Charity regulators should not assume that donors always know best

Whether charitable giving functions like a market is part of a broader and complex debate within the sector.
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Krystian Seibert, Swinburne University of Technology

Last week, the government appointed Gary Johns to head the Australian Charities and Not-for-profits Commission (ACNC), the independent national charities regulator.

In an opinion piece published in The Australian, Johns outlined some of his priorities in his new role. He wrote:

At its core, the [charities] sector is a market in charitable intentions.

Based on this, he said the ACNC should “assist donors to fulfil their charitable intentions”, by “helping the donor market drive the charity dollar to its most efficient and best uses” by providing information to donors they can use to judge the “state of the market”.

Johns’ approach seems to reflect a view that altruistic behaviour like charitable giving is based on similar motivations and drivers as economic decisions such as purchasing a good or service.

Consequently, if donors are given the useful and accessible information about charities, they will make decisions that reward charities that perform better than others. In theory, this will lead to a more “efficient” charities “market”.

Whether charitable giving functions like a market is part of a broader and complex debate within the sector. It includes discussion about the role of impact investing, and using business-based approaches to tackle social challenges. Some ideas and approaches show great promise; others seem to not quite fit.

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Further reading: What is the impact of ‘impact investing’?

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Many of the challenges charities seek to tackle arise due to market failure in the first place, or the uneven distribution of the benefits of markets working like they are supposed to. Therefore, to aspire to build the charities sector in the market’s image may be a flawed starting point. And in relation to market-based approaches to charitable giving, the US experience is very relevant.

Lessons from the US

In 2014, the Hewlett Foundation, a large US philanthropic organisation, decided to end its US$12 million Nonprofit Marketplace Initiative that started in 2006. Its ambitious goal was that, by 2015, 10% of individual donations in the US would be influenced by meaningful, high-quality information about charities’ performance.

As part of its strategy, it provided funding to “charity evaluators”, including Charity Navigator, GiveWell and Guidestar. They seek to assess charities’ financial and other information to give donors information they can use to guide their decisions.

The Hewlett Foundation’s own evaluation found that while the initiative succeeded at producing more information about charities, it did little to change donors’ decisions. Research undertaken in 2010, four years into the initiative, found that only 3% of individual donors compare information about relative performance when deciding which charity to support.

It also found that a majority of donors make giving decisions based on factors like loyalty, personal connections, and faith-based commitments.

Studies looking at the effectiveness of charity evaluators also back up these findings. They show just how problematic it is to expect donor behaviour to adhere to “market-based” frameworks.

A study that examined how donors respond to ratings of charities such as those provided by Charity Navigator found that, in general, they have a minor and often insignificant impact on donor behaviour. Another study found that changes in charity ratings tend not to affect donor support.

The Giving Australia 2016 report echoes these findings. It found that “making a difference, personal values and relationships motivate givers”. Charity performance was far down the list of motivations for giving.

What now for charities in Australia?

Charitable giving takes many forms and is driven by numerous and complex motivations – from reflexive and generous responses at one end of the spectrum to planned and structured giving in pursuit of specific objectives at the other. The latter approach is what we generally think of when referring to “philanthropy”.

One of philanthropy’s strengths is that it takes risks to help drive social progress. The outcomes of this risk-taking can often then be used to inform government policy.

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Further reading: Twiggy Forrest donation: more philanthropy means more risk-taking – and that’s good

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The Hewlett Foundation’s experience in this regard should provide a valuable insight into the extent to which market-based approaches should be applied to charitable giving in Australia.

It does not mean that we should disregard the value of providing information about charities to donors: quite the opposite. Financial and performance information is important for due diligence purposes regarding the operations of a charity. But we should not overstate the influence of such information on donor decision-making, nor assume that such information will necessarily drive improvements in charity “efficiency”.

There are two developments the ACNC could drive that would provide great benefit to the Australian charities sector:

• Johns says he wants “to have the ACNC develop and apply a taxonomy of charitable causes to the ACNC”. It would certainly be worthwhile to adopt a consistent terminology for charitable causes in Australia. The global gold standard for this is the Foundation Center’s Philanthropy Classification System. CLASSIE is an Australian taxonomy that builds on the Foundation Center’s.

