Steve Suda: thoughts on Chinese philanthropy

Last week, the CASE (Council for Advancement & Support of Education) International Fundraising Conference in San Francisco brought together over 120+ fundraisers and leaders from colleges and universities around the world. Steve Suda, a conference co-chair, is the director of the Stanford International Division (SID), Office of Development, responsible for coordinating and directing a number of Stanford’s university-wide international activities. An excerpt of Steve’s paper, Thoughts on Chinese Philanthropy, is the subject of this post:

The things that bind Chinese and often inspire their generosity are: family, common place of origin, and education. Examples of this can be seen in the giving histories of many prominent Hong Kong philanthropists where gifts to honor parents, to China – particularly to their hometowns, and to universities where their children studied.

Ties to teacher, school, and classmates are also very strong. This traditional value reinforces western and American emphasis on alumni identification with the university. It helps explain why Chinese alumni groups often are so loyal, proud and active.

Personal relationships supported by the right introductions, a kind of sponsorship, are crucially important for access to people of wealth (of course, this is true also in other cultures, such as the Middle East). Almost all relationships are personalized, not abstract or institutional. The donor typically has to know the persons involved, have confidence in him or her – not just hear a solicitation for the school – no matter how persuasively it is put. Gaining the support, financially or otherwise, of a prominent person (say, a business leader) can speak powerfully to other potential donors.

For difficult-to-reach, high net worth individuals, working through a trusted, respected “go-between” (between the fund-raiser and the donor) is often essential for moving a gift discussion forward.

A large gift discussion can and often do carry the presumption of reciprocity or some kind of quid pro quo for the donor. We have this issue in the United States, too, of course. For some international prospects, particularly those new to U.S. philanthropy, it is important to carefully explain the terms of (and expectations related to) making a gift before an agreement is finalized. For example, “I’m sorry Mr. X, this gift does not guarantee your employees admission to our business school.”