Philanthropy Age Issue 14 English Edition

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FROM ACCESS TO EDUCATION, TO SHRINKING POVERTY, MEET THE

WOMEN LEADERS

TAKING THE MIDDLE EAST’S NONPROFIT SECTOR TO NEW HEIGHTS




Contents

Women leaders Decades after women began pouring into the workplace, only a fraction have made it to the top of the corporate ladder. But in the nonprofit sector, the gap is narrowing. Meet the female leaders helping to drive positive change in the Middle East

Taking off

Saudi Arabia's nonprofit sector is finding its voice as a partner for social and economic growth. King Khalid Foundation's Princess Banderi bint Abdulrahman AlFaisal explains what unlocking the sector's full potential could mean for the kingdom

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From the web

Winning the war

Falling short

A global campaign to relegate neglected tropical diseases to the history books is gaining ground

Social impact begins in the boardroom. But businesses in the Middle East are struggling to match intention with impact

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The future of philanthropy

Next generation

What are the trends shaping regional giving, and what does the future hold? Here's what the experts predict

From digitally mapping the world, to mobile finance, these entrepreneurs are using technology to unite societies

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The tragedy of Yemen

Passing the torch

As disease and famine stalk the Arab world's poorest state, only peace will stop Yemen from falling further into chaos

Bahraini philanthropist Mona Almoayyed talks microfinance, supporting migrant workers, and the roots of her family's giving

Beyond the grid Meet Pawame, the UAE-based startup bringing solar power to Sub-Saharan African – and with it, social and financial inclusion

P.60 Eastern promise

Zhai Meiqing, entrepreneur and founder of the country's first private foundation, on the rise of philanthropy in China

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Learning curve Dubai's ruler aims to boost the education of up to 50 million young Arabs with the launch of a video-led digital learning platform

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Knowledge is power Philanthropy University plans to upskill 5,000 civil society organisations, and impact the lives of 100m people, by 2020. We learn how

Discover more at: www.philanthropyage.com

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/ @philanthropyage

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Philanthropy Age is published by Touchline FZ-LLC. The publishers regret that they cannot accept liability for errors or omissions contained in the publication, for whatever reason, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. The publishers take no responsibility for the goods and services advertised. All materials are protected by copyright. All rights are reserved. No part of this publication may be reproduced in any material form (including photography or storage in any medium by electronic means) without the written permission of the copyright owner, except as may be permitted by applicable laws.

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JESSICA HOLLAND

PETER GUEST

Freelance journalist Jessica Holland has written about global culture, technology and business for outlets including The Guardian, the Independent and Entrepreneur. In this issue, she profiles one of the Halo Trust’s longest-serving members of staff, and the entrepreneurs combining profit and purpose to tackle social problems.

Peter Guest is a Southeast Asia-based journalist and photographer, focusing on the environment, development and human rights. He has reported from across Asia, Africa, the Middle East and Latin America for titles including The Atlantic, Newsweek, Wired and the Financial Times. Here, he looks at how Middle East businesses are struggling to get their sustainability plans into play.

KATIE BOUCHER

HOLLY EXLEY

Based in the UAE, Katie Boucher has written about art, culture and innovation for regional titles including The National and Vision. In this issue, she meets the female nonprofit leaders helping to deliver sustainable social and economic change across the Arab region.

Holly Exley is a freelance illustrator living and working the Peak District, UK. Using watercolour exclusively, Holly specialises in food illustration, portraiture and wildlife illustration. Her work has appeared in Lonely Planet and BBC Wildlife magazine. In this edition, she captures the startups breathing new life into the social enterprise space.

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Contributors: Paul Ryding; Jessica Holland; Peter Guest; Katie Boucher; Jason Simmons; Holly Exley. Images: Halo Trust; Getty Images; Magnum Photos; John Marsland ISSN: 2305-6525 Distributed by: GLS Media Services Printed by: Emirates Printing Press, Dubai

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THE MOMENT / 17–09–2018

School beckons for refugee youth UAE philanthropist activates $27.2m fund to give displaced young Arabs access to education

WHEN WAR ERUPTS, EDUCATION IS OFTEN

the first service to be affected and the last to be resumed. Nearly 75 million children and youth in crisis-hit countries have had their education disrupted, with little prospect of returning to school full-time. It deals a double blow to young refugees, who can lose both their homes and their futures. A major regional fund aims to help 15,000 displaced youth back into the classroom, by opening up vocational and educational opportunities in Jordan, Lebanon and the UAE. Capitalised by Emirati businessman Abdul Aziz Al Ghurair, the fund represents a $27.2m (AED100m) stream of finance, spread over three years, and is the largest of its kind in the Arab region. “Philanthropists have a role to play in helping to support one of the most acute challenges of our region: lack of education opportunities for young people who need it the most,” says Al Ghurair, who is also cha irma n of the Abdulla A l Ghura ir Foundation for Education. “Young people whose education has been interrupted by conflict deserve a chance to rebuild their lives and have a shot at a good future.” The fund’s first grantmaking round in September saw $12.3m channeled to organisations including the UN’s children’s agency UNICEF, Luminus Education, and the United Lebanon Youth Project (ULYP), to give a planned 6,500 refugee children and youth access to vocational and skills training, remedial support, scholarships,

and mainstream schooling. In the UAE, the fund is partnering with Emirates Red Crescent and UNHCR to pay the school fees of 800 displaced children living in the country, but out of school. Globally, less than two per cent of donor support goes to education in emergencies, despite growing needs. Of that funding, significantly more is spent on primary education than secondary or vocational education. Just 23 per cent of refugee adolescents are enrolled in secondary school, compared to 84 per cent globally. In tertiary education, enrolment rates among refugees fall to just 1 per cent. UNICEF estimates that the Syrian conflict alone has left two million children out of school, and thousands more youth unable to continue their education. As well as having a long-term impact on students' learning – data shows that children missing three or more years of schooling are unlikely ever to catch up – the social and economic repercussions of this are severe. It’s thought that in 2030, across all low and middle-income countries, more than half the world’s children and young people will lack the basic skills or qualifications needed to thrive in a modern workforce and secure a sustainable future. “It is no longer enoug h to rely on humanitarian agencies to provide lifesaving support,” says UAE head of UNHCR Toby Howard. “New partners have to be engaged in the areas of education and livelihood.” Philanthropy Age 09


Need to know

THE QUOTE

“Giving money and giving it well are very different things. To solve today’s complex social issues, we need to be strategic” Princess Banderi bint Abdulrahman AlFaisal, CEO of Saudi Arabia's King Khalid Foundation, addresses an industry meeting in Dubai

$100M The UAE has pledged $100m to a global fund to champion education for children in the world’s poorest countries. The three-year funding facility will support the Global Partnership for Education’s (GPE) aim of raising $3.1bn by 2020 to ensure access to classrooms for 870 million children, in up to 89 developing countries. An estimated one in five children and youth globally are out of school 10

Philanthropy Age

Trust gap curbs giving As much as $507bn in giving could be unlocked in Asia if high-value philanthropists had more trust in development agencies, according to a report. The belief that regional nonprofits are not transparent or accountable is a key factor in wealthy donors’ reluctance to give, found the Doing Good Index. Asia plays host to the largest number of billionaires in the world, with an estimated 637 as of 2017, and the concentration of wealth is expected to surge over the coming years.

$507BN

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Cities from Geneva to Shenzhen are projected to see steep temperature hikes over the next decade or so as the effects of global warming take hold. Thirteen global cities will see rises that could exceed 2 degrees Celsius, found research from Columbia University, putting them at risk of extreme weather events such as storms and floods

$1.5 trillion

Foundations globally have combined assets of $1.5 trillion, found a Harvard-led assessment of 39 countries around the world, heavily concentrated in the US (60 per cent) and Europe (30 per cent).

700 million

Global health aid has helped save nearly 700 million lives in the past 25 years, reports advocacy group the ONE Campaign, but political will and funding is needed to maintain gains


RISING WEALTH

$8.9tn The combined wealth of the world’s billionaires jumped 19 per cent in 2017 to $8.9tn

24% The ranks of the MENA region’s super-rich grew to reach 52 billionaires

75% More than two-thirds of billionaires in the MENA region are self-made

HIDDEN MASSES

70 million people globally are trapped in neglected humanitarian crises

Africa population boom puts global poverty progress at risk: report

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WIFT POPULATION GROWTH

in some of the world’s poorest countries could halt progress in the global fight against poverty and disease, a report by the Bill & Melinda Gates Foundation has warned. Despite a billion people pushing themselves above the poverty line in the last 18 years, the report found that rapidly expanding populations, particularly in parts of Africa, threaten to stultify efforts. “To put it bluntly, decades of stunning progress in the fight against poverty and disease may be on the verge of stalling,” Bill and Melinda Gates wrote. “If current trends continue, the number of poor people in the world will stop falling – and could even start to rise.” With Africa set to double in size by 2050, and populations in some of the continent’s poorest countries – including Nigeria and Democratic Republic of Congo – growing the fastest, these two countries may soon be home to 40 per cent of the world’s poorest people. “More babies are being born in the places Illustration: Ralph Mancao

where it’s hardest to lead a healthy and productive life,” the Gates’ noted. Creating opportunities for young people by improving healthcare and access to education will be key to shifting the trajectory. The report highlighted birth control as a pivotal factor, stating that if every woman in sub-Saharan Africa was able to have the number of children she wanted, the projected population increase could be up to 30 per cent smaller. “Educated girls tend to work more, earn more, expand their horizons, marry and start having children later, have fewer children, and invest more in each child,” said the report. Investing in human capital is another economic driver: data shows that differences in health and education levels explain as much as 30 per cent of the variance in per capita GDP between countries. The report, entitled Goalkeepers, tracks 18 indicators on the United Nations' Sustainable Development Goals (SDGs), including child and maternal deaths, stunting, HIV, malaria, extreme poverty, financial inclusion, and sanitation. The Gates’ plan to publish the report annually to 2030. “Our purpose remains the same,” they said: “Measuring progress and trying to spur more of it.”

Better together

A global band of philanthropists has pledged to invest $500m to advance health, education and ignite economic opportunity in the developing world. Co-Impact, which counts Jeff Skoll, Romesh Wadhwani, and Bill and Melinda Gates among its members, will connect social leaders with philanthropists, partners and funding, sharing grants of up to $50m over a period of five years. It aims to create a new model for collaborative philanthropy that pools knowledge and resources for systems-level change

1/3 They represent a third of the world’s 220 million people in need of aid

2% But receive a fraction of relief funding, at less than 5 per cent

$5.25bn The UAE was the largest development aid donor in 2017 relative to income, giving more than $5bn to 147 countries Philanthropy Age 11


Life lessons Philanthropists and industry leaders share their advice on intelligent giving, and the experience they’ve gained along the way

Brian Rusch

Human Thread Foundation

If we want nonprofits to run like for-profit businesses, we need to give them the resources to do so. We have no issue with investing in for-profit companies with slim or no margins, but we expect NGOs to save the world, and also spend just 10 per cent of their resources on operations. 01

is executive director of the Human Thread Foundation, an international nonprofit that drives awareness about human dignity and human trafficking through interactive exhibitions, educational programming, and global campaigns.

Dr Atallah Kuttab

Saaned for Philanthropy Advisory

Learn when to say ‘no’. A challenge for many organisations, especially young ones, is the urge to take on every opportunity that comes your way. Learning when to say no allows you to really focus your resources – both human and capital – on achieving your mission.

Do what you can to make a difference. You might not be able to change the world, but you might be able to change the world for one person.

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It is naïve to think philanthropists can change the world. Their function is not to bring about change themselves, but to pilot new ideas and methods for others to scale.

Never assume that what you think will make people happy will actually make them happy. The solution to this is simple: ask. Give those you seek to help a voice in the process and empower them to continue improving their lives beyond the scope of your investment.

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I recommend keeping the African adage in mind: “If you want to walk fast, walk alone. But if you want to walk far, walk together.”

is the founder and chairman of Saaned for Philanthropy Advisory, based in Jordan. He is a founding member of the Arab Human Rights Fund and the Arab Foundations Forum, among others, and chairman emeritus of the Worldwide Initiatives for Grantmaker Support (WINGS). 01 12

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Develop strong partnerships. Look at competitors as potential partners. Joining with others strengthens your mission and moves you closer to your collective success.

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If you haven’t failed, you aren’t being ambitious enough. Failure is a key part of success. All successful people fail over and over again. When you fail, pick yourself up, look at what went wrong, and learn from it.

Make space in your organisation for intergenerational dialogue. The young people of today are the best hope we have for transforming cultures of war and violence into cultures of peace and prosperity. If we give young people interactive and stimulating opportunities in our organisations, we are more likely to see them foster the principles of non-violence, equality, compassion and integrity in their societies.

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06 In the Arab region, grantmaking is still the exception rather than the rule. Many philanthropists choose to create and run their own programmes, rather than giving funds to existing NGOs or nonprofits on the ground. Philanthropists are choosing to walk fast, rather than far.

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The Arab region is seeing the early shoots of social businesses, or companies that blend profit and purpose. This is positive, as it widens the pool of capital available for tackling social problems beyond just charitable donations. But it will be a missed opportunity if these firms limit themselves only to delivering services: we need to tackle the causes of social inequality, not just the symptoms.

I assumed for years there was a unified lens through which to look at Arab philanthropy. But it is a complex mix, shaped by funding sources, actors and beneficiaries, which varies greatly from the GCC, to the Maghreb and in the Levant. But what unites us is our deep tradition of social giving, which spans all borders, faiths and people.

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Illustration: Ralph Mancao

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Global eye

For richer, for poorer Global inequality has been pulled under the spotlight as data shows the world’s richest 42 people hold the same wealth as the 3.7 billion poorest

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Illustration: Sean Loose

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The details Around the world, the gap between rich and poor is growing. In 2017, four out of five dollars generated ended up in the pockets of the richest one per cent, while the poorest half of humanity gained nothing. While hundreds of millions of people struggled on poverty pay, billionaires were created at a record rate of one every two days. These are among the findings from a report published by Oxfam, which warned the billionaire boom was not a symptom of a thriving global economy, but of a broken one – and one fuelled by the labour of low-paid workers. Redesigning this to serve the many, not the few, will come at a price. But the cost of a dysfunctional economy may be greater.

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01.The view from the top The ranks of the world’s dollar billionaires grew to 2,043 in 2017, after a new one emerged every two days over the year. This club saw its wealth surge by $762bn in the 12-month period, a sum large enough to end extreme poverty seven times over. In the decade to 2015, the wealth of billionaires has swelled by an average of 13 per cent a year: for ordinary workers, wages have risen by just two per cent. The richest one per cent of billionaires continues to own more wealth that the rest of humanity combined.

02.The factory floor The employees who make our clothes, assemble our phones, and grow our food pay the price of global inequality to ensure a steady supply of cheap goods. While profits cluster at the top, low-paid workers are squeezed by poverty wages and poor working conditions, and receive a fraction of global income growth. For those at the bottom of the pyramid, incomes have risen by less than $3 in the last 25 years. It would take just over four days for a CEO from any one of the world’s top five fashion brands to earn what a garment worker in Bangladesh does in a lifetime. For these employees, having a job does not mean necessarily mean an escape from poverty. Workers often remain poor, in debt and struggling to feed their families.

03.Breaking the food chain Vast numbers of poor people derive their incomes from agriculture and small-scale food production, forming part of a food system that traps them in poverty and powerlessness. Less than 6 per cent of the value of a chocolate bar makes its way back to cocoa farmers, for example. In the 1980s, it was 18 per cent.

04. Inequality within inequality 04

Women and youth are worse hit by wealth disparity. Close to half of the global youth labour force is either jobless, or working but living in poverty, with more than 500 million young people surviving on less than $2 a day. Women, meanwhile, consistently have lower earnings, fewer rights, and are more likely to take on temporary, precarious roles. Living wages and decent work for both groups would be key to levelling the global playing field, and shaping a more equal society.

