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
Comments: Taiwan has a steady economy and a stable democratic government. Euromoney Country Risk
Comments: 1,150 ultra high net worth individuals with collective wealth of $195 billion. Wealth-X. 2011. World Ultra Wealth Report 2011: Uncovering Pockets of Opportunities
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%. UBS Insead. 2011. Study on Family Philanthropy in Asia
Trust in NGOs
Comments: Just over one-third of Taiwanese donate to charity. The NGO sector is not highly developed.
Priority of Human Development
Comments: Strong emphasis on human development. Past studies suggest 10% of family philanthropies in Taiwan go to poverty alleviation and development. UBS Insead. 2011. Study on Family Philanthropy in Asia
Propensity to Give Internationally
Comments: Studies suggest low level of giving internationally. The majority of philanthropic giving in Taiwan is directed to local causes. UBS Insead. 2011. Study on Family Philanthropy in Asia
Overall Level of Philanthropy
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. UBS Insead. 2011. Study on Family Philanthropy in Asia Charities Aid Foundation. 2010. The World Giving Index: 2010.
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. 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
Comments: There is no available evidence of significant international philanthropy from Taiwan.
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. 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 Lee, Ying-Ye. 2011. “Race to take advantage of new openness from Taiwan.” China Law & Practice
Giving to Education
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. 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
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References [ + ]
|1.||↑||Euromoney Country Risk|
|2.||↑||Wealth-X. 2011. World Ultra Wealth Report 2011: Uncovering Pockets of Opportunities|
|3, 4, 5, 6, 11.||↑||UBS Insead. 2011. Study on Family Philanthropy in Asia|
|7.||↑||Charities Aid Foundation. 2010. The World Giving Index: 2010.|
|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.|
|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|