Philanthropic giving in Asia is probably under-reported, according to an HSBC Private Bank study.

The anecdote about philanthropist Bill Gates journeying to India and China to urge the countries' billionaires to pledge their fortunes - and coming back empty-handed - is well-known. 

But according to a study published yesterday by  HSBC Private Bank in conjunction with The Economist Intelligence Unit, Asia's wealthy philanthropists are giving more to charity, than they let on.

Philanthropic giving in Asia is probably under-reported, according to the study titled Something's Gotta Give: The State of Philanthropy in Asia. Charity in Asian cultures has traditionally been carried out informally and often anonymously by donors reluctant to call attention to their actions. Public displays of wealth, often implicit in philanthropy, are also frowned upon in many parts of Asia. 

Wealthy people in some parts of Asia are also wary of revealing the full extent of their wealth, lest they are slapped with taxes, a corruption investigation or even the risk of imprisonment. Thus some may prefer to give quietly. As a result, data on charitable donations in Asia are likely to underreport actual levels of giving, said the report.

“Asians are becoming increasingly affluent and international and, as a result, philanthropy is now firmly on the agenda.  Across the region, where there are various approaches to giving – from formal foundation grant-making to market-oriented solutions – philanthropy is evolving into a visionary and strategic endeavour with an increasing need for it to be managed professionally," said Russell Prior, head of Philanthropy, HSBC Private Bank UK.

And what is more, they are not just giving back, they are increasingly doing it with a strategy.

According to the study, a number of leading Asian philanthropists are starting to incorporate innovation, scale and measurable results in the execution of their charitable activities, with the aim to make a long-term impact on the region's social issues. 

Philanthropic activity in Asia remains low compared to the West, but the study shows that charitable contributions have increased steadily in the past few years. When asked about the reasons why they choose to give, humble upbringings and a desire to enact positive change in society emerged as the key drivers for philanthropic giving. 

For example, Chen Guangbiao, chief executive of recycling company Jiangsu Huangpu Renewable Resources, and one of China’s richest men, remembers his mother sharing food with neighbours and beggars—this left a lasting impression, and is an important motivation for his philanthropy.

A lot of Asia's philanthropists grew up at a time the region was still largely poor. Today, this has taken a 180-degree turn, with over 3.3 million high net worth individuals living in the region. 

"Asia's new generation of philanthropists are starting to change the landscape of giving. Across the region, where there are various approaches to giving – from formal foundation grant-making to market-oriented solutions – philanthropy is evolving into a visionary and strategic endeavour," said Cynthia Danjou-Brown, senior-advisor for philanthropy and governance at HSBC Private Bank. 

"The future of philanthropy will be about individuals and families working beyond their own foundations, galvanising resources and collaborating with multiple stakeholders to achieve long-term and sustainable results for the community," D'anjou-Brown added. 

Tax initiatives are providing another incentive. Some Asian countries, like Singapore, offer generous tax incentives, such as deducting 250 per cent of their charitable giving from their taxable income. Friendlier regulatory climates in places like China are also leading to a rise in the number of charities. 

Some are also coordinating efforts with other stakeholders to magnify the impact of their time and money, as with Jaime August Zobel de Ayala of the Philippines, whose Ayala Foundation has mobilised private entities and government organisations together to support public high schools in the country.

Finally, the emergence of several role models, including Putera Sampoerna in Indonesia and John Gokongwei in the Philippines, is spurring on other would-be philanthropists, said the report.

The full text of the HSBC Private Bank report may be found here.