• Although charities must submit reports to the ACNC consistent with the Australian accounting standards, there is great variation in how these standards are applied – for example, in relation to fundraising expenditure. This means meaningful comparisons of charities’ financial information is difficult. It would be beneficial to consider introducing charity-specific accounting standards in Australia, as the UK has done.

Whatever the next steps may be, the social challenges charities tackle are complex, and strategies to address them will take time to have an impact. Often conventional metrics of performance just don’t cut it when it comes to such long-term challenges.

And, in most cases, donors will have far less knowledge about social change than those working for the organisations they fund or the communities in which those organisations operate.

Donors provide the funding that brings to life the expertise and experience of those who receive it for the public benefit. Donors play a critical role supporting Australian charities, but we should not attribute them with more knowledge than they actually have.

Krystian Seibert, Adjunct Industry Fellow, Centre for Social Impact, Swinburne University of Technology

This article was originally published on The Conversation. Read the original article.

Malaysian Christians Seek to End Restrictions on Malay Bibles

Federation calls for removal of ‘every impediment’ to importing and printing Scripture.

KUALA LUMPUR, Malaysia, April 6 (CDN) — Christian importers of Bibles that Malaysian officials detained are balking at conditions the government has imposed for their release, such as defacement of the sacred books with official stamps.

The Home Ministry stamped the words, “This Good News [Malay] Bible is for use by Christians only” on 5,100 Bibles without consulting the importer, the Bible Society of Malaysia (BSM), which initially refused to collect them as it had neither accepted nor agreed to the conditions. The Home Ministry applied the stamp a day after the government on March 15 issued a release order for the Bibles, which had been detained in Port Klang, 38 kilometers (24 miles) southwest of Kuala Lumpur, since March 20, 2009.

Another 30,000 Bibles detained since Jan. 12 on the island of Borneo remain in port after the Sarawak state Home Ministry told the local chapter of Gideons International that it could collect them if the organization would put the stamp on them. Gideons has thus far declined to do so, and a spokesman said yesterday (April 5) that officials had already defaced the books with the stamp.

The government issued letters of release to both organizations on March 15 under the condition that the books bear the stamp, “Reminder: This Good News [Malay] Bible is for use by Christians only. By order of the Home Minister,” and that the covers must carry a serial number, the official seal of the department and a date.

The Home Ministry’s stamping of the BSM Bibles without the organization’s permission came under fire from the Christian community. In a statement issued on March 17, Bishop Ng Moon Hing, chairman of the Christian Federation of Malaysia (CFM), described the Home Ministry’s action as desecration.

“[The] new conditions imposed on the release of the impounded Bibles … is wholly unacceptable to us,” he added.

Ng described the conditions imposed by the Home Ministry as tantamount to treating the Malay Bible as a “restricted item” and subjecting the word of God to the control of man. In response, Home Minister Hishammuddin Hussein has said the act of stamping and serialization was standard protocol.

 

Government Overtures

In the weeks following the March 15 release order, the government made several attempts to try to appease the Christian community through Idris Jala, a Christian from Sarawak state and a minister in the Prime Minister’s Department.

Idris issued the government’s first statement on March 22, explaining that officials had reduced earlier conditions imposed by the Home Ministry to require only the words, “For Christianity” to be stamped on the covers of the Bible in font type Arial, size 16, in bold.

Idris informed BSM that the Bibles could be collected in their present state or arrangements could be made to have stickers with the words “For Christianity” pasted over the imprint of the stamps made by the Home Ministry officials. In the event that this was not acceptable, the minister pointed out that BSM had the option of having the whole consignment replaced, since the government had received an offer from Christian donors who were prepared to bear the full cost of purchasing new Bibles.

In response, the CFM issued a statement on March 30 saying, “The offer made does address the substantive issues,” and called on the government “to remove every impediment, whether legal or administrative, to the importation, publication, distribution and use of the [Malay Bible] and indeed to protect and defend our right to use the [Malay Bible].”

