Opinion

How Family Offices Could Shape Philanthropy

Opinion

Home Resources Opinion How Family Offices Could Shape Philanthropy

Opinion

How Family Offices Could Shape Philanthropy

John Doe

Singapore has a long history of family philanthropy. The first family foundations were established after World War II and they donated generously to alleviate poverty, care for the vulnerable and build schools and hospitals. Today, there are over 400 foundations and trusts registered with the Commissioner of Charities but families that institutionalized big-ticket giving early on – such as the Lee Foundation and the Lien Foundation – continue to dominate philanthropic giving in Singapore.

Family offices are entities which typically manage assets for or on behalf of a family. And Singapore – well-regulated, transparent and politically stable – is rapidly becoming the region’s preferred choice for family offices. In 2020 alone, approximately 200 single family offices were set up here, doubling the total count. As wealth grows, charitable giving is likely to keep climbing.

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These high-net-worth families have the potential to shake up philanthropy in Singapore. Traditionally, the Asian family office was an extension of the family business, with a laser-sharp focus on the bottomline. “However, as founders age and younger successors take over, we expect to see greater value placed on sustainable and responsible investing as well as on strategic philanthropy,” says our CEO Catherine Loh.

Research firm Wealth-X estimates that $1.9 trillion worth of wealth in Asia will be passed on to the next generation in the coming decade. For many heirs, giving back is emerging as an integral part of doing business. For them, philanthropic activities are an optimal way to build and sustain a family’s legacy, strengthen family cohesion and better engage family members.

But here’s where it gets interesting. “Family offices have the power to shake up traditional philanthropy as they tend to be more agile and responsive compared to large foundations or corporate foundations, which are answerable to multiple stakeholders and layers of decision makers. Secondly, family businesses tend to be built by entrepreneurs and disruptors, making them more open to new ways of doing things,” says Catherine.

What this means is that the new wave of family-driven philanthropy could fund untested, possibly radical new approaches to problems. It could find innovative ways of harnessing capital for social impact. It could move away from cheque book charity to a more engaged approach which could lean towards social enterprises or private-public initiatives.

However, while most family offices across the globe are engaged in some form of giving back, only 41% of them have a philanthropic strategy in place, notes the Milken Institute. Few family offices have the in-house expertise to evaluate nonprofits, deploy philanthropic dollars optimally, or monitor and measure impact.

“At CFS, we believe giving should be thoughtfully planned and driven by evidence-based insights,” says Catherine. As a cause-neutral philanthropy advisor, CFS offers unparalleled access to over 400 charities in Singapore, across a diverse range of sectors. We conduct due diligence to ensure the giving is accountable and creating a social impact.

For family offices, a cost-effective and flexible way to embark on philanthropy is to set up a donor-advised fund (DAF). Since 2008, CFS has set up close to 200 DAFs: of these, almost half have been for families. We pool donor funds for investment management and with over $90 million in assets at any one time, smaller individual funds can reap the economies of scale that large foundations enjoy. Beyond this, as the country’s largest convener of philanthropic activities, we mobilise donor capital through collaborations and collective models to scale up impact and generate more empowering solutions.

If you would like to find out more about how CFS can help you achieve your giving goals, please click here.

References:

June Lee (January 2019) Exploring Family Philanthropy in Singapore – Asia Centre for Social Entrepreneurship & Philanthropy, National University of Singapore https://wings.issuelab.org/resources/34346/34346.pdf
EDB Singapore (February 2022) How Singapore is Becoming Asia’s Family Office Hub https://www.edb.gov.sg/en/business-insights/insights/how-singapore-is-becoming-asia-s-family-office-hub.html
Richard Newell (March 2022) New study sees Singapore as top family office hub – Asian Investor https://www.asianinvestor.net/article/new-study-sees-singapore-as-top-family-office-hub/476226
Milken Institute (June 2021) Philanthropy in a Family Office https://milkeninstitute.org/article/philanthropy-family-office

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Stories Of Impact

HOME: Helping vulnerable migrant workers through crisis

John Doe

With almost one million low-wage migrant workers in Singapore, there is an increasing appreciation of the important role they play in our society. Yet, while migrant workers make up a significant part of our social fabric, their issues and challenges may often remain invisible from public view.

