Asian Philanthropy Forum

Asian philanthropy news digest 03/19/10

* Taiwan charity has global reach. Wall Street Journal has a feature story on Tzu Chi Foundation. Tzu Chi has 10 million donors and two million volunteers. The organization extends across much of the developing world and offers a "view of how Asian philanthropy may evolve in an era of rising affluence." One third of Tzu Chi's regular donors live outside Taiwan. It has 399 offices in 47 countries running local projects and raising funds. The organization is the first Asia-based Buddhist organization to provide cross-border humanitarian relief.

* Global billionaires turn to philanthropy in India.  Article in Economic Times featuring Omidyar, Soros, Legatum and Google, investing in social development oriented investments in India. Omidyar has invested $40 million so far.

* Sankalp Social Enterprise Awards & Investment Forum will be held in Mumbai on May 4 & 5, 2010. The event is India's largest gathering of more than 400 social innovators, impact investors, policy leaders and change-makers. 

Social entrepreneur search widgets

Social entrepreneurs that are doing great work can be difficult to find. After finding them, donors must complete a time consuming and, sometimes expensive, due diligence on the entrepreneur and social and business model before funding them. If a tool existed that allowed other donors and funders to search for vetted social entrepreneurs doing great work in a particular region and on a specific issue, it would save donors time and money. In addition, the listed social entrepreneurs would have greater exposure to funding sources and perhaps find other social entrepreneurs they could collaborate with.

Social Edge launched the Social Entrepreneur Search widgets this week. In collaboration with funders who are known for their successful efforts in finding, researching, and funding social entrepreneurs, they have populated an open source database that shares the information of social entrepreneurs that they have funded to anyone that wants to access it. The open source database allows anyone to query, syndicate, or republish the data on their websites. 

There are many opportunities with this new tool: (1) emerging social entrepreneurs can find others to collaborate with; (2) donors or funders can feature their own grantees so others can help the social entrepreneur scale their work; (3) donors or funders can assume that the social entrepreneur must be doing something right if they have passed due diligence by another donor or funder; (4) the database reduces the time and cost of funders or donors completing their own due diligence efforts; and (5) journalists and writers can locate a social entrepreneur quickly if they wish to feature them in their work.

Since it is an open database, Social Edge also lists many opportunities to improve it, including possible expansion of the listing and encouraging other developers to add layers to the data.

While I believe in the sharing of information and investing in the "best of the best" social entrepreneurs, I am afraid a tool like this will continuously support those already doing great work and leave other emerging and new social entrepreneurs to struggle for funding and recognition. In addition, the database is populated with social entrepreneurs from five funders (Civic Ventures, Draper Richards Foundation, PopTech, Schwab Foundation for Entrepreneurship, and Skoll Foundation). All five funders have their own unique set of criteria and focus on selecting social entrepreneurs that they support. Their due diligence process is also unique to their own criteria. This inconsistency still requires prospective donors and funders to complete their own due diligence. Perhaps the idea is that if a large funder supported the social entrepreneur then the social entrepreneur is "endorsed" or "validated" to some degree.

There are many social entrepreneurs located in Asia in the database but certainly not enough. Perhaps we can encourage other donors and funders to join in the expansion of the database to include not just vetted social entrepreneurs but also unknown, vetted social entrepreneurs with promising social and business models.

Opening doors to entrepreneurial initiatives for all

Social entrepreneurs are tackling some of the most challenging issues in Asia. From poverty to the delivery of clean water and access to healthcare, entrepreneurs are coming up with ideas and solutions everyday. In order to access funding to implement the ideas, many social enterprises must register as a legal entity so they may conduct business in the country. Unfortunately, social entrepreneurs and entrepreneurs face many "barriers to entry." 

My friend, Bruce Tolentino, is The Asia Foundation's Director of Economic Programs. Bruce explains in the video below some of the causes of inequality in Asia and how the Foundation's programs try to address these problems. Bruce says:

What prevents many entrepreneurs from thriving in a modern business environment has a lot to do with what we commonly refer to as "barriers to entry" - especially those rules, informal arrangements, policies and governance issues that raise the cost of doing business in ways that prevent the less-connected, or the poor from even starting a business.

$50,000 award to developer of an innovative wireless technology addressing health issues

The Vodafone Americas Foundation is pleased to announce the first mHealth Alliance Award, in partnership with the mHealth Alliance, as part of the 2010 Wireless Innovation Project. The award will be granted to the developer of an innovative wireless technology with the most potential to address critical health challenges, especially in developing regions.

The winner of the mHealth Alliance Award will receive a cash prize and benefits totaling $50,000, including participation in Santa Clara University’s Center for Science, Technology, and the Global Social Benefit Incubator Program (GSBI™), a highly competitive program that connects innovators with a Silicon Valley support network and provides instruction on how to achieve maximum sustainability and impact in social enterprises. In addition, the winner will receive strategic and networking assistance from the mHealth Alliance.

