Charity Giving
Charity Giving
52
2 0 2 2
Diversity
and Change
in Charitable
Giving in
Thailand
by Rosalia Sciortino
Diversity and Change
in Charitable Giving in Thailand
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the prior written permission of the Publisher or a license permitting restricted copying in Thailand.
The content of this book was derived from the academic article “Diversity and Change in Charitable Giving
in Thailand” under Khonthai 4.0 Program supported by the National Research Council of Thailand (NRCT).
Diversity and Change
in Charitable Giving in Thailand
Content
Abstract
Introduction
Thailand has a reputation for being a generous country, with an established tradition
of giving generally explained as ingrained in Theravada Buddhism, as the religion of
the majority population. The Charities Aid Foundation’s (CAF) World Giving Index,
which measures giving globally based on the three indicators of helping a stranger,
donating money for a good cause and volunteering time, has for years ranked
the country among the top 20 overall and among the top 10 in donating money.
However, last year, Thailand fell from 16th to 62nd place on the overall ranking and
from 5th to 22nd place on the score of donating money. This worst performance
ever, is mainly due to the significant reduction in the percentage of people who
donated money in the month preceding the interviews from 68 to 53 percent
(CAF 2018). On the other indicators, there was also a reduction, but for Thailand
‘helping a stranger’ and, especially, ‘volunteering’ have consistently been of lesser
significance. This has brought Pahonyolthin (2017: 189) to conclude that for
Thais “time is the rarer commodity” and they prefer donations as the means of
charitable giving “since it is easy to do ‘with no strings attached’”. Myanmar,
another majority Theravada Buddhist country in Southeast Asia, also went down from
1st to 9th place, while Indonesia, the largest Muslim-majority country in the word and
the region, topped the Index for the first time (CAF 2018; see Table 1).
6
reporting making financial contributions to a charity and in the parallel increase in
the number of people reporting helping a stranger and volunteering for two years
in a row (CAF 2017; 2018).
Table 1: Top 20 countries in the CAF 2018 World Giving Index with score and partic-
ipation in giving behaviors
CAF World CAF World
Helping a Donating Volunteering
Countries Giving Index Giving Index
stranger (%) money (%) time (%)
ranking score (%)
Indonesia 1 59 46 78 53
Australia 2 59 65 71 40
New Zealand 3 58 66 68 40
United States
4 58 72 61 39
of America
Ireland 5 56 64 64 40
United
6 55 63 68 33
Kingdom
Singapore 7 54 67 58 39
Kenya 8 54 72 46 45
Myanmar 9 54 40 88 34
Bahrain 10 53 74 53 33
Netherlands 11 51 52 66 37
United Arab
12 51 68 62 23
Emirates
Norway 13 50 54 65 32
Haiti 14 49 62 54 31
Canada 15 49 57 56 33
Nigeria 16 48 71 36 37
Iceland 17 48 50 65 27
Malta 18 47 53 64 25
Liberia 19 47 80 14 47
Sierra Leone 20 47 80 23 37
Source: CAF, 2018: 11
Taking the hint from these global comparisons, this article probes charitable giving
—including monetary, in-kind and in terms of voluntary time devoted to others— in
Thailand linking individual perspectives to structural and contextual factors. It examines
how different groups in society are driven by an array of religious and cultural
beliefs and how the interaction of these with other social structures such as gender
and class results in differentiated giving. In particular, it shows, that besides the
dominant influence of Theravada Buddhism, other religious and spiritual traditions
Diversity and Change
in Charitable Giving in Thailand
7
shape giving values and practices of minority groups, contributing to the altruistic
stand of the country. The different forms of giving, including individual, corporate
and non-profit, will be discussed and the impact of societal arrangements and
public policies on them will be examined. In doing so, the article exposes a growing
tension between ‘charity’ directed at relieving immediate suffering and ‘philanthropy’
as aiming to improve opportunities for those left behind, and when strategic, to
address the root causes of social problems.1 To delve into these issues, the article
draws on literature as well as on the writer’s own personal observations made while
serving as a philanthropy and international development practitioner in the region.2
Interdependence
and Reciprocity
Shape Benevolence
Thai dominant culture is supportive of individual giving and showing concern for
the others. An early study of philanthropy recalls how water jars were traditionally
placed in villages outside people’s homes for thirsty passersby, and food and shelter
were provided to travelers, even if strangers (APPC, 2001). Other studies note that
Thai people have great social awareness of the interdependence on each other
rather than counting on government interventions, as more formal social protection
benefits were, and still are, insufficient. In the same way children are dependent
on their parents for support during their growth, it is expected that parents will
be dependent on their children for support during their aging. Beyond the nuclear
family, poorer family members are dependent on (and expect) the generosity of
richer relatives (Tayler 1997).
8
In a hierarchical society with great wealth divides —in the last decade the GINI
coefficient of Thailand has fluctuated around 4.5 indicating high and persistent
levels of inequity—3 interpersonal dependence is structured along a patron-client
relationship model in which persons of higher status and position are considered
morally responsible for the well-being of those with less fortune, in exchange for
their gratitude, loyalty and/or service. The ‘patron’ is expected to be benevolent
and generous:
In fulfilling social obligations, the patron will collect bun khun or phra khun roughly
defined as “indebted goodness’ and described as “any good thing, help or favor
done by someone which entails gratitude and obligation on the part of the
beneficiary” (Smuckarn 1985:169). Based on these values, a support network has
developed, which is based on the provision of benefits and favors, including financial
and in-kind donations, to be eventually reciprocated in some forms (and not always
in equal manner). In the chain of giving, the grantor by exercising mettaa karunaa
(mercifulness and kindness) places the receiver in the position of being grateful
for the kindness received and obliged to return it, thus exchanging generosity for
kantanyoo rookhun (gratitude and indebtedness) (Komin 1990, Mulder 1996, Titaya
1976).
