can establish a donor-advised fund to start your philanthropic journey now. Once your fund is started, it is simple to make supplementary gifts over time directly or through a will or nomination. David Lim is an example of a passionate philanthropist who plans to do just that. 

Legacy giving is a way for everyone to leave a Greater Gift that will benefit generations to come. Learn more about legacy giving and read more stories about people who have chosen to make a Greater Gift at https://legacygiving.sg/

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