Overview

International Non-Profit Organisations: Challenges and Needs

The challenges facing international non-profit organisations (INPOs) are diverse and numerous. These organisations operate in various spheres, including but not limited to humanitarian, social, environmental, philanthropic, social enterprises, corporate social responsibility, arts and sports, and industry and professional associations, as well as inter-governmental and hybrid organisations. They have a number of key needs and requirements that have to be met in order for them to carry out their often-vital work.

Nowhere are these needs more keenly felt than in the Asia Pacific. Asia, and Southeast Asia in particular, is a region where some of the world's most visible global issues (climate change, poverty, income inequality and health) and their symptoms (natural disasters, environmental concerns and education) are at their most pressing. Yet it is also a region undergoing enormous economic growth and development, presenting opportunities for organisations looking to access markets, companies and civil society there.

Accessibility

On a regional level, non- and inter-governmental organisations running multi-country operations may find the improving but often still-underdeveloped logistics and communications facilities in Southeast and Pacific Asia problematic. Political and bureaucratic issues found in certain countries in these regions add to the challenges these INPOs face.

The World Wide Fund for Nature (WWF), which focuses on environmental conservation and research, needed "to establish a regional hub in Singapore to encompass operational, learning and development, communications and PR, and programme management capabilities in support of the Asia Pacific region," says Amy Ho, Managing Director, WWF Singapore. She reveals that Singapore was chosen primarily because of its "accessibility to the other 21 countries in Asia Pacific that WWF has offices in." This accessibility - 5,400 flights take off weekly from Changi International Airport - especially to Southeast Asia, was the reason Conservation International set up their regional HQ in Singapore too. The ability to use reliable communications and logistical infrastructure to effectively manage regional programmes also led organisations such as Save the Children International, a leading social organisation devoted to improving the lives of children in need, and World Vision, the world's largest humanitarian INPO, to set up regional headquarters in Singapore. These RHQs oversee centralised management and project coordination functions for the organisations' Asia programmes.

In the field of aviation, the International Air Transport Association (IATA), the global airline association whose membership represents 93% of all international scheduled air traffic, believes that Asia has a central role: in 2009, Asia overtook North America to become the world's largest aviation market globally. To effectively manage their operations in the region, Albert Tjoeng, IATA Asia Pacific's Assistant Director of Corporate Communications, explains why Singapore was chosen as a base for their regional headquarters. The country's geographical position, established aviation hub, global connectivity and logistical strengths allow the IATA to work with regional governments, regulators, airports and airlines across a vast geographical area, from Pakistan to New Zealand, promoting its key priorities of safety, security and cost efficiency in the air transport industry.

Facts on the ground

Logistical Connections

Humanitarian organisations, operating in or responding to crises within the Pacific Ring of Fire - the belt of major seismic activity that runs around the perimeter of the Pacific Ocean, and where the US Geological Survey estimates about 90% of the world's earthquakes occur - require a good response hub from which to coordinate their relief efforts.

Although situated squarely within the Ring of Fire, Singapore is too distant - around 400km from the nearest fault line - to be affected by earthquakes, and is sheltered from the direct effects of typhoons and tsunamis by the encircling countries of Indonesia and Malaysia. This strategic location offers humanitarian organisations a politically and geographically stable base from which to access many of the Southeast Asian nations routinely affected by natural disasters.

An effective response to a disaster requires reliable logistics and transport capabilities. In the aftermath of the 2004 Asian Tsunami, World Vision set up its Asian Tsunami Response Team in Singapore. Using the country's existing infrastructure, around 40 experts in relief operations managed over S$350 million worth of donations and coordinated the regional logistics and project management.

More recently, on 26 October 2010, the volcano Mount Merapi erupted on Java, claiming 300 lives. It was Indonesia's worst volcanic eruption in a century, but the Singapore Red Cross (SRC) was able to respond almost immediately. It transported one million facemasks - identified by Christopher Chua, the Secretary General, as "a crucial need, as Indonesians, including the relief workers, were falling ill just breathing the air" - to its Indonesian counterparts. This rapid delivery was only possible due to the commitment of the SRC staff, and the logistical links and geo-strategic location of Singapore.