Much has been written on reciprocity and to what degree bun khun is based
on building a spontaneous sense of gratitude and to what extent it contains a
transactional element. Persons (2016) recommends to view it as a continuum
“of relational behaviors with similar ilk, but with different dynamics” ranging from
‘affectionate bun khun’ or uncalculated acts of kindness to ‘instrumental bun khun’
or acts that expect the receiver to reciprocate in a manner beneficial to the giver,
3 http://thaiembassy.se/wp-content/uploads/pdf.pdf
Diversity and Change
in Charitable Giving in Thailand
9
with most exchanges being somewhere in the middle and blending these two
opposites.
Irrespective of the interpretations, we can assume that culturally in Thailand, giving pivots
around the paired concepts of obligation and reciprocity and that it is instrumental
in constructing and maintaining social relationships. This, especially, but not only,
between persons of different social status thus contributing to framing and offering
justification for society’s hierarchical order and structures.
In daily life, however, application of religious norms has become impregnated by the
core cultural values of obligation and reciprocity, but now repositioned according
to more intangible fundamentals. Traditionally, local communities were built around
a temple, which functioned as spiritual and social center thanks to the devotees’
charity. Donations enabled the functioning of the temple and its religious activities
and the subsistence of ordained monks and nuns, with some part being returned
to the community through education, health and other social services and provision
of financial support to underprivileged groups (APPC 2001). In the course of time,
urbanization and other socio-economic transformations have changed the spatial
arrangements, but have left untouched the reciprocity notion at the core of the
temple-community relationship. To this day, the monastic order (sangha) relies on
4 https://www.learnreligions.com/charity-in-bud-
dhism-449556
Diversity and Change
in Charitable Giving in Thailand
10
the generosity of the laypersons for its maintenance and undertaking of religious
duties, while the laypersons expect to receive in exchange spiritual fulfillment and,
at times, socio-economic support (Swearer 2010).
Through the practice of merit-making or tham bun in Thai language, devotees can
accumulate good deeds and thus good karma for themselves and their older rel-
atives and reduce demerit (bap) and thus bad karma. By doing so, they hope to
positively affect their present life as well as the cycle of rebirth and reincarnations
of future lives. In the present, Thai Buddhists derive happiness from giving. Recent
studies by NIDA show that giving, especially when in terms of objects or money
(rather than volunteering) leads to a higher happiness level than not giving at all
and that religious giving enhances the happiness level. Buddhists who regularly give
for religious purposes and particularly those dedicating offerings to monks reach
the highest happiness level since it is believed that such acts provide great merit
(Pholphirul 2014, Apinunmahakul 2014).
Diversity and Change
in Charitable Giving in Thailand
11
Besides happiness, merit-making, as part and in addition to religious observance,
is meant to bring peace and wealth to the devotees and their families; help them
overcome obstacles or misfortunes such as accidents and diseases; and improve
their destiny after death, eventually enabling them to reach nirvana as the ultimate
goal of the Buddhist path and the release from rebirths in sam -
. sara:
Diversity in Buddhist
Merit-Making
The values associated with the concept of generosity in Thai Theravada Buddhism
are translated in a multitude of merit making acts that can be organized in five
main categories:
12
These multiple merit-making efforts are viewed as personal in nature benefiting
and giving happiness to those who conducts them. In the words of Tambiah (1970,
p. 54): “from the doctrinal point of view the quest for salvation is a strictly
individualistic pursuit”. After earning the merit for oneself, the merit-maker can
eventually ‘reallocate’ some of it to his/her parents and elders, even if deceased.
At the same time, merit making activities in their actualization may involve larger
social units, ranging from the family and the household to the extended kin group
and the entire village (Tambiah 1970; Saiyasak 2006).
How people prioritize depends also on the context in which giving practices
are embedded. During his fieldwork in the 1960s, Tambiah asked villagers in the
predominantly rural and relatively underprivileged region of Northeastern Thailand
(Isan) to rank the priorities of various merit acts. They ranked giving donations to
build a temple as the most meritorious act while meditation was in their view the
least meritorious. This even if in contradiction with canonical Buddhism (Pa-li canon),
which praises meditation (patiba-t bucha) more than the giving of material things
(a-misa bucha) as an act of worship (Tambiah 1970; Feungfusakul 2020).
In the Isan mix-culture area bordering Laos and Cambodia merit-making is epitomized
by collective ceremonies. Local communities traditionally follow a calendrical cycle
of twelve collective ceremonies of both Buddhist and pre-Buddhist origin called
Prapheni Heet Sibsong.5 The ceremonial cycle refers to the agricultural seasons
and provides a spiritual orientation for the community that emphasizes harmonious
co-existence among the villagers and interdependence between laity and monastic
order. The ceremonies are an opportunity for the monastic order to fulfil its material
needs of food, shelter and clothing from community donations and volunteering.
At the same time, they enhance “the potentiality of accumulation of merit” for the
devotees as their participation in these time-consuming and expensive ceremonies
is viewed as “an act of merit-making symbolizing self-sacrifice, dedicated effort and
devotional zeal” (Visuddhangkoon 2015, p. 4, 9)
13
Kathin sponsors, the owners or lords of the ceremonies,
receive merit (bun) and honour (kiat) through their
generosity to Buddhist monks. In ritual they show (sadaeng)
and build (sang) transcendent virtue (barami…), which is
synonymous with credibility… Urban kathin sponsors are
commonly said to gain the trust (khwamwai-cai, lit., the
quality of being ‘put in the heart’) of villagers when they
offer kathin to village monks… (Gray 1991: 46)
The thus acquired credibility has political and economic value and is of interest also
to sponsors from outside the local community. In spiritual terms, this reflects the
sponsors’ traditional thought, aligned with the normative unselfishness ideal, that
anonymity enhances merit, but also their higher regard for upcountry monasteries
considered more sacral than urban ones in their closer adherence to the monastic
ideal (Swearer 2010). More pragmatic reasons have, however, also been noticed.
Collective ceremonies and especially kathina are an expression of cultural politics,
with politicians and business ventures exploiting the occasion to gain much needed
popular support through their sponsorship. A study, for instance, documents as a
well-connected commercial bank expanded its presence in the Northeast through
kathina sponsorship (Gray 1991). More recently, it has been observed that local
women with foreign spouses living abroad or in between countries invest heavily in
such ceremonies as a sign of belonging and also to express an improved economic
status (Lapanun 2019).
