Asian Philanthropy Forum

Ripple Effects of the Mortenson Issue

Greg Mortenson, author of the best-selling book, "Three Cups of Tea: One Man's Mission to Fight Terrorism and Build Nations...One School at a Time" has been accused by Jon Krakauer on the CBS 60 Minutes show that the story, "while beautiful, is a lie." Greg is co-founder of Central Asia Insittute, a U.S. 501(c)(3), nonprofit organization with a mission to build schools and to support girls' education in Afghanistan and Pakistan.

The issue for me is not so much that Greg lied or not about his journeys - they could be fiction and could still encourage people to give and understand the importance of education for girls. The issue is his character and the work of CAI now being called into question. Many donors gave to the organization assuming that the funds were being used to build schools and classrooms. The 60 Minutes show interviewed and visited the grantees of CAI. Many of the classrooms were abandoned or not used at all. Some of the alleged schools never existed.

CAI raised more than $14 million in 2009. In the CNN article, Three Cups of Tea: Served with a Grain of Salt?, the author says that "less than half of that money actually went to building schools in Afghanistan and Pakistan..... $1.7 million went to promote Mortenson's books, according to the institute's board of directors."

The alleged mis-use of donor funds will deeply affect the philanthropic community.  Donors give because they believe in the leadership and work of the organization. Reports, project monitoring, site visits, and knowledge of the work on the ground are all important pieces used to assure donors that the organization is doing its due diligence and fulfilling the trust given to them. Pictures, videos, and even stories of the constituents - children, teachers, families, reinforce the impact of the work done.

Transparency, accountability and trust are very important when working with overseas groups. Working in Afghanistan and Pakistan is difficult enough with the various rules and regulations of countries where the funds are sent and where it is received (i.e., U.S. Patriot Act). In addition, funding and receiving groups have to abide by strict guidelines, whether imposed by law or self-regulated by the board or organization itself. Day-to-day working conditions, language, and expectations of funder and grantee all add to the difficulty of working overseas. However, donors have various ways to "check" on the organization, including the use of several watchdog organizations. But watchdog organizations, and their paper reviews, are only the beginning research work that donors have access to. Donors can also look at past reports, annual reports, audited statements, etc., and talk to other donors and staff of the organization to learn more.

The philanthropic community does not need bad press like this. There are many groups working in difficult places that are providing positive influences in communities around the world. Bad examples create tension for many stakeholders including government, donors, and charitable organizations. I hope donors will continue to work with the organizations they wish to support or are supporting so they can increase their understanding of how the organization is structured and how it runs its programs.

In turn, organizations must take steps to be as transparent and accountable as possible to further the public trust. While staff should be loyal to the organization, they must also respect certain ethics when working with donors - and do the right thing - such as being honest about how effective their own due diligence and grantmaking process is, the fees they charge and the outcomes or impact of their programs. Fundraisers follow certain Code of Conduct guidelines but these should also apply to everyone inside the organization - especially to the CEO.

For more information:

'60 Minutes' investigates "Three ups of Tea" author Greg Mortenson. USA Today quotes from CAI's website: "Through his work empowering communities in some of the most remote areas in the world, and through his successful books that share the stories of his experiences, Greg has accomplished the real and extraordinary work of bringing education to girls and boys in Pakistan and Afghanistan who otherwise would have no educational opportunity to enable them to help themselves and their communities," the board wrote. "It would be truly tragic if the sensationalized allegations against him were to harm the future of this crucial work."

American Institute of Philanthropy issues a "?" rating for CAI. It found questionable audited statements, concerns over conflict of interests between CAI and Greg Mortenson, and noted that "a donation to Central Asia Institute, at least in 2009, was more likely to be spent on costs related to educating people in the U.S. about problems in Pakistan and Afghanistan than on helping children in central Asia with their education. 

Charity Navigator - 4 star rating. Charity Navigator reviewed CAI's FYE 09 information and gave it a 4 star rating (out of 5). A quick visit to the review section (powered by Great Nonprofits) has comments asking Charity Navigator to explain their rating.

Pakistan Floods: Where is Philanthropy's Response?

Within six months of the Haiti earthquake, private donors gave more than US$1.3 billion. Appeals to give were seen in traditional and social media. Hollywood stars like Oprah and Lady Gaga personally gave and asked for public support. Philanthropy advisors and bloggers provided advice on how to give during a disaster and some even coordinated on the ground conference call updates. But the response to the recent Pakistan flooding situation is starkingly different. No appeals from Hollywood stars, no mass media coverage, very few bloggers are covering the event and so far, no sources have provided a tally of how much donors have given or how much organizations have received. Why? And, where is philanthropy's response?