Asian philanthropy news digest 12/17/09

Vietnam Challenge Fund.  The Vietnam Challenge Fund (VCF) launched last month with an initial budget of US$3 million for 2009-2011.  According to the Saigon Times Daily, the fund is designed to challenge the private sector in Vietnam to propose innovative new business models that benefit the poor. The fund "will help absorb some of the business risks associated with innovative projects that aim to increase employment and income for the poor."  In Vietnam, about 90% of the 86 million people live in rural areas.  The fund will help those in rural areas gain access to capital.

An Interview with Jack Ma.  Jack Ma is one of China's most influential leaders in China according to Time Magazine.  He is founder, chairman and CEO of the Alibaba Group, the holding company of the largest business to business e-commerce platform (Alibaba.com) and consumer to consumer auction website in China (Taobao.com). Jack is also a trustee of The Nature Conservancy's China program.  In this article Jack expresses his thoughts about the attitudes of environmentalism in China, his philanthropy, and why he is passionate about the environment: There are many other things that have inspired me.  When I visited the river where I learned to swim as a kid (I almost drowned in there when I was 12 years old), the water was full of garbage. The water use to come up to my chest and now is just barely above my ankle.  It has almost completely dried up. I thought to myself, "Oh my God, what's going on?"

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

Creativity and innovation in the philanthropic sector

- by Dien S Yuen

I do not consider myself a very creative person but sometimes, I have to be creative and innovative on how I approach my work in attracting new clients that use our international philanthropic services.  During these tight budget times, we all have to innovate with the resources that we have.  We also have to create our own opportunities so we can continue delivering high impact services that exceed our client and donor expectations.  As a leader, how do you lead and manage creative people?  How do you create an environment that encourages them to excel?

Harvard Business Review has a series of articles on Leading Creative People.  In their research, they found that a "handful of creative people whose inventiveness leads to innovation are the ones that bankroll the organization for years to come."  The authors found these creative people:

1.  Do not want to be led.  I have realized that the most creative people I have worked with in the nonprofit field march to their own drummers.  They do not like being micro-managed and certainly do not want someone constantly "checking" in with them on their work.

2.  Do not care about titles and promotions.  Titles and financial gain are not the reasons creative people want as rewards.  In fact, many of those that go into the nonprofit field see these as secondary rewards.

3.  Are easily bored.  The day-to-day, same old way of working is not attractive to creative people at all.  In fact, you will hear these phrases from them: why, why not, what's more, so what and let's try this.

4.  The process by which they pioneer new insights and ideas is complex and chaotic.  I get my best ideas when gardening, pruning my plants, weeding and turning my compost each weekend.

So how do you turn creative ideas into business opportunities?

1.  Know when to impose controls on the creative process.  Requiring constant "creative moments" can be draining.  I have also found that creative people hate details.  They are idea generators and not implementors.

2.  Convince people that they won't be punished or humiliated if they speak up or make mistakes.  Remember the comment - there's no such thing as a dumb question?

3.  Ensure that all managers do hands-on work.  It seems so much easier to talk about an issue or an idea if the person you report to also understands the work well.  It also feels good when there appears to be a "democratized" process in the workplace.

From my own experiences, I can say that I am most creative when I am confronted with a problem or issue.  Like an architect that must work within certain spaces and within certain guidelines, I find that boundaries help me generate ideas.  But I don't want to feel restrained - I need the freedom to be able to find the solutions in my own way.  Another characteristic I have noticed is that I am emotionally attached to what I come up with.  It takes alot of convincing before I can back down from the ideas I generate.

How do you generate ideas?  How do you help your staff be creative and innovative?  The nonprofit field is full of creative people - now is the time to nurture those key individuals in your organization in order to create the social change necessary.

Photo courtesy of James Jordan

Guarantee a loan for an entrepreneur in India!

I just made my first loan guarantee on United Prosperity to see how the platform works. I had previously mentioned Bhalchander ("Bala") Vishwanath, CEO, and this project in an earlier post. United Prosperity officially lauched on May 28th and I am excited to see the responses they will receive.  They have guarantors from all over the world now.  Below is a brief description of my experience in using the website.

First, I reviewed the listing of the entrepreneurs on the site.  There are six women entrepreneurs.  One sells gunny bags to merchants and needs a loan to expand her work.  Another woman owns a grocery shop and requires a loan to expand her store.  I narrowed my choices to two women:

* Gita Devi sells vegetables in the market and she would like to start her own vegetable and grocery shop near her home.  She currently earns Rs. 3000 per month selling vegetables alongside her husband at the market. 

* Sunita Devi supports her family by stitching clothes, as her husband is no longer alive. She does the stitching work at her home. She has applied for a microloan to rent space, furnish it with goods and purchase a sewing machine. She hopes to increase her income and meet the growing financial needs of her children.