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One day

Afghanistan’s killing fields

Decades of conflict have left Afghanistan littered with the debris of war. Halo Trust, the world's largest demining charity, has spent 30 years in the country working to clear the mines and pieces of unexploded ordnance that can maim and kill long after combat has stopped. Now, says Dr Farid Homayoun, Afghanistan desk officer at the trust, they need fresh funding and support to finish the job

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E HAVE A SAYING IN DARI

that we have skinned a cow to the end, and only the tail is left. Mine clearance is like that. Eighty per cent of the work in Afghanistan is done, so we’ve come a long way, but now we need to finish the job. In every conflict, warring factions use any kind of warfare against each other. There are bombs, shells and artillery, and improvised mines, but not everything that is fired or dropped from the air will explode. These hazardous belts of land are what is left behind by conflicts, and they are dangerous or even lethal for the communities that return. Afghanistan sees about 180 civilian casualties a month, and that’s mainly the result of mines and the explosive remnants of war. Some are the legacy of previous conflicts – such as the Soviet invasion and the civil wars – and others are the result of new contamination by armed opposition groups. Each of these blocks of Afghan history is unique in terms of the type of explosives and mines left behind, and their impact is enormous. About 70 per cent of Afghanistan’s income is based on agriculture, and mines prevent farmers from cultivating their land. They take a toll on infrastructure, education, and of course on civilians: those people who are killed, maimed or injured. Families can lose their only breadwinners, or a village can

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Writer: Jessica Holland


be abandoned because of landmines. It’s devastating for communities. Halo Trust was founded in Afghanistan in 1988, when the country was still under Soviet occupation and Kabul was a city under siege. At the time, I was a medical student. Electricity was scarce and there wasn’t much in terms of work, but it was the countryside that was the worst affected. It was burning with war, and heavily mined. Halo began working in small mother and child health clinics in Kabul, to warn parents about the risks. We saw children with severe burns, women and children with no legs – really terrible injuries – and as a medical professional I thought that prevention was better than cure. Afghanistan was our first demining programme. Then a second programme began in Cambodia and, gradually, Halo became what it is today: the largest humanitarian mine clearance organisation in the world. The trust clears about 25 to 28-square-kilometres of mine fields each year in Afghanistan, and millions of square metres of battlefields. Monthly, it equates to several hundred mines, and as much as 100 tonnes of ammunition. We also have huge areas now that are contaminated with anti-vehicle mines, which are difficult to detect. Demining isn’t rocket science but it’s very labour intensive. Detection is carried out metre-by-metre by hand, before the mines are isolated and destroyed. It’s a risky job, but if you have proper training, and enough of it, and you wear your protective equipment, it’s no more dangerous than road construction. Accidents do happen but they’re rare. The work can be costly: our annual budget is just over $22m, and around two-thirds of this goes towards the salaries of deminers. But once you clear land, it’s done and dusted, and its value will rise. We can clear some areas for $0.40 per square metre, which is very cheap. The whole thing is like a machine – once a village is mine-free, we see roads and houses being built, schools reopening, businesses flourishing and incomes rising. The most important aspect of demining work is neutrality; without the community’s support, we can’t work. Because of this, our work in Afghanistan is Afghan-led, and Afghan-run. We have in excess of 3,300 employees, and the

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01. Almost 80 per cent of contaminated land in Afghanistan has been cleared, but more work remains 02. Around 2.7 per cent of the country's population is severely disabled, many because of landmines

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vast majority are nationals. We recruit from mine-impacted communities which are often remote and marginalised, and where income, employment and literacy rates are low. The fabric of society here is the village shura, or council, so we approach them and share our employment criteria. We ask for people who are neutral, not involved in conflict, and who aren’t criminals or drug addicts. The community puts the candidates forward and, because demining is seen as

a noble job, there is respect for them, even among the armed opposition groups. It's a win-win situation. Afghan culture means demining is a man’s job, Recruits undergo a four-week training course before we deploy them, and we pay them $300 a month. We also give them literacy and paramedic training, which can act as another source of income. Demining creates jobs for thousands of unemployed young men of fighting age, who might otherwise be Philanthropy Age 17


One day the firewood of insurgency. We've seen that poverty feeds instability, so its elimination is critical to the peace and stability of Afghanistan. This is still one of the most mined countries in the world. Of 400 districts in Afghanistan, 250 have a problem with mines. The two main challenges we face in completing the job are funding and security. Funding is in decline, because donors are diverting money to other conflicts in the Middle East and elsewhere, and there are also still areas that we cannot access for the safety of deminers. But mine clearance in Afghanistan is winning, inshallah; we just need support to finish the job. Fifteen years ago, I visited a village near the border with Tajikistan that had been badly mined. The local mosque was destroyed, and it was almost deserted. We cleared the land, we dug a well for them, and paid for the mosque to be repaired. Two years later, I returned, and I didn’t recognise the place. There was livestock, people were busy, and in the school children were sitting under the shade of the trees. I thought of the miseries they’d faced two years ago and now life was normal. These people were hopeful for the future again and for me this is huge. It’s what keeps me going. —

"Demining creates thousands of jobs for unemployed men who might otherwise be the firewood of insurgency"

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01. More than 23,500 mining casualties were recorded in Afghanistan between 1979 and 2015 02. The country has pledged to become mine-free by 2023

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Comment

Building a legacy Philanthropy, more than money, can be the tie that binds wealthy families together, writes Andrew Doust

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EALTH CAN BE A DIVIDING

force. The A merica n playwright Mark Twain once said: “You will never truly understand your relatives until you have to share an inheritance” – a nod to the way in which inherited money can plough fault lines through families. For a small but growing number of families in the Middle East and North Africa – a region where much wealth is first generation, and the number of billionaires grew by 25 per cent in 2017 – this is an emerging worry. The accumulation of wealth is often first fuelled by a desire to set the family unit up for generations of prosperity. But too many of these families excel in business and wealth creation but do not thrive together as a unit. And because the family unit is typically the custodian for the founder’s legacy and assets, when it breaks down, it

leads to the fragmentation and eventual loss of wealth – usually within three generations. So universal is this experience, that societies the world over have coined a phrase to describe it. In the USA, they refer to ‘shirtsleeves to shirtsleeves’ in three generations; in England, it is 'clogs to clogs’. Japan has the phrase ‘the third generation ruins the house’, while China offers the literal observation that ‘wealth does not survive three generations’. You get the idea. The wealth is lost because the family fails, and the shared values and purpose that propelled it to prosperity are also lost. Poor relationships, rather than poor financial planning, are to blame. So how can wealthy families work together to avoid the generational curse? How can dynasties act to resolve conflict and build a meaningful legacy? And how is strategic philanthropy part of the solution?

Around $3.4tn of family wealth is set to transition to heirs over the next two decades

Find a common cause – Wealth itself is not a unifying force in a family. This is especially true when assets transition from one generation to the next, to members who have grown up in privilege. Families are rarely driven by financial metrics alone: many are motivated by a sense of responsibility towards their communities and wider society, and see the purpose of wealth as being to enrich others, not just themselves. Philanthropy offers a way to rally the family around a common goal and embed shared values. It shows younger members that wealth is not an identity, but a tool that can be used to make the world a better place. On a practical note, it also offers an opportunity to involve them in the long-term stewardship of family assets, and gives an early grounding in efficiency and impact. Find a higher purpose for your family to circle around. Tackling modern slavery? Supporting refugees? Putting your wealth to work for good can be transformative. Character, then competence – Globally we are on the brink of a major wealth transition. According to a recent report by UBS, almost 40 per cent of current billionaire wealth – around $3.4tn – is set to transition to heirs over the next two decades. Both for high-net-worth families, and for wider society, much depends on their ability to use their influence and capital wisely. The most important qualification for robust family leadership is sound character, which is shaped from childhood through a lifetime of experiences. Teach children from a young age about your family values and journey – who we are, and how we got to where we are; the good and the bad. Find opportunities for hands-on learning. Give them small amounts of capital to manage for philanthropic causes and commercial investment and let them learn from their

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mistakes. Create the freedom for them to discover personal gifts and passions and to work out who they are, free from family expectations. Experiment with what works best for your family. I recently learned of the head of a prominent GCC family who took his eldest son for a drive into the desert, leaving him in the care of a tribal family for several months. His son gained a deep understanding and appreciation of the traditions and culture of his country, which had in turn shaped the family journey. United we stand – The family unit is the custodian of family wealth: its resilience is essential. Maintaining this doesn’t just mean employing formal governance mechanisms such as family constitutions, leadership structures and succession plans – although these are necessary. More critical is spending time together, communicating well and building relationships that stretch across generations. This becomes harder as families grow and spread out across the world. Help to forge close ties by establishing family traditions and rituals, and by sharing experiences together. Some families help less privileged communities during Ramadan, or volunteer within local charities. Others join together to visit development projects funded by their foundation or family office. Your family’s giving is a powerful tool to help strengthen the wider unit. Don’t see it as a sideshow to the main game.

"Philanthropy offers a way to rally the family around a common goal and embed shared values"

ABOUT THE WRITER

Andrew Doust is the founder of advisory firm Plenitude Partners. He is also the co-founder of Kore Venture, a nonprofit programme which helps young, high-net-worth individuals to prepare for wealth and leadership. Doust is the former vice president of strategy at Legatum, a private investment firm, where he helped to lead its philanthropic portfolio.

From tackling modern slavery to funding education,there are benefits in putting your wealth to work for good

Align and engage – When you have agreed a unifying family purpose, express it through what you invest in. This approach is not limited to philanthropic causes without a financial return. Your capital can deliver great social impact and financial returns when invested shrewdly – as family offices are increasingly realising. A third are now engaged in impact investing, according to the 2018 Global Family Office Report, and nearly half plan to boost their sustainable investments over the next 12 months – a push largely attributed to purpose-led millennials moving up through the ranks. If you have not yet established a family group to develop your philanthropic strategy and oversee giving, then do so. It will engage the entire family and help them to express your shared purpose and values. United and flourishing families are far better financial stewards – and are more likely to make philanthropic and investment decisions that create a multi-generational legacy. — Philanthropy Age 21



BIG PICTURE Disaster aid is still more art than science. In crisis zones, the rush to deliver food, water, medicine and other supplies can see aid agencies' efforts duplicated, supply routes bottleneck, and receipient communities overwhelmed. Now, International Humanitarian City (IHC), Dubai’s aid hub, thinks it may be on course to finding a solution. The Humanitarian Logistics Databank (HLD) is an online portal for the aid sector that aims to give real-time updates on the quantity and location of relief stocks. Unveiled by Princess Haya bint Al Hussein at the World Government Summit in Dubai, the portal will act as a live supply chain, tracking aid shipments through ports, airports and across borders, and enabling relief agencies to streamline their response. The database will start tracking aid shipments in Dubai this year, and plans to roll out in other global humanitarian hubs in 2019. Major aid actors – including the United Nations and the World Food Programme – have already signed up to support it. “This is a homegrown innovation that will serve people from all around the region and the world,” said Princess Haya, “at times when they need it most.” While preventing political conflict, natural disasters and climate change may be beyond our current capability, how we respond to them is anything but. Philippe Lopez / Getty Images

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TAK OFF 176

FOUNDATIONS

8

NONPROFIT UNIVERSITIES AND COLLEGES

Infographics: Matt Walker

521

SOCIAL DEVELOPMENT COMMITTEES

S A U D I A R A B I A’ S NONPROFIT SECTOR IS FINDING ITS VOICE AS A CONDUIT FOR SOCIAL AND

949

CHARITIES

ECONOMIC CHANGE

23.4%

$147M VALUE OF ANNUAL STATE FUNDING TO NONPROFITS

2018

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NEARLY A QUARTER OF NONPROFITS ARE BASED IN RIYADH


KING F 47,038

NONPROFIT EMPLOYEES IN SAUDI

235

SAUDI ARABIA'S VISION 2030 CALLS FOR NONPROFITS TO GENERATE 5% OF GDP BY 2030, UP FROM LESS THAN 1% TODAY

5

NONPROFIT HOSPITALS

2030

COOPERATIVES

10.4%

AVERAGE ANNUAL GROWTH OF SAUDI'S NONPROFIT SECTOR

1M

VOLUNTEERS TO BE RECRUITED BY 2030

$67.5M

ANNUAL SPEND ON WAGES BY SAUDI CHARITIES

2,598

NONPROFIT ORGANISATIONS

$4.7BN ESTIMATED CONTRIBUTION OF THE NONPROFIT SECTOR TO THE ECONOMY BY 2030

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"WE NEED TO CHALLENGE OURSELVES TO STEP FORWARD, MAKE A DIFFERENCE, AND HOLD OURSELVES ACCOUNTABLE" GROWTH MARKET

PRIN CES S BAND ERI ALFAISAL

T

WO YEARS AFTER IT UNVEILED

its ambitious blueprint for a diversified and future-proof country, Saudi Arabia’s plans are starting to bear fruit. From widespread social reforms, to selling stakes in stateowned companies, the Gulf kingdom is constructing a new cultural and economic order in preparation for a post-oil era. That future recognises nonprofits for the first time as an underused driver of economic change; an act that could help redefine public perception of a sector long seen as a channel for charity. Government plans call for the sector to lift its contribution to GDP from less than 1 per cent to 5 per cent over the next 12 years, ranking it alongside the private and public sectors as a spur of Saudi Arabia’s growth. For a sector that has been largely excluded from the national conversation, it’s an opportunity to demonstrate how nonprofits are taking action to address some of society’s most complex and challenging problems. This narrative is endorsed by the recently published Saudi Nonprofit Trends Report, a nationwide survey which reveals how the sector is reinventing itself as a driver of social change. Carried out by the King Khalid Foundation (KKF), the report tracks the developmental impact of nonprofit organisations, alongside volunteering and giving habits of Saudi citizens, and for the first time highlights the sector’s role in fuelling the labour market and broader

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economy. In an industry that suffers globally from a paucity of data, it offers an overview of the current landscape and outlines the roadmap for growth, says Princess Banderi bint Abdulrahman AlFaisal, CEO of KKF. “We see this as a baseline that we can refer to, to monitor and quantify the changes that we are seeing on the ground. As a sector, it shows where our strengths are to build upon, and where our weaknesses need to be addressed,” she explains.

Among the report’s findings is the discovery that the nonprofit sector has outstripped both government and non-oil private sectors to become Saudi Arabia’s fastest-growing contributor to GDP – though authors acknowledge this is from a low base. The sector has also outperformed the economy as a whole over the past five years, achieving an annual growth rate of 10.4 per cent. There a re other brig ht spots, too. As the wider GCC has grappled with tightened economic growth and low oil prices, nonprofits have showed resilience by adding jobs at a faster pace than the private sector. Charities in the kingdom spend around SR253.2m ($67.5m) a year on wages, according to the report, spread across a 47,038-strong workforce.

HOW ARE SAUDI FOUNDATIONS FUNDED?

HOW ARE SAUDI CHARITIES FUNDED?

CHARITABLE ENDOWMENTS

30%

DONATIONS

30%

DONATIONS/ CHARITY

5.6%

IN-KIND DONATIONS

8%

CAPITAL

22%

GOVERNMENT FUNDING

27%

ZAKAT

9.2%

INCOME FROM OTHER ACTIVITIES

6%

INVESTMENT REVENUES

20%

ZAKAT

11%

13%

OTHER

18%

OTHER


$11.9.5M The average annual budget of foundations in Saudi Arabia in 2018, up from $10.8m in 2015

“I would go as far as to say the targets have revolutionised the way the government views the sector,” she explains. “Nonprofits were previously seen as having limited potential but this confirms the sector as a viable conduit for change.”

The field also brings a harder-to-measure value to Saudi’s social safety net. Through grassroots interventions – for example, tackling youth unemployment, skilling at-home workers, or promoting financial literacy – nonprofits can have ripple effects on the economy. Beyond direct employment, this contribution to the lives of ordinary citizens powers the country in indirect but important ways. Growth is a critical concern in the context of Saudi Arabia’s Vision 2030 plan, which requires the nonprofit sector to rack up an annual growth rate of between 31 and 39 per cent – up from a current 10.4 per cent – to meet its goal of generating 5 per cent of GDP. In the US, where the field is professionalised, it represents 5.5 per cent. These targets are bold but galvanizing, says Princess Banderi.

WOMEN IN THE WORKFORCE

RETHINKING GIVING

The broader public has been slower to catch on. While the kingdom has a deep and wellestablished history of giving – the origins of the nonprofit sector can be traced back to the establishment of the National Emergency Medical Association in Makkah in 1935 – it traditionally operated largely on a model of charity. Much of the work consisted of providing handouts to those caught on the margins of Saudi society.

SAUDI PRIVATE SECTOR

SAUDI NONPROFIT SECTOR

FEMALE REPRESENTATION

14.9%

FEMALE REPRESENTATION

42.8%

MALE REPRESENTATION

85.1%

MALE REPRESENTATION

57.2%

Over the past decade, KKF has led efforts to disrupt the nonprofit space: building capacity, focusing on results, and modelling evidencebased giving. But while nonprofits are now thinking beyond traditional charity, much of the population still isn’t. Many Saudis prefer to give directly to beneficiaries, believing that nonprofits fritter away funding on overheads. The report showed that respondents who donate give an average of $3,862 a year; however, only around a fifth is funnelled through nonprofit organisations. Sharing data is one way to tackle this image problem, says Princess Banderi, and to telegraph how nonprofits fuel social change. “If we can quantify the impact nonprofit organisations have – if we can prove what the sector is doing on the ground in numbers – then we can make the argument that in order to deliver this, it requires infrastructure and qualified staff,” she explains. “As a sector, we need to pitch to the public as to the value we have. Why should they work with us? That’s a responsibility of every foundation and every nonprofit.” The report found Saudi charities spend on average almost three-quarters of their income on aid and activities. Overheads account for 22 per cent of expenditures. Charities are funded mainly by benefactors – at 30 per cent, donations represent the lion’s share of income – and government support, which comes in at 27 per cent. This is broadly in line with the US, where a third of charitable funding comes from the goverment. In the UK, it is 34 per cent. Among foundations, 64 per cent of their income goes to fund programmes and grants, with operational costs at 36 per cent. The average annual budget stands at $11.9m, but some 40 per cent of foundations polled warned they expected this to fall sharply in the future.