More generally, the individual and social dimensions of merit-making are both affected
by social determinants like gender, socio-economic status and ethnicity resulting
in differentiated practices. Starting with gender, the patriarchal underpinning of
societal arrangements entrusts men with a leading role in merit-making ceremonies
while women are consigned to a supportive role when not precluded from the
activities. Women are assigned to preparing and giving the daily food offerings to the
monks and undertaking other domestic tasks in performing rituals. To compensate
for their being barred from ordination and thus for their inability to earn merit
for themselves and their parents that way, they are expected to show filial piety
through provision of household support even when they no longer live together.
Popular wisdom considers women to be in greater need of merit because of their
supposedly subordinate gender —this even if “Buddha himself acknowledged that
there is no spiritual difference between men and women”—6 and therefore expect
them to express greater devotion and give more (Kirsh 1972).
6 https://www.chiangmaicitylife.com/citynews/features/
white-robes-saffron-dreams-a-look-at-gender-inequality-
in-thai-buddhism/. See also https://www.chiangmaic-
itylife.com/citylife-articles/breaking-through-bud-
dhism/
Diversity and Change
in Charitable Giving in Thailand
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Poorer people are also considered in greater need of merit making, their underprivileged
position in this world being again taken as an indication of lower stand on the spiritual
scale, which in turn requires greater acts of beneficence to be upturned. In the
Northeast, the intense merit quest of Isaan villagers has been explained in terms
of their anticipation to reduce farm hardship and uplift their lower socio-economic
status (Keynes 1983). More generally, past studies indicated that poor gave
proportionally more than wealthier people in an effort to improve their present cosmic
conditions and escape a similar fate in a next life (Pfanner and Ingersoll 1962).
Notwithstanding the specificity of the proposed cultural explanation, this pattern
is per se not exceptional as also in other countries wealth is not a direct predictor
of giving (Sciortino 2017). However, for the public, it is the absolute and not so
much the proportional value of resources invested that get attention since wealth
is “a sign of merit already made; a reward for merit already made; and a means for
making more merit” (Pfaffer and Ingersoll 1962, p. 356). This implies, that while the
poor are supposed to donate to improve their conditions, the rich are expected to
significantly engage in merit-making not only to continuously maintain and enhance
their position, but to corroborate in the eyes of society their privileged status in
both the material and the intangible world.
15
staffed by laypersons. In turn, this foster the perception that merit-making does not
need to be centered on sangha affiliated temples and monks and that it works also
with volunteering and donating to non-religious causes. In this context, giving is far
from anonymous, with names of donors publicly listed in the order of the amount
donated and framed pictures of major benefactors hanged on the premises of the
institutions they contributed to, thus putting social pressure on the wealthier to
contribute significantly. These customary practices to recognize beneficence are also
common in Chinese communities in other parts of Thailand. For Bangkok, it was
noted already decades ago that in the Thai Chinese community “public recognition,
community goodwill and some fame can be gained by donating money” and that
charity is a path to social prominence and viceversa (Coughlin 1960, p. 57)
Merit Making in
Other Religious
Traditions
Interestingly, the concept and practice of merit-making extend beyond Buddhism,
assuming original connotations according to the setting. Irrespective of their specific
doctrines, diverse religious traditions seem to find common ground in “tham bun” as a
Thai idiom denoting merit-generating rituals and conduct for general religious
activity (Joll 2014; Keyes 1983). Various studies of both Catholicism and
Protestantism in Thailand, for instance, highlight how the practice of merit-making
has been transposed across religious and cultural boundaries becoming a dominant
feature of Christian religious activities (Cohen 1994; Hughes 1984). In spite of the
distinct visions of the afterlife, Thai Christians do seek to achieve better conditions
in this life and beyond as a reward for their merit-making and their keeping to
religious precepts. Even if missionaries may not always approve of what they see
as an “indigenization” of Christian religion, the general principle of an individualistic
karmic path requiring one to do charitable deeds to attain benefits in return is well
ingrained among believers. These deeds may be somewhat more oriented towards
helping others rather than focused on religious acts for inner fulfilment, but in
Hughes’ (1984, p. 30) words “both reasons for making merit are found among both
Christians and Buddhists. The difference between them is one of degree rather
than kind”.
Merit-making is also common among the Muslim Thai and Thai speaking Malay
communities in Southern Thailand. Although some fundamentalist groups are aiming
to “purify” Muslims practices from what are considered “extraneous” elements
Diversity and Change
in Charitable Giving in Thailand
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of the Islamic faith, most believers consider merit-making own to their faith and
tradition. As one of the informants in Joll’s research on Muslim merit-making in
Southern Thailand (2012) puts it:
Through a process of syncretic cultural and linguistic merging over the course of
the last hundred years, merit-making has become embedded in Malay and Islamic
terms. In this case, merit is generated through the enactment of locally occurring
Malay adat (traditional custom), and universal normative amal ‘ibadat (worship)
prescriptions for the purpose of a better life, death and afterlife until the Day
of Judgment and for the benefit of deceased relatives and friends. In Southern
Thailand, variations in the types of merit-making are many and so are the terms,
of Sankrit, Thai, Malay and Arabic origin, used to refer to them (see Table 2 and
3). Common across these various forms is that to earn salvific merit, one has to
do more than what is already beholden by religious prescriptions. In relation to
charity, sadaka (in Arabic sadaqah) or voluntary giving to people, both Muslims
and non-Muslims, to whom one is not indebted, is considered a supererogatory
act that earns the maker merit (Joll 2012; McCleary 2007). Along these voluntary,
merit making, contributions, Muslim Malay in Southern Thailand perform many other
charity acts both voluntary and mandatory as prescribed by Islam.
17
Table 3: Thai and Pattani Malay Terms for Social and Merit Making Feasts
English Thai (Th.) Pattani Malay (PM.)