The ease with which humanitarian aid is distributed is also facilitated by it originating from a fairly politically neutral location. Transporting aid supplies from Singapore into countries such as Indonesia, Philippines or Myanmar would be more acceptable to the authorities in those countries than if the supplies had been shipped directly from the West.

Fund Raising

Aside from accessibility, where to locate a base of operations is often determined by a location's fund-raising capacity - the capabilities and opportunities to raise funds and connect with high net-worth individuals and companies. In this respect, Singapore has a much better value proposition than other Asian hubs.

Amy Ho, Managing Director, WWF Singapore, argues that there is "growing interest in environmental conservation" within Singapore. This provides ample opportunities for WWF to raise awareness and influence consumer and company behaviour on such issues. With over 7,000 multi-nationals based in the city-state, a large and affluent middle class, and a concentrated density of high net-worth individuals, Singapore is "suitably placed for fund-raising for conservation priorities in the Asia Pacific and beyond," remarks Ho.

Private donations from individuals and corporations are, for most NGOs, their most important revenue stream. In 2010, over 50% of World Vision's global income came from the US$528 million received in private cash contributions.

In the Asia Pacific, the rising affluence of populations has seen a proportional increase and interest in charitable giving. Singapore is in the top 20 of the world's wealthiest countries in terms of GDP, and Singapore society shows burgeoning interest in charitable donations. A survey by the UK-based Charities Aid Foundation showed that 35% of Singaporeans gave money to charity in 2010, and the National Volunteer and Philanthropy Centre reported that donations to charitable organisations grew from S$381 million in 2001 to S$687 million in 2009.

Making Connections

Proximity to a large pool of influential decision makers, corporate players and potential donors, and the capacity to build relationships with them, are key factors in determining where an INPO bases its overseas operations.

The concentration of high net-worth individuals in Singapore - the country had the world's highest concentration of millionaires in 2010 - allows INPOs to raise funds for their causes. At the same time, they are also able to create an interest in and awareness of their causes amongst an affluent group of people. In 2008, the WWF hosted its Panda Ball, the organisation's annual gala dinner and key fundraising event in Singapore. It was the first time the prestigious event had taken place outside of either Monaco or Switzerland.

The Nature Conservancy, the world's top environmental conservation NGO in terms of operating revenue, hosted its Asia Pacific Council Meeting in Singapore in 2010 to discuss the organisation's plans for the Asia Pacific region for 2011. The meeting comprised attendees like Tan Yong Soon, Permanent Secretary of the National Climate Change Secretariat, as well as high net-worth individuals and business leaders like Jack Ma, CEO of the Alibaba Group.

Fund raising is not the only factor influencing the relationships between INPOs and corporate actors. Many corporations are increasingly interested in sustainability programmes and issues, as part of their CSR initiatives. Non-profit environmental conservation organisations such as the WWF and Conservation International are able to engage businesses through corporate programmes. One such is WWF's Singapore-based 'One Planet Leaders' training programme, which enables executives with insight into integrating sustainability practices into their business, while providing a revenue stream for the INPO.

Singapore is also home to various philanthropic intermediaries such as Credit Suisse's SymAsia Foundation, the Asia Venture Philanthropy Network (AVPN) and the Centre for Asian Philanthropy. Through different approaches, they seek to enable philanthropists to give better. SymAsia Foundation aggregates funds which are disbursed to beneficiaries, the AVPN is a network for organisations practising venture philanthropy in Asia to share best practices and develop market knowledge, while the Centre for Asian Philanthropy provides advisory services to companies and foundations doing good in the region.

The Singapore difference

Leveraging Skills and Expertise

Ensuring that their message gets across is one of the most important, and difficult, aspects of an INPO's work. The presence of regional media in Singapore allows them to engage a wider audience. The possibility of leveraging off the skills, knowledge and experience of public institutions and private companies is another draw for INPOs. Although needs differ depending on an organisation's focus, Singapore's reputation for best practices and exacting standards, and its existing culture of professional bodies partnering NGOs, tend to be a good facilitator of cooperation.

Operation Smile, a non-profit medical service organisation that specialises in providing cleft lip and palate repair surgeries, was able to utilise the expertise of doctors from Singapore's KK Women and Children's Hospital in performing these operations. In the legal field, International Bridges to Justice, which was formed to defend the legal rights of people in developing countries, works with the Law Society of Singapore. It enables Law Society members to do pro bono work in the region, ensuring that people who have been sentenced to prison without trial receive the protection that is their right under the law.