MORE

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THINKING GLOBALLY THE PERCENTAGE OF GDP GENERATED BY THE NONPROFIT SECTOR, SHOWN BY COUNTRY CALCULATION

MADE USING THE LATEST, UN-RECOMMENDED FORMULA

C ALCULATION MADE USING THE FORMULA CURRENTLY EMPLOYED IN SAUDI ARABIA

SHAPING SOCIETY

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7.1%

7.1%

5.5% 5.1%

5.1%

3.3%

2.8% 2.2%

2.0%

1.9%

1.6% 1.2% 0.9%

UNITED STATES

CANADA

0.7%

BELGIUM

THAILAND

FRANCE

NEW ZEALAND

CZECH REPUBLIC

0.5%

KYRGYZSTAN

0.8%

0.8%

JAPAN

The field is ahead of the social curve in other ways too. As the government redoubles efforts to draw women into the workforce, nonprofits have led from the front on equal opportunities. Women hold almost 43 per cent of jobs in the nonprofit workforce, higher than any other sector. In the corporate sphere, their share is less than 15 per cent. Perhaps more surprising, however, is the finding that nonprofit jobs typically pay higher salaries, and offer shorter working hours than those in the private sector. The third space is rarely seen as a viable career option for Saudi youth, who favour public, and then private sector jobs. Leveraging this advantage could help nonprofits step up their game in recruiting bright young employees. “We need to lay out the value proposition for joining the sector. That means talking about wages and talking about working hours,” says Princess Banderi. “Now that we have this information – because it’s previously been a challenge to source it – we can help young talent to see this as a viable sector.” A further boost would be the launch of courses at universities in nonprofit management and philanthropic studies, to cultivate a new generation of strategyorientated sector experts. Another priority is to shift the dial on volunteering. An estimated 11,000 Saudis donate 100 hours of their time each year to doing good, and by 2030, the government hopes to swell their ranks to 1 million. Meeting this target would spark a wholesale shift in the kingdom’s giving culture, believes Princess Banderi, by encouraging widespread community involvement in social welfare. And perhaps the fastest way to achieve it is by placing social action at the heart of the education system.


$1,419 The average monthly wage in the nonprofit sector, compared to $1,187 in the private sector

"AS A SECTOR, WE NEED TO PITCH TO THE PUBLIC AS TO THE VALUE WE HAVE. WHY SHOULD THEY WORK WITH US?" PRIN CES S BAND ERI ALFAISAL

“When you have that culture of volunteering your time it has this ripple effect of encouraging people to actually physically participate, rather than just giving money,” she says. “The 1 million volunteers is a huge number to meet, but it’s doable if we create proper volunteering systems within schools and universities.” Philanthropy is already woven into the social fabric of the country, she notes. “The inclination to give is there – it’s just a question of motivating it correctly.” THE ROAD AHEAD

Unlocking the full potential of the nonprofit space – and opening up new avenues for innovation – demands cross-sector support. The report recommends the structuring of an independent commission able to sharpen

governance, organisation and reporting among nonprofits – and to corral support from businesses and state entities to advance their cause. (The sector is currently overseen by the Ministry of Labour and Social Development.) Better tracking of the sector’s economic clout – in job creation, social spending, and in advancing Saudi Arabia’s national goals – would also help position nonprofits as key partners in social change. “It would help with the argument that the government doesn’t need to be the only implementing body,” says Princess Banderi. “It would show nonprofits can and do have impact.” A change in corporations’ CSR and funding policies could also, she believes, give the sector impetus to professionalise. As donors, businesses could play a leading role

in encouraging better impact reporting and transparency from nonprofit organisations. “Nonprofits follow the money,” she notes. “If the corporate sector was more responsible in its giving, I think that would very quickly affect the behaviour of nonprofits in a positive way.” Most of all, however, it is down to nonprofit organisations themselves to get their houses in order. According to the report, this includes revamping their goals, programmes and activities to align with Saudi’s Vision 2030 roadmap and focusing on outcomes over outputs. Above all, it means delivering results that will both meet urgent needs, and be sustainable for the long term. “We need to challenge ourselves to step forward, make a difference and hold ourselves accountable to the impact that we’re having,” argues Princess Banderi. “Organisations also need to think more about how they invest, or how they achieve sustainability. Any organisation that depends on fundraising is at the mercy of the economy, the mood and donor trends.” In Saudi Arabia’s rapidly changing landscape, the nonprofit sector has a prime opportunity to raise its profile, expand its reach and to be recognised as a pivotal cog in the diversifying economy. This represents a new chapter for the sector: and one that will have benefits for Saudi society for generations to come. “This is what is exciting: we’re in a period of change, and I feel the future is bright,” says Princess Banderi. “We have a lot of catching up to do. For years, government and the private sector have received a lot of attention, and nonprofits have only really been on the radar for the past two years. So we may be starting from behind, but we’re running as fast as we can.” —

END

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WINNING THE WAR Neglected tropical diseases affect the lives of around 1.5 billion people worldwide, many of whom are children

30 Philanthropy Age

Photography: Lorenzo Meloni


I

N MARCH, THE WORLD’S NEWEST NATION

In some of the world’s poorest and most fragile communities, a global campaign against long-neglected tropical diseases is gaining ground

Writer Joanne Bladd

made history. Against a backdrop of civil war, famine and displacement, South Sudan announced it had stopped guinea worm within its borders, marking a major victory in the race to make the disease only the second after smallpox to be eradicated worldwide. “Having known the suffering it inflicts, one is very happy today,” Dr Riek Gai Kok, the country’s health minister, told reporters. “Future generations will just read of it in the books as history.” Gu i nea wor m–a lso k now n a s dracunculiasis, or ‘affliction with little dragons’ - is one of 18 debilitating conditions known collectively as neglected tropical diseases, or NTDs. Between them, this band of diseases blind, disable and disfigure millions of the world’s poorest people, miring sufferers in poverty and social exclusion, and draining billions of dollars from developing economies each year. They thrive in the most marginalised corners of the world – remote, rural communities or conflict zones, where health systems are weak – and despite being preventable and treatable, continue to blight communities. NTDs are both a symptom and a cause of poverty. One, lymphatic filariasis (LF) begins with a simple mosquito bite. As the fly feeds, in some regions of the world, it can transmit a parasite, which invades the host’s lymphatic system and develops into an adult worm. The infection can lead to vast swelling, blockages and fevers, leaving sufferers too ill to work or attend school, and often shunned by their communities. Guinea worm larvae are ingested in dirty water, growing internally to as long as a metre before pushing, excruciatingly, through the skin over several weeks. There is no treatment, except to wind the emerging worm around a stick to speed its removal. These diseases have afflicted the poor since ancient times. And yet, the tide is turning. For some decades, a global assault on NTDs has been quietly gathering speed, halting transmission and driving infection rates to new lows. Galvanised by funding, drug donations and political will – and backed by an army of frontline health

Philanthropy Age 31


workers – the alliance against neglected diseases has expanded into one of the most successful public health initiatives in history. The wins are myriad. In the five years since health and development experts, donors, charities and drug firms joined in London and pledged to control, eliminate or eradicate 10 NTDs by 2020, the number of people affected by these diseases has shrunk to 1.5 billion from almost 2 billion in 2011. Eight countries have eliminated trachoma – a leading cause of blindness – as a public health problem. Much of Latin America has rid itself of river blindness, while Vietnam in October became the newest nation to eliminate LF. In 2017, more than 1 billion people were dosed for infections such as sleeping sickness and leprosy, as strengthened public health systems and disease surveillance helped health workers reach patients in more than 130 countries. Philanthropy has been an engine of this success. The Carter Centre, a foundation set up by former US president Jimmy Carter in 1982, has led global efforts to eradicate guinea worm. In 1986, when it began its campaign, there were an estimated 3.5 million cases annually worldwide. Last year the global tally was 30, reported in Chad and Ethiopia. The Bill & Melinda Gates Foundation has invested millions of dollars in funding drugs and diagnostic tools, tightening surveillance, and vector control – for example, the suppression of insects and worms that spread NTDs. Multiple other donors – including the crown prince of Abu Dhabi, who last year unveiled a $100m fund aimed at eliminating river blindness and LF – have lent their support, alongside $17bn worth of medicine donated by industry partners. In stamping out NTDs, the last mile will be the hardest. As diseases fade, so too can political momentum and funding. The endgame will hinge on hunting down the last pockets of disease, in finding new tools for diagnosis and treatment, and in shoring up surveillance efforts. It will require painstaking effort, and the support of multiple partners to drive NTDs out of existence. But for the first time in history, this goal is within humanity’s grasp. —

32 Philanthropy Age

More than 40 per cent of the global NTD burden is concentrated in sub-Saharan Africa

Photography: Paolo Pellegrin


Philanthropy Age 33


WOM

LEAD 34 Philanthropy Age


MEN FROM ACCESS TO EDUCATION, TO SHRINKING POVERTY, MEET THE FEMALE LEADERS TAKING THE MIDDLE EAST’S NONPROFIT SECTOR TO NEW HEIGHTS

DERS Illustrations: Paul Ryding

Philanthropy Age 35


I

N BOARDROOMS ACROSS THE WORLD,

gender equality remains more of a slogan than a reality. Decades after women began pouring into the workplace, only a fraction have made it to the top of the corporate ladder. But in the nonprofit sector at least, the gap is gradually narrowing. With female leadership at more than 40 per cent, it is one of only three industries globally where women have neared parity in the upper ranks, blazing a trail for others to follow. The pace at which the sector hires female talent has been rising slowly since 2007, a trend that has helped swell women’s share of the nonprofit workforce to 57 per cent. But while women are increasingly making their mark on the industry, some barriers persist. One study found that the bigger a nonprofit’s budget, the less likely it is that a woman will occupy the corner office. Among top-funded groups – those with budgets of $10m or more – less than a third have a female CEO. Women that do scale the upper rungs of the career ladder can also expect to be paid less than their male counterparts. “The sort of challenges we see on a global level are also reflected here in the Arab region,” admits Maysa Jalbout, CEO of the UAE-based Abdulla Al Ghurair Foundation for Education. “It’s not perfect. But it’s also true that with the advent of more women in senior positions, they in turn are hiring, mentoring and promoting more women. It all has a knock-on effect.” In the Middle East, the gains are visible. On the following pages, we list some of the region’s most dynamic nonprofits: from its first venture philanthropy organisation, to its largest private education fund. All are run by women. Under their lead, these groups are igniting inclusive change, including powering social enterprise and driving job creation in needy communities. They are taking risks and innovating. They are tackling some of the region’s most intractable social ills. In a sector once synonymous with charity, they are leading a shift towards a more strategic, results-led model of philanthropy. Despite the obstacles, that is something to be celebrated.

36 Philanthropy Age

UNITED FOR CHANGE Noura Selim is executive director of the Sawiris Foundation for Social Development, which works to empower Egypt's poorest communities, and support inclusive development


W

HEN NOURA SELIM

left the private sector three years ago to head up one of Egypt’s longeststanding family donor foundations, not everyone saw it as an upward move. “Some people felt it was a huge step down in terms of my career to join a foundation,” she laughs, “whereas I saw it as a rare opportunity to lead an organisation. Young women don’t often get these chances in Egypt.” As executive director of the Sawiris Foundation for Social Development (SFSD), Selim oversees an organisation that invests in bold, sustainable change. Across Egypt, a country where around half the population lives on or near the breadline, SFSD works to stamp out poverty, to drive job creation, to raise the quality of education, and to give marginalised Egyptians the means to thrive. It ploughs upwards of EGP150m ($8.4m) annually into social development programmes, with more than two-thirds of funding channeled towards Egypt’s poorest communities. “We work with those at the base of the pyramid: the poorest of the poor,” explains Selim. “The core of our work is in economic empowerment, and the indirect benefits that come from that – we believe in sustainable development, and that’s what we aim for.” As a grantmaking foundation, that translates into funding for organisations and initiatives tackling systemic inequalities. SFSD’s portfolio includes a microcredit arm, which works through partner NGOs to help vulnerable groups to start or expand small businesses; healthcare projects to aid underprivileged citizens; training programmes to steer young Egyptians into employment; and community investments ranging from opening schools, to providing long-term housing and care for street children. Because SFSD’s model relies on implementing partners, money often

goes hand-in-glove with support to sharpen the skills and impact of local nonprofits. Grantees are coached in strategic planning, finances, and data tracking and evaluation, among other practices, in an effort to help galvanise the growth of a smart, stable nonprofit sector, from the ground up. “One of our primary goals since the beginning has been not only to be a professional organisation, but to play a role in the professionalisation of Egypt’s philanthropic sector,” says Selim. She estimates there are more than 40,000 NGOs working on the ground in Egypt: a fleet that runs the spectrum from grassroots groups to slick, impact-driven organisations. “As a donor, we’re very involved, and that means we tailor our support to the [grantee].” At times, that means breaking new ground. SFSD has experimented with out-of-the-box development models, backing and scaling initiatives that show promise. In Upper Egypt, an area synonymous with the struggles of the rural poor, the foundation was an early-stage partner in a 2012 project to pilot and roll out interventions to spur agricultural productivity, through the

"THE CORE OF OUR WORK IS IN ECONOMIC EMPOWERMENT AND THE INDIRECT BENEFITS THAT COME FROM THAT"

use of new, more effective farming methods. The Sustainable Agricultural Development initiative, which is run by the multi-partner Egypt Network for Integrated Development, also aimed to thin the ranks of low-paid farm workers by creating off-farm job opportunities. These included integrated fish farms, recycling of agricultural waste, and milk processing networks; to give workers the opportunity to pull in a new income stream, as well as train in sustainable agricultural practices. In its first five years, the project trained more than 2,500 people in new farming methods – workers who can then drive the wider uptake of these techniques in their villages – and created hundreds of jobs. In a further stamp of success, it has seen the government and other NGOs adopt some of its models for broader use. “This sort of collaboration is critical,” says Selim. “We see so many development players trying to target the same priority topics - youth unemployment, healthcare, poverty. It’s much more impactful when you coordinate, because you each bring your competitive strengths. Partnerships with government can be great: for us, those were the projects that went most to scale.” Here’s an example: SFSD joined with the Ministry of Health and other actors in an effort to curb hepatitis C infections among garbage collectors in povertystricken Cairo settlements. Egypt has the highest prevalence globally of the blood-borne disease – which can lead to liver failure and cancer – with poor rural areas the worst affected. Garbage collectors are especially at risk of infection; a result of both their work conditions and poor understanding of how hepatitis C is transmitted. The project powered a mass awareness campaign, which included going door-to-door in Cairo's Manshiet Nasser area to educate families on prevention tactics, and screening nearly 10,000 people for the disease.

Philanthropy Age 37


Thousands more people were reached by seminars aimed at shrinking infection rates through improved knowledge, and driving long-term changes in behaviour. It’s an example of the sort of sustainable philanthropy the foundation aims to deliver, says Selim. For much of its work, the foundation has to take a long view. Intractable social woes such as Egypt’s vast youth unemployment problem won’t be solved overnight. Part of SFSD’s approach has been to map out the needs of the labour market, and then shape its own education programmes to match. As a result it owns two technical institutes in nursing and hospitality – both underserved sectors – whose aim is to equip students with in-demand skills and help propel them into the workplace. So far, it is working: of the first two graduating classes from the nursing school, all have secured a job. “Our goal was really to shed light on models of technical education that could lead to good employment, and to a good wage,” says Selim. “There is a stigma around technical education in Egypt, which means many young people choose instead to go to university. But the result is that we have a huge number of graduates who don't necessarily have the skills that employers want.” SFSD was set up in 2001 with an endowment from the Sawiris family. This endowment, combined with donations, continues to fund its work today. Overhead expenses are capped at a lean 10 per cent of investments, a rule that forms part of SFSD’s promise to lead from the front on fiscal transparency. “I see no reason why foundations in the Arab world can’t operate like, say, the Bill & Melinda Gates Foundation,” says Selim. “Funds aside, I mean that in terms of best practices in governance, in transparency and impact. The lack of [public] metrics is one of the most annoying elements of the sector: there is no legal requirement for foundations to report on their spending.” Fixing this opacity could go some way towards buffing up the nonprofit sector’s reputation in Egypt, a change that could pay dividends, particularly for

38 Philanthropy Age

SHAPING FUTURE LEADERS Maysa Jalbout is CEO of the Abdulla Al Ghurair Foundation for Education (AGFE), which uses scholarships, skills training and other support to help bright, underserved Arab youth to thrive

foundations seeking financial support. “I see a lot more private philanthropy coming through in Egypt now. If [philanthropists] felt there were organisations they could trust, which worked efficiently, they might choose to channel their funds through them,” she suggests. “I think we'd also see more interest from young talent: they'd see the sector has organisations that work professionally, and can offer career development opportunities.” SFSD itself puts heavy emphasis on impact. In 2015 it teamed up with the Abdul Latif Jameel Poverty Action Lab (J-PAL), a global research network, to guage the long-term impact of its core work. The results of two randomised controlled trials – the gold standard in research – are due to be published in early 2019. “We hope this will really show the impact of the different tools we use,” explains Selim. “For example, our theory is that economic empowerment leads to improved women’s empowerment in terms of their financial, social or political rights. But does it? That's what we want to find out.”