Feat Tham bun, kin bun Wa’ make
Circumcision feast Tham bun khaw sunnat Make pulot
Hair-cutting, and naming feast Aqiqoh Make pulot, aqiqoh
Wedding feast Ngaan liang Walimah, make pulot
Tham bun samrap phu sia
Funeral feast Wa’ arwoh, wa’ ngatek
chiwit
Tham bun mawlid,
Mawlid feast Wa’ mawlid
ngaan mawlid
Housewarming feast Kuen baan mai Naik rumoh baru
Source: Joll 2012, p.85
Muslim Giving
In-Between Duty
and Solidarity
The Muslim population, a minority in most of the country except for the four
southernmost provinces, has a well-established tradition of giving grounded in Islamic
theology. The Qur’an stresses the importance of generous acts “suggesting that
God’s mercy and protection is available not only through prayers, but through the
involvement of giving as well” (Hasan 2006, p.2). With giving, believers can show
gratitude to the Almighty, purify their surplus earnings and express solidarity to the
neediest members of the ummah (Muslim community).
18
troubled and in hardship.7 This ‘redistribution’ tax should in principle be collected
and managed by the Islamic State, but when this is not an option, alternative
arrangements may emerge. Neighboring Muslim-majority countries Malaysia and
Indonesia, have recently seen the establishment of semi-government organizations
and the development of independent philanthropic organizations specifically devoted
to the professional management of zakat in support of a wide range of charity,
development and social justice programs. This is not the case in Thailand, where a
national system for managing the zakat has yet to materialize and collection and
distribution of individual contributions remains informal and traditionally structured.
Generally, Muslims in Thailand calculate by themselves the amount of zakat to
be donated and give it directly to disadvantaged families in their network on the
occasion of the end of the fasting period or Ramadan (so-called zakat Fitrah).
More rarely, they trust mosques or religious educational institutions in their
community to distribute the zakat on their behalf, and few also give it to Islamic
organizations. In Bangkok, the most prominent are the Islamic Bank of Thailand, the
Islamic Committee of Bangkok, and the Foundation of Islamic Centre of Thailand
(Sitisan 2010). Studies conducted so far on zakat management have concluded
that few pay zakat formally and that not many institutions have the capacity to
manage funds efficiently (Rimpeng 2018) —a feature this last that, as we will see
later, is also shared by religious institutions of other faiths. It is also noticed that
centralistic efforts by the Chularajamontri and the National Islamic Committee, as
the highest Muslim authorities in Thailand, to establish a Charity and Zakat Fund
have not resulted in the expected accumulation of funds as religious leaders at
lower administrative levels prefer to directly care for the needy in their community
(Pitsuwan 1988).
The role of mosques and religious educational institutions is greater with regards
to voluntary giving, as they are the main recipients and managers of cash, in-kind
or usufruct grants and charitable endowments (waqf or plural awqaf) given by
wealthier members of the community for the benefit of the ummah. More particularly,
the waqf typically involves donating a plot of land, building or other assets in
perpetuity for a specific religious or charitable purpose. In the first case, the waqf
is used for the establishment, maintenance and running of religious institutions
including mosques and Islamic schools and cemeteries, while in the second it
foresees funding public services in disadvantaged areas from education and health
services to infrastructures (Sindima 2018).
19
In Thailand, it is common for the land for mosques and Muslim cemeteries to have
been given as waqf, sometimes as far as centuries ago. Mosques and Islamic
boarding schools and other education institutes also receive productive land to
help them earn some income for their maintenance and expansion. In the four
Southern provinces, waqf is in the form of open land, houses, apartments, and
rubber and coconut plantations. Transfer is customarily conducted on the bases
of trust, with the imam (religious leader) receiving it informally on behalf of the
institution. This lack of documentation at times causes conflict with the donor’s
heirs and other third parties, including the State (Prapertchob 1991). The diversity
of waqf arrangements further complicate oversight. Contrary to general assumption,
the Muslim population in Thailand is far from homogenous with Malay Muslim in
the South, Cham Muslim, Thai ethnic Muslims and Indian Muslim predominantly in
Central Thailand and Hui, Pakistanis and Afghans predominantly in the Northeast.
Besides ethnic diversity, Muslims also show diversity in their belonging to the four
different Sunni schools of thoughts, namely Shafii, Hanafi, Hanbali and Maliki. These
schools apply different sub-doctrines to regulate the endowing of land, property and
finance and its scopes and beneficiaries (Brown 2014). Irrespective of the cultural
and theological differences, too detailed to be reported here, we can generalize
saying that for the Muslim community in Thailand like in other parts of the world
“the Waqf endowment is a process of anticipating and managing the future: a
hereafter future for the person making the waqf endowment, and za worldly future
for the person benefiting from it” (Raissouni, 2001).
20
Figure 1: Total Accumulated Amount of Household Giving in Thailand 2011-2016
Budget of Ministry of Social Development and Human Security = 10,379 MB
100,000
86,295 88,416
60,000
40,000
20,000
0
2011 2012 2013 2014 2015 2016
Source: TDRI (calculation based on the Household socio-economic survey conducted by the National Statistical Office as displayed in
power point presentation by Chirapaisarnkul 2019)
In giving, people have a wide range of possible beneficiaries at their disposal. Besides
giving to other individuals they can choose among the typical charitable and
philanthropic institutions common to most countries such as faith-based charities,
international and national non-for-profit organizations (NPOs) or civil society organizations
(CSOs), social enterprises and foundations or opt for supporting institutions specific
to Thailand like the royal foundations and projects (Wattanasiritham, 2007). Yet, not
all possible choices receive the same consideration. Faith is a fundamental driver
of charitable giving in general (Apinunmahakul 2014), but, as can be expected also
from the previous sections, it does result in a clear preference for giving to religious
causes and institutions, when not donating to relatives and social contacts.
This is clearly reflected in the NSO data: among the households that give —as it
needs to be recognized here that a large proportion does not do so— the great
majority donates to religious causes of various denominations and this has been
a constant across the years up to the most recently published household survey
(NSO 2018). Kanchanachitra (2014) using a sample of 39,513 households from the 2011
NSO survey with giving activities in the month preceding the interview, shows that
of these the vast majority or 93 percent contributed financially to religious activities.
