Asian American Giving

High Income, Low Charity

- by Andy Ho

A recent article in The Atlantic highlighted a fact that many of us in the ‘industry’ have known for some time: the people who can least afford to give to charity in America donate the greatest percentage of their income.

In 2011, the wealthiest Americans—those with earnings in the top 20 percent—contributed on average 1.3 percent of their income to charity. By comparison, Americans at the base of the income pyramid—those in the bottom 20 percent—donated 3.2 percent of their income. The relative generosity of lower-income Americans is accentuated by the fact that, unlike middle-class and wealthy donors, most of them cannot take advantage of the charitable tax deduction, because they do not itemize deductions on their income-tax returns. 

The article goes into the reasons why this is the case – one of them being exposure to the poor, or, a lack of exposure, more accurately. “Wealthy people who lived in homogeneously affluent areas—areas where more than 40 percent of households earned at least $200,000 a year—were less generous than comparably wealthy people who lived in more socioeconomically diverse surroundings. It seems that insulation from people in need may dampen the charitable impulse.”  

 I think this is also true of much of the successful Asian Americans.  It is ironic, in some ways, that achieving the American Dream most of us seek to pursue, often isolates us from the people that haven’t yet achieved the dream, and could use some help to do so.  It takes particular motivation and action to continually break out of our comfort zones, surround ourselves with others in different socioeconomic circumstances, and stay grounded in humility with the attitude that all that we have ultimately isn’t ours to hoard but rather to share.  

Last night I had the pleasure of attending a fundraising dinner on behalf of Asian American LEAD – a nonprofit in the metro DC area that provides after school programs for underserved Asian American youth.  The testimonies from some of the kids were very powerful – how AALEAD was like their second family, how it provided them the pathways and belief that they could achieve a better life for themselves through community and education.  It reminded me how much more we as philanthropists, regardless of the amounts we give, can truly make a difference for others when the money is used to genuinely help others in need.  It was a good reminder that beyond the rose-colored communities where there are significant Asian American populations of comfortable middle-to-upper class metro DC suburbia (Potomac, Rockville, McLean, and Fairfax, just to choose a few), the Asian immigrant struggle is still there, in our community, if we choose to see it.  

"It's Only a Beginning."

- by Andy Ho

This week's New York Times front page article on Asian American philanthropy provides an excellent overview of increasing philanthropic interest from Asian Americans.  It zeroes in on philanthropy going back to the community, while also increasing influence in philanthropy through more 'mainstream ' organizations like universities and museums.   

The Times covered this topic six years ago as well, then focusing on the generation gap and class divide in the Chinese American community in New York City.   That class divide still exists, and not just within the Chinese American community but across many Asian ethnic communities across the country. The blind spots are still there thanks to the perpetuation of the model minority myth.  But thanks to efforts of data disaggregation by the Census bureau on the Asian population, we are making progress in identifying where and who the underserved and underrepresented Asian Americans and Pacific Islanders are. 

What's also changed in the last six years is a significant increase in the organizing of communities of givers, in part to an increase in understanding and attention to philanthropy within the Asian American community.  We (Asian Americans) have had wealthy individual donors; we've had donors giving to mainstream organizations.  What we have now, and something to build upon, are many more communities of givers -- Asian American giving circles, community foundations focused on Asians, such as the Chinese American Community Foundation, and growth of giving vehicles like the American India Foundation.

As philanthropy continues to grow in our Asian American communities across the country, it truly is only the beginning of real transformational change in the communities we seek to see in the months and years to come.  Dien and I look forward to another great year ahead of tracking the pulse of Asian American philanthropy!    

Asian American Philanthropy Event Update

Update on Asia Society Event: Giving Gap? Connecting Asian American Philanthropy and Community Needs - date has been changed to October 30th. See the Asia Society site for more details.

Diaspora Fundraising Group Shares Their Approach

Anh Ton wrote a very informative article for IdEA (International Diaspora Engagement Alliance), Four Ways to Improve Your Diaspora Organization's Fundraising Strategy. She encourages fundraisers to re-frame their question of “How do we get the diaspora to give?” to “How do we prove that we’re worth your investment?” Below is an excerpt of the four principles her organization, VNHELP follows in engaging the Vietnamese-American community in philanthropy. While the article is focused on engaging diaspora donors, I think any organization that is working with donors can easily apply these principles to their fundraising strategy.

1. Relate: Everything starts with relationship building. With diaspora donors, relationships are particularly important because these individuals tend to be accustomed to one-on-one connections rather than institutional support. As a fundraiser, you have to learn how to make the institutional personal. You’ve got to earn their trust and prove that your organization’s mission is in line with a prospective donor’s personal values. Remind them that it’s not about a donor writing a check to an organization; it’s about like-minded people combining resources to create positive change.