It was a difficult decision and I could have supported both of them but I thought, if I had to choose one, how would I choose and what would my criteria be? 

Designing for the poor

- by Dien S Yuen

Why are 90% of the world's products and services designed for 10% of the world's population? 

We believe in listening to the needs the poor tell us about, not assuming we know best. We believe in products and services designed for specific cultural contexts, not just Western hand-me-downs. And we believe that careful attention to design can create innovative-and extremely affordable-solutions to the problems of the other 90%.

Last week, I attended the Extreme Affordability Design Expo at Stanford University to see the latest projects the students were working on.  The two-course sequence is part of the Entrepreneurial Design for Extreme Affordability course that focuses on treating the poor as customers. 

Students design products and business models for base of the pyramid customers in India, Ethiopia, Myanmar, Nepal, and Rwanda.  Each of the ten teams had designed product prototypes, distribution systems, and business plans for entrepreneurial ventures to deliver these products. 

I had actually seen one of their past projects in action in Myanmar while I was there. Here's a picture of me on the water pump that delivered water to the fields.  This pump saved the farmer lots of time and since it was cost-efficient and offered several repayment models, the farmers could afford it.  I am really excited about these classes because it bridges the gap between theory and practice at universities.  I also like the concept that social entrepreneurial classes like these take the already natural curiosity and talent of individuals and channels them to benefit those that have long been ignored.

- by Dien S Yuen

Why are 90% of the world's products and services designed for 10% of the world's population? 

We believe in listening to the needs the poor tell us about, not assuming we know best. We believe in products and services designed for specific cultural contexts, not just Western hand-me-downs. And we believe that careful attention to design can create innovative-and extremely affordable-solutions to the problems of the other 90%.

Last week, I attended the Extreme Affordability Design Expo at Stanford University to see the latest projects the students were working on.  The two-course sequence is part of the Entrepreneurial Design for Extreme Affordability course that focuses on treating the poor as customers. 

Students design products and business models for base of the pyramid customers in India, Ethiopia, Myanmar, Nepal, and Rwanda.  Each of the ten teams had designed product prototypes, distribution systems, and business plans for entrepreneurial ventures to deliver these products. 

I had actually seen one of their past projects in action in Myanmar while I was there. Here's a picture of me on the water pump that delivered water to the fields.  This pump saved the farmer lots of time and since it was cost-efficient and offered several repayment models, the farmers could afford it.  I am really excited about these classes because it bridges the gap between theory and practice at universities.  I also like the concept that social entrepreneurial classes like these take the already natural curiosity and talent of individuals and channels them to benefit those that have long been ignored.

Nandan Nilekani on social businesses in India

- by Dien S Yuen

Bhalchanda Vishwanath, CEO and Founder of United Prosperity, recently interviewed Nandan Nilekani, author of Imagining India – Ideas for the new century on their blog.   Nandan is the Co-Chairman and Co-Founder of Infosys Technologies.  He was Forbes "Businessman of the Year" for Asia in 2007.  Most recently, he was nominated to the list of 100 most influential people in the world by Time magazine. Nandan's wife, Rohini, was one of the four Indians names on Forbes 48 Heroes of Philanthropy in Asia.  Below is an excerpt of the interview:

Bhalchander: ..... In his recent book, Creating a World without Poverty - Social Business and the Future of Capitalism, Nobel Laureate Prof. Muhammad Yunus talks of a new form of business – social business. In Prof. Yunus’s own words: “A social business is not a charity. It is a non-loss, non-dividend company with a social objective. It aims to maximize the positive impact on society while earning enough to cover its costs, and, if possible, generate a surplus to help the business grow. The owner never intends to take any profit for himself.” What are your thoughts on social business? Can a wave of social businesses as Prof. Yunus envisions help solve some of the pressing challenges India faces? 

Nandan Nilekani: From what I’ve seen, some NGOs that work in India do function as ’social businesses’. That said, I think too many of us indiscriminately tar the idea of ‘profit’ being bad for the social sector. Its good for all kinds of organizations to create surplus for a rainy day.  Two organizations that made a huge difference to poverty in India were the Rockefeller and Ford Foundations - they financed the research efforts that led to the Green Revolution. Their money came from corporate profit. The Bill and Melinda Gates Foundation is now doing some incredible work in Africa. We can’t diminish such efforts because they were funded by corporate profit. 

And for better or for worse, more people are motivated by profit than by philanthropy. The question is whether such for-profit efforts are effective in the social sector, and from what I’ve seen, I would say yes - paired with sensible regulation, it helps bring excellence to the forefront in the social sector. In India, businesses targeted at the poor have managed to deliver them low-cost services more effectively than some NGOs. Arvind Eye Hospital specializes in  low-cost eye operations for the poor. For-profit micro-finance institutions are doing remarkably well in Tamil Nadu and Karnataka.