Bishop Ng, however, left it to the two importers to decide whether to collect the Bibles based on their specific circumstances.

On March 31, BSM collected the mishandled Bibles “to prevent the possibility of further acts of desecration or disrespect.” In a press statement, BSM officials explained that the copies cannot be sold but “will be respectfully preserved as museum pieces and as a heritage for the Christian Church in Malaysia.” The organization also made it clear that it will only accept compensation from the Home Ministry and not from “Christian donors,” a term it viewed suspiciously.

On Saturday (April 2), Idris issued a 10-point statement to try to resolve the impasse. Significantly, this latest overture by the government included the lifting of present restrictions to allow for the local printing and importation of Malay and other indigenous-language Bibles into the country.

In Sarawak and Sabah, there would be no conditions attached to Bibles printed locally or imported. There also would be no prohibitions and restrictions on residents of these two states carrying such Bibles to other states. A significant 64 percent of Malaysian Christians are indigenous people from Sabah and Sarawak states who use the Malay language in their daily life, and having the Bible in the Malay language is considered critical to the practice of their Christian faith.

In the case of West Malaysia, however, in view of its larger Muslim population, the government imposed the condition that the Bibles must have the words “Christian publication” and the sign of the cross printed on the front covers.

 

Christian Response

Most Christians responded to this latest overture with caution. Many remained skeptical, seeing it as a politically motivated move in view of Sarawak state elections on April 16. Nearly half of Sarawak’s population is Christian.

Bolly Lapok, an Anglican priest, told the online news agency Malaysian Insider, “It’s an assurance, but we have been given such assurances before.” BSM General-Secretary the Rev. Simon Wong reportedly expressed the same sentiments, saying the Home Ministry already has a record of breaking its word.

The Rev. Thomas Phillips of the Mar Thoma Church, who is also president of the Malaysian Consultative Council of Buddhism, Christianity, Hinduism, Sikhism and Taoism, questioned the timing of the proposal: “Why, after all these years?”

The youth wing of the Council of Churches rejected the proposal outright, expressing fears that the government was trying to “buy them over” for the Sarawak election, and that it would go back on its word after that.

Bishop Paul Tan, president of the Catholic Bishops’ Conference of Malaysia, called the proposal an “insidious tactic of ‘divide and rule,’” referring to its different requirements imposed on Malaysians separated by the South China Sea. Dr. Ng Kam Weng, research director at Kairos Research Centre, stressed that the proposal “does not address the root problem of the present crisis, i.e. the Allah issue.”

 

Muslim Reactions

The 10-point proposal has also drawn the ire of Muslim groups, who view it as the government caving in to Christian pressure.

Perak Mufti Harussani Zakaria expressed his disappointment, reportedly saying, “If the government does this, just cancel the law,” in reference to various state Islamic enactments that prohibit the use of the word “Allah” and other so-called Islamic terms that led to the banning of the Malay Bible. Malay Bibles have not been allowed to be printed locally for fear that they will utilize “prohibited” words.

The Muslim Organizations in Defense of Islam (Pembela) threatened to challenge the 10-point proposal in court if it was not reviewed in consultation with Muslim representatives.

On the same day Pembela issued its statement, the government seemed to have retracted its earlier commitment. The Home Minister reportedly said talks on the Malay Bibles were still ongoing despite Idris’ 10-point proposal, which purportedly represents the Cabinet’s decision.

As a result, James Redas Noel of the Gideons said yesterday (April 5) that he was confused by the mixed messages coming from the government and will not make a decision on whether to collect the Bibles until he had consulted church leaders on the matter, according to the Malaysian Insider.

The issue with the Malay Bibles is closely tied to the dispute over use of the word “Allah” by non-Muslims.

In a controversial court ruling on Dec. 31, 2009, judge Lau Bee Lan had allowed The Herald, a Catholic newspaper, to use “Allah” for God in the Malay section of its multilingual newspaper.

The Home Ministry filed an appeal against this decision on Jan. 4, 2010. To date, there is no indication as to when the case will be heard.

Christians make up more than 9 percent of Malaysia’s nearly 28 million people, according to Operation World.