The other two identified patterns of giving, namely giving of money or material to
persons outside of the households and donations to charitable institutions scored
much lower. Only 20.2 percent of the selected household sample gave based on
personal relationships, assumingly mostly to parents, children or other relatives
who did not reside together, and part of the donated amount could actually entail
economic transactions. The most formal form of giving was less practiced, with
only 17.8 percent of the household sample donating to charities, foundations and
non-profit organizations (Kanchanachitra 2014, p. 5).
Diversity and Change
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Interestingly, in terms of amount of money given by each household, people tend
to honor personal connections. As discussed also before, it is customary for Thais
to support less advantaged relatives and to provide financial contributions towards
the costs of marriages, funerals and other life events of friends and colleagues
(Phaholyothin 2017). As Table 5 shows, for the same 2011 NSO household sample
mentioned above, the amount given to other individuals is much higher than that
given to religious institutions or causes (in the table “merit”) and donations to
non-religious institutions—737 baht, 250 baht and 25 baht per month per household
respectively (Kanchanachitra 2014, p. 6). This pattern also results from the most
recent NSO survey (2018) and is in line with the general preference in Southeast
Asia countries for giving more substantially to individuals known to the donor rather
than to organizations, with the possible exception of religious institutions (Sciortino
2017). That said, some caution is recommended in interpreting the data, since as
noted above the amount granted to other individuals may include payments other
than actual giving, such as support to parents to raise one’s own child(ren).
Table 4: Average amount of money expended in each category of giving (in baht), 2011.
Sent out Merit Donation
Only Only Only
All households All households All households
households that send households that send households that send
out money out money out money
737 3,650 250 269 25 139
n = 39,513 n = 8,922 n = 39,513 n = 36,848 n = 39,513 n = 8,674
Source: NSO Household Socio-Economic Survey in Kanchanachitra 2014, p. 6
The same study of Kanchanachitra (2014) also notes that different household
characteristics affect giving and further diversify giving patterns. In particular, larger
size households gave more overall than smaller size households. Interestingly,
however, if households had to attend to more children, their giving was generally
less. Furthermore, households with older household heads gave a lower amount to
other individuals, but contributed relatively more to religious causes and organizations;
female-headed households gave less overall than male-headed ones; and rural
households spent more on religious causes than their urban counterparts (for more
details see Table 5).
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Table 5: Household characteristics by giving category
Send out Merit Donation
Characteristics Total
Yes No Yes No Yes No
Average number of household
3.16 2.79 3.26 3.21 2.57 3.21 3.15
members
Average age of head 52.2 46.4 54.4 53.1 48.0 53.2 52.7
Sex of head (%)
Male 66.3 73.5 64.4 66.3 65.9 65.5 66.4
Female 33.8 36.5 45.6 33.7 34.1 34.5 33.6
Residence (%)
Urban 36.2 49.6 32.8 35.0 52.6 38.3 35.7
Rural 63.8 50.4 67.2 65.0 47.4 61.7 64.3
Average per capital household
8,448 11,423 7,802 8,428 8,713 11,423 7,802
income (Baht/month)
Marital status of head (%)
Single 8.2 11.3 7.4 7.2 20.9 7.8 8.3
Married 69.1 75.8 67.4 70.1 55.3 69.8 69.0
Divorced 22.7 12.9 25.2 22.6 23.4 22.4 22.7
Education of head (%)
Primary 63.8 46.2 68.2 64.7 51.3 57.8 65.1
Secondary 21.6 32.7 18.8 21.2 27.0 23.4 21.2
University 8.7 17.2 6.6 8.7 9.6 13.4 7.7
Other 5.9 3.9 6.4 5.4 12.1 5.4 6.0
Average number of children
0.65 0.46 0.70 0.66 0.46 0.62 0.65
underage 15
Average number of elderly
0.51 0.25 0.60 0.54 0.41 0.55 0.52
age 60 and over
Number of Observations 39,513 8,922 30,591 36,848 2,665 8,674 30,839
Source: NSO Household Socio-Economic Survey in Kanchanachitra 2014, p. 6
23
Adapting Chhina, Petersik, and Evans’ conclusion (2014, p. 91) we could thus say that:
It is also important to note that individual giving is a matter of habit and trust.
In donating and making their choices, individual contributors rarely question the
recipient’s accountability. As we will see in the following description of the main
charity and philanthropic institutions operating in Thailand, organizations generally do
not publish financial reports and the public does not know much about the funds
involved and even less on their use and impacts.
24
Religious Institutions
Under the Spotlight
The popularity of religious institutions as beneficiaries of individual donations does
not translate in accurate data on their resources and very little is known on the
value of the accrued donations in cash and in kind. We only have some figures for
the Buddhist temples, which, as of September 2018, counted more than 41,000 with
approximately 335,000 clergy (USDOS 2019, p. 4). Temples are estimated to receive
between 100-120 billion baht in donations each year. Of the average amount of 3.2
million baht received by individual temples in 2017, 2.8 million baht were spent for
religious and social activities implying a significant circulation and accumulation of
resources (TDRI, 2017; Kemasingki and Songmuang 2018).8
Typically, as can be derived also from the previous section, donations are from
individuals rather than from institutions. Unlike in the U.S, in Thailand, like in the rest
of Southeast Asia, family and corporate foundations, even when motivated by religious
convictions, do not prioritize funding to religious causes. Among the exceptions
are the Buddharaksa Foundation of the Chearavanont family and the related DT
Group in Thailand, which has an explicit focus on religion and funds Buddhist
schools, monasteries, and nunneries (Thai Giving, 2017) and the Nana family of
Indian descent whose Tuan Suvannasat Foundation supports Koran education and
preservation of Muslim arts, its Waqf Fund funds mosques and Islamic schools, and
its Zakat Fund helps orphans and victims of natural disasters and of the conflict
in Southern Thailand (Mukem 2018).
