RECESSION TAKING A TOLL ON PHILANTHROPY, TOO

       Thais must find better channels for their donations than being obsessed with building temples We may be hearing lots of gloomy news about how companies in the auto and other industries have downsized or gone bankrupt in the United States, but one of the less publicised aspects of the impact of the economic recession is how it has affected non-profit foundations and museums in America.
       The picture may not be as bleak as General Motors or AIG but it is still worrying, especially when considering that it will likely have repercussions for the developing world, as well.
       In June, the Ford Foundation, the second largest in America, announced it was offering buy-outs to one-third of its 550 employees "to reduce expense and avoid cutting its grant-making", The Chronicle of Philanthropy, a US-based journal, reported.
       The journal quoted Ford Foundation vice president for communications Marta L Tellado as saying: "We did substantial savings and belt-tightening but unfortunately the economic environment remains really volatile."
       Ford, which is also active in Thailand, eliminated 30 staff positions overseas, and also closed down its offices in Hanoi and Moscow in an attempt to save US$40 million (Bt1.36 billion).
       The Chronicle of Philanthropy also reported how other foundations are facing a similar predicament. Among them is the Robert Wood Johnson Foundation in Princeton, New Jersey, which is another grant-giving foundation, specialising in improving people's health. It is offering 105 of its 250 staff an "early-retirement incentive programme" as it faces a 27-per-cent drop in assets since 2008. The travel budget has also been cut in half and its small office in Washington DC closed.
       While the stock market has been rallying, one of the foundation's executives was quoted as saying: "Our assets will not, in virtually any scenario we imagine, get back to where they were for quite a while."
       Another big name, the Kellog Foundation, has resorted to closing down its overseas offices in Sao Paolo and Pretoria as its assets declined by almost 22 per cent since last year to $6.3 billion.
       On the museum front also, cutbacks are the order of the day. New York's Metropolitan Museum of Arts cut 14 per cent of its staff, USA Today reported on July 23. This comes as its endowment, membership and corporate sponsors dwindled.
       There are similar stories at the Getty Museum in Los Angeles, which is facing a 27-per-cent drop in its endowment. The Detroit Institute of Art, a museum in one of the hardest-hit cities in the US, cut $3 million of its operating cost and reduced staff.
       Looking at the situation, it is quite clear that America's well-established Protestant ethic and the culture of giving generous endowment has taken a significant blow.
       It will have a considerable impact on the world as these organisations are finding it harder to support their various altruistic projects not just in the US but also overseas.
       With all the talk of the rise of China, one must bear in mind that there is yet to exist any similar philanthropic foundations of similar magnitude and ambition as those currently found in the US. In fact, Japan has a far more established tradition of not just giving dole but being a partner in social transformation, with heavyweight bodies like the Toyota or Nippon foundations being active around the world, Thailand included.
       We can only hope the situation in the US will soon improve and that the private sector in an emerging superpower like China will quickly learn to shoulder some of the burden and responsibilities that the Americans have been bearing. But that will take a new crop of rich, educated and global-minded Chinese, who are more in tune with the notions of international and global responsibilities and solidarity.
       As for Thailand, too much money is being donated to temples. We need to consider how any endowments can be better channelled to things that are not mere concrete edifices but into intangible areas, which will enhance people's knowledge, skills and quality of life.
       More incentive is needed for rich Thais to donate their money and land for altruistic causes, and the government should seriously ponder the matter. It has been proved in many prosperous societies that philanthropic work and activities are vital to ensuring a caring and cultured society.
       It's a shame for Thailand that we have done very little for our poorer neighbours in the region. This is something we can definitely improve on, even in this tight economic situation.