Doing Good Index 2024: Assessing the Readiness of Asia's Social Sectors
Acknowledgments
The successful completion of the fourth iteration of the Doing Good Index and the ongoing research into Asia’s social sector have been made possible through the generous support of various donors and partners.
Executive Summary
The Centre for Asian Philanthropy and Society (CAPS) has published the Doing Good Index since 2018, with this being the fourth iteration. Produced every two years, the Index evaluates the infrastructure for private social investment in Asia. Here are the key findings:
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Stability Across Sub-Indices: Despite the tumultuous years of the pandemic, there has been little change across the four sub-indexes of the Doing Good Index over the past two years. Only Sri Lanka showed improvement, but stability is seen as a positive foundation for the social sector to thrive.
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Top Challenges for Social Delivery Organizations (SDOs):
- Funding Shortfalls: Most SDOs rely on domestic funding from individuals and foundations, but nearly three-quarters struggle to recruit staff, and 69% find it difficult to retain staff.
- Digital Preparedness: 88% of SDOs plan to increase their use of digital technology in the next two years, but major roadblocks include a shortage of funding (71%) and a lack of skills (59%).
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Funding Sources:
- Domestic Funding: Domestic funding remains the primary source, comprising 64% of the average SDO’s budget.
- Government and Foreign Funding: Government funding (20%) and foreign funding (15%) have remained steady as proportions of an SDO’s budget.
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Regulations and Policies:
- Mixed Messages: Governments show a mixed approach towards social sector regulations, sometimes encouraging growth and at other times imposing burdensome regulations.
- Philanthropic Potential: If Asians were to match the United States in terms of philanthropic spending, an estimated $702 billion could be unlocked, significantly surpassing current funding levels.
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Optimism and Resilience:
- Sector Resilience: Despite the challenges, SDOs remain resilient and optimistic, demonstrating their ability to adapt to unprecedented challenges.
- Support and Incentives: Right policies and incentives can help maximize the flow of funds to the social sector, leveraging the increasing private wealth in the region.
Key Findings and Recommendations
- Digital Preparedness: Address the shortage of funding and skills to better prepare SDOs for the technological future.
- Funding and Staffing: Increase domestic giving and improve recruitment and retention strategies for staff.
- Regulatory Clarity: Provide clearer and more consistent regulatory frameworks to support the growth of the social sector.
- Philanthropic Engagement: Encourage greater philanthropic engagement and align policies to unlock significant potential for social investment.
Overview of the Social Sector in Myanmar
Due to ongoing political situations, Myanmar was unable to participate in the Index this year. However, a profile of the social sector in Myanmar highlights the continued challenges and resilience of its organizations.
Conclusion
The Doing Good Index comprises four sub-indexes: Regulations, Tax and Fiscal Policy, Ecosystem, and Procurement. These findings underscore the importance of addressing current challenges and leveraging opportunities to enhance the readiness and effectiveness of Asia’s social sectors.