Report from Compass Direct News
http://www.compassdirect.org

Christian Forced to Sell Kidney to Pay Debt to Boss in Pakistan

Employer charges non-Muslims at least 400 percent interest.

LAHORE, Pakistan, May 14 (CDN) — A low-wage Pakistani Christian said his Muslim employer last week forced him to sell his kidney in an effort to pay off a loan his boss made at exorbitant interest rates charged only to non-Muslims.

John Gill, a molding machine operator at Shah Plastic Manufacturers in the Youhanabad area of Lahore, said he took a loan of 150,000 rupees (US$1,766) – at 400 percent interest – from employer Ghulam Mustafa in 2007 in order to send his 17-year-old daughter to college. 

“I kept paying the installments every month from my salary, but after three years I got tired of paying the huge interest on the loan,” Gill told Compass.

The employer denied that he had received payment installments from his Christian worker, although Gill said he had receipts for monthly payments.

Mustafa confirmed that he took over Gill’s home last week after giving the Christian two weeks to pay off the outstanding interest on the loan. Then, on May 6, Mustafa came to Gill’s home with “about five armed men” and transported him to Ganga Ram hospital, where they forced him to sell his kidney against his will, the Christian said.

“They sold my kidney and said that they will come next month for the rest of the money,” Gill said.

The value of the kidney was estimated at around 200,000 rupees (US$2,380), leaving Gill with outstanding debt of about 250,000 rupees (US$2,976), he said. Recovering at home, Gill said he did not know he would repay the rest of the debt.

Mustafa told Compass that Gill owed him 400 percent interest on the loan.

“I only offer 50 percent interest to Muslim employees,” he said, adding that he refused to take less than 400 percent interest from any non-Muslim.

‘Kidney Bazaar’

There was no immediate confirmation from Ganga Ram hospital. Rights groups, however, have complained that hundreds of rich foreigners come to Pakistan every year to buy kidneys from live, impoverished donors.

Kidney failure is increasingly common in rich countries, often because of obesity or hypertension, but a growing shortage of transplant organs has fueled a black market that exploits needy donors such as Gill and risks undermining voluntary donation schemes, according to Pakistan’s Kidney Foundation.

Pakistani legislation aimed at curbing trafficking in human kidneys has not ended a business that has turned the country into the world’s “kidney bazaar,” critics say.

Gill said he is trying to contact local Christian advocacy groups to help him recover and overcome his financial and spiritual difficulties. Christians are a minority in heavily Islamic Pakistan, where rights groups have lamented discrimination against Christian workers.

Report from Compass Direct News 

Anti-Christian Sentiment Marks Journey for Bhutan’s Exiles

Forced from Buddhist homeland, dangers arise in Hindu-majority Nepal.

KATHMANDU, Nepal, February 23 (CDN) — Thrust from their homes in Bhutan after Buddhist rulers embarked on an ethnic and religious purge, Christian refugees in Nepal face hostilities from Hindus and others.

In Sunsari district in southeastern Nepal, a country that is more than 80 percent Hindu, residents from the uneducated segments of society are especially apt to attack Christians, said Purna Kumal, district coordinator for Awana Clubs International, which runs 41 clubs in refugee camps to educate girls about the Bible.

“In Itahari, Christians face serious trouble during burials,” Kumal told Compass. “Last month, a burial party was attacked by locals who dug up the grave and desecrated it.”

Earlier this month, he added, a family in the area expelled one of its members from their home because he became a Christian.

Bhutan began expelling almost one-eighth of its citizens for being of Nepali origin or practicing faiths other than Buddhism in the 1980s. The purge lasted into the 1990s.

“Christians, like Hindus and others, were told to leave either their faith or the country,” said Gopi Chandra Silwal, who pastors a tiny church for Bhutanese refugees in a refugee camp in Sanischare, a small village in eastern Nepal’s Morang district. “Many chose to leave their homeland.”

Persecution in Bhutan led to the spread of Christianity in refugee camps in Nepal. Though exact figures are not available, refugee Simon Gazmer estimates there are about 7,000-8,000 Christians in the camps – out of a total refugee population of about 85,000 – with many others having left for other countries. There are 18 churches of various faiths in the camps, he said.