T

HERE IS NO SILVER BULLET

for economic and social inequity. But as interventions go, widening access to education ranks among the most effective. “Education is the only thing you can give a person that no one else can take away from them,” says Maysa Jalbout, CEO of the UAE-based Abdulla Al Ghurair Foundation for Education (AGFE). “It’s the key to a better job, a better livelihood and better sustainable development. There is nothing else that delivers that kind of economic return.” Investing in education is not new, but AGFE stands out both for its size – at $1.1bn, it is among the world’s largest education foundations – and its audacity. The details of its plan involve propelling 15,000 bright, underserved young Arabs into leading universities by 2025, and reaching thousands more via innovative online learning programmes. Its approach goes beyond financial aid: scholars also reap the benefits of hands-on learning, soft skills training and mentorship. In a region with one of the highest youth unemployment rates globally, these are gains that matter. The foundation’s overarching goal is to change the course of these students’ lives –and by extension, to write a new script for the Middle East. “Quality higher education is still very much for the privileged,” says Jalbout, adding that 35 per cent of AGFE’s scholars are the first in their family to enroll in university. “So many talented, incredible young people, with such ambition, come from the most disadvantaged families.” In the two years since its launch, AGFE has supported 800 students from 18 Arab states, and struck up 16 partnerships with universities in 10 countries. High demand – more than 72,000 students have registered with the foundation’s online portal – saw AGFE promise to double the number of scholarships it offers this year to 1,500. The foundation has also targeted the gulf in provision for displaced teens and young adults, a group that attracts the scraps of global education spending. In

June, AGFE’s chairman, Abdul Aziz Al Ghurair, pledged $27.2m over three years to drum up secondary, vocational and higher education opportunities for 15,000 out-ofschool Palestinian and Syrian refugees, and help them find a route to employment. The fund, which will be administered by AGFE, announced an initial grantmaking round of $12.3m in September, with the UN’s children’s agency UNICEF, Emirates Red Crescent and the United Lebanon Youth Project among the organisations to benefit. “We’ve realised we can’t have small gains: we’ve got to be more ambitious than that,” explains Jalbout. “The region has generations of young people who will be on the margins if we don’t support them. We don’t want to turn away these kids.” This is not something AGFE can do alone, however. For this reason, it has a sharp focus on leverage, whether that’s in finding partners, building capacity in the education sector, or using technology to expand its reach. More broadly, AGFE hopes to model the sort of strategic, impact-led giving that, if adopted widely in the Middle East, could help trigger a region-wide switch from charity to sustainable philanthropy. This style of giving uses philanthropy as a

"WE ALL WANT TO SEE MORE PHILANTHROPY BEING GIVEN, BUT EQUALLY IMPORTANT IS HOW IT IS GIVEN AND TO WHAT"

test lab: one able to explore, fund and trial innovations in areas that governments and business shy away from, before developing them at scale. The idea, says Jalbout, is to do good better, and to make genuine inroads into the region's biggest issues. “There is a key opportunity here to change the way philanthropy works, so it can produce the kind of results that we’re seeing around the globe,” she explains. “Private philanthropy is where we can invest more in innovation, we can have a higher tolerance for risk, we can address the gaps and we can bring different players to the table to work for the wider good.” Arab giving is on the cusp of this change, she notes. “It’s gone from something that is entirely personal, private and religiously motivated, to something that is a key player in solving socioeconomic challenges.” For the wider nonprofit industry, this push towards results-led giving may act as an impetus to become more professional. Higher standards will also be required if the sector is to fight off the corporate sector to recruit and retain talented millennials. “We’re working right at the interface between the most difficult problems that the region is facing, but the ecosystem isn’t optimised. We need to invest in the skills and professionalisation of the industry,” says Jalbout. “We all want to see more philanthropy being given, but equally important will be how it is given and to what.” Jalbout says Arab women have long been at the coalface of community social change, a culture that has spilled over to create a female-dominated nonprofit workforce. The more pressing challenge now, she argues, is to open up workplaces across all industries to allow women to lead and succeed. “We need women at the top of every sector,” she says. “If the private sector is going to play a stronger role in philanthropy, then we need women in those influential positions. We need more women entrepreneurs making money. Don’t think you can only have an impact in the nonprofit sector – you can make a difference anywhere.”

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INVESTING FOR GROWTH Myrna Atalla is executive director of venture philanthropy organisation Alfanar, which works through innovative social enterprises to transform low-income communities

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UCKS ARE NOT THE MOST

obvious solution to the problem of unemployed widows in Egypt. But for the Arab world’s first venture philanthropy organisation, they could form at least part of the answer. A mass-rearing model, currently being tested by a widows’ empowerment organisation in the north of the country, is just one of the investments London-based Alfanar has backed in an effort to help lift those at the bottom of the economic pyramid out of poverty. “Their business plan shows that Egyptians consume 85 million ducks a year, but they only produce 11 million. The rest are imported,” explains executive director Myrna Atalla. “So we’ve helped seed the first duck-rearing value chain in the country, run by widows, to capitalise on that gap.” The chain represents a line of small businesses. The goal is for each of these to generate enough profit to sustain these women and their families, she adds. "We've injected aid funding into this organisation’s microloan portfolio, which allows them to provide these women with the training they need to recycle their loan, cover their costs and hopefully to grow their income.” This is Alfanar’s model in a nutshell: it champions grassroots social enterprises that are scalable, financially viable, and able to deliver lasting social change in the Arab region. Its portfolio spans 18 initiatives across Egypt and Lebanon, with a focus on investments that help women and children, and a goal of helping to grow organisations into “impact investment-ready entities”. “If the organisation is looking for funding, and nothing else, we’re not the right partners for them,” Atalla says. Alfanar launched in 2004, but it remains one only a handful of venture philanthropy players in the region, using its $1.68m annual budget to find and scale social ventures. This form of giving is focused on outcomes, so grants go hand-inhand with regular calls, visits and running support from an assigned officer within

Alfanar. The organisation uses digital apps to encourage grantees to track and react to their data in real-time, “rather than see it as something for a quarterly report for donors,” she explains. “The data is to help them see how to improve and grow.” Alfanar reports that projects on average impact 39 per cent more lives during the course of its investment, and self-generate 36 per cent more income year-on-year. The organisation takes a long view on its investments, opting for a pilot year of funding which doubles up as an extended period of due diligence. If the partnership proves to be a good fit, Alfanar offers funding for a further three years. This means organisations can step off the hamster wheel of yearly grant approvals, and focus instead on their impact. “I think it’s really disingenuous to say to an organisation ‘think long-term and take bold risks’, if we’re planning to step away the next year,” notes Atalla. For Atalla, venture philanthropy really picks up where traditional aid stops, by putting the market to work for low-income communities. In areas of the Middle East ranging from impoverished regions of Egypt to refugee camps in Lebanon, it allows poor populations to be positioned as end-users rather than beneficiaries, supporting a more sustainable model of development. “It’s a shifting of mindsets. In many marginalised places, markets are thriving: disadvantaged people are customers of services and ought to be treated and valued as such,” she says. It’s also an approach that helps to combat the issue of donor fatigue because philanthropists can track the impact of their money. “They can see their dollars are having a ripple effect on the landscape, and are contributing to something bigger,” she notes. “Philanthropy is a huge part of our region and culture, but the goal is to deploy it so that the effects go beyond that of any one grant or investment.” A case in point is Soufra, a Beirut-based catering business. The company was the brainchild of Miriam Shaar, a Palestinian refugee who runs the Women’s Program


Association in Lebanon’s Burj el Barajneh camp. The NGO provides education, skills training and microloans to women living in the camps, and Shaar saw an opportunity to launch a catering unit to both subsidise its activities, and give the women a way to generate an income. With Alfanar’s backing, Soufra – which means ‘dining table’ in Arabic – was launched. Four years and one successful crowdfunding campaign later, Soufra is a thriving catering business, whose food truck gives refugee women a means to build their confidence, skills and earnings. Alfanar is now supporting Shaar and WPA in running a childcare centre in Burj el Barajneh camp, to allow more women to pursue employment. “Of the 18 investments we’re currently backing, 11 are run by women,” explains Atalla. “One of things we look for in our partnerships is a backable chief executive and women are just relentless in ensuring their initiatives succeed, no matter what obstacle comes their way. Microloans to women are almost 100 per cent repaid.” These investments have an added value. Through the funding, management training and benefits it offers to grantees, Atalla believes Alfanar is helping women to transcend cultural and economic barriers and champion a new style of business. “We are empowering a new generation of business leaders, and ones who actually got started because they care about changing society for the better,” she says. “Now they’re going to pave the path to show other people that business can be done well, and sustainably.”

RESEARCH INTO ACTION Dr Natasha Ridge is executive director of the Sheikh Saud bin Saqr Al Qasimi Foundation for Policy Research, tasked with supporting progress in Ras Al Khaimah and the wider UAE

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HEN IT COMES TO

academic success in the UAE, wealth matters. That was the primary finding of a working paper published in September, which showed that low-income Emiratis trail significantly behind their richer peers when it comes to maths, science and reading. Worst affected are “doubly disadvantaged” low-income males, noted the paper, which argued for targeted investments to help prevent poor and male students from falling through the cracks in the school system. The paper was published by the Sheikh Saud bin Saqr Al Qasimi Foundation for Policy Research, a Ras Al Khaimah-based think tank that champions evidence-led progress in the emirate and wider UAE. Its method is two-fold: first it works to generate cutting-edge research on public policy questions important to Ras Al Khaimah’s development, often in alliance with outside scholars, universities and partners. The findings are then spun out to help spark and shape policy and planning decisions, putting research in motion for the wider good. “Our goal is to help the UAE to become as competitive as it can be,” explains executive director Natasha Ridge, “so the key challenge is in getting this research into the right hands, so it can be acted upon.” National plans call for the UAE to morph itself into a hub for global business and innovation by 2021, one powered by a roaring, diversified economy, and fronted by bright Emirati leaders. For this to fly, says Ridge, the country needs a recalibrated school system capable of turning out the sort of talent this new economy needs – a realisation that helped drive the launch of the foundation in 2009 by Ras Al Khaimah’s ruler Sheikh Saud bin Saqr Al Qasimi, supported by Ridge. “Our big commitment is to improving the quality of education, and mainly in the public sector,” she says. In global rankings, the UAE falls below the OECD average for science, reading and maths. “His Highness wants to improve the capacity of

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Emiratis so they can take up the leadership positions of the future with a good education, and having fully developed their capabilities.” Shaking up education takes a multipronged approach. Among the foundation’s offerings are teacher-training courses and exchange programmes, school improvement grants, hands-on learning for at-risk or disadvantaged youth, and scholarships for gifted students. Some 1,500 teachers – almost half of all public school teachers in Ras Al Khaimah – have completed at least one of its free, 10-week professional development courses. “We don’t tell teachers what they need: we survey them at the start of each year to understand what courses they’d like and we respond to those needs,” explains Ridge. “We also work with the Ministry of Education to support their agenda.” Courses are held outside working hours, and teachers are tracked to see how effectively their new skills transfer to the classroom. Peer support is available via a 1,520-strong teacher network, which was seeded by the foundation. “We’ve seen a real change in valuing teachers as professionals in the community here,” she adds. The nonprofit also works to reach vulnerable groups, including boys teetering on the edge of academic expulsion and those in prison: 124 inmates took part in its development courses last year. In a local secondary, a pilot scheme to re-engage boys in learning has seen attendance rates leap to almost 100 per cent, from half that, among 40 per cent of those participating. “A number of these boys were on the brink of being permanently excluded but are now serving as prefects,” says Ridge. “They’re seeing a purpose again in schooling and education.” Over the years, the foundation’s focus on education has spilled over into broader work on social outcomes, taking in public health, community engagement, and the arts and culture space. It uses research to scout out gaps in the social ecosystem, tackling potentially thorny issues. Matters ranging from the impact of absent Arab fathers on a child’s academic success, to cause areas

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"OUR GOAL IS TO HELP THE UAE TO BECOME AS COMPETITIVE AS IT CAN BE"

overlooked by the UAE’s state-funded foundations have been scrutinised. (The latter paper found a glut of opportunities for gifted Emirati youth, alongside a scarcity of programmes targeting the environment and at-risk youth – and none at all to meet the growing needs of the UAE's elderly.) The foundation also offers grants to PhD students and faculty on the condition that a portion of their research is carried out in Ras Al Khaimah or the wider UAE. This cycle of reinvestment has helped foster a rich bank of knowledge on topics as diverse as social impact bonds and biofuels, in an emirate that might otherwise have struggled to catch the eye of foreign scholars. It’s a snapshot of how Al Qasimi Foundation is working to amplify its impact and drive the development of its home city, says Ridge. “When I did my doctorate in 2007, you could barely find any articles that talked about education in the UAE,” she explains. “We’ve worked hard to build up the capacity of local researchers and to create a much larger body of research.” This evidence-led model also means the foundation sometimes stands apart from mainstream thinking on trends in social development. Ridge is sceptical, for example, of the role that private funding can play in delivering initiatives for public good. “We’re very familiar with venture philanthropy and social impact investing, but I think it has to be approached with a

great deal of caution and really enshrined as a mission that the horse is still leading the cart,” she says. And while the West hews to the idea that women and girls in the Arab world lack opportunity, Ridge is mulling another form of gender bias. In much of the Middle East, girls outperform boys at every level of education – from primary school to postgraduate studies – yet she notes many nonprofits still struggle to find funding for initiatives targeting disenfranchised young Arab men. “It’s wonderful that we see women leading nonprofits in the region, and that this is leading to real action. It has really helped to move programmes on women’s development and empowerment up the funding agenda,” she says. “But I think the caution now is not to become overly focused on women, but to also question how we bring men into the picture as well. That's a challenge in this region, where we often see a negative portrayal of men – particularly from the outside.” Inclusion is a factor in many of the foundation’s programmes. It runs an annual Fine Arts Festival, which acts as a public showcase for up-and-coming artists, and operates a free gallery in its offices. Monthly events spanning from flying lessons to kayaking in Ras Al Khaimah’s mangroves are offered free of charge to residents, helping to forge cross-community ties in a country where expatriates outnumber Emiratis at a rate of 5 to 1. “His Highness is very keen to make Ras Al Khaimah an integrated community, where people view the emirate as home regardless of their ethnicity,” explains Ridge. “These events are a way of bringing people together.” Ridge is equally keen to see better cross-pollination of ideas between the corporate and nonprofit sectors, to sharpen the impact of the third space and to help draw new talent into the sector. “It’s really about meshing the two together to bring out the best of both worlds,” she says. “I’d like to see more women in the corporate space and more men in the [nonprofit] sector, because it creates a balance. We need an inclusive mindset across both.”