Since 2004, the Humanitarian Organisation for Migration Economics (HOME) has been aiding migrant workers in crisis situations. These workers have often suffered exploitation and abuse ranging from overwork, injury, wage theft to physical and emotional abuse. HOME supports around 2000 non-domestic workers and domestic workers each year.

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“Many of the workers who come to us are already quite traumatised,” says Sheena Kanwar, Executive Director of HOME, “It is quite a journey for them: from making the decision to come here, receiving support, recovering from crisis and moving on with life.”

Support from donors to the Migrants Emergency Assistance and Support (MEANS) Fund, a community impact fund managed by the Community Foundation of Singapore (CFS), has helped HOME to provide immediate and short-term financial assistance to distressed workers. The financial support covers the basic necessities, medical care, transport and mobile phone top-ups. To date, the MEANS fund has disbursed around $60,000 to HOME.

Financial assistance is critical for these workers; many of them have no savings or have not been paid a salary for several months. If a worker decides to make a legal complaint against their employer, they may end up staying in Singapore for several years. “We help ensure there is a basic sum for their everyday well-being through this process, from food, transport to their medical needs,” says Sheena.

Beyond financial assistance, HOME has created “a sustainable system that allows us to respond to the different needs of a migrant worker in crisis,” explains Sheena. These services include help desks, legal, medical, and counselling teams, a shelter for vulnerable domestic workers, skill-building classes, to helping workers through re-employment. Moving forward, HOME looks to expand its reach, especially to vulnerable migrant workers from the Myanmar and Indian communities.

For these workers, HOME has opened a vital window of support – and even a new lease of life. Take Jofel, a domestic helper who has been living at HOME’s migrant worker shelter for over a year. After attending an art therapy class by the HOME Academy, Jofel stumbled upon her creative talent. She started to pursue her passion for handicraft, actively picking up skills online each day. Today, she is skilled at designing and producing a wide range of items, from bags, candles to flower bouquets. “I’m very grateful to HOME for its support. I discovered myself and my creative abilities here,” says Jopel. Upon her future return to her home country, Jopel hopes to start her own business.

Sheena is heartened by the surge of support amongst Singaporeans towards the plight of migrant workers; from enthusiastic young students who ask to join HOME’s projects, to HOME’s dedicated teams of legal, medical and counseling professionals. She says, “The support and empathy for migrant workers have gone up tremendously over the last five to seven years. It’s very heartening that people genuinely see the need for the work that we do.”

To support the MEANS Community Impact Fund, visit here

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John Doe

The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.
L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛：比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后，他几乎每天都到活跃乐龄中心报到，从此爱上了玩拉密，每次可玩上三个小时，在中心是“常胜将军”。

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Opinion

Our Annual Report 2023 is now available for download

John Doe

We are excited to share the release of the Community Foundation of Singapore’s (CFS) Annual Report for 2023.

With the overarching theme of ‘Creating a Better Tomorrow Together’, the report highlights the work done to inspire and facilitate strategic giving to benefit our local community. We showcase the enhancements we have made to our service offerings, governance standards, and operational efficiencies over the past year. It stands as a testament to CFS’s unwavering commitment to proactively identify and address emerging community needs, and our experience and expertise that enables us to drive tangible impact.

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Here are some key highlights from the Annual Report 2023:

A Year of Steady Progress:

Against a backdrop of slower economic growth in 2022, donations remained high and our rolling three-year average continued on an upward trend. Our community of dedicated philanthropists continued to grow. Through strategic partnerships with corporations such as Accenture, Endowus, and other institutions, we harnessed a wealth of expertise to amplify our impact.

The past year marked a significant milestone, with 47 new donors establishing 27 Donor-Advised Funds (DAFs). Their generous contributions allowed us to allocate $16.8 million in grants to 212 organisations spanning diverse causes, demonstrating the incredible power of collective giving.

In collaboration with the Agency of Integrated Care (AIC), we launched the FUN! Fund, a community impact fund focused on improving the well-being and happiness of our seniors through innovative programmes designed to infuse fun into their lives.

Making a Greater Impact:

In 2022, CFS took significant strides towards ensuring outcome-driven grantmaking. Our grant framework now places a strong emphasis on measurable change, ensuring greater impact for both our donors and charity partners.

Throughout the year, CFS’ Centre for Applied Philanthropy (CAP) played a pivotal role in fostering collaboration across public, private, and community sectors to address complex social challenges. This collaborative approach will gain even more momentum in 2023.

