New report tracks emerging trends shaping the future of giving

To mark the launch of the 'The Future of Philanthropy' research report, an insightful panel discussion was held in the presence of over 700 participants from the global philanthropy and social sector community, to discuss the report findings and reflect on the future of philanthropy in emerging markets.

Discussion leaders included Badr Jafar, CEO of Crescent Enterprises, Rohini Nilekani, author and Founder of the Rohini Nilekani Philanthropies, Laurence Lien, Chairman of the Lien Foundation and CEO of Asia Philanthropy Circle, and Dr Precious Moloi-Motsepe, Co-Founder of the Motsepe Foundation and Chancellor of the University of Cape Town.

This landmark research project and 2023 report, commissioned by Badr Jafar, involved hundreds of interviews and data gathering on practices of philanthropy and future trends across three major regions of the world: Africa, the Middle East, and Southeast Asia.

The resulting report underscores two critical imperatives: the need for increased and more meaningful data, and the importance of fostering collaboration among philanthropists not only within their own ranks but also across various sectors. Furthermore, the report emphasises the transformative potential of technology to revolutionise philanthropy in three distinct ways: firstly, by fostering the growth of online giving; secondly, by enhancing transparency in philanthropic operations; and thirdly, by enabling the efficient processing of vast datasets.

Additionally, the report also presents practical recommendations for philanthropists in these markets on how to best engage with these trends that are shaping philanthropic practice, with a view to maximising the impact of their philanthropy.

As COP28 Special Representative for Business and Philanthropy & Chair of the Business & Philanthropy Climate Forum, Badr Jafar highlighted the profound intersection between philanthropy and climate action. He said, “With the huge intergenerational transition of wealth underway, there is a highly encouraging shift towards the institutionalisation of philanthropy across the Global South. These markets are developing an increasing recognition of the interconnectedness of climate and a wide range of societal issues including implications for public health, food security, biodiversity, economic equity, and social justice.”

Jafar also stated that a key focus for COP28 will be to ensure proper engagement from business and philanthropy in these regions of the world that stand the most to gain from climate action, to help funnel more funds into these regions and from within these regions. This effort will need to be anchored in frameworks of multistakeholder collaboration and co-creation, built around a common sense of purpose and urgency.

The report highlights that by 2030, more than US$15 trillion in wealth will be transferred from one generation to the next. According to the report, this transition will be particularly significant in Asia, where 35% of this wealth will be in millennial hands within the next five to seven years. Furthermore, according to Wealth-X’s Ultra High Net Worth Philanthropy 2022 report, UHNWIs gave US$175 billion in 2022 (36% of global individual giving), with US8 billion coming from the Middle East.

The ‘Future of Philanthropy’ study was undertaken as a follow-up to a 2018 research project on philanthropy commissioned by Badr Jafar. This 2023 comprehensive report delves into the vital role that data and collaboration play in scaling social impact and fostering sustainable change. The report builds on findings from the 2018 project and draws insights from existing literature, along with in-depth interviews with sector experts in three distinct regions – Africa, the Middle East, and South-East Asia. The report also highlights two key needs across these regions, and across the world: the need for more useful data on philanthropy and philanthropic capital flows, and the need for philanthropists to collaborate with each other and across sectors.