NEW BUSINESS HEROES Dr Iman Bibars is regional director and founder of Ashoka Arab World, the local arm of a global network of social entrepreneurs invested in solving the region's biggest challenges

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MAN BIBARS IS IN THE BUSINESS OF

change. As the founder and regional director of Ashoka Arab World (AAW), the local arm of a 3,500-plus global network of social entrepreneurs, her goal is to find and cultivate people with the ideas and impetus to tackle the Arab region’s biggest challenges. Its 110 ‘fellows’ from the Middle East and North Africa stretch from an Egyptian engineer working to widen access to low-cost housing, to a Palestinian innovator using greenhouses to help refugees slash their dependency on food aid. “We are creating a community of change leaders,” she says. “They are the world’s leading social entrepreneurs and when you sit with them, you feel there is cause for hope.” Ashoka fellows face a multistage vetting process, before gaining access to funding, mentorship and a network than spans 91 countries. Once in the fold, 75 per cent will go on to become either profitable or financially sustainable. “These are people delivering systemic change and creating new industries,” Bibars explains. “They are swimming against the tide.” Beacon projects include Glowork, an employment company in Saudi Arabia that has launched more than 30,000 women into the workplace, and which in its first year was acquired by SAS Holdings for $16m. Care With Love, a home healthcare company in Egypt, has helped more than 10,000 people secure work as carers for the country’s ageing population. “Some of our fellows work on a purely business model. Others are not-for-profit but equally strategic,” says Bibars. “There’s an explosion of new ideas coming up.” Donors in the MENA region, however, have proved slow to invest in them. The vast majority of AAW’s financing comes from funders in the US and Europe, despite persistent efforts to fundraise locally, reflecting what Bibars sees as a key misunderstanding of the social sector’s role in powering society. She argues that the purpose of the third space is to step in where businesses

can’t, bringing fresh thinking to the sort of urgent problems that drive inequality, instability and radicalism. For corporations and business leaders then, helping to fund this work should be less a matter of charity, and more about protecting their markets. “It’s quite simple. If you do not invest in solving structural problems, you won’t have a stable market in which to sell your products,” she says. “The Arab region is in the situation it is now because we haven’t invested in cutting-edge ideas within education, awareness and tolerance.” Donors are particularly reluctant to acknowledge nonprofits as active partners in delivering social and economic change, she argues. “Philanthropists will spend millions of dollars to build hospitals, or mosques, but then dismiss nonprofits as ineffective charities. They want to change the world, but don’t believe nonprofits can help. Many believe that business can solve everything, but it can’t – some problems require a different approach.” Social investment is also misunderstood. Because nonprofits increasingly cloak themselves in the language of business – talking of

"PHILANTHROPISTS WANT TO CHANGE THE WORLD BUT THEY DON'T BELIEVE THAT NONPROFITS CAN HELP"

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scale, innovation and risk – donors often expect to see their funding translate into bang-for-your-buck statistics. Not all social returns are as easily quantifiable as, say, the number of vaccines delivered in a community or meals donated to families, but they still pay dividends over the longer term. “Organisations that work with battered wives, or juvenile delinquents, or promote tolerance in rural areas, they are never going to deliver a dollar return,” she says. “But investments in these should be seen as a social tax. It isn’t charity. It’s a vital contribution to creating a harmonious society.” With three decades of development work under her belt, Bibars has played a role in the quiet evolution of the Middle East’s nonprofit space. In the early years after Ashoka’s launch in 2003, she would introduce the organisation as “venture capitalists of the social sector”, baffling investors who had barely heard of the term social entrepreneur. Today, she says the sector has made great strides, in large part due to a wave of women leaders who have helped to professionalise nonprofit work. “These are incredible women; educated, well-versed, and they've led a transformation of the sector. This is no longer the charity of your mother’s generation; we’re not kissing babies. It’s strong women and strong NGOs delivering impact," she notes. The number of women in top nonprofit roles, however, also speaks to the barriers they face in business and politics. Women hold less than 2 per cent of GCC board seats, according to data from the International Labour Organisation, while their representation at executive level ranges from 17 per cent in the UAE, to just 7 per cent in Qatar. “We don’t have an old girls’ club, or access to the right networks, and we don’t control the money,” says Bibars. As a result, she explains, the more open nonprofit sector offers ambitious women a greater shot at leadership than the corporate world.

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INNOVATING FOR IMPACT Haifa Al Attia is the former CEO of the Queen Rania Foundation for Education and Development, which aims to reshape learning in Jordan and across the region

The same power dynamic contributes to the dismissal of the sector as charity, or a glorified form of caregiving, says Bibars. While the male-dominated private sector holds the resources and power, funding only the work it sees fit, the nonprofit sector struggles to gain the traction it needs to take risks, innovate and deliver fresh solutions to old problems. “It comes back to this: who holds the money and the power?” she says. “Too many donors see me, or see a women-led nonprofit, and immediately say: ‘Oh, charity? Talk to my wife.’ The business ecosystem needs to rise up and meet us, and recognise the impact we are having.” Fixing this means changing the narrative, and educating the region on the difference between charity and social investment. It also means taking aim at the next generation and centering the idea of social responsibility in schools . In Egypt, AAW works with 20 schools in its Start Empathy scheme, which aims to give rise to a more empathetic generation of future leaders. Bibars would like to see this work extend into universities. “We all have a responsibility to contribute towards changing society,” she says. “It is in everyone’s interests to start.’


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DUCATION IN JORDAN IS A

limited commodity. Years of mayhem at the country’s borders with Syria and Iraq have placed Jordan’s economy under siege, while the act of hosting a 1.3 million-strong influx of refugees has swelled its population and further squeezed resources. All this has eroded Jordan’s ability to provide access to education for groups including pre-school children, refugees, and young adults seeking vocational skills. In a country where unemployment stands at around 18 per cent, and economic growth last year languished at 2 per cent, this bears long-term risks. “When I look at Jordan, I see a demographic opportunity and an economic opportunity,” says Haifa Al Attia, the former CEO of the Queen Rania Foundation for Education and Development (QRF). “Displacement has seen our population grow in spurts, meaning it’s difficult to keep up with the pace of services needed. But if this segment of society is left hopeless and helpless, without access to education, what is an opportunity for growth will instead turn into a problem.” In response to Jordan’s low access to quality early-childhood education – less than 25 per cent of young children attend preschool - QRF launched a free digital app to target numeracy and social skills in preschoolers. The platform, which went live last December, has notched up more than 300,000 downloads, with 3.2 million sessions logged, and aims to help plug the gap in the provision of bricks and mortar learning centres. “I think it showed people were hungry for that sort of service,” says Al Attia, who stepped down from the foundation in August after five years at the helm.“It allows kids to learn as they play, it’s free and it engages parents in their learning. If we can’t enroll all children in public schools, we can lend support while [the government] works towards universal access.” Much of QRF’s work sits at this intersection between technology and education. Founded in 2013 by Jordan’s

"WE LOOK FOR THREE PILLARS: IS IT IMPACTFUL, IS IT SCALABLE, IS IT SUSTAINABLE"

Queen Rania Al Abdullah, it seeks to push the boundaries of learning by finding, igniting and scaling innovative, cost-effective fixes to Jordan’s education crunch. Along with incubating new ideas to education change, the foundation invests in research to shape its work. Initiatives that gain traction in Jordan can be applied across the Middle East and beyond. “Jordan is our lab, but the work can be relevant to Arab populations in Greece, in Germany, in Saudi and more,” says Al Attia. This strategy was also the catalyst behind QRF’s Edraak, the region’s first nonprofit, Arab-language massive open online course (MOOC), built upon opensource technology developed by Harvard and MIT. Its courses touch on topics ranging from employment skills, to robotics, to remedial support, and are designed to give Arab learners a free platform for continuing education. In the three years after Edraak’s launch, more than a million of them signed up, joining a digital learning curve that had, until then, largely bypassed Arabic speakers due to a scarcity of content. “We wanted courses that would enrich people’s lives: whether to get them into jobs, broaden their skills, or – for the many Arabs who are displaced with no access to school or university – help them start learning again,” explains Al Attia. “If you’re a woman in Saudi Arabia, say, or a young adult in Yemen who wants to keep learning, we’re making that access possible.” The platform has also spun off to target children. Backed by a $3m grant from Google.org, Edraak Vertical offers

interactive learning for students in grades six to 12, creating a virtual classroom with Arabic-language content, tools and games. The site aims to be a source not just for children, but also for resource-poor schools and teachers across the region. “These are nice tech-led solutions that can help reform the system – and they scale,” notes Al Attia. “When you look at Jordan, where schools are overflowing and some have gone to double or triple shifts to try and accommodate [refugee] students, this is a way to help serve them.” QRF has an edge in its founder. As a high-profile advocate for education, Queen Rania has long used her position and profile to lobby for reform. The foundation’s funding portfolio includes corporate partners in Jordan and beyond – in May, Alibaba founder Jack Ma gave $3m to further its work – while sales of its online learning models help to support its activities. Partnerships with organisations such as the UK’s Department for International Development (DfID) and Jordan’s Ministry of Education are also key. But QRF’s team has also pushed to ensure the foundation’s work speaks for itself, using tools ranging from randomised control groups to outcome measurement to track impact. “With each intervention, we look for three pillars: is it impactful, is it scalable, is it sustainable,” says Al Attia. The foundation is also prepared to take longer-term bets. In September, it unveiled a competition for education startups in the region, offering three grants worth a total of $200,000 in an effort to power up entrepreneurship and innovation in the sector. A similar growth mindset applies to the foundation’s team, more than half of which are women. QRF has a strong culture of mentorship, with many senior staff – including its new CEO – having risen through its ranks. “My vision was always to leave QRF in the hands of these young people, who share the foundation’s mission and can deliver on it,” Al Attia says. “I’ve mentored them, I’ve invested in them, and they really are fantastic.” —

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BIG PICTURE In 2009, when Bill Gates released a swarm of mosquitos into the auditorium in which he was delivering a TED talk about malaria, the audience was left stunned. But the philanthropist’s point had been made: “There’s no reason why only poor people should have the experience,” he told them. Malaria infects some 21 million people a year worldwide, mainly in the world’s poorest countries. Around half a million cases of the mosquito-borne disease are fatal, making the tiny flies the deadliest animal on earth. But if Gates has his way, fewer people – rich or poor – will have to fear them. The tech billionaire has promised $31m to a Central America malaria elimination fund, which aims to wipe out the disease in seven of the region’s countries and the Dominican Republic. The five-year plan, which is also backed by the Carlos Slim Foundation and the Inter-American Development Bank, will bring a total of $83.6m in new funds to the region’s fight against malaria, which has seen a 90 per cent fall in cases since 2000. The Regional Malaria Elimination Initiative (RMEI) seeks to plug financial and technical gaps, shore up local healthcare systems, and prove that malaria can be eliminated using existing tools, Gates said – a success that could pave the way for tackling diseases such as dengue and Zika. Getting to zero is an ambitious target, but the RMEI will be giving it its best shot. Paula Bronstein / Getty Image

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T HE F U T U R E OF P HIL A N T HR O P Y

Writer: Caroline Dewing

What factors are shaping high-impact giving in the UAE, and what does the future hold? These and other key questions were debated in the Dubai edition of a series of roundtable discussions exploring the state of global philanthropy – and where it may be headed 48 Philanthropy Age


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HILANTHROPY GLOBALLY IS AT

a pivotal point. Mass migration, climate change, and growing inequality are among the dozens of complex challenges that stretch beyond the constraints of national borders, and can affect us all. At the same time, fragile economic growth has led to a renewed focus on private giving as a means to plug gaps in public spending. These are just some of the reasons why a rising number of people are proactively using their wealth and influence to find new answers to global challenges, and to drive social change. Their enthusiasm and energy is transforming the philanthropic landscape. There is no universal blueprint for impactful giving. There is huge variation – and contradiction – in the way philanthropists are striving to make a difference. To better understand this, UK-based think tank Future Agenda held a series of workshops to take stock of the themes shaping giving, and to identify how the sector will progress over the next 10 years. More than 200 experts from academia, business, government and the nonprofit sector came together in eight cities – including Dubai, Kuala Lumpur, London, Mumbai and Singapore – to discuss, debate and share ideas around the future of philanthropy. What follows are the highlights of the conversation in Dubai, and a snapshot of how industry experts think giving in the UAE and wider region could adapt and evolve over the next decade. Philanthropy Age 49


Philanthropy 2:0

In this new era of philanthropy, key drivers of change are emerging. UAE experts believe digital technology will provide more effective channels for fundraising, with the potential for donors to track the real-time impact of their giving. Better use of data will be key to doing this in a way that enables deeper learning, engagement and transparency. They also see an increasing sense of urgency around the need for change, and a growing involvement and ambition from the global elite. This goes beyond cheque-writing to a clear focus on solving major problems such as curing disease, combating world hunger and making preparations for disaster relief and climate change. There was general confidence that millennials are going to shake up the current world order. Not only are they soon to wield significant economic power – 14,000 wealthy individuals globally are expected to pass on $3.9 trillion to the next generation in the next decade – but as the first wave of ‘digital natives’, millennials are more globally aware and socially connected than any previous generation. For many in this group, philanthropic impact focuses on pooling capital and thinking towards a common goal, better transparency, and a greater spotlight on results. As importantly, many of them recognise they must do more than simply react to existing situations: long-term, systemic solutions are fundamental to ensuring sustainable change. State of play

State involvement in philanthropic initiatives was viewed in two ways by those in the UAE workshop. Some believed that government interventions were helpful, providing leadership, clarity

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Good business

Millennials will represent a new wave of philanthropy. As the first 'digital natives', they are more globally aware and connected than any previous generation

of direction and a beacon for collaboration. However, others felt that state interference in philanthropy was generally too heavy-handed and – irrespective of good intentions – often meant that important issues were overlooked and the wishes of civil society missed. In the case of the UAE’s 2017 Year of Giving, for example, it was suggested that while the campaign was designed to celebrate giving and cement it in the heart of the nation, the shortlist of approved charities able to benefit from the initiative excluded many worthy causes. The unintended consequence of this has been that both well-known NGOs and smaller civil society organisations have found it challenging to raise funds. State influence in this sector varies significantly around the world, as different governments take increasingly innovative approaches to plugging the funding gap. India is using a tax to drive philanthropy in the corporate sector. This is often cited as one of the world’s most interesting experiments in promoting private philanthropy, and counters the long-established US approach, which encourages personal giving through tax breaks.

Thinking in the UAE differed from other countries around the future role of business. Many in the US and Europe believe in ‘doing good and doing well’, and predict a rise in corporate giving over the next decade. In the Dubai workshop, however, experts were less confident. They agreed that businesses are well positioned to act as social change incubators through nonprofit partnerships, prize philanthropy and, with greater focus, socially conscious business models. However, they did not feel that corporates would become more proactive than they are already, due to regulatory challenges. Some suggested this an an opportunity for philanthropists to step in and work with regulators to change the system. In strong contrast to other locations such as Mumbai, Kuala Lumpur and London, there were also lower expectations around an increased role for women in reshaping the philanthropic landscape of the Middle East. System shake-up

Several UAE participants argued for the need to reengineer the Middle East’s entire philanthropic system rather than tinker with existing giving processes. They suggested that regional philanthropy is hampered by rigid legislation that not only limits the activities of nonprofits, but also excludes the public – many of whom would otherwise be interested in giving their time, expertise and money through, for example, peer-to-peer giving initiatives or crowdfunding campaigns. Many also felt that the current system in the Middle East restricts bottom-up ideation and the sharing of knowledge, and micromanages charitable capital. In Dubai, for example, it is illegal to


fundraise or collect donations without government approval, and NGOs across the emirates are tightly restricted in terms of their fundraising activities. The current situation is so limiting that some participants in the Dubai event suggested it is unsustainable. They believed that over the next 10 years increased public pressure, particularly from digital media, will drive greater awareness of social issues and encourage governments to become less controlling of money flows. This will free the public to more directly support causes of their choosing. At the same time, better use of data will allow donors to track the impact of their money, forcing nonprofits to be more transparent about how and where donations are spent. Group thinking

There was much discussion around the growing appetite for collaborative working in the UAE and the benefit of gathering and sharing knowledge in an effective and timely way. It was argued that while there are many grassroots initiatives trying to solve key issues, philanthropy in the Middle East is too fragmented to have significant impact. One of the reasons given for this is a lack of trust between rival organisations, which sees knowledge-sharing kept to a minimum. A paucity of accurate local data has also made it difficult for philanthropists to truly gauge local needs. As a result, a number of donors choose to give overseas, because they are concerned that local NGOs are not efficient enough to have impact. Access to better data would go some way to addressing this gap, and help build the case for a more collaborative approach to fundraising, fund allocation and delivery. It would also give donors better oversight of nonprofits able to

develop and deliver solutions to local challenges. Many expect that this will also encourage businesses, universities and religious institutions to work more closely with NGOs and social enterprise to create shared value. Accurate, timely data will also help government to pair with stakeholders to co-create more effective policies. Finally, the growing cross-border sharing of best practice and successes will lead to less duplication of effort and greater impact per unit of spend. From global to local

There were mixed views on the role of the UN Sustainable Development Goals in shaping regional philanthropy. Most agreed the goals act as a useful blueprint for private sector actors. But others felt their global nature detracted from pressing local challenges, and served to distract public attention from the region's real needs. Looking ahead, attendees felt the key would be to refract global initiatives through a local lens, to see how the SDGs could be leveraged to help tackle regional challenges. This requires better storytelling of local issues, and increased transparency and accountability around initiatives. More clarity could, in turn, encourage loosening of laws governing the use of crowdfunding sites such as JustGiving and GoFundMe, which are tightly restricted in the UAE. This act could reshape the public’s ability to support and drive charitable giving to causes that are relevant to them. It would also give businesses the opportunity to build on this using both workplace initiatives, such as matched donations, or retail promotions to encourage giving. The potential of zakat and sadaqah (compulsory and voluntary giving by Muslim donors) as a source of funding was also highlighted. With total

donations estimated at between $250bn and $1 trillion annually, it was suggested that even a small percentage of this giving could significantly contribute to global development and humanitarian aid requirements, if channelled correctly. Looking forward

Powered by digital technology, engaged millennials, the pressures of social inequality, and a global shift south and eastwards in economic power, philanthropy will see significant changes over the next decade. As societal attitudes and behaviours adjust and align to a connected and data-driven world, so too will philanthropy. Despite concerns, there was huge energy and enthusiasm about the future of giving in the Arab region, and a belief that as we seek to address social challenges, longer-term systemic and broader collaborative solutions will come to the fore. ‘Doing good, well’ may have never been more difficult. Equally, there have never been so many people trying, in so many different ways, to do so. Good leadership, be it from government, the global elite or from crowd-powered citizens, will be vital to their success.

