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Philanthropy advisers are increasingly guiding ultra-high-net-worth donors towards high-impact areas, particularly education and healthcare, with a focus on filling gaps in both sectors to maximize the benefits to both donors and beneficiaries.
More donors are turning to recoverable grants, which allow beneficiaries to repay funds without interest, enabling donors to recycle the same capital into new projects, thus ensuring continuity and multiplying the impact of their philanthropy. Also, more donor-advised funds ( DAFs ), which offer flexibility without the administrative burdens of full foundations, are emerging.
In separate interviews with The Asset, Jean Sung, head of the Philanthropy Centre, Asia, at J.P. Morgan Private Bank, and Margaret Lo, executive director and head of philanthropy services, Hong Kong, at BNP Paribas Wealth Management, note that philanthropy in Asia-Pacific is undergoing a profound transformation, with ultra-high-net-worth individuals ( UNHWIs ) and family offices moving beyond traditional, anonymous donations towards a more structured, impact-driven giving.
“Within the bigger issues, the donor is now more focused on filling the gap,” Lo says. “Special-needs education, for example, is one of the emerging topics over the past 5-10 years. And then, in terms of health issues, mental health has also garnered more attention, especially after Covid.”
Donors are also applying an “entrepreneurial lens”, demanding governance, formal evaluations, and capacity building for charities. This includes funding training in AI, design thinking, and governance to enhance sector efficiency, Lo says.
Comparing “conscionable giving” with modern approaches, Sung says: "I echo investing for impact where financial returns and environmental outcomes can deliver solutions that are both effective and sustainable."
Recoverable grants
Sung advocates for “recycling capital” through recoverable grants, which stretch donations by allowing repayment without interest, enabling reuse. "Traditional funding alone cannot meet the scale of today's challenges, from climate to social inequity. But when donors align giving with models like recoverable grants, capital can be recycled and multiplied."
Recoverable grants blend the flexibility of traditional grantmaking with the potential for reinvestment. "When structured well, they extend the life and impact of philanthropic dollars, fueling innovation and empowering non-profits beyond one-time gifts. By embracing this mindset, we can back projects from incubation to scale, and collaborative capital models that unlock systemic change for people and planet," Sung says.
Citing examples like the Gates Foundation spending billions in vaccine research and the Lego Foundation's education grants, Sung urges Asians to adopt similar models for climate and health. “ I think it's the future of giving because donors can all look at their capital and say, ‘Well, my dollar is not just being using once; my dollar can be used many times."
In essence, recoverable grants are to philanthropy what asset recycling is to infrastructure financing where capital is repaid and redeployed, multiplying impact without requiring fresh inflows.
Such a view aligns with blended finance and impact investing, where philanthropy intersects with business for scalable change.
DAFs
Over the past 15-20 years, philanthropy in the region has become increasingly institutionalized with a surge in demand for advisory services and supporting structures, including foundations, charitable trusts, and emerging “donor-advised funds” or DAFs, which offer flexibility without the administrative burdens of full foundations, Lo says.
In simple terms, a DAF is a non-profit structure that lets donors park charitable funds in a managed account, take the tax benefits immediately, and then advise on how those funds are granted to beneficiaries over time. "It combines the flexibility of a trust with the ease of a bank account. Once funds are parked in a DAF, they can no longer be withdrawn by the donor but stays there until it is donated to a designated charity," Lo explains.
DAFs, prominent in the United States and Europe, are gaining traction in Asia, particularly in Singapore and Hong Kong, where governments are encouraging philanthropy to attract family offices.
Lo emphasizes how DAFs bridge the gap between trusts and foundations: “A donor-advised fund is somewhere in between a foundation and a trust. It allows donors to set up like a virtual foundation. This appeals to next-generation donors, who often start with smaller amounts and prefer outsourcing admin work.”
In Singapore, non-bank DAFs have emerged like the Asia Community Foundation which was launched in September 2023 and is reputedly Asia's first non-bank DAF. Among the banks, to date, UBS is the only private bank in the region which has a DAF following the merger of UBS Singapore's DAF and Credit Suisse SymAsia DAF announced on January 19 2024, during UBS Social Impact Forum.
Regulatory differences
However, regulatory differences persist. Singapore offers 250% tax deductions but restricts global giving, whereas Hong Kong's Section 88 allows broader international donations with 100% deductions.
An IPC ( Institution of a Public Character ) status in Singapore requires that charities benefit only the local community for their donors to receive standard IPC tax deductions. However, recent schemes like the Philanthropy Tax Incentive Scheme for Family Offices ( PTIS ) and the Overseas Humanitarian Assistance Scheme ( OHAS ) allow qualified donors to claim tax deductions for overseas giving, provided certain conditions are met ( such as giving through approved local intermediaries or designated charities ).
Both experts highlight the rise of next-gen and female philanthropists. Lo points to wealth transfers fostering openness to social enterprises: “We would have more next-gen donors who are more open to newer concepts. And then you would also have a more prominent representative of female philanthropists."
Sung adds that philanthropy engages families, especially women, in non-business roles: “Female philanthropists, compared to male philanthropist would be more engaged when they are involved in philanthropy.”
Challenges include regulatory gaps – Hong Kong lacks dedicated charity oversight, relying on the Inland Revenue Department, while Singapore's hands-on approach provides clearer guidelines but more restrictions. Capacity building remains crucial, as many charities lack marketing or governance expertise. Technology, including AI, is emerging as a tool for efficient granting and due diligence.
Looking ahead, philanthropy advisory in Asia is poised for growth, with advisers working as “network brokers” to foster collaboration. As wealth surges, the emphasis on impact, innovation, and inclusivity will define the sector, ensuring philanthropy not only gives but also multiplies its reach.
