PHILANTHROPY
Despite the economic pressures faced by people in Pakistan, the encouraging fact is that there is a tendency among them to contribute to the well-being of others. This can be in the form of financial help, in kind or in shape the time spent to help out someone. People do it as their moral obligation to share a part of their wealth with the destitute and in most case due to religious reasons. This gives them contentment and a feeling of winning the blessings of God.
It comes as a pleasant surprise to one that total estimated magnitude of household level giving in Pakistan was Rs239.7 billion in the year 2014. This amount is more than three times larger than the estimate for 1998. Most of this comes from monetary contributions, zakat and time volunteerism. Out of the total amount, Rs113 billion is estimated for Punjab, Rs38 billion for KP, Rs10 billion for Balochistan, and Rs78 billion for Sindh province.
After looking at these figures the questions that arise are: Why do individuals give? Who are the primary recipients? How does giving differ across provinces? Apart from zakat, how has giving broadened to bring about improvements in health, education, and the standard of living? And how does individual household giving compare with budgets of state-run programmes? Besides, why do most people donate to individuals and are quite cautious when it comes to giving to charitable trusts, welfare organisations and so on.
This was the premise of a study carried out by Pakistan Centre for Philanthropy (PCP) which is an independent non-profit support organisation with a mission to promote the volume and effectiveness of philanthropy for social development in Pakistan. The centre is licensed under section 42 of the Companies Ordinance 1984, with the Securities and Exchange Commission of Pakistan (SECP).
The study titled “The State of Independent Philanthropy in Pakistan 2016” was carried out under the auspices of PCP. As per details shared by centre’s team, a representative sample of about 10,000 households was selected in four provinces in Pakistan, namely Punjab, Khyber Pakhtunkhwa (KP), Balochistan and Sindh for the study.
The data on individual giving was gathered in 2013 in Sindh and 2014 in other three provinces, using quantitative and qualitative methods. In addition to an extensive household survey, focus group discussions were conducted with people in the community and in-depth interviews with high-level officials in relevant government departments to capture their views about philanthropic giving behaviour.
The data is reliable and represents a good cross-section of views in Pakistan, claims Ahmad Nadeem, head of communications and partnerships at PCP. He says the study tries to assess the magnitude of individual philanthropy in Pakistan and explore people’s preferences and choices about giving, to better inform organisational and policy decisions.
The study, he says, has been done with the support of leading business tycoon and groups. To name a few, there were Mian Mohammad Abdullah, chairman, Sapphire Group; Towfiq Chinoy, chairman, Jubilee General Insurance Company Limited, Arif Habib, chairman, Arif Habib Corporation; Ahsan M Saleem, CEO, Crescent Steel and Allied Products; Mohsin Nathani, CEO, Standard Chartered Bank, and Mohammad Ali Tabba, CEO, Lucky Cement.
The findings of the study reveal that in terms of size, households tend to give predominantly to individuals, and mostly to those identified as needy. When it comes to organisations, the principal beneficiaries are the mosques, reinforcing the fact that the religious compassion underlying household giving behaviour and close proximity to mosques predominate. Besides, the report points out that individual philanthropy offers enormous opportunities to supplement state-run social programmes to reach out to the poor and the underserved to address local needs and poverty issues.
Another important finding is that major determinant of organisational-based giving is proximity and reputation. A majority of focus group participants considered education and health organisations to be worthy beneficiaries of donations and expressed their intention to give to these causes in future. In order for secular institutions to receive donations, majority of participants stressed the importance of trust, transparency, and accountability. Individuals preferred giving to organisations which had a proven track record for success with visible outcomes and encouraged local involvement in decision-making.
Against this backdrop, Shazia Maqsood Amjad, executive director, PCP, opines that philanthropy is a force for good inspired by basic humanity and the motivations to help others. She says it can be used as a flexible, strategic and unique tool that can be applied in creative ways to tackle complex issues in Pakistan. The report highlights how committed people are in this respect.
Similarly, Zaffar A Khan, chairman PCP, comments on the importance of philanthropy as projected in the report. He says philanthropy is about nation building that society undertakes to benefit the under-privileged. “Its scope is bigger than charity in that it helps to create institutions to multiply and sustain the goodness of charity. It aims to offer relief and or benefits to those in need without compromising their dignity.”
He says in another way philanthropy is an expression of love and care from those who have, to those in need. “Philanthropy often reaches out to segments of society that governments fail to reach. It is a glue that binds society and promotes harmony and good will," he adds.
Other findings are that individuals in the sampled households have reported that their giving stems from religious reasons, but that compassion also matters. The research also found that most Pakistanis are unaware of the existing charitable organisations as well as the new policy initiatives aimed at increasing philanthropic giving.
Besides, it was revealed that 98 percent of households reported giving in cash, in-kind, or time- volunteered. Monetary giving is the highest in Punjab with approximately 50 percent of donations made in cash. Volunteerism is the largest form of contribution in individual philanthropy in all provinces except for Punjab. In Sindh, where poverty is pervasive, volunteering one’s time accounts for 48 percent of giving.
Focused group discussions carried out during the study suggest that mistrust on non-profit and philanthropic institutions is a major constraining factor in making an effective and transparent use of their contributions. If mechanisms are in place to ensure greater transparency and local involvement in decision making, respondents would be willing to give more to organisations committed to social causes. Some respondents in the survey also stated that they would donate more, if there are greater tax incentives in return for their contributions.
The writer is a staff member