25
projects, 1.6 baht for personnel administration; 1.2 billion baht for education projects,
including scripture and bookkeeping schooling for monks and novices, and 256
million baht for Deep South conflict resolution and development projects (USDS
2018).
Government funding is also granted to religious groups associated with one of the
five officially recognized religions (besides Buddhism, Islam, Brahmanism-Hinduism,
Sikh and Christianity), but at a much smaller scale. If registered, this time with the
Religious Affairs Department (RAD), they can receive state benefits that include access
to state subsidies, exemption from property and income taxes, and preferential
allocation of resident visas for the registered organization’s foreign officials. Official
data report 3,679 registered mosques in 67 of the country’s 76 provinces, of which
3,121 are located in the 14 southern provinces; 16 Sikh temples of which only 10 are
active and five main Christian umbrella organizations9 with more than 5000 churches
(USDS 2010). For the 2017-2018 fiscal year, the management of the budget of
about 410 million baht for non-Buddhist initiatives was transferred from RAD to
MOI. Of these 333 million baht supported strategic planning for religious, art, and
cultural development and 18 million baht was for the maintenance and restoration
of non-Buddhist religious sites. For the Muslim community, the government provides
funding for the chularajmontri’s annual per diem, Islamic educational institutions, the
construction of mosques, and participation in the Hajj (USDS 2018). Similarly, for
other faiths, state support is in the form of reparation and construction of religious
buildings and contribution to social activities.
The major share of resources for religious institutions, however, remains donations by
the community and increasingly, income-generating assets and payments for delivery
of social services. Catholicism and Protestantism in particular have a long tradition of
provision of education and health services, which generally charge fees to the users,
albeit often at a subsidized price. There are two private Christian universities and 10
Catholic grade schools open to the public (USDS 2018) and an extended network of
generic and specialist hospitals of various types managed by diverse congregations
such as Saint Louis Hospital, Bangkok Mission Hospital, Camillian Hospital, and Bang-
kok Christian Hospital just to name the main ones. Incomes from these activities
are scrutinized as profit-making may contravene government rules concerning the
organizations’ charitable status and, if found not to be reinvested for social purposes,
require separate institutional arrangements (see also later).
26
As awareness raises over the significance and diversity of resources managed by
religious institutions, questions are starting to emerge about the ways they raise
and use the individual donations as well as the public funds and the tax-exempted
incomes they receive. Even if widely trusted by individual donors, religious
organizations do not always have transparent financial and management systems.
TDRI research in 2012 showed that most temples had inadequate systems
for managing their substantial money and assets. Their financial practices did not meet
accounting standards and only a tiny minority followed NOB rules (see Table 8; TDRI
2017). Only in 2015 temples have been made to publish their financial statements,
and implementation and oversight remains weak. The separation line between
temple’s funds and private or personal assets acquired by monks during their
time in the monkhood is also blurred (Ferquest 2017; 2018). For donations, there
is no tight control of the donors’ information causing a major leak in the Thai
tax system since donors can get deductions by donating to religious institutions
(see below). Following a number of high profiles fraud and embezzlement cases
there have been calls for greater regulatory control of both temples and NOB.
Most recently, the police have been investigating the misuse of governmental
subsidies by NOB officers and Buddhist temples, which lead to the spectacular
arrest of five renown monks in May 201810 and successive arrests of both public
employees and religious personnel and to the amendment of the Sangha
Act to entrust the power to appoint and remove the twenty members of the Sangha
Council to H.M. the King rather than to other council members (USDS 2018).
10 https://en.wikipedia.org/wiki/2017–2018_Thai_temple_
fraud_investigations
Diversity and Change
in Charitable Giving in Thailand
27
together, with no separate accounting streams, which makes difficult to trace the
original source and the specific expenditures. Worries are rife that accumulated
resources are not always used for the intended purposes nor promptly disbursed
and, when in the form of assets as it is generally the case for waqf, they remain
unproductive for long periods of times. There have been talks of passing a Zakat
Funds Bill, which would foresee the establishment of a national Zakat Funds
Administrative Office, registered as juristic persons, to monitor the activities of
Muslim charities and administer funds in in separate accountable streams, but it is
yet to be realized (Dorloh 2015; Rimpeng 2018).
Concerns have also been raised on the sectarian inclination of religious institutions.
While many do work for the broader society, there is a tendency to employ resources
to advance the congregation’s well-being, or to proselytize. Christian groups have a
long tradition of promoting their faith through educational and health activities. In
Thailand, temple assistance mainly concerns the Buddhist community, and mosques’
resources focus on Muslim communities (Prapertchob, 1991). Among Islamic giving
options, zakat is the most exclusive due to the general public understanding that it
should be used to assist only Muslim beneficiaries as defined by Islamic jurisprudence.
(Sciortino 2017). The Thai government has also shown suspicion that zakat funds and
other donations to Muslim religious institutions are used to support the insurgency
in the South and Islamist causes abroad. Less talked about is the possible misuse
of funds for radical Buddhist movements with links to Srilanka and Myanmar (DW
2018; Lehr 2019).
Among the public and in the media an increasingly heated topic is the actual destination
of the funds and whether they should be devoted to purely religious causes or
serving social aims and if both to what proportion. In Buddhist circles, there are
criticism that the social function of temples is diminishing, while resources increase:
28
Some wonders whether merit-making money may better be spent for addressing
social needs rather than “building bigger Buddha statues, grander temples and
taller pagodas” (Rojanaphruk 2018). Decrying of religious commercialism, from the
pre-packaged yellow buckets full of brand products for the monks in supermarkets
to instant gratification and recognition for the wealthy patrons, has become a
popular refrain (Fernquest 2015). The Dhammakaya movement and its temple in
Pathum Thani Province —one of the richest in the kingdom— has been at the
center of much controversy for its display of opulence and the “mass production
of a neoliberal, commodified (global) religiosity”, styled on the model of evangelical
mega churches, albeit some have argued that besides moral considerations, also
politics is at play (see further Taylor 2017; 2018; Figure 1).