Immediate catastrophes and scale of impact

The Haiti earthquake killed an estimated 230,000 people. The Kashmir earthquake killed over 80,000 people. As of today, officials are reporting a death toll of 1,500 and at least 14 million people have been made homeless. With such a small number of deaths, it is hard to grab the attention of the media and donors. Experts say that the impact of floods are perceived as less catastrophic when compared to earthquakes and tsunamis. Earthquakes and tsunamis have high numbers of immediate deaths while the impact of floods are more ongoing and long-term.

Floods require the movement of people away from the floods and onto higher ground. Farmland and crops are destroyed. Homes are inhabitable. Floods also create water-borne diseases that eventually cause medical issues. The impact of loss from floods are slowly uncovered as the water recedes and the damages continue to roll in. By then, the media has moved on to other news-worthy issues and the donor's attention is distracted by another cause.

Donor fatigue and tough economic times 

Reports have cited donor fatigue and tough economic times for the decrease in donations to Pakistan's floods victims. While western countries are facing tough economic times now, they were also facing similar conditions in January during Haiti's earthquake. Yet, US$1.3 billion was raised from private sources in the U.S.  

It seems to me that timing may be one factor when it comes to how much and if individuals, corporations and foundations will respond to a disaster. The 2004 Indian Ocean Tsunami and the early January earthquake occurred near the holidays and the new year, when people were in a more charitable mood. Further, the timing of charitable tax deductibility may also play a role. The U.S. government approved a new tax relief law allowing people who contributed in 2010 to charities providing earthquake relief in Haiti to take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return. Donors received an immediate tax benefit rather than having to wait until next year. 

Pakistan's political and economic realities 

Political instability, Islamist insurgency and corruption are also causing some prospective donors to be weary about the use of their charitable contributions. Pakistan was ranked number 42 in Transparency International's 2009 Corruption Perception Index (it was number 47 the previous year). Donors are worried that their aid will be misdirected, i.e., used for terrorist activities or for personal gains.

The world watches how leaders of the government respond to the disaster. This is a key factor in building trust with individual donors and the philanthropic community. It provides reassurance to the public that the government is taking steps to be transparent and is willing to work with international relief organizations. In this case, President Zardari was in Europe and and traveling to his Normandy chateau instead of returning home to oversee disaster relief efforts. The head of the civilian government, Prime Minister Yousaf Raza Giliani, confessed publicly that the government was overwhelmed by the disaster. It appears only then, that the military was responding adequately to relief efforts (and people remember these things when it comes to voting and choosing the government they want).

More Changes in the Philanthropy World

The philanthropy world is experiencing lots of changes in the past few months. In addition to the changes I had announced in my previous post, three additional changes caught my attention.

First, John Harvey, Executive Director of Grantmakers without Borders (Gw/oB), announced his departure from the organization at their 10th anniversary conference last week. Gw/oB is a philanthropic network that is dedicated to increasing funding for international social justice and environmental sustainability groups and to improving the practice of international grantmaking. Jennifer Astone summarizes John's lessons learned and reflections in Anatomy of a Global Donor.

Meanwhile, the American Pakistan Foundation announced the appointment of Mr. Awais Khan as the foundation's first President and CEO earlier this month. Mr. Awais Khan was a partner at Ackrell Capital and held senior positions at the Venture Capital Practice at KPMG, Dimension Data and Hewlett-Packard. He has professional experience in Pakistan in the areas of financial services and government. Mr. Khan is the Chair of several leadership committees of Venture Forums and is currently on the advisory board of Cleantech Jobs Fund, an economic development fund in Silicon Valley.

Neelam Makhijani was appointed CEO of the Resource Alliance, a UK based organization working towards the building of capabilities of individual organizations and the infrastructure needed to support professional fundraising and resource mobilization around the world. Neelam is the organization's first CEO to be appointed from the Global South and is the first woman to hold the position. Neelam has worked for the Resource Alliance for six years, first running and leading education and training programs and its consulting services. Since March last year, Neelam was the deputy CEO. The Resource Alliance has some wonderful resources, including the newly published, Worldwide Fundraiser's Handbook.