“Faith-healing was an important factor in the spread of Christianity in the camps,” said Gazmer, who belongs to Believers’ Church and is awaiting his turn to follow five members of his family to Queensland, Australia. “A second reason is the high density in the camps.”

Each refugee family lives in a single-room hut, with one outdoor toilet for every two families. The Nepalese government forbids them to work for fear it will create unemployment for local residents.

Life was even harder for them before 2006, when Nepal was a Hindu kingdom where conversions were a punishable offence.

“When I began preaching in 2000, I had to do it secretly,” said Pastor Silwal of Morang district. “We could meet only surreptitiously in small groups. I used my hut as a make-shift church while many other groups were forced to rent out rooms outside the camp.”

A fact-finding mission in 2004 by Brussels-based Human Rights Without Frontiers found that police pulled down a church structure built by Pentecostal Christians in the Beldangi camp by orders of Nepal’s home ministry. The rights group also reported that Hindu refugees ostracized the Christians, who had proceeded to rent a room outside the camp to meet three times a week for worship services and Bible study.

When the Jesus Loves Gospel Ministries (JLGM) organization sent officials from India to the Pathri camp in Morang in 2006, they found that local residents resentful of the refugees had taken note of a baptism service at a pond in a nearby jungle.

“In August, we were planning another baptism program,” JLGM director Robert Singh reported. “But the villagers put deadly poisonous chemicals in the water … Some of the young people went to take a bath ahead of our next baptism program. They found some fish floating on the water and, being very hungry – the refugees only get a very small ration, barely enough to survive on – they took some of the fish and ate them. Three of them died instantly.”

Singh also stated that poisoned sweets were left on the premises of the refugee school in the camp. They were discovered in time to avert another tragedy.

Life for Christian refugees improved after Nepal saw a pro-democracy movement in 2006 that caused the army-backed government of Hindu king Gyanendra Bir Bikram Shah to collapse. The king was forced to reinstate parliament, and lawmakers sought to curb his powers by declaring Nepal a secular state.

Though Christian refugees are now allowed to run churches openly in the camps, ill will toward them has yet to end. When Pastor Silwal asked camp authorities to allow him to open a church in 2006, Hindu neighbors protested, saying it would cause disturbances. Camp authorities allowed him to open a tiny church in a separate room on the condition that its activities would not disturb neighbors.

Earlier in his life in Bhutan, said the 40-year-old Pastor Silwal, he had been a stern Hindu who rebuked his two sisters mercilessly for becoming Christians. He forbade them to visit their church, which gathered in secret due to the ban on non-Buddhist religions in place at the time. They were also forbidden to bring the Bible inside their house in Geylegphug, a district in southern Bhutan close to the Indian border.

“I became a believer in 1988 after a near-death experience,” Pastor Silwal told Compass. “I contracted malaria and was on the verge of death since no one could diagnose it. All the priests and shamans consulted by my Hindu family failed to cure me. One day, when I thought I was going to die I had a vision.”

The pastor said he saw a white-robed figure holding a Bible in one hand and beckoning to him with the other. “Have faith in me,” the figure told him. “I will cure you.”

When he woke from his trance, Silwal asked his sisters to fetch him a copy of the Bible. They were alarmed at first, thinking he was going to beat them. But at his insistence, they nervously fetched the book from the thatched roof of the cow shed where they had kept it hidden. Pastor Silwal said he tried to read the Bible but was blinded by his fever and lost consciousness.

When he awoke, to his amazement and joy, the fever that had racked him for nearly five months was gone.

Pastor Silwal lost his home in 1990 to the ethnic and religious purge that forced him to flee along with thousands of others. It wasn’t until 1998, he said, that he and his family formally converted to Christianity after seven years of grueling hardship in the refugee camp, where he saw “people dying like flies due to illness, lack of food and the cold.”

“My little son too fell ill and I thought he would die,” Silwal said. “But he was cured; we decided to embrace Christianity formally.”