2. Educate: Once you’ve built a solid relationship with a donor or potential donor, begin to educate them. We don’t mean pulling out the pen and projector to go over organizational history or proposal writing cycles (although both are certainly conversations you should eventually have); we mean helping donors understand the role of organizations in charity and social development. Remind donors that you’re not just an intermediary; you’re providing value-added services like donor reporting, scheduling site visits, tax benefits and ensuring fiduciary responsibility—services that informal or peer-to-peer giving mechanisms might not be able to provide. And most importantly, show new donors how collective action through organizations can create sustainable impact beyond a single charity project.

3. Assure: Finally, assurance, which is really just another part of relationship-building. If philanthropy through institutional giving is still new to a donor, keep them updated, let them know what’s going on and let them get involved in the organization whenever possible. Never close the door just because you’ve received the contribution.

4. Engage the Next Generation: For American-born diaspora members, the engagement process is similar, but crafting the message may be a little different. Most young Asian-Americans make charitable contributions, but many do see philanthropy as a way of connecting with their cultural roots. 

Event: Asian American Philanthropy and Community Needs

 

- by Andy Ho

The Asia Society of Northern California is hosting a panel discussion on October 30th in San Francisco on the topic of Connecting Asian American Philanthropy and Community Needs.  The panel features AAG's Dien Yuen, among others.  

As the fastest growing demographic group in the United States, Asian Americans are today one of the leading forces in giving – not only to their countries of origin, but increasingly to their local U.S. communities and across the globe. Many believe that as more and more Asian Americans—a group with an enormously varied national, ethnic, and religious backgrounds—take leadership roles in business, politics, and civic life, they are also are changing the face of U.S. philanthropy, making it more inclusive, impactful, and accountable.

How are patterns of giving in the U.S. changing as Asian Americans become wealthier and increasingly woven in to American society? How do persistent “model minority” stereotypes distort the reality of Asian American giving and community needs? How do other trends led by this community – e.g., the culture of rapid innovation in Silicon Valley – shape patterns and modes of giving?  

Join ASNC, in partnership with Give2Asia, for a panel discussion featuring leading experts from the philanthropic community to address these and other questions.

Speakers:

Buck Gee (moderator) Co-founder, Chinese American Community Foundation; ASNC Board Member

Robbie Fabian, President, ABS-CBN Foundation

Naren Gupta, Co-founder, Nexus Venture Partners; ASNC Board Member

Audrey Yamamoto, President & Executive Director, Asian Pacific Fund

Dien Yuen, Chief Philanthropy Officer, Give2Asia

Asian Women Giving Circle gives $55,000

- by Andy Ho

If you've followed this blog regularly, you'll know that giving circles are a big part of the pulse of Asian American philanthropy, and a growing part too. It's a great way to encourage individuals in their own philanthropy and to collectively make a difference in the AAPI community. 

One of the giving circles that has really encouraged me in the projects they've funded and in the tremendous amounts they've been able to raise since their founding in 2006 is the Asian Women Giving Circle, in New York City.  This year they are giving away $55,000 to arts organizations headed by Asian women.

Read more about it in their press release.  Congrats AWGC!

Cultural & Motivational Differences in Giving

-by Andy Ho

I've been out of the office and off the grid following the passing of my mom two weeks ago.  It was busy preparing for the funeral, hosting out-of-town relatives, and having the funeral.  Now my family and I are adjusting to the new normal we have in our lives, without my mother.   

One of the more stark cultural & motivational differences in giving between Asians and Americans came out in the process of holding the funeral service.  Typically at American funerals few or no monetary gifts are given, except in the case of flowers to be sent to wherever the funeral service is held.  This is in contrast to Asians, which typically give money, usually to the family (in this case, to my father) to help with funeral and other expenses.  We didn't want so many flowers at the funeral home, nor did my father necessarily need the money, so we specifically requested that in lieu of flowers, that a monetary gift can be made to the building fund of the church my mother attended in her memory. 

What was not surprising was that most of the younger (40s and under) and American/Asian American friends did not give any gifts, and most of the older and Chinese (1st generation) friends did give a monetary gift.  Many gifts were made to the church, and a smaller percentage of gifts were given to my father.  As we tallied up the gifts, my father and I wondered if we hadn't specified that gifts be made to the church, would a smaller amount would have been given to my father than what they gave to the church? Would some people rather give more to church knowing that it's going toward something lasting, being more philanthropic (i.e. a building fund) versus covering short-term expenses, or "charity" to my father? While we'll never know the true motives of gift giving, it is probably true that a combination of factors is at play, perhaps the tax deduction may well be a factor, as well as the preference of giving a gift to the church versus an individual. 

Readers, what do you think?

The White House Initiative on Asian Americans and Pacific Islanders National Philanthropic Briefing

- by Andy Ho

Last month I had the honor of being one of over 200 participants for a day-long National Philanthropic Briefing, hosted by the White House Initiative on Asian Americans and Pacific Islanders. Over 50 foundations were represented, as well as many AAPI community organizations across the country, brought together to discuss with government agency officials about the needs in the AAPI community and population.

