Republic of China (Taiwan) – Indicators of International Philanthropy from Asia

Republic of China (Taiwan) – Indicators of International Philanthropy from Asia

This is the fifth in a series of twelve articles looking at factors influencing international philanthropy across ten Asian countries, paying particular attention to giving in the areas of international aid and education.

The study identifies nine country-specific factors affecting the propensity of people to give offshore funds to these two causes. By using nine general indicators and adding the aid or education indicator, organisations working in either sector can assess background issues determining their ability to raise philanthropic gifts in a particular country. For a full explanation of indicators used, please refer to Article 1: Introduction to the series.

 

Assessment of international philanthropy from Taiwan

 

Political & Economic Security

Rating: 4

Comments: Taiwan has a steady economy and a stable democratic government. [1]Euromoney Country Risk

Capital Accumulation

Rating: 3

Comments: 1,150 ultra high net worth individuals with collective wealth of $195 billion. [2]Wealth-X. 2011. World Ultra Wealth Report 2011: Uncovering Pockets of Opportunities

Incentives

Rating: 2.5

Comments: Low to moderate level of incentives available. The government does not actively promote charitable activities through tax incentives. Corporate donations to non-profits are tax-exemptible up to 30% of the total annual business revenue, while the tax exemption for individual donations is 10%. [3]UBS Insead. 2011. Study on Family Philanthropy in Asia

Trust in NGOs

Rating: 2.5

Comments: Just over one-third of Taiwanese donate to charity. The NGO sector is not highly developed.

 

Priority of Human Development

Rating: 3.5

Comments: Strong emphasis on human development. Past studies suggest 10% of family philanthropies in Taiwan go to poverty alleviation and development. [4]UBS Insead. 2011. Study on Family Philanthropy in Asia

 

Propensity to Give Internationally

Rating: 2

Comments: Studies suggest low level of giving internationally. The majority of philanthropic giving in Taiwan is directed to local causes. [5]UBS Insead. 2011. Study on Family Philanthropy in Asia

 

Overall Level of Philanthropy

Rating: 2.5

Comments: Low to moderate overall level of philanthropy in Taiwan. Research suggests that while there is a strong history of individual giving, much of this is to selective causes. Many people are inclined to give to relatives or people within their social circle as opposed to other causes. Taiwan ranked 72 out of 153 in the World
Giving Index for 2010, with 37% of the population donating to charity. [6]UBS Insead. 2011. Study on Family Philanthropy in Asia [7]Charities Aid Foundation. 2010. The World Giving Index: 2010.

 

Fundraising Practice

Rating: 2

Comments: Low level of fundraising practice in Taiwan. Research suggests that Taiwan suffers lack of fundraising knowledge and skills. There is no professional association of fundraisers in Taiwan. [8]Ho, Hsuan-fu and Shi-Lin Huang. 2009. “Giving Something Back: Alumni Donations to Universities of Education in Taiwan.” Asian Social Science 12 (5): 65-73.

 

Development of Giving Foundations

Rating: 1

Comments: There is no available evidence of significant international philanthropy from Taiwan.

 

Financial Openness

Rating: 2.5

Comments: In April 2009 a financial openness milestone was achieved with the lifting of a decades-old ban on Chinese investment in Taiwan. For the first time in 60 years mainland, institutional investors are allowed to invest in securities markets in Taiwan. It is the first step in a wide-ranging financial cooperation program. Despite a series of deregulations, investment is still subject to various restrictions. Aggregate investment amounts and shareholding in certain industries is subject to a ceiling amount, and every investment requires separate prior government approval. Taiwan is not included in the Chinn-Ito (KAOPEN) index for financial openness. [9]Cheng, Su-Yin. 2012. “Financial Openness and Finance Growth Nexus: Evidence from Taiwan.” Journal of International Financial Markets, Institutions and Money 22 (3): 508-520 [10]Lee, Ying-Ye. 2011. “Race to take advantage of new openness from Taiwan.” China Law & Practice

 

Giving to Education

Rating: 2.5

Comments: There is a low to moderate focus on giving to education in Taiwan. A study by UBS-Insead showed that 27% of giving from family philanthropies in 2010 was directed towards education. [11]UBS Insead. 2011. Study on Family Philanthropy in Asia

 

 

The total scores for Taiwan are:

  • Index of International philanthropy for aid from Asia 25.5

  • Index of international philanthropy for education from Asia 24.5

Jacqueline Cameron

Jacqueline Cameron

Consultant & Research Manager at AskRIGHT
Jacqueline is a dedicated, motivated and results oriented fundraising professional. She enjoys the variety in fundraising, and brings broad experience to clients on all aspects: from identifying prospects to liaising with donors, advising on collateral, writing case statements and bequest brochures, data mining and analytics, and developing fundraising strategies.

To find out how Jacqueline can help your organisation, email j.cameron@AskRIGHT.com.
Jacqueline Cameron
Dr Daniel McDiarmid

Dr Daniel McDiarmid

Principal Consultant at AskRIGHT
Daniel is a highly experienced and innovative fundraising professional with more than 30 years of success raising funds for higher education, research, religious and other organisations in Australia and New Zealand.

To find out how Daniel can help your organisation, contact d.mcdiarmid@AskRIGHT.com.
Dr Daniel McDiarmid

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