Study on Pakistan shows hope for strategic philanthropy

Zubair Bhatti’s conference paper for the APPC Hanoi Conference shows many optimistic signs for the future of strategic philanthropy in Pakistan. Of the estimated six million Pakistanis living outside Pakistan, around 3.9 million sent home a total of US$5.5 billion from 2006 to 2007—through formal banking channels. The Ministry of Labor and Overseas Pakistanis even placed the estimated remittances at some US$8 billion—contributed by around 7 million persons “of Pakistani origin.”

And this isn’t even the good news yet. Even more positive is the observation that these remittances, and the philanthropic purposes for which they are sometimes allocated, are beginning to be “aimed at long-term social change,” showing the relative maturity of overseas Pakistanis when it comes to strategic giving. According to Bhatti: “Strategic giving is not a new phenomenon in Pakistan. Among the Muslims of the subcontinent, a proud tradition of philanthropy as an instrument of social change has long co-existed with the dominant impulse of helping the poor.”  At present, more signs are pointing towards the giving public’s preference for institutional, if not strategic, methods and channels for giving. These include the following:

•    The rising number of NGOs, as well as the increasing visibility of their work and their fund-raising activities;
•    The proliferation of major advertisements on billboards, newspapers, and TV screens showing charitable organisations and their campaigns;
•    The increasing willingness of donors to allocate their donations, including Zakat, to organisations “rather than to the poor in the family or immediate locality according to the traditional interpretation of Zakat;”
•    The growing interest in corporate social responsibility among wealthy businessmen;
•    American Pakistanis’ utilisation of personal foundations and funding organisations in allocating and disbursing large sums of money toward charitable causes; and
•    The large percentage of funds being raised by local Pakistani NGOs from the diaspora community.

Bhatti cites several “drivers of change” in this shift toward a more strategic philanthropic perspective in Pakistan. First is the observation that overseas Pakistanis “are more educated, more aware, more affluent... than Pakistanis back home... [They] have seen the role of strategic philanthropy in [more advanced] societies.”

Next is the aging population of first-generation Pakistani emigrants and their propensity to be involved in charitable activities given their affluence, their prominence, and the amount of free time they have on their hands. Related to this is the rise in status of medical professionals who left Pakistan in the 1970s to study in medical colleges, and who now find themselves in a position “where they can use their financial resources and contacts to mobilize funds for their alma mater and other related social causes.”

As the population of Pakistani professionals in other countries matures and reaches out, so does the maturity and reach of its professional associations. Bhatti shares that, in the United States, the Association of Physicians of Pakistani Descent in North America (APNAA)—a 10,000-strong organisation—supports strategic philanthropy through health and education initiatives in rural areas. Also in the Unites States, “the growing size of remittances... represents greater opportunities for organized fund-raising.”

Certain social challenges have also paved the way for a preference for strategic, organised philanthropic initiatives. As Bhatti writes, “long-time residents [of other countries] are less likely to personally know the poor in Pakistan, and they also slowly lose touch with friends and relatives that could help to distribute charity to the poor. As such, these individuals are more likely to give to organizations.” Also: “increasingly cautious Pakistanis, eager to avoid the possibility of investigations by U.S. security apparatus, are more likely to give through organized means to well-known charities.”

The increasing acceptance of strategic philanthropy in Pakistan spells great hope for social development initiatives will ultimately trickle down to its neediest citizens. On this, Bhatti makes a powerful assertion: “Substantial funding for many prominent Pakistani NGOs comes from the diaspora. The impact of these NGOs—fostering hope, creating trust, leading innovations, providing basic social services, and encouraging changes in giving patterns—is also the impact of diaspora philanthropy.”