A paucity of accurate local data has made it difficult for philanthropists to truly gauge local needs. As a result, a number of donors choose to give overseas

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KEY INSIGHTS These were the top challenges, opportunities and emerging issues identified by the experts in each host city

WASHINGTON DC

QUITO

OXFORD

LONDON

The younger generation are impatient for impact, experts in Washington said. Meanwhile US philanthropy will need to focus on meeting local needs as government funding recedes. The growing importance of data was seen as an opportunity, as was the potential of Islamic giving. Increased collaboration – between constituents and politicians, and among industries – was highlighted as a key focus for the future.

Emerging challenges to the sector in Latin America include the change in giving priorities caused by mass migration, and the disconnection between donors and recipients. Companies’ growing focus on social impact was seen as an opportunity. The growth of south-south giving, as well as more standardised reporting methods, and the state’s increasing influence on philanthropy’s scale and focus, were aired as potential future issues.

Philanthropic organisations are under pressure to use data to improve transparency, experts in Oxford said. This, as well as society’s growing antipathy towards sources of wealth, and the role of AI in facilitating political campaignfunded philanthropy, present major challenges to the sector. The disengagement of the super-rich from traditional systems, as they birth foundations of their own, was also seen as an issue to watch.

The rising wealth of the UK's highest earners, emotionally-driven philanthropy, and the questionable benefits of more rather than better data were agreed as presenting significant hurdles to the sector. Meanwhile, The UK’s increasing cultural diversity was seen as having a growing positive influence on giving; while better sharing of models and greater collaboration, as well as women's growing role in the field, were seen as opportunities.

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DUBAI

MUMBAI

SINGAPORE

KUALA LUMPUR

Breaking down barriers between siloes and mobilising the many to give effectively, were aired as priorities. The huge potential of Islamic finance, as well as that of transparency in driving more local initiatives, present opportunities – as does the shift in economic clout to the next generation, experts in Dubai said. Future focus areas include increasing state influence, as well as Gulf donors’ tendency to give overseas.

The high cost of good talent and better philanthropic capability, along with improving engagement with socially conscious millennials, present pressing sector challenges. Meanwhile, opportunity lies in more data, better collaboration and broader digital engagement. Organisations’ increasing interest in high-risk problem-solving, and the state’s growing influence on philanthropists’ focus areas through taxation, are emergent issues.

Businesses’ growing interest in social impact, and the potential of deeper digital engagement, are issues on which the sector should capitalise. Experts also saw opportunity in increased funding from organisations that support beneficiary outcomes; and in greater collaboration between charities. How to boost crowdfunding in line with money laundering laws, as well as the state's role in co-creating policy, were aired as areas to watch.

Improving women’s access to grants and microloans, gaining better transparency in funding flows, and embracing natural capital, were standout issues. Women’s growing involvement in key decision-making was also seen as an opportunity, as was co-funding between corporations with similar goals. Emergent topics for this group included greater digital transparency and the growing role of faith-driven philanthropy,

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Photographer

John Marsland

Writer

Katie Boucher

P A S S I N G T H E T O R C H

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Mona Almoayyed, managing director of one of Bahrain’s oldest private businesses, on microfinance, supporting migrant workers, and the roots of her family's philanthropy

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HEN YUSUF KHALIL ALMOAYYED DECIDED IN 1940

to abandon Bahrain’s ailing pearl industry and start a small electrical business, he already had one eye on giving back. “He used to make a very small profit – like BD100 [about $265],” says his daughter Mona Almoayyed, “and he’d take three per cent of that and give it to my mother to distribute to the poor. That’s something he did all his life.” It is a philanthropic tradition that continues today, albeit on a grander scale. As one of Bahrain’s oldest family-owned businesses, YK Almoayyed & Sons’ portfolio now stretches from cars to construction, powered by an 8,000-strong workforce. The company gives 3 per cent of its annual net profit and hundreds of hours of time volunteered by its employees to charitable causes, making philanthropy a cornerstone of its business model. In 2013, it formalised its donations with the establishment of the Yusuf & Aysha Almoayyed Charity – named after their parents, explains Mona – which has become a platform for aiding underprivileged people in Bahrain, and beyond. Focus areas include education, healthcare and elderly welfare, backed by a roughly $1m annual budget.

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“It’s a culture we try to build among our employees,” she says. “If you’re brought up with this approach, you’ll always give back to society. The principle is just to help others.” In this, Mona is a case in point. As a child, her parents’ philanthropy was a quiet constant, which swelled in lockstep with the family’s success. In the early days, her mother would buy schoolbooks or air conditioning units for impoverished local families. “She was very popular in the community,” says Mona. “They would come to her house and she would take care of their children. They were very simple in those days.” Over time, this approach grew to include sizeable donations to community projects. The family funded a drug and alcohol rehabilitation unit in Bahrain, a nephrology and renal transplant centre, and gifted BD1m ($2.65m) to support a local kidney dialysis unit. A $2m plan to build a retirement centre to serve the elderly is currently underway. “My father always encouraged us to care about those less fortunate than us. He would never say no to anyone who needed something,” explains Mona. As one of six siblings, her father broke with tradition, first in sending both his sons and daughters to university in Europe, and then in encouraging them all to join the family business. In 2001, when Mona took over as managing director, she became one of just a handful of women in the GCC to oversee a family-owned firm. A year earlier, she was named the first Bahraini woman to be elected to the board of a listed firm – the local conglomerate BMMI – a role that overlaps today with seats on multiple charitable boards. Company philanthropy aside, she gives at least 5 per cent of her personal income to charity, blending support for domestic nonprofits with donations to global aid actors such as UNHCR and the UN children’s agency. “I really do feel the private sector has a responsibility towards society to help,” she explains, “we have such wealth in this country. We don’t pay tax, and the government helps us, so in turn we have to give back to the community.” Broadly, GCC family businesses do. Representing 90 per cent of the Gulf ’s private sector economy, these firms are

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“I believe in not just handing money to those who need it. Instead of giving them fish, we should teach them how to fish”

major actors in the philanthropy space, and a trove of grants and donations for local charities. The region’s 100 largest family businesses represent at least $7bn in annual philanthropic capital, according to global consultancy Strategy&, but its impact is blunted by a reliance on unplanned, ad hoc giving. Unlocking this sector’s potential requires a swing towards development-led philanthropy, and away from simple charity. “I believe in not just handing money to those who need it," says Mona. "Instead of giving them fish, we should teach them how to fish." I n pa r t ic u la r, she bel ieves i n t he transformative power of microlending: or the practice of giving tiny unsecured loans to the poor so they can launch income-generating businesses and help lift themselves out of poverty. Globally, some 2.5 billion adults don’t have access to a bank account, curbing their ability to send, save and borrow money, and to cushion themselves against financial shocks. For the unbanked, microlending – which allows the extension of credit without collateral – can be a gateway to formal financial services. This is the idea behind Ebdaa Microfinance Bank, of which Mona is chairman and YKL & Sons a shareholder. Ebdaa offers small loans to low-income Ba h ra in is, st a r ting f rom $ 5 30 up to $13, 263, with no g ua ra ntee required and low interest on repayments. Since

its inception in 2009, the bank, which was seeded by the Saudi Arabia-based Arab Gulf Program for Development, has served more than 9,500 borrowers, lending in excess of $29m. Of those, 5,000 are women. Customers include small local ventures seeking finance to expand and a cottage industr y of women- owned businesses. The success stories, explains Mona, are many.


Along with much of the GCC, migrant workers form the backbone of Bahrain's labour economy. In 2017, the total number of domestic workers in the country reached 100,058 – of which 76,249 were women

“One lady star ted from nothing. She borrowed BD300 ($796) and now she has three shops selling spices,” she explains. “Another borrowed BD2,000 ($5,305) to start a small playgroup. She has taken three or four further loans – and paid them off – and now operates three playgroups.” The bank claims a repayment rate close to 96 per cent and, according to Mona, expects to close a profit this year.

“Ma ny of t he p e ople we lend to a re housewives or young people, who aren’t in employment,” she says. “It’s not enough to just give people money. The goal is to support them to improve their standards.” This aim extends beyond low-income Bahrainis, to the treatment of foreign workers . A s w it h ot her G CC st ates, Bahrain is powered in part by unskilled migrant workers, who occupy 95 per cent

of construction and domestic jobs. Much of their pay returns home, with remittances helping to boost prosperity in economies from Nepal to the Philippines. Workers in the region are typically employed via a sponsorship, or kafala, system, which has come under fire from global rights groups who say it can tie migrants to poor working conditions and pay. Gulf states have responded with tightened laws

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to combat illegal recruiting practices, and sharpen workers’ rights, but have stopped short of a wholesale shakeup of the system. In 2005, Mona helped to found the Migrant Workers’ Protection Association (MWPS) in Bahrain, an NGO dedicated to combating the exploitation of low-paid foreign workers. The first of its kind in the GCC, it brought fresh scrutiny to the topic of migrants’ rights, drawing a previously fringe topic into the public arena. “We felt we needed a society to protect this section of underpaid labourers and domestic staff,” she explains, "who don’t have labour laws to protect them, and often work unlimited hours.” MW PS offers the f ull spectr um of assistance, from medical treatment and legal services, to financing visa fees and airline tickets for repatriation. It also operates a shelter in Manama, which housed a total of 181 domestic workers in 2017, mainly from Ethiopia, India and Kenya. Of these, 95 per cent reported never receiving a day off, while a third complained of physical abuse. More than 75 per cent reported having their passport taken away on arrival in Bahrain. The NGO also works with labourers to improve their working conditions, and advocates on behalf of blue-collar workers to help bolster protective legislation. “We have to credit Bahrain for allowing us to have a shelter,” Mona says. “It is unheard of in any other Gulf state.” The tiny kingdom is “very active in NGOs and philanthropy,” she notes. “For a population of less than 1 million people, we are very active. It’s in our culture.” Mona is currently MWPS’s honorary chairperson, having served as chair for six years, and plays an active role in fundraising for projects. “We’ve seen huge progress, but there is still so much more to do,” she says. Regionally, philanthropy too is evolving. A slow tilt towards more outcome-based giving has gone hand-in-hand with an increased openness among Gulf donors, who have traditionally seen philanthropy as a private matter. This, in turn, is persuading others to expand their giving, suggests Mona. “My father, in the old days, would say: 'when your left hand gives, your right hand should not know.’ But now we find that by saying we give, it inspires others to do the

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Ebdaa Microfinance Bank, of which Mona is chair, has lent more than $29m to lowincome clients in Bahrain, including local startups and women-led enterprises

same,” she says. “Take Bill Gates: he has encouraged others such as Warren Buffet to give. If he had kept his philanthropy to himself, no one would have known. It gives you the culture of wanting to give.” By the same lights, Mona has long leveraged her own profile to campaign for broader opportunities for women. During her six years as chairman of the Bahraini Businesswomen’s Society, she lobbied hard for equal rights and pay – squaring up to the ministry to voice their demands over now-defunct labour law restrictions that barred women from certain roles and working hours. “While in the eyes of the law we are equally treated, in reality people discriminate between a man and a woman,”

she says. “They would give a job to a man but think twice about giving it to a woman. It’s not only in the Arab world - in Europe it’s the same.” Hiring practices in her own company take aim at the glass ceiling. “We employ lots of Bahraini women, and they are very dedicated. Some of them have been with us for 30 years.” L o ok i ng a he a d , Mon a env i s a ge s philanthropy taking up greater segments of her time, driven by a sharper awareness of social inequalities. “The older I get, the more I realize how fortunate I am and how unfortunate others all, all over the world,” she says. “Perhaps that is a sign of age. Life is short. It makes you want to give more.” —


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60 Philanthropy Age


THE TRAGEDY OF YEMEN

Photography Lorenzo Meloni

As famine and disease stalk the Arab world’s poorest country, aid agencies warn that only peace can prevent Yemen from spiralling further into catastrophe Philanthropy Age 61


62 Philanthropy Age


Y YEMEN WAS ONCE KNOWN BY THE TITLE

The conflict, which began in March 2015, has seen Yemen's GDP per capita slump 61 per cent in three years, leaving more than two-thirds of Yemenis in poverty Damage to infrastructure means more than half of the population does not have access to clean water Food prices have risen by 96 per cent during the course of the war, leaving 13 million Yemenis on the edge of famine

Arabia Felix, or ‘fortunate Arabia’. No more. Four ruinous years of war, hunger and misery have left the country on the brink of collapse, ravaged by the fastest-growing cholera outbreak on record, and wholly dependent on aid. Disease and famine now rival gunfire and bombs as the biggest dangers to civilians, accelerating what the United Nations has called “the worst humanitarian crisis in the world". The story of the poorest Arab state can be told in statistics: 1,200 days of armed conflict, with more than 10,000 people dead. Some 1.2 million cases of cholera and a diphtheria outbreak, both diseases of poverty whose spread is accelerated by a national shortage of food, fuel, clean water and healthcare. More than 3 million children born into war, and 1.8 million malnourished, making them more susceptible to infection. Two million people displaced from their homes. “An entire generation of children in Yemen is growing up knowing nothing but violence,” says Meritxell Relano, UNICEF's representative in the country. “Those who survive are likely to carry the physical and psychological scars of conflict for the rest of their lives.” Yemen’s problems run deep. Much of the country is desert, and water – particularly for farming – is scarce. Even before the war, Yemen relied on imports for almost all of its food, fuel and water, and experts have long predicted that Sanaa will be the first capital city to run dry. The conflict, which began life as a slow-burn coup by Houthi rebels in 2015, has strangled the flow of commercial supplies, forcing up the price of basic goods beyond most citizens' reach. Naval and air blockades have at times halted even humanitarian relief, leaving an estimated 22 million people in need of support. Calls for aid funding have largely been met by Saudi Arabia and the UAE who, according to UN data, have supplied 55.7 per cent of the $2.98bn given this year to their impoverished neighbour. But reaching those caught in Houthi-occupied areas is a fraught undertaking. Peace, not humanitarian aid, remains the only answer to the escalating crisis in Yemen – but as the pace of war continues, it is ordinary citizens who will pay the price. — Philanthropy Age 63


The United Nations called upon all parties to seize the "opportunity for peace" ahead of scheduled talks in Sweden in December The UN has also appealed for an increase in foreign aid, and for food, fuel and other essentials to be delivered to the 22 million Yemenis it deems to be in need of assistance

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Writer: Joanne Bladd

66 Philanthropy Age


China’s nascent philanthropic sector is finding its feet, says self-made billionaire Zhai Meiqing, founder of the country’s first private foundation

Philanthropy Age 67


ANDREW CARNEGIE HAS AN UNLIKELY FAN

in Zhai Meiqing. The president of China’s privately held HeungKong Group may be a century distant and a culture apart from the late US philanthropist, but she still sees him as a role model for modern giving. “Never in my life have I had a mentor or someone I learned from before I started foc usi ng on ph i la nth ropy,” says t he Guangzhou-based entrepreneur, “but his philosophy of giving and living inspires me. I’m learning from him.” A year ago, Zhai was better known for her business skills than her benevolence. As cofounder of a $1.4bn conglomerate with stakes in finance, real estate, retail and more; and a member of China’s fast-expanding class of billionaires, she has been a cog in the country’s dizzying economic growth. But the giving that grew in lockstep with her success attracted fewer headlines, until she was named a winner of the 2017 Carnegie Medal of Philanthropy. The award brought global recognition to her efforts to drive the uptake of philanthropy within China. “It’s inspired me to try and encourage other entrepreneurs to pay attention and give more,” she says today. “ I want to see the next generation take on this culture of giving.” Z h a i h a s b e e n a q u ie t b a cke r of philanthropy’s languid rise in China. She founded the country’s first private foundation in 2005, almost a decade after first approaching the government to propose establishing a private vehicle for her giving. Her query followed years of donating to quasi-state charities – often with little clarity about how the money was spent – but was refused on the grounds that private individuals were not allowed to found social organisations.