It’s great to have a spirit of collaboration and connectedness across sectors – in recognition that no one organization or sector, regardless of how much financial resource one has – can solve our social problems by themselves. My hope is that the energy, excitement, and momentum that’s been built off of this one meeting isn’t bogged down in bureaucracy, pointless debates, and interpersonal conflict. AAPI communities are hurting too much, and growing too much, to wait too long for a difference to be made.

Here’s an excerpt from a letter by Kiran Ahuja, Executive Director of the White House Initiative on AAPIs, following the event:

Since the National Philanthropic Briefing, we have received an outpouring of responses from so many of you. We are grateful for the input, follow up, and eager inquiries regarding next steps. While we collect your feedback and strategize around a process to move this effort forward, we wanted to take a moment and share with you a few key principles that emerged from the day.

First, this effort has bigger—and better—potential than we even originally anticipated. The groundbreaking $1 million commitment by the Ford Foundation, the W.K. Kellogg Foundation and the Kresge Foundation affords us the rare opportunity to think outside of the proverbial box, to commence a long and lasting conversation, and to expand the discussion to long-term solutions and long-range investments in the AAPI community.

Second, we recognize and respect our inextricable interdependence in this effort. Each of you—federal official, community leader, and philanthropic partner, alike—plays a critical and active role in achieving this kind of transformational change.

Third, the briefing only marks the beginning; moving forward we must work creatively and collaboratively to achieve these ambitious goals.

It is now up to “both philanthropic and governmental organizations to evaluate their strategic plans to ensure that the critical needs of these marginalized communities are addressed.” (Dr. Gail Christopher, W.K. Kellogg Foundation, National Philanthropic Briefing, April 2, 2012). The initial investment will enable us to map out a strategy to leverage significant philanthropic and government investment in the long-term. Through our collaboration with Asian Americans/Pacific Islanders in Philanthropy (AAPIP), we will engage in a thoughtful and collaborative process to ensure that AAPI communities have consistent, reliable access to the resources and support they need. Both federal and philanthropic colleagues have taken note of the historic effort that we collectively embarked upon last month (Download Summary Report 04022012 National Philanthropic Briefing). We now look forward to your participation, your ideas, and your input.

It will be interesting and exciting to track the developments as this effort moves forward in the coming months.

Asian American Philanthropy in Silicon Valley

AAPIP (Asian Americans/Pacific Islanders in Philanthropy) is releasing the report, Emerging Opportunities: Giving and Participation by Silicon Valley Asian American Communities this Thursday. Learn more about recent research on the motivation and inspiration that drives giving among the fast-growing Asian American community in the Silicon Valley.
 
Thursday, March 29, 2012
5:00 pm – Reception / Dinner
5:30 pm – Program & Livestream Broadcast [link below]

LinkedIn
Corporate Headquarters, Unite Room
2025 Steirlin Court • Mountain View, CA
 
The program will include opening remarks from Peggy Saika, President/Executive Director of AAPIP, as well as a presentation of the report’s key findings by principal researcher and author, Sarita Ahuja. The program will also feature key observations from one of the leading voices within philanthropy and on donor impact, Laura Arrillaga-Andreessen, New York Times bestselling author of Giving 2.0: Transform Your Giving and Our World, as well as Founder/Chair, Stanford University PACS (Center on Philanthropy and Civil Society).
 
Registration is required. Very limited seating remains. Register today at:
http://aapipsvsbmarch29.eventbrite.com
 
This program will also be broadcast via livestream Thursday, March 29, at 5:30 pm PT at:
http://www.ustream.tv/linkedin-events,
or visit www.aapip.org on March 29 for a direct link.

Enabling Indian Diaspora Philanthropy

Give2Asia released a new report that looks at the challenges and trends of diaspora donors giving to India. Here are some of the highlights from the report, Enabling Indian Diaspora Philanthropy:

* Nearly 2.7 million people of Indian origin reside in the US, making it the third largest Asian American population. 

* Over $2.3 billion was received by some 12,400 non- governmental organizations in India from overseas sources in 2008-09, an increase of nearly 12% over the previous year. Of this, nearly $740 million came from the United States alone, making it the single largest contributor. Diaspora remittances to India are the highest in the world at an estimated $49.3 billion in 2009.

* The Indian government has also recognized the financial and intellectual power of its diaspora, and has been actively seeking to encourage its business and philanthropic investments.

* There are challenges to giving to India though. They include: (1) lack of information about good organizations; (2) lack of trust in intermediaries and grantees; (3) India has a complicated legal process for non-profits wishing to accept foreign funds; and (4) and many of the funds to India are concentrated in certain parts of the country.

* Give2Asia has seen some recent trends in private giving: (1) public-private partnerships in India are increasing, an example is the creation of the Public Health Foundation of India; (2) donors are focusing on localized high-impact philanthropy; (3) donors are not only giving annually but they are making endowment gifts; and (4) social investments are on the rise.

To read the full report, you can download it here.