Ingenuity Fund Challenge: Win Trip Abroad to Witness Grameen Foundation's Work

by guest author, Seena Aras, Director of Online and Annual Giving at Grameen Foundation

Despite incredible economic progress over the past two decades, Asia remains home to the majority of the world’s poor people. 

Grameen Foundation creates economic opportunities that help the world’s poorest, especially women, improve their lives and escape poverty. We focus on five core countries in Asia—China, India, Indonesia, Pakistan, and the Philippines—where we have provided support for many years.   Together, these countries are home to more than 60 percent of the world’s poor people, living on just $2.50/day, and more than 70 percent of the world’s poorest people, living on just $1.25/day.

Now, you and a guest can have the chance to take part in our innovative delivery of microfinance and technology services to the world’s poorest people—all by joining The Ingenuity Fund Challenge and competing for the grand prize trip. 

The Ingenuity Fund Challenge is a way for you to tap into your own creativity and make an impact on ending the cycle of poverty endured by millions around the world. By joining the Challenge, you’ll have the opportunity to develop the most compelling ways to educate your friends, families, and networks about Grameen Foundation. Through March 31st, 2010, Challenge participants will develop compelling, creative personal Ingenuity Fund Challenge fundraising pages on Grameen Foundation’s website and raise awareness of and funds for Grameen Foundation’s work through personal networks, social media, and other offline activities. The participant with the most creative, ingenious web page and outreach effort will win the grand prize of an overseas field visit.

Our donors like Annie Chen and Raja Malkani have witnessed firsthand our work in Inner Mongolia, an autonomous region of China. During the trip, Annie visited Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA), a microfinance institution, where she met microfinance clients and saw how their small enterprises improved their lives and those of their families.  Raja met microfinance borrowers stitching and selling clothing, operating seed shops, and growing and selling crops. “It’s amazing what microfinance can do for such people,” Raja said. “The borrowers I met didn’t just gain financially; they gained self-esteem and a sense of independence, too.”

“I like the fact that microfinance is built on a model that involves empowering individuals to explore and develop their own potentials and strengths, rather than on giving handouts,” Annie said. 

If you are up to the challenge, please check out our resource page to read the full details and eligibility requirements in the contest rules.

 

Schwab Foundation for Social Entrepreneurship Looking for Social Entrepreneurs in Asia

The Schwab Foundation for Social Entrepreneurship is searching for outstanding social entrepreneurs in Asian countries where we do not currently have national competitions.  Schwab Foundation is looking for social entrepreneurs who are innovators implementing practical and sustainable solutions on the ground to address problems in a wide variety of areas, including (but not limited to) health, education, poverty alleviation, the environment, financial inclusion and enterprise development.

In terms of benefits, the winner(s) will join the Schwab Foundation’s community of accomplished social entrepreneurs around the world – a community that shares knowledge and experience while exchanging best practices. The Schwab Foundation seeks to help social entrepreneurs showcase their innovative, market-based social impact initiatives, thus, enhancing opportunities for business growth. Our social entrepreneurs have access to the meetings of the World Economic Forum (our sister organization) and are provided with an unparalleled platform to connect with government, corporate, intellectual and media leaders.

Candidates working in the following countries are encouraged to apply: China, South Korea, Taiwan, Mongolia, Vietnam, Thailand, Cambodia, Laos, Malaysia, Singapore, Nepal, Bangladesh, Pakistan, Sri Lanka.

To apply or to view the criteria, selection process and benefits, please visit: http://www.schwabfoundseoy.org/asia.  Competition closes on 31 March 2010.

Photo courtesy of oleg.kellerhof

American Pakistan Foundation Launches on 12/11/09

The Pakistani-American community is small but they give at a level that is above the national average.   According to a study on philanthropic giving by the Pakistani diaspora in the U.S., the Pakistani-American community gives over $1 billion annually, including money, goods and time.   In an effort to further encourage this giving in a secure and transparent channel, the American Pakistan Foundation was founded in May 2009.

Organized by the Foreign Minister of Pakistan Shah Mahmood Qureshi, the attendees of the meeting agreed that the Pakistani-American community has a vital role to play in the development of Pakistan by forming a not-for-profit development organization devoted to improving the social and economic condition of the people of Pakistan and to promoting greater understanding and trust between the two nations.