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“The government wasn’t ready and I had to give up,” she explains. “But I believed that as entrepreneurs gained money, and started to think more about giving back to society, the government would eventually have to allow private charity work. The need was there. I said to myself that I would wait until that day, and I’d be the first to establish a foundation.” Her persistence paid off. The HeungKong Charitable Foundation – which is listed as number 001 by the Ministry of Civil Affairs – has since reached more that 2 million beneficiaries through its initiatives in education, poverty alleviation and disaster

relief. It has built more than 1,500 libraries, provided microloans for women to start businesses, given funding to orphans, single mothers, children with disabilities and the elderly, and paid for impoverished students to enrol in university. It is financed almost entirely by family and company donations – “By law, we can’t fundraise publicly,” Zhai explains – and spends around $4.4m (30m yuan) a year to support its own programmes, and in donations to national charities. It s r e m i t i s d e c e p t i ve l y s i m p l e : “Our goal is to help identify social problems, and ensure our money is spent on the people who really need it,” says Zhai. “We want to


bring these issues to the attention of the government, and appeal for legislation to solve them. We want to be a foundation with long-term impact. And we want to influence other people through our work. I look at it as a progressive journey.” In China, where philanthropy has lagged behind an explosive rise in private wealth, this last goal is more ambitious than it first appears. Despite being home to the world’s largest population of billionaires – China has two new entrants to the club every week, according to Forbes – it has one of the lowest rates of charitable giving in the world. A 2010 charity event held in Beijing by Bill Gates and

Warren Buffett for 50 of China’s super-rich was notable mainly for the number who stayed away. This does not necessarily mean China’s wealthy lack generosity. While philanthropy is often held up as a particularly western concept, in fact it has deep roots in Chinese culture. Benevolence is a key tenet of both Confucianism and Buddhism, and acts that contribute to a harmonious society are held in high esteem. Major natural disasters can trigger a groundswell of support from millions of Chinese people – in response to the devastating Sichuan earthquake in 2008, for example, charitable donations bypassed

‘We are still a developing country with a huge gap between the rich and the poor: there is a lot more we can do to help”

$14bn – but there is less understanding of the role philanthropy can play long-term in helping to solve complex social problems. “Until recently, people were only asked to donate when there was a national disaster, so there is less familiarity with other forms of charity,” says Zhai. “But we are still a developing country with a huge gap between the rich and the poor: there is a lot more we can do to help.” The slow growth of giving also points to growing pains in China’s civil society, which suffers with a lack of infrastructure, accountability and limited avenues of giving. Wealthy donors have battled with a lack of clarity on rules, and thickets of red tape. Compounding this is the Chinese public’s scepticism of charity work; a position deepened by a string of scandals among major state-run charities that began in 2011. (One study found less than a third of registered charities in China met international standards for transparency and disclosure.) Would-be philanthropists can find themselves both the subject of public suspicion over their motivations, and struggling to ensure their funds go to good use. As Jack Ma, the cofounder of e-commerce giant Alibaba, told an audience at Peking University in 2015: “Giving donations to charities is more difficult than earning money.” What is clear is that this picture is changing, aided by an updated charity law and the example of trailblazers such as Zhai and Ma, whose foundation holds share options for about two per cent of Alibaba’s equity. Between 2010 and 2016, donations from the top 100 philanthropists in mainland China more than tripled to $4.6bn. In the 12 months to March, 76 Chinese individuals donated more than $5m to causes including education, healthcare and poverty alleviation, according to Shanghai-based Hurun Research. Many are opting to take a hands-on approach to social good, to avoid ceding control of their donations and how they are used. “From the first private foundation in 2005, now we have more than 3,900 - they exceed the number of national foundations,” explains Zhai. “The growth rate is around 30 per cent a year.”

76 THE NUMBER OF CHINESE DONORS WHO GAVE MORE THAN $5M TO CHARITABLE CAUSES IN THE YEAR TO MARCH 2018

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This model also reflects the very personal nature of much of the giving. Many of China’s rising philanthropists have been propelled out of poverty by the country’s long economic boom, and have a deep impulse to channel their money and energies into helping others to do the same. Education is a popular lever for this. For Zhai, who grew up in Guangzhou, a visit to a poor and rural village was the spur behind her first major donation to fund a

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school for the local children. She has since – individually and through her foundation – financed more than 300 schools, at a cost of between $30,000 and $146,000 each. One of the foundation’s earliest projects was the ‘Five 1,000’, which saw it pledge to establish 1,000 school libraries, to give funding to 1,000 orphans, needy families and undergraduate students, and to recruit 1,000 volunteers. A newer scheme aims to provide 1,000 elderly people a year with free

treatment for cataracts, the world’s leading cause of visual impairment. As China’s economic growth cools, these projects hint at the role civil society could play in tackling entrenched issues such as rural education, access to healthcare, and the mammoth bid to lift some 30 million Chinese citizens out of poverty. Philanthropists could be willing partners to the government, believes Zhai, if given more space to operate. “In the future, I think


Having grown up in the urban sprawl of Guangzhou, it was a visit to a poor, rural village that inspired Zhai (pictured left) to make her first significant donation to fund a school for local children

“In the future, I think most of the charitable work in China will come from the private sector rather than the government”

most of the charitable work in China will come from the private sector, rather than the government.” The challenges to philanthropic giving in China remain significant. Curbs on fundraising make it tricky for even legitimate NGOs to operate and receive resources, while efforts to professionalise the sector have been hurt by a law that caps foundations’ administrative costs at 10 per cent. Along with limiting the ability of foundations to hire and

pay qualified staff, the cap has contributed to a sector-wide shortage of skilled talent. Improved tax and fiscal incentives are also needed to encourage giving, says Zhai, who has lobbied to see China’s preferential tax policy extended to include charitable donations. Lastly, foundations themselves have a role to play in boosting transparency and winning public trust in their role, she notes. “People are still worried about how money is spent: we need to be open about our activities and impact to build credibility.” Technology may help to pave the way for a wider takeoff in philanthropy in a nation that is home to the world’s largest number of internet users and the fastest growing e-commerce market. Many of China’s newlyminted billionaires amassed their wealth in the sector and are now using the same methods to encourage charitable giving. Mobile payment platforms such as Tencent Holding’s WeChat Pay and Alibaba’s AliPay, which channel donations directly to charities, are helping to fuel a rise in public fundraising drives. It’s a trend that is helping to instil a new awareness of giving among Chinese youth, who in turn are bringing a new energy to the sector.

“Young people know how to use these technologies to influence the public, and gain their attention,” says Zhai. “They want to take part in solving social issues.” Zhai hopes to create a legacy for her philanthropy, and has actively engaged her own children in her giving. Zhai's son chairs a volunteer group whose members represent the second generation of family businesses. “These are our future leaders and it’s necessary for them to experience charitable work, and understand why it is important,” she notes. For Zhai, it is China’s socially aware youth that will be a key influence in how the philanthropic sector develops. Leaving aside big-ticket giving from the country’s super-rich, the emergence of a generation of business leaders who seek both social impact and profit could be the real driver behind achieving a more equal society. It’s a model Zhai hopes to follow herself. “I see my business differently now,” she explains. “It began as a means to make money, but now the company’s success means we can give money where it’s needed. Today, charity is the most meaningful thing in my life.” —

Philanthropy Age 71


FALLING Globally, CEOs are waking up to the idea that social impact begins in the boardroom. But businesses in the Middle East are still struggling to bridge the gap between intent and impact

SHORT 72

Philanthropy Age


TENA PICK HAS SPENT SIX YEARS TRYING

17%

Less than a fifth of global executives say their firms have schemes in place to help achieve the Sustainable Development Goals by 2030, according to a survey by consultancy firm Deloitte

to persuade companies in the Middle East to rethink their role in society. Her consultancy, Sustainability Platform, makes the case that businesses should stop thinking of corporate social responsibility (CSR) as an act of charity, and instead see it as a good investment. It’s a message backed by a growing body of evidence that shows sustainability can improve financial results. However, even though firms in the Middle East are talking more in terms of ‘triple-bottom-line’ and ‘the circular economy’, Pick plans to quit the region to relocate to India. “It’s becoming increasingly hard to find interesting projects [here],” she says, “but the conversation has definitely been changing. Six years ago no one was even talking about this issue. We’re seeing a shift in awareness, but I have not seen the trickle-down effect that I would like to see… Because it’s still very much optional, a lot of companies are still opting out of it.” With regional economies bruised by austerity and low oil prices, CSR budgets are harder to justify, especially when they are seen as a “nice to have, not a musthave,” Pick says. “Until we have enough case studies from the Middle East that show how diversity, inclusion and social impact actually have a positive effect on your bottom line, it’s going to be hard to convince these companies.” Globally, CEOs are buying into the idea that businesses should benefit more than just their shareholders. But in the Middle East, the notion of companies being both engines for profit and positive social change has been slow to percolate into corporate culture. Few CEOs have been able to translate a desire for change into meaningful impact on their day-to-day operations. This is complicated by the evolution of CSR away from the notion of just handing over cash to good causes into a more holistic approach that treats sustainability as a competitive advantage and a strategic imperative.

Philanthropy Age 73


POSITIVE IMPACT

92%

While they may not know how best to help make the SDGs a reality, almost all executives support their agenda, reported Deloitte

“We’ve seen a transit to a more integrated approach, where social impact is more embedded in the corporate strategies,” says Esteban Gomez Nadal, head of the thought leadership group at global consultancy Palladium. The firm was part of a coalition of banks and foundations that last year launched Utkrisht, a healthcare development impact bond aimed at reducing infant and maternal mortality rates in Rajasthan, India, by 10,000 over five years. The partnership plans to ensure 600,000 women receive improved medical care during delivery. “Corporations now understand that giving back is not enough," he says. "You have to become part of the impact economy.”

74

Philanthropy Age

THE UNVEILING OF THE UNITED NATIONS'

Sustainable Development Goals in 2015 gave a new blueprint to many of these corporate efforts. The 17 targets include ending hunger, combating poverty and global gender equality and, crucially, acknowledging that the private sector has to be a major actor in achieving them. Businesses had a seat at the table during the formulation of the goals, and many – from small social enterprises to huge multinationals – have talked in terms of tilting their business to support them. International business leaders, such as Unilever CEO Paul Polman, have been vocal on the subject for years, while other – perhaps unlikely – champions have emerged.

Larry Fink, chairman and founder of BlackRock, the world’s largest investment fund, this year published an open letter telling companies to get their houses in order and to act more in society’s interest. “Society is demanding that companies, both public and private, serve a social purpose,” he wrote. “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.” The letter was widely read as an ultimatum: shape up, or lose access to the $1.7 trillion that BlackRock actively manages on behalf of its clients. But the harder question for CEOs – as a recent survey shows– is knowing how do to so. A global poll of 350 executives released by Deloitte this year found 92 per cent were keen to support the SDG agenda, and 65 per cent ranked sustainability and inclusive growth as their most pressing issues. But just 17 per cent believed they had programmes in place to help achieve the goals by 2030. Companies in the Middle East have drawn similar conclusions. The Pearl Initiative, a UAE-based nonprofit that advocates for corporate governance standards and reporting in the GCC, surveyed business leaders in the region in 2016 and found that two-thirds had discussed the sustainability agenda. More than 60 per cent said their firms had made some kind of related commitment. Ninety-two per cent said that they believed working towards the SDGs would have a positive impact on their business, and 82 per cent said that they saw concrete growth opportunities in doing so. However, this group also saw themselves as outliers. Only a fifth strongly believed that most GCC firms would implement initiatives related to the SDGs by 2021, flagging the gap between good intentions and the complexities of acting on them. “I think that shows the level which organisations are at here,” says Carla Koffel, Pearl Initiative’s executive director. “Yes, there’s interest, yes they know about it, but there is a process to then incorporate it into their business practices.” It will come, Koffel believes, albeit slowly. “It’s just a process of evolution and development,” she says.


“GIVING BACK IS NOT ENOUGH. YOU HAVE TO BE PART OF THE IMPACT ECONOMY”

THERE ARE EXEMPLARS: OFTEN FIRMS

which make commitments that directly relate to the long-term sustainability of their sectors, or have a impact on their cost base. Etihad Airways is investing in alternative aviation fuels, and Abu Dhabi Airports has performed full life-cycle assessments of its assets to maximise its energy efficiency. Emirates Global Aluminium says that it has invested nearly $1bn into technologies to reduce its waste and emissions. Ports operator DP World has invested in a startup incubator, offering early-stage businesses mentorship, support and access to a $60m venture capital fund. Its hope is that these startups will be both a source of potential suppliers – and of local economic growth. Others have been more disruptive. At its launch, the ride-sharing app Careem explicitly linked its service to female empowerment in Saudi Arabia, offering women a way to travel to work and to sidestep the then-active driving ban. It was a move, a lbeit sma ll, towa rds SDG 5 – to achieve gender equality and female empowerment.

The Middle East has the lowest female labour force participation rate of any region, which is widely seen as a brake on economic growth and opportunity. A McKinsey study estimated that, were the MENA countries to achieve full gender parity in the labour force, it would contribute $2.7tn to the region’s GDP by 2025. Committing to meeting the SDGs could yield many of these kinds of opportunities. A December report from the Business and Sustainable Development Commission estimated that, were regional governments a nd fi r m s t o pr ior it i s e s u s t a i n a ble investments, they would unlock $430bn worth of business opportunities in the Middle East and $207bn in North Africa. The scale of these investments needs the buy-in of governments, however, and would require a change in mindset among policymakers who have traditionally seen the state as being the sole actors in solving social problems and delivering vital services. “I personally believe that [sustainability] h a s t o b e i n i t i a t e d a n d d r i ve n b y government," says Tawfik Jelassi, a former

minister in the Tunisian government, now professor of strategy and technology management at IMD business school in Lausanne. "Unless the government puts this to the top of the agenda, I don’t think that much will happen. We need a whole new ecosystem for this.” Over the years, governments have not ranked corporate governance, sustainability, or economic equality high on their hierarchy of priorities, according to Jelassi. "There is no burning platform, there is no sense of urgency.” Although he is not overly optimistic that this will change in the short term, Jelassi is encouraged by examples in the GCC, where countries are moving towards a more inclusive, sustainable agenda. “ We se e t he emer genc e of a new generation of leaders, who were brought up in a different era, who were educated in a different place, who are going back to their countries and saying… it’s the 21st century,” he says, pointing to Saudi Arabia's relaxation of the ban on women driving in June as an example.“That is a drastic change that I did not expect to happen in our lifetime, and here it is.” Generational change across Middle Eastern society may be the biggest driver of change in the region’s businesses. Family businesses make up 80 per cent of the region’s non-oil GDP, and substantial wealth is in the hands of families that have only relatively recently made their money. Those companies – and that money – are poised to pass onto a new generation with different attitudes, and which sees sustainability and profitability as going hand-in-hand. “The next generation has very different mindsets when it comes to the global economy, and how we want to treat our planet,” says Peter Vogel, professor of family business and entrepreneurship at IMD. “Given that this control is shifting and the power is shifting, we will see a change in behaviour.” Companies need to engage young people as customers, stakeholders, investors and employees, and to face them as competitors. “It’s the small and medium enterprises a nd sta r tups that a re rea lly socia lly conscious here,” Pick says. “I think that’s the push that the big corporates need. These startups are going to be taking their place as social impact leaders.” —

Philanthropy Age 75



BIG PICTURE Famine is notoriously tricky to predict and to prevent. In a world where one in nine people don’t have enough food, understanding when shortfalls might bloom into full-scale disaster is vital for early and effective intervention. Now, the World Bank has a new tool to help stop famine before it starts: artificial intelligence. After a year when severe food shortages in countries including South Sudan, Yemen and Afghanistan put the lives of more than 20 million people at risk, the bank is leading a coalition including the United Nations, Google, Amazon and others, in an effort to use technology to prevent future famines. The Famine Action Mechanism (FAM), as it’s called, will blend data about floods, droughts and crops with social media and news reports of more human factors such as political instability and food price inflation. Knitted together, these factors will create an early warning system. When food crises meet certain criteria, the tool will trigger the dispatch of relief funding to vulnerable areas and push governments to intervene. If successful, it represents a way to forecast when and where famines might appear – and to potentially save the lives of millions. Albert Gonzalez Farran / Getty Images

Philanthropy Age 77


Next generation From delivering aid to digital banking, Jessica Holland meets the social entrepreneurs who are using technology to change the world