Figure 2: The Pagoda of More than One Million Golden Buddha at Dhammakaya Temple
Within the Thai Buddhist tradition itself there are streams that since long have taken
an alternative view of mainstream doctrine. They emphasize social engagement
detached from worldly religious expressions, expecting temples to devote funds
and monks’ labor to meet people’s daily needs. In the 1960s and 1970s training
programs were started to train monks in rural development and social welfare, such
as the Buddhist universities sponsored Project for Encouraging the Participation
of Monks in Community Development. To these days there are monks working in
the areas of environmental conservation, HIV/AIDS hospice work, social welfare
services and community development on their own initiative. In this approach, the
connection between the “outer” social and economic change and “inner” personal
Diversity and Change
in Charitable Giving in Thailand
29
transformation is emphasized (Swearer 2010, pp. 145-150). Donations are therefore
used to support social rather than religious activities and “traditional merit-making
rituals are also given a practical, socially relevant significance”:
Recently, the Santi Asoke movement has aimed to revive the forest monk ideal
of simple living and sufficiency in the urban setting of Bangkok and in a number
of self-sustaining communities in the country. In spite of controversies due to its
disrespect of Sanggha rules and its partisan political engagement, Santi Asoke has
grown rapidly becoming the second largest Buddhist group after (and in opposition to)
the Dhammakaya movement. Besides their monasteries, the movement also operates
social enterprises whose incomes finance the movement, including second-hand
stores with sales of about TBH 600,000-800,000 (US$20,000–25,000) a month,
farmer’s markets, and an Indian restaurant that offers free meals to those in need
(Whitaker 2019).
The same tensions in prioritizing religious or social purposes and the pressure
of commercialism in the use of funds can also be found among other religious
organizations. However, as discussed before, both Muslim and Christian beneficiary
organizations, like their givers, put somewhat greater emphasis on human solidarity
as a goal for raising and using donations. Education and health are preferred sectors,
but gradually some local faith-based organizations are also becoming active in
wider development-oriented activities from community development to protection
of migrants and refugees among others. And here is where their path cross with
a variety of secular counterparts preoccupied with the welfare of the population.
Diversity and Change
in Charitable Giving in Thailand
30
Royal Foundations
and Projects Promote
Development
A distinct feature of the philanthropic and charitable sector in Thailand are the
royal foundations and their royal projects. As revealed by the Assumption University
survey presented in Table 7, after religious institutions, charitable foundations founded
by H.M. the King or members of the royal household are considered the most
trustworthy and effective beneficiaries by individual donors. They have a reputation
of delivering on programs and being concerned for the neediest in society; and have
been established for relatively long period of time compared to other non-profit
organizations. The first initiative started by the late H. M. King Bhumibol Adulyadej
who reigned for 70 years (1946 - 2016) was the introduction from Penang, Malaysia
of the Tilapia mosambica fish in 1951 followed in 1952 by the first royal project
focusing on rural development and road construction and in 1953 by the first
irrigation project with the construction of Khao Tao Reservoir in Hua Hin.11 In 1969,
the approach became more comprehensive and the Royal Project Foundation was
founded as an umbrella organization for H.M the King’s charitable initiatives and
research mainly in the disadvantaged areas in Northern Thailand (HM Bhumibol
Adulyadej 1987). At the time, Thailand was still a resource-poor country in the
midst of regional conflict and focus was on alleviating poverty and preventing
spreading of unrest especially in the remote areas of the country (Pahonyolthin
2017).
Today, there is a great variety and number of royal foundations and projects as well
as NPOs under royal patronage —most known and leading beneficiary of donations
among them the Thai Red Cross. The largest ones have been entrusted to Her
Royal Highness Princess Maha Chakri Sirindhorn as the Executive Chairperson.
Activities are spread across Thailand, but still with a heavy concentration in the North
and Northeast as the most disadvantaged regions of the country. Some foundations,
such as the well-known Chaipattana Foundation, also supports activities in
neighboring countries and beyond. According to the website of the Office of the
11 http://www.rdpb.go.th/en/Projects/background
-of-the-royal-development-projects-c50
Diversity and Change
in Charitable Giving in Thailand
31
Royal Development Projects Board (RDPB), royal initiatives are grounded in the
development vision of the late King and its scientific approach to development. Six
Royal Development Study Centres (RDSC) have been established in six provinces
(see Figure 2) to research development problems and propose effective solutions.
Applying the principles of moderation, self-reliance and sustainable development at
the core of the “Sufficiency Economy Philosophy” conceived by H.M. King Bhumibol
Adulyadej, over 4,000 small-scale “royally suggested” projects have been launched
addressing “the whole spectrum of rural problems in Thailand, from the introduction
of new cash crops to water and soil conservation, from swamp drainage to the
preservation of national forests”.12
Source: RDPB13
These many royal initiatives can be classified according to the key development sectors
they contribute to, namely: agriculture, environment, public health, occupational
safety, water resources, transportation and communication infrastructure, public
welfare, and a general category of ‘others’. They can further be divided according
to four different modalities:
12 https://www.thaimain.com/eng/monarchy/project.html
13 http://www.rdpb.go.th/en/Studycenter/royal-development-
study-centres-rdscs-c60
Diversity and Change
in Charitable Giving in Thailand
32
1. The Projects Initiated According to His Majesty’s Wish-
es: These are projects which His Majesty the King con-
ducts study, experimentation and implementation himself
inside and outside the Palace compound based on the rec-
ommendations of field experts, using his private funds […]
14 http://www.rdpb.go.th/en/Projects/project-character-
istics-c53
Diversity and Change
in Charitable Giving in Thailand
33
The resources for these foundations and projects come from a variety of sources.
Besides funds from the Royal House and other royal funds and partnerships with the
Thai government, mostly, it is companies and high income families that contribute
regularly because of the reputation of the beneficiary organizations and the
recognition that comes with donating to them as well as an expression of faith
and loyalty to the monarch (Arthayukti 2006; Perkins, Mantle, & Sungthong 2010).