The World Toilet Organisation's training institutes on best practices and standards in toilet design and sanitation at Singapore Polytechnic, is an example of how INPOs can leverage off training, research and development innovation in the host country to improve the organisation and its members' own knowledge and skill set.

Manpower

Equally important for an INPO's long-term success is the existence of a self-perpetuating platform of human capital development. Seconded personnel from the global headquarters will initially set up most INPOs, but in the long run it is useful for these organisations to hire local people who are familiar with the region. This, combined with the increasing professionalization and corporatisation of the INPO model over the past 20 years, has made locales with large, skilled workforces, who are experienced in working in the INPO sector, increasingly valuable to these organisations.

Skilled local staff are a key asset to an INPO, bringing with them on-the-ground knowledge as well as local and regional contacts. With more than 40% of the Singapore population being non-citizens, Singapore has an edge over other Asian regional hubs. INPOs based in Singapore are able to draw on a highly educated and English-literate, but also multi-national, multi-cultural and multi-ethnic, workforce. Singaporeans' verbal diversity is another key value proposition for INPOs. Most Singaporeans are fluent in English and speak at least one other language like Mandarin Chinese, Bahasa Malay or Tamil, while Singapore's large foreign populace, which hails from many different countries, are also fluent in their respective mother tongues. The International Table Tennis Foundation (ITTF) relocated from Beijing to Singapore because of the availability of skilled personnel who could converse, write, and specifically set up websites in both English and Mandarin Chinese. The ITTF also desired access to the China market, which Singapore, with an affinity for and long cultural ties to China, was able to provide.

A Pipeline of Talent

One of the most effective ways of providing a steady pipeline of qualified personnel is through a country's academic institutes. Schools in Singapore, like the Lee Kuan Yew School of Public Policy of the National University of Singapore, provide non-profit leadership coaching.

Tertiary institutes also work with INPOs to produce, as IATA's Albert Tjoeng says, a new generation of industry executives. His organisation's flagship regional training centre, the IATA Training and Development Institute, is based in Singapore. The IATA is also working with the Nanyang Technological University to offer both management programmes and an executive MBA in air transport management.

INPOs can still experience difficulties recruiting experienced people to the organisation, especially if they are in the start-up phase of operations. In Singapore, the Centre for Non-Profit Leadership (CNPL) acts as a resource for INPOs operating in the country. It sources experienced personnel working in the NGO sector, develops their skills and knowledge through courses, workshops and seminars, and aligns them with INPOs that best match their experience and skill set in boards and sub-committees. In 2010 the CNPL made 71 placements, spread across various professional backgrounds, including strategy, finance, legal, human resources and fund raising. "The CNPL acts as a capacity builder for INPOs," says Francis Wong, the organisation's CEO, "allowing organisations operating in Singapore a convenient and professional service when building their leadership team locally."

Affordable Real Estate

Singapore is one of the most expensive countries in the region. To alleviate INPO expenditure, there are a number of government-sponsored developments built to house INPOs in a dedicated cluster. The flagship INPO cluster is the Tanglin International Centre, which offers INPOs a central location in the CBD area, with readily available offices and shared facilities. There is a financial incentive too, with INPOs at the Tanglin International Centre paying rental that is under a quarter of the prevailing market rate

Conducive Framework

Setting up an INPO, especially in some Asian countries, can be a struggle when faced with a large, many-layered and unwieldy bureaucracy. Leveraging off Singapore's open legal and bureaucratic system, organisations will find that establishing an INPO in Singapore is a very fast and straightforward process. INPOs typically set up as a Company Limited by Guarantee, which allows them to apply for charity status. This process is very similar to the UK system for charities, while INPOs that prefer to take on other forms of legal entities are also welcome to do so.

Providing Needs, Meeting Challenges

The Asia Pacific region will continue to draw INPOs, and while each has its own unique needs, there are some general requirements: accessibility to the region, good infrastructure, logistical and transport links, proximity to private and corporate donors, connections with companies and academic institutions, and a steady supply pool of skilled personnel.

The city-state's advantageous geo-strategic position, strong pro-business environment and established communication and trade links make it a natural fit for INPOs looking to establish strategic multi-national and regional approaches for transformational actions in the Asia Pacific.