Doing good has always been part of being human. In the past, institutionalized philanthropy has experienced a major boom, with many new foundations springing up, Vontobel's Alex Fung writes.
By Alex Fung, CEO Vontobel Wealth Management Asia-Pacific (based in Hong Kong)
In 2010, an announcement made headlines around the globe: forty billionaires in the U.S. had committed themselves voluntarily to donate at least fifty percent of their wealth to charity. The idea was brought to life by Warren Buffett.
About a decade earlier, Microsoft founder Bill Gates and his wife Melinda Gates had already caused a stir with the establishment of the Bill and Melinda Gates Foundation, which today is by far the largest private foundation in the world. The Li Ka Shing Foundation, a Hong Kong-based charitable organization founded in 1980 by Hong Kong entrepreneur Li Ka-shing, ranks second.
Benefactors are Often Bolder Than Governments
Foundations occupy a special place in society, enjoying a very high degree of credibility. In general, the amounts they distribute are significant in many areas, and they usually sponsor projects that are not supported by the government. In this way, foundations reinforce the diversity of society.
Foundations are also considered engines of change in the non-profit sector, where they often trigger new concepts and approaches. In this role, their structure is an advantage: Due to their legal structure, foundations are independent and quicker in decision-making, as compared to the government or too large corporations.
They are not living from one quarterly earnings report to the next. So they’re better able to think and act for the long term. In addition, the foundations’ various governance bodies are neither accountable to shareholders nor always keeping one eye on their re-election.
This greater freedom means that foundations are active, and quite bold when it comes to investing in research or unusual social projects. Thanks to their dauntlessness and their ability to innovate, foundations have paved the way for many valuable achievements.
Philanthropy has a Future
Although philanthropy is now many centuries old, nowadays more flexibility in dealing with philanthropic concepts are introduced to new circumstances. For example, an increasingly important theme these days is the hybrid nature of foundations.
The managers responsible for a foundation attempt to link social and economic goals together – to solve a social problem by setting an economic objective. Many foundations regularly review the effectiveness of their engagements, making sure that every dollar in the foundation is spent as efficiently as possible.
Other approaches such as venture philanthropy are being developed as well, in which management methods used by venture capital specialists are applied to charitable activities.
Do Good, and Talk About it
Foundations have a lot of development potential from a geographic point of view, too. Whilst institutionalized philanthropy in the industrialized world can look back on a long tradition, in many places in the emerging markets, it is still in its infancy.
But ultimately, being pro-active in communication will probably prevail worldwide. In other words: Do good, and talk about it.
Foundations Established by Vontobel
Anyone who practices the art of trying to please all of the people all of the time is destined to fail. One has to make choices. The question is, what governs these choices?
The criteria used to make decisions are always defined by people, and always in the light of their own particular point of view. At the end of the day, there is inevitably someone responsible, even for decisions that are left to chance, or for non-decisions.
In both professional and private life the ability to make decisions, set the right course, reap success and learn from failures is an art. To a certain extent, this art can be acquired. But if you want to truly master it, you also need good fortune.
To be able to look back on most – if by no means all – of the decisions one has made and say that was the right thing to do and led to a long and successful life, luck is essential.
Charitable Foundations to Achieve Good:
- The «Kreatives Alter Foundation» awards prizes to people who are no longer involved in the working life: people who are enriching society with creative achievements in literature, science, music, and theater.
- The «Lyra Foundation» supports the training of highly talented young musicians, furthering their careers and enabling them to perform in public.
One award introduced by Hans Vontobel thirty years ago:
- The «Hans Vontobel Award» recognizes doctoral theses that document outstanding findings in the agricultural sciences. They provide crucial impulses in their area of expertise and improve the chance that the agricultural economy can keep up with the food requirements of a growing world population.
Hans Vontobel lived and worked from December 1916 to January 2016 in Zurich. He presided over numerous economic associations and boards, making a name for himself as a patron and founder of a number of foundations, and served until the end of his life as Honorary Chairman of the Board of Directors of Vontobel.