For wealthy individuals and companies, the tax exemption that they can get for
donating to royal foundations is also attractive. Royal foundations are among the
relatively small group of non-profit organizations designated as Public Charitable
Institutions (PCIs) by the Ministry of Finance and allowed to offer full deductibility
for donations, while most foundations and associations lack the PCI status and
consequently also the fiscal benefit (see below).
No information is available about the total amount of donations received, but it is assumed
to be high and generally consisting of larger size donations when compared with
those to religious institutions, albeit the frequency of receiving individual donations
is clearly lower. The same Table 7 shows that royal foundations and projects are at
quite a distance from religious institutions and people donate to them less frequently
than to educational institutes, health facilities and community organizations. This,
can be explained by the fact that direct fundraising with the general public is more
subdued and the government incentives provided for donating to health and education
facilities rather than development initiatives are greater (see later). Also, there are
sources of support that are not included in the study, such as partnerships with
International organizations, for instance the United Nations Office on Drugs and Crime
(UNODC) collaborating with the Mae Fah Luang Foundation—another leading royal
foundation founded in 1969 by the late Princess Mother Srinagarindra— to tackle
opium cultivation by improving the conditions of ethnic groups in the northern
province of Chiang Rai. Some of the projects further operate as social enterprises15
or have a commercial branch to earn funds for the foundation like the Doi Tung
Café brand of Mae Fah Luang Foundation offering coffee and other substitution
crops to urban consumers across the country.
34
No wonder then that, to this day, there are few private Thai foundations with
the features of US foundations working internationally, like: an endowment whose
gains are used to support administration and programs (thus not requiring the
raising of funds); a strategic vision to identify key challenges and address them
through a systematic grant-making strategy; fully devoted to grant-making (thus not
implementing their own programs), operated by professional officers; governed by
an independent board; and that would privilege CSOs as grantees (Sciortino 2017).
This scarcity, common also to other Southeast and East Asian countries has been
justified as dictated by cultural values that expect rich individuals to be communal
and prioritize their families, clans, or patronage networks. In the case of wealthy
Sino-Thai families it has been argued that the deep-seated ethos of family loyalty,
as described above, has “shaped and fossilized the style of company management
as well as the style of charitable actions done in the name of the family or company”
Diversity and Change
in Charitable Giving in Thailand
35
(Feungfusakul 2020). Furthermore, wealth is to be used to justify as well as to
build one’s social position with immediate actions that bring rescue and relief, rather
than taking the longer-term and less visible approach of endowing an independent
organization (Baron 1997; Sciortino 2017).
Outside of this large-scale indigenous public donor, three kinds of local private donor
institutions can be identified. Contrary to ThaiHealth and its acting merely as a
grant-making institution, they all operate as both fund givers and receivers as well
as implementing agencies. The first kind are the so-called “benevolent foundations”
associated with the Thai Chinese community and linked to the Chinese temples
as previously described; the second kind consists of family foundations with funds
coming from members of a single, often multi-generational family with strong ties
to the family business, and the third kind entails corporate (non-family) foundations.
Starting with the benevolent foundations, they are among the oldest charitable
institutions in Thailand, having started at the beginning of the 19th century and
expanded into a network of mutual help and welfare associations sharing common
origins in China during the 1919-1938 period. Among them, the Siamese Overseas
Chinese Benevolence Foundation established in 1910 and registered in 1937 as the
Huachiew Poh Teck Siang Tung Foundation is today considered the largest Chinese
benevolent foundation with branches across the country, funds and assets in the
Diversity and Change
in Charitable Giving in Thailand
36
hundred million and a multitude of activities including the Huachiew Hospital, a
large hospital in Bangkok initially only devoted to Chinese medicine, and Huachiew
Chalermprakiet University in Samut Prakan province (Formoso 1996). The boards of these
foundationrs are generally composed of wealthy senior community representative who
take responsibility for the finances (through personal donations as well as fundraising),
while the management is entrusted to professional staff. Leaving aside the religious
activities centered on Chinese temples already discussed above, undertakings
consist of offering relief during disasters and alleviating poverty, providing education
and healthcare, but also supporting culture and arts. Most-known are the Foundation’s
services of retrieving corpses from accidents and catastrophes and providing funeral
services for the needy (Phaholyothin 2017).
Foundations of the second kind are relatively more recent with most family
foundations having been established in the last three decades. The reasons for
wealthy families to set up foundations with family’s assets and human resources
are many, but according to a study on family philanthropy in Asia, including Thailand,
“ensuring the continuity of family values or creating a lasting legacy” was the most
common cause for establishing a foundation followed by developing family cohesion
and enhancing capabilities of younger generations. More pragmatic reasons were
exerting influence for political or business purposes; patronage; and increasing
standing in the community. Like the unstructured giving of prosperous individuals,
these family foundations are also meant to meet communal expectations and, if in
Diversity and Change
in Charitable Giving in Thailand
37
diaspora, maintain a connection to the country of origin, most often China (Hayling
et al. 2014; UBS-INSEAD 2012).
Family foundations do not fully act as donors. Like the Chinese benevolent
foundations, they are operationally oriented and mix grant-making activities with
direct implementation of programs. They also raise funds from other sources for
their projects, thus becoming competitors with the very organizations they could be
funding. When grants are provided, they tend to be ad hoc and given to persons
and institutions known to the family. Often personnel and administrative systems
from family business are used to simplify processes and economize resources. Some
foundations will also make use of company profits and not only personal wealth for
philanthropic engagements:
16 https://www.scgfoundation.org/en/project/showcase/
scholar
Diversity and Change
in Charitable Giving in Thailand
38
Notwithstanding some large initiatives, it needs to be stressed once more that
the institutionalization of giving remains rare as corporations, wealthy individuals
and family donors generally operate through informal or corporate channels rather
than private foundations. Partly because of the non-conducive policy environment
as described later in the paper, many have opted for CSR rather than philanthropy
in its traditional sense, as a practice and concept that gives direct benefits to
the family and business and it is better understood by the government and the
public (Chhina et al., 2014). CSR has been gaining momentum in Thailand since