Homeless

In 2001, Bhutan4Christ reported the number of Bhutanese Christians to be around 19,000, with the bulk of them – more than 10,500 – living in Nepal.

When persecution by the Bhutanese government began, frightened families raced towards towns in India across the border. Alarmed by the influx of Bhutanese refugees, Indian security forces packed them into trucks and dumped them in southern Nepal.

Later, when the homesick refugees tried to return home, Indian security forces blocked the way. There were several rounds of scuffles, resulting in police killing at least three refugees.

Simon Gazmer was seven when his family landed at the bank of the Mai river in Jhapa district in southeastern Nepal. Now 24, he still remembers the desolation that reigned in the barren land, where mists and chilly winds rose from the river, affecting the morale and health of the refugees. They lived in bamboo shacks with thin plastic sheets serving as roofs; they had little food or medicine.

“My uncle Padam Bahadur had tuberculosis, and we thought he would die,” said Gazmer, who lives in Beldangi II, the largest of seven refugee camps. “His recovery made us realize the grace of God, and our family became Christians.”

The plight of the refugees improved after the U.N. High Commissioner for Refugees (UNHCR) stepped in, receiving permission from the government of Nepal to run the refugee camps. According to the UNHCR, there were 111,631 registered refugees in seven camps run in the two districts of Jhapa and Morang.

Though Nepal held 15 rounds of bilateral talks with Bhutan for the repatriation of the refugees, the Buddhist government dragged its feet, eventually breaking off talks. Meantime, international donors assisting the refugee camps began to grow weary, resulting in the slashing of aid and food. Finally, seven western governments – Canada, Norway, Denmark, New Zealand, Australia, the United States and the Netherlands – persuaded Nepal to allow the refugees to resettle in third countries.

The exodus of the refugees started in 2007. Today, according to the UNHCR, more than 26,000 have left for other countries, mostly the United States. A substantial number of the nearly 85,000 people left in the camps are ready to follow suit.

Although they now have a new life to look forward to, many of Bhutan’s Christian refugees are saddened by the knowledge that their homeland still remains barred to them. So some are looking at the next best thing: a return to Nepal, now that it is secular, where they will feel more at home than in the West.

“I don’t have grand dreams,” said Pastor Silwal. “In Australia I want to enroll in a Bible college and become a qualified preacher. Then I want to return to Nepal to spread the word of God.”  

Report from Compass Direct News 

Undercurrent of hostility in Orissa; Christians facing challenges

Up to 20,000 Indian Christians remain refugees two years after a wave of attacks by militant Hindus in Orissa. Many are still unable to return to their villages for fear of death or forcible conversions to Hinduism, reports MNN.

The displacement has taken its toll on Orissa’s children, too. Many saw their schools destroyed, or they fear being attacked while attending school. Others have failed their exams because of the severe disruption caused by the riots and displacement.

Things have calmed, but believers still face challenges. That’s proving true for Worldwide Christian Schools. Scott Vanderkooy explains what’s happening with their partner, New Life School and Orphanage. "The school currently operates in a rented space owned by a Hindu family, and the lease has just been shortened. The school has less than five months to complete their new school building."

New Life provides schooling and a permanent home for 75 children, and schooling for an additional 100 children in Orissa, India.

Vanderkooy points out that while the April 2010 eviction isn’t legal, there’s not much they can do. It’s not likely they’ll find a new place to rent. But, it’s not ALL bad news. He says, "There is a new school that has been started, but $87,000 are needed yet to finish it on time."

The school building has been under construction for three years. They have been using a rented building to hold classes.

WWCS donors funded the first floor, but a second story and a roof are still needed in order to serve the 175 students who come from all over to attend this unique, Christ-centered school in the center of strong Hindu and Muslim influence.

Vanderkooy says the school’s response will speak volumes about the Gospel. Many children who attend the school do not come from Christian families, giving the staff of New Life School an opportunity to share Christ’s love and principles with the children. In this case, he says, "It’s how Christians handle problems like this. Do we handle these problems as the world handles them? Or do we have a different method? I think this school, in particular, is a great example of Christ’s love."

Report from the Christian Telegraph