The American Pakistani Foundation strategy:

1. Develop a secure and transparent channel for funding programs to improve donor trust through the establishment of an effective mechanism for improved evaluation, monitoring and reporting to meet international donor and foundation expectations.

2. Establish partnerships with the Pakistani civil society and development organizations and credible NGOs with existing programs to prioritize and meet the most urgent needs of the Pakistani people.

3. Complement existing Pakistani-American philanthropy by bringing more major foundation and corporate funding to facilitate expansion of existing efforts.

Secretary of State Hillary Rodham Clinton will be the guest of honor and will deliver the keynote address at the American Pakistan Foundation's Inaugural Benefit on Friday, December 11, 2009.

A Brief Look at British Asian Philanthropy

- by Dien S Yuen

I was in London several weeks ago and had the opportunity to learn about British Asian philanthropy and the work of the Asian Foundation for Philanthropy.  

In the U.S., the term Asian American is often used to refer to those of Asian origin, including Chinese, Japanese, Korean, Indian, etc.  On the other hand, the British Asian refers to those of South Asian origin, particularly Indians, Pakistanis, and Bangladeshis.  The other groups are lumped into 'orientals' and in the ethnic section of UK's census forms, the Chinese are treated separately, i.e., not as "Asians."

There are approximately 2,331,423 British Asians, constituting about 4% of the population of the United Kingdom (UK) (Indians are 2.7%; Pakistanis 1.5%; Bangladeshi's 0.5% and other Asians (0.4%)).  British Asians make up 50.2% of the UK's non-European population, according to the 2001 UK Census.  The South Asian diaspora accounts for 10% of UK's economic output.   According to a 2002/2003 study, there are 71 Asian millionaires, with 47 of them under the age of 40.

In the past, I have blogged about the lack of information, resources, and studies about Asian American philanthropy.  It seems as if the same case also applies to the UK as well.  There are virtually no studies or research on Asian giving patterns in the UK.  If you know of any, please let me know.

Asian philanthropy news 12/26/08

 

*  A MasterCard survey of 6,019 people across 14 countries found that Indonesia was the most charitable country with 88.3% of consumers planning to make donations.  New Zealand came in second and Australia (66%) came in third in the Asia/Pacific region. 

*  GE Foundation announced a one-year $225,000 grant to the US-Vietnam Trade Council Education Forum and STAR Vietnam to enhance its work to improve the rule of law in Vietnam.  The program will focus on transparency and public participation in the law and rule making process which will strengthen rule of law and should lead to increased economic development and growth.

* Acumen Fund, a global venture capital fund that invests in sustainable, scalable businesses that provide affordable water, housing, health and energy services who earn less than $4 a day announced four new investments in Pakistan.  As of June 30, 2008, Acumen Fund Pakistan's portfolio totaled $6.4 million in committed investments in enterprises focusing on drip irrigation, micro insurance, housing, peri-urban health clinics and other critical needs.

Photo courtesy of Oxfam International

Baluchistan earthquake

On October 29th, a 6.4 magnitude earthquake hit western Pakistan in the province of Baluchistan.  The tremor triggered landslides that instantly buried hundreds of homes.  The initial earthquake has been followed by as many as 1,000 aftershocks, causing more damage.

Ziarat and Pishin were the two worst-hit areas in Baluchistan. A total of eight villages were badly affected in the Ziarat area while in Pishin four or five villages were moderately affected. 700 families in Ziarat and 100 in Pishin were affected in the quakes.   A total of 6,000 people were displaced in these two areas, and the government has confirmed that 165 people were killed and 297 were injured in Ziarat. Two were dead and 17 others injured in Pishin.

Innovative competition focuses on human rights

I have written several times about the International Bridges to Justice project, JusticeMakers, but I finally signed up myself and read through some of the proposals. You can vote for your favorite project and that project could win a $5,000 prize to further their work. Remember the deadline is November 11th!

Kudos to the IBJ team for building such a user-friendly site. You don't need to be a program officer to understand some of the work these justicemakers are doing.  What will you find on the site? You will find some amazing information...

Development of Juvenile Career Project:  In 2007 there were approximately 4500 children in prisons. At any given time, more than 3000 inmates have not been convicted of any offences; their trial have yet to start or have not been completed. Almost 50% of the children are in jail for three or more months and their figure remain around 2000 to 2100. The majority of the children are charged with petty thefts, drug trafficking, mobile phone snatching, one wheeling, kite flying, kidnapping, rape and murder etc."