T Mapping the world Chris Sheldrick – UK

78 Philanthropy Age

O GET HUMANITARIAN AID

where it’s needed, relief agencies first need to pinpoint the correct location. It is not always an easy job. Off-grid sites such as disaster zones, rural villages and refugee camps rarely have a precise address; and even in cities in fast-developing nations, streets remain unnamed and buildings unnumbered. Long, multi-digit GPS coordinates exist for every place on earth – but are too complicated for most people to remember. London-based startup what3words (w3w) has an answer that is brilliant in its simplicity: it divides the world into a grid of 57 trillion 3m by 3m squares, and assigns each one a unique three-word tag. With this tag, anyone can accurately remember, communicate and share any location, anywhere on the planet. “We want it to be a global standard to communicate location,” says cofounder Chris Sheldrick, whose previous career in the music business saw him grow increasingly frustrated with suppliers' inability to deliver equipment to the right place. To avoid confusion, w3w ensures that similar-sounding addresses are located far away from each other. Part of the Dubai’s Burj Khalifa, for example, has the tag ‘tools.chapters.diagram’, while ‘took.chapters.diagram’ is in Venezuela. Expletives, homophones and words with double meanings have been removed from the list of potential tags, and the system currently operates in 14 languages, including Arabic, Urdu and Hindi. It took Sheldrick just six months to get the first iteration of the product up and running and, after early seed-funding rounds in 2013 and 2014, w3w received an investment of £2.25m ($3.11m) in a series A round led by Intel Capital. Series B and C rounds, led by Aramex and Daimler, followed in 2016 and 2017, although the startup has declined to share exact figures. More challenging than designing the software, says Sheldrick, was building up a real user base of partner organisations willing to integrate w3w addresses into their car navigation systems, checkout

Illustrations: Holly Exley

With 4 billion people lacking a reliable way of addressing their homes, it can also be a tool to create positive social change

pages, and the operations processes of humanitarian organisations, among others. The United Nations’ disaster-reporting app has integrated w3w’s system so that photos and reports from disaster zones can be geo-tagged with three-word addresses. W3w has also been used by the rapid-response provider Infinitum Humanitarian Systems in Haiti following Hurricane Matthew, as well as by the Philippines Red Cross and by Gateway Health, which delivers community healthcare in South African townships. And w3w’s technology was recently used by Saudi Arabia’s postal system – Saudi Post – in their navigation app to help pilgrims visiting Mecca and Medina during Hajj and Umrah to safely navigate their way among the large crowds. As autonomous vehicles, drones, and voice-activated operating systems become more widespread, it’s clear that w3w has huge transformative potential. Not only can it help streamline logistics, transport and delivery across every sector, but with 4 billion people lacking a reliable way of addressing their homes, it can also be a tool to create positive social change. “We look forward,” says Sheldrick, “to showing how better addressing can reduce businesses’ environmental impact, ease pressure on crowded cities, fuel economic growth in developing nations, and save lives."


B Serious about play Saba Saleem Warsi – Bahrain

AHRAINI ENTREPRENEUR SABA

Saleem Warsi has been devoted to playing video games since she was seven, but it wasn’t until she was in her early thirties, working in management consulting and “searching for the meaning of life”, as she says, that she realised that she could devote herself to creating them, too. “I had this epiphany,” she says, “that all of these skills that I love doing as hobbies – music, drawing, writing – are brought together in game development. Video games are the most holistic form of art out there, and I realised that I could use this art form to create awareness of real-world problems.” Warsi had already begun dabbling in game development, inspired by a documentary on independent game studios, which helped her realise that game developers weren’t all working for giant corporations. She attended some workshops run by members of Bahrain’s small but active gaming community, and went to a couple of ‘game jams’, where teams are tasked with building a simple game in a short space of time. “The first time we completely bombed,” she says, but the second time her team won third prize, for a game called Hope-ful, which dealt with depression. Players had to tackle obstacles, but they had the option to play with or without hope. Without, game-play got a lot harder. The prize gave Warsi a boost. She began creating a new game, Musa, which, like Hope-ful, aimed to raise awareness of another difficult topic; that of the global refugee crisis. In this game, the players’ onscreen avatar is Musa, a refugee child struggling to survive and to look after his younger brother. After three weeks of prototyping, she showcased the game at the 2017 IGN convention in Bahrain. “People loved the idea and the fact that it was talking about a real problem,” Warsi says, “so it became my mission to finish developing the game and to do this full-time.” She’s continuing to make improvements

before the game’s public launch, slated for 2019, and plans to work with aid organisations such as UNHCR in order to learn more about what child refugees really go through. “I want the stories to be authentic,” she says, “not victimising or demeaning. Musa will be an inventor, and players will have to invent something to pass a level. I don’t just want to show helplessness.” Warsi has now given up her job as a management consultant to focus full-time on The Stories Studio, the gamedevelopment startup she founded to market and launch Musa, and enthusiasm is building. Warsi recently used Indiegogo to raise $4,500 to help finance the game; while her venture's acceptance into the MENA startup accelerator, Flat6labs, saw it receive a further $32,000. The studio, she says, will focus broadly on games that highlight and comment on real injustices and struggles happening around the world. Next up is a mobile game, 'Deep Blue Dump', which is currently in testing stages, and aims to raise awareness of plastic pollution. She thinks that the immersive aspect of games could help people connect to these issues in a deeper way than books or movies allow. “In games you become the character, so emotionally you invest a lot more,” she says. “I’ve played games where I’ve cried my eyes out. They can inspire empathy and positive actions.”

"I realised I could use videos to create awareness of realworld problems"

Philanthropy Age 79


Next generation

K Social capital Ahmed Wadi – Kuwait

80 Philanthropy Age

UWAITI ENTREPRENEUR AHMED

Wadi was living in Germany, where he had studied for a Master’s in IT, while trying to save money for a wedding, when the idea for his fintech startup, Moneyfellows, first occurred to him. At home, he would have simply used a money circle, or 'gameya', to lock himself into the habit of regular savings. These informal alternatives to savings accounts are widely used, not just across the Middle East, but also in India, Africa and other regions where people lack access to mainstream banking services. The idea behind the practice is simple: a savings club is formed with regular meetings, and at each meeting, everyone gives a pre-agreed chunk of savings to one person. This might allow them to buy an appliance, pay school fees, or launch a small business. Members each receive a turn. Money circles work well among small, tight-knit communities where there is a high level of mutual trust. But Wadi was far from home, and he didn’t have a close group of friends in Germany. He ended up creating a money circle with friends and family in Kuwait, and using Western Union to send money home. But there were high transfer fees to pay. “From there,” he says, “came the idea of a digital forum where I could open and find money circles in Germany or outside Germany, with people I do and don’t know.” By making it easier for those without bank accounts to save and borrow, he recognised that this tool could play a role in lifting vulnerable people out of poverty. Wadi decided to launch a platform that would let anyone launch a digital, remote money circle with friends and family. If they proved trustworthy, they would also be able to save in tandem with strangers all over the world. The measures for trustworthiness would take into account a much wider array of information than the usual credit-scoring model. Earnings would come from a small fee incurred when users withdraw money. In mid-2016, Wadi moved from Germany to the UK to join a fintech startup accelerator in London, and raised around $180,000 in a seed round. This was enough

"A lot of people are looking to invest in companies that have a meaning and that impact people's lives"

to launch a beta version of the platform, which currently has about 2,600 users. In 2017, Moneyfellows won first place at the 2017 MIT Enterprise Forum Arab Startup Competition, and in early 2018, it was announced that the startup had raised a $600,000 investment from a group led by Dubai Angel Investors and 500 Startups. Moneyfellows is currently focused only on Egypt, where around 90 per cent of the population are unbanked, although Wadi plans to expand to the UAE and Saudi Arabia. Tackling just one country means that there’s only one currency and set of local regulations to deal with; but even so, it hasn’t been plain sailing. “We had to wait for a long time to see which legal framework we fall under,” Wadi explains. “There wasn’t a straightforward clear path that we could take to get approved, so we had to create it with [the regulatory bodies]. That took so much time and effort.” Securing funding was another hurdle. “It’s a chicken and egg problem,” Wadi says. “You need money for the legal fees and research costs of getting regulated, but investors won’t invest in a company that’s not yet launched or regulated." On the other hand, he adds, “a lot of people are looking to invest in companies that have a meaning and impact people’s lives. The unbanked population are already using money circles. We’re making the model more scalable and efficient."—


Be inspired.

A Philanthropy Age initiative

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Making a difference

The future of aid

From cyber conflict to digital identities, technology is changing the way wars are waged and humanitarian aid is delivered. The sector must reinvent itself to keep pace, says Peter Maurer, president of the International Committee of the Red Cross (ICRC)

WARS WAGED TODAY ARE OF A DIFFERENT

quality to those we’ve seen in the past. We see violence that is not only destroying people, but systems – healthcare, sanitation, education – and that demands another style of humanitarian work. The challenge we face is to save lives, and to respond rapidly to basic needs. And at the same time, to immediately begin to rehabilitate systems and to put people in charge of their own futures. In Syria last year, we saw some 600,000 Syrians return home, and roughly 1.3 million others newly displaced because of the fighting. Those who are newly displaced 82 Philanthropy Age

need food, water, shelter, medicine , and everything else. Those who are returning need support with healthcare facilities, access to water, schools and economic activity. As aid actors, we now need to work both short and long – and that’s new for the humanitarian world. THE ICRC TODAY WORKS IN MORE THAN 80

countries, and employs more than 16,000 people. Last year, we appealed to our donors for more than $2bn – an 11 per cent increase on our previous field budget – and that partly reflects the fact that we operate in places

ICRC's mandate stems from the Geneva Conventions of 1949, which outline global standards for humanitarian treatment in war

many others do not. Much of our growth has occurred in some of the most fragile contexts: in rural Afghanistan, in southern Somalia, in places in Syria and Iraq where others aren't. In Yemen, there are few international aid actors operating close to people in need. AS CONFLICTS BECOME MORE POLITICISED,

with multiple parties involved, maintaining a neutral, impartial space for aid becomes increasingly difficult and important. For ICRC, I think that’s at the core of what we’ve done in the last 150 years: try to negotiate minimum consensus among belligerents.


“Traditionalists tell me that social investment is making money out of poor people. But that’s the wrong way of looking at things. Investing in people, services and impact – that changes the ballgame” CONFLICT IS BECOMING DIGITALISED. AS

the ICRC, our traditional occupation is dealing with battlefields, actors, weapons and international humanitarian law. But as much as wars today are carried out with bombs and weapons, they are also waged anonymously in cyberspace – to the extent that you don’t really know who the actors are, and the battlefields are no longer clearly recognisable. This digitisation of violence greatly affects the way we work.

necessary. In emergencies, this would change the landscape around family reunification, missing people, and the ability to offer health services. These concepts are really promising. TRADITIONALISTS TELL ME THAT SOCIAL

investment is making money out of poor people. But that’s the wrong way of looking at things. With scarce resources, we are trying to have maximum impact. If we want to close the gap, we can’t do it through turning donor money into services. It will never be enough. But investing in people, services and impact – that changes the ballgame.

IF YOU TAKE THE HUMANITARIAN SECTOR

as a whole – the UN, the Red Cross, NGOs and global aid agencies – it has an accumulated budget of roughly $27bn to $30bn. Ten years ago that figure was $2bn. These are big multipliers, and an indication that conflicts are spreading and deepening. While the needs landscape grows exponentially, the delivery landscape is growing linearly – and so the discrepancy becomes bigger. You have this perverse situation where aid agencies are doing more every month, yet at the end of the month, the situation is worse overall. That’s a complicated situation to message, and one that is not sustainable, either in terms of public or private donors. INNOVATIVE FINANCE HAS THE POTENTIAL

to change the global aid model. Last year ICRC launched a humanitarian impact bond, raising $27.5m to build and run three rehabilitation centres for people with disabilities in Africa over a five-year period. It was an opportunity to raise social capital from the private sector, and also to test a new economic model. We are also discussing insurance schemes for early recognition of health challenges, impact investment and philanthropy. There is a lot of new thinking around financial tools, and recognition that no one actor can do it alone.

LAST YEAR, ICRC CARRIED OUT A STUDY

to measure the knowledge of international humanitarian law in both conflict-hit regions, and the northern hemisphere. We found out that people living in countries affected by war and violence know the Geneva Convention much better than people in, say, Switzerland,

or the US. That’s an encouraging message. If you’re not exposed to violence, you don’t need to know about these things. But if you are, you’d better know about it and use law as a tool to protect yourself. YOU CAN’T JUST MITIGATE THE EFFECTS

of violence; and throw seeming solutions at people and problems. You have to change behaviour. And behavioural change – in terms of respecting laws, principles and the work of humanitarian agencies – is difficult. But I’m encouraged by the enormous resilience of people and the ingenuity they show in finding solutions themselves – and by the recognition of how little is needed to support this. With very little but well-targeted money, and with a lot of credible positioning as an actor, you can do an enormous amount to contribute to humanitarian spaces and to support some of those activities, even in dire situations and conflicts. It’s extremely encouraging. —

"You can't just mitigate the effects of violence; you have to change behaviour"

THERE IS A CONVERGENCE OF INTEREST

between digital companies and aid actors. It turns on how data collation and storage can link to digital identities. Imagine if, in five years’ time, people in fragile contexts had the trust to store their health data and identity documents somewhere in cyberspace, where they could retrieve them if Philanthropy Age 83


How many lives will you change this year?

Start counting. Insaan philanthropists change the lives of many, for better, for good. We use our field experience to connect people and track human change.

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Next step The stories on these pages are just a start. Many of the organisations we feature are changing lives on a daily basis, but they need support to survive. Get in touch to learn more about the issues – or to get busy solving them – and take the next step on your own philanthropic journey.

LEGACY OF WAR

BREAKING THE MOULD

CHILDREN FIRST

Landmines are a deadly reminder of war, killing and maiming decades after a conflict has ended. Nearly half of all civilian casualties are children. Demining charity Halo Trust has spent 30 years in fragile countries, ridding the landscape of the debris of combat as it works to achieve its vision of a mine-free world.

Alfanar is the first venture philanthropy organisation focused on the Arab region. Its strategy involves seeking out the most innovative social enterprises – which include offering microloans to women in Lebanon's refugee camps and empowering widows in Egypt – and amplifying their impact to help the most vulnerable in society to thrive.

Children mean hope, which is why UNICEF fights in 190 countries to free them from the cycles of poverty and violence. From providing ongoing aid to refugees in Syria, to lobbying against child marriage in Africa, UNICEF advocates for measures to give children the best start in life – and in turn build a sustainable future for all humankind.

www.halotrust.org

www.alfanar.org.uk

www.unicef.org

THE FINISH LINE

GATEKEEPERS OF CHANGE

PICKING UP THE PIECES

End Fund was founded in 2012 as the only private philanthropic initiative dedicated to ending neglected tropical diseases (NTDs). Since then, it has treated more than 140 million people, notched up more than 10,000 surgeries, and trained more than 900,000 health workers, with the goal of relegating the most common NTDs to the history books.

Goalkeepers was founded in 2017 by the Bill & Melinda Gates Foundation under the tenet that "progress is possible, but it is not inevitable." The initiative pulls together an illustrious crowd of global partners and changemakers with the aim of tracking and accelerating progress towards the UN's Sustainable Development Goals.

The International Committee of the Red Cross was formed in 1864 to help those affected by conflict and armed violence. The nonprofit has been helping the world’s most vulnerable ever since. With support, ICRC today works to save lives in more than 80 countries, helping to rebuild communities and livelihoods in the aftermath of war and disaster.

www.end.org

www.globalgoals.org/goalkeepers

www.icrc.org

Philanthropy Age 85



BIG PICTURE Climate change is no longer a future event. Over the past 20 years, climaterelated and natural disasters have killed 1.3m people, and left a further 4.4bn injured, homeless, or in need or emergency assistance. Last year, extreme weather wrought $306bn in damage in the US alone. But it is poor nations, with weak infrastructure, low income, and a reliance on agriculture, that are the most vulnerable to the consequences of rising temperatures. Time is running out to act. In October, a landmark report published by the UN Intergovernmental Panel on Climate Change (IPCC) warned that the world’s economies must shape-shift dramatically in order to keep global warming within 1.5ºc of pre-industrial temperatures, and the consequences within manageable proportions. Emissions must be cut by 45 per cent by 2030; a move that requires governments to make crucial policy decisions within the next two years. The past year has made plain the shape of the urgent challenges ahead: it is no longer just a matter of fighting climate change – but of building a world to withstand it. Jonas Bendiksen/Magnum Photos

Philanthropy Age 87


MEDICAL MEDICAL CARE CARE FOR FORTHOSE THOSEWHO WHO NEED NEED IT IT MOST. MOST. INDEPENDENT. INDEPENDENT.NEUTRAL. NEUTRAL. IMPARTIAL. IMPARTIAL.

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