With sustainability advocacy being one of our key focal areas, we strengthened our ESG framework. This involved aligning our programmes with the United Nations’ Social Development Goals, a move that underscores our commitment to making a lasting positive impact.

The potential of philanthropy lies in its capacity to bring about enduring, positive change. As we look back on the year and observe the significant impact made possible by the support of our donors, we find inspiration to continue our efforts. Our grants have helped to improve the lives of many, including refugees seeking to rebuild their lives, youths in need of mental resilience, disadvantaged students receiving evidence-based after-school tutoring, dementia patients receiving specialised care, marginalised job seekers receiving coaching and training, and nurturing the next generation of climate champions.

Connect with Us:

CFS is deeply committed to advancing strategic philanthropy, and positioning Singapore as Asia’s philanthropy hub. To achieve this, we actively serve as an Enabler, Steward, Convener, and Advocate.

We are eager to connect and collaborate with donors, charities, partners, and sector leaders to build a more compassionate, caring, and inclusive Singapore. To learn more about CFS or join us on our mission, we welcome you to get in touch.

For an in-depth exploration of the year’s milestones and the impact of our contributions to the community, click here to download your copy.

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John Doe

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.
L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛：比赛限时反应要快

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Stories Of Impact

Healing and hope for migrant workers

John Doe

Our decade-long partnership with HealthServe has helped Singapore’s only medical charity for migrant workers bring healthcare, mental health support and social assistance to this underserved community. CFS is commemorating 15 years of giving and this story is one of a three-part series that highlights the strong relationships CFS has fostered with charities over the years.

They have helped me with everything. If I ever had a problem at the hospital, with my company or dormitory, they would step in. Here, I don’t have family. But HealthServe has helped me like family.

Rubel, injured migrant worker from Bangladesh

Like many migrant workers, Shah* came to Singapore to provide a better life for his family in Bangladesh. But soon after he arrived, he was struck with inflammatory bowel disease, causing gastric issues, skin problems and chest pain. All this came on top of the devastating diagnosis of his father’s cancer and his wife’s stomach ulcers.

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Shah was under immense pressure to take on loans to pay for multiple mounting medical bills in excess of $16,000. The financial and emotional stress caused his health to worsen. He is not alone in facing unexpected hardships while trying to provide for family back home. Close to one million low-wage foreign workers reside in Singapore. Access to affordable healthcare is limited for many of them and none were prepared, mentally or physically, for the Covid-19 pandemic.

Joining forces to help an underserved community

Thousands of migrant workers were quarantined in cruise ships, hotels and dormitories when Covid-19 hit Singapore’s shores. Many struggled mentally, feeling helpless. Others needed medical care. These hardships became the catalyst for the Community Foundation of Singapore (CFS) to join hands with our long-time charity partner, HealthServe, and help this underserved community. CFS decided to pool donations into a Collective Impact Fund called the Sayang Sayang Fund. With a grant from this fund and other funders, HealthServe was able to deliver much-needed medical attention, mental health support and social assistance to approximately 7,500 workers. For these foreign workers on the margins of society, HealthServe offered healing and hope.

Alongside these grants, CFS supported HealthServe with grants from the KrisFam Fund and the Kampong Spirit Fund. The KrisFam Fund grant enabled HealthServe to treat workers with serious chronic health conditions and extend financial aid to those in need while the Kampong Spirit Fund grant allowed the charity to provide the migrant community with meals and groceries amid the on-off pandemic lockdowns in 2021. For beneficiaries whose illness or injuries made it impossible for them to work, the much-needed help and donations came as a huge relief. In all, HealthServe made about 470 visits to foreign worker dormitories across Singapore.

The continuation of a long and rewarding partnership

HealthServe started as a small clinic providing medical and dental services to the vulnerable migrant-worker community in 2006. Today, HealthServe offers a range of expanded services comprising mental health programmes and counselling, casework support for injuries and salary-related issues, and other forms of social assistance, much of it supported by grants and donations facilitated by CFS. Our partnership with this unique charity goes back to 2013.

Over the past 16 years, HealthServe has remained mission-focused in serving low-wage migrant workers who fall through the cracks, even as we tackle constant challenges and headwinds such as post-pandemic dips in both donations and volunteers. Only with your continued trust and support can we do more. We look forward to actively leading every migrant worker in need towards a life of health, well-being, and dignity, with you.
Dr Benjamin Kuan, CEO, HealthServe Ltd

HealthServe’s commitment to migrant workers’ holistic health, well-being and dignity aligns with our focus on promoting mental well-being and healthcare to marginalised communities.

“CFS has helped educate donors and stakeholders about the plight of this very underserved segment of society. As a result, HealthServe’s mission is more well understood,” says Dr Benjamin Kuan, CEO of HealthServe. “The partnership between HealthServe and CFS has grown, with CFS shifting its vision to long-term outcomes, aligning with HealthServe’s goal of preventive care, which is also in line with the nation’s Healthier SG strategy.”

Philanthropic support is critical

Largely volunteer run, HealthServe operates with a small staff team and hundreds of medical and non-medical volunteers and interns. Fundraising can be a challenge, especially now that reduced charitable dollars tend to go towards causes supporting Singapore citizens post-pandemic. Philanthropic support from CFS donors therefore remains crucial.

“Over the years, CFS has demonstrated its ability to form strategic partnerships to deliver funds to the community in the fastest and most effective way and HealthServe is confident that our partnership with CFS will remain relevant in serving the underserved segments in society,” says Dr Kuan.

We are proud to maintain a long-term partnership with HealthServe and are committed to working with other like-minded charities to bring greater support to Mental Well-being as a cause and to create greater impact for the underserved communities.

CFS is celebrating our anniversary throughout 2023—15 years of empowering donors to make a meaningful impact. Since our inception in 2008, we have received over S$292 million in donations in Singapore and disbursed over S$157 million in grants to over 400 charity partners.

To discover how you can make a difference, please visit www.cf.org.sg/contact-us/get-in-touch/

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Stories Of Impact

The REDAS Solidarity Project Fund: Caring for migrant workers affected by COVID-19

John Doe

Among the vulnerable communities in Singapore impacted by COVID-19, it is the community of migrant workers who have toiled invisibly to help build our nation that has been very heavily affected. Infection amongst their community has been widespread, and a large number of them are confined to their dormitories, unable to leave.

It is thus very encouraging that the Singapore government and many other organisations have stepped up to give assistance and support to them in their isolation.

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To help ease their plight, the Real Estate Developers Association of Singapore (REDAS) announced on 30th April the launch of the REDAS Solidarity Project Fund. Its aim is to provide aid and relief to the segments of the community most affected by COVID-19, particularly in the built environment sector where many migrant workers are employed.

So far, more than 50 REDAS members have contributed $760,000 to the Fund, which was also launched to show appreciation for Singapore’s healthcare workers.

Through collaboration with the Community Foundation of Singapore (CFS) and other partners such as the Ministry of Manpower (MOM) and Urban Redevelopment Authority (URA), REDAS was able to promptly roll out the initiative to demonstrate our community’s stand for Singapore’s migrant workers.

“Our migrant workers are the cornerstone of society and it is important to recognise their valuable contributions,’’ says Deputy CEO of CFS Joyce Teo. “CFS fully supports such efforts to ensure that they receive the best possible assistance during their time of need. ’’

To mark the start of their giving, REDAS distributed 200,000 care packs to as many workers in factory-converted dormitories through the Migrant Workers’ Centre (MWC). These care packs will include toiletries such as toothbrushes, toothpaste, a shaver and a bar of soap. In addition, 800 standing fans will also be donated to dormitories to help improve ventilation for the workers.

“Given the large number of migrant workers under quarantine in dormitories, there is great urgency for us to meet their essential needs amid the COVID-19 pandemic,” says REDAS President Mr Chia Ngiang Hong. “We hope this collective effort to spread a little kindness to the migrant workers will provide the much needed emotional support to help them ride out this difficult period.”

The May Day Gift event to distribute the care packs was graced by National Trades Union Congress (NTUC) Secretary-General Mr Ng Chee Meng, and joined by URA Chief Executive Lim Mr Eng Hwee, REDAS President Mr Chia Ngiang Hong and MWC Chairman Mr Yeo Guat Kwang.

“We are very happy to have REDAS partner with us to support our migrant workers in the factory-converted dormitories,’ says MWC Chairman Yeo Guat Kwang. “We are really very thankful to everyone for giving a helping hand to our migrant workers in this challenging time.”

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John Doe

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.
L.S., a volunteer with the Reading Odyssey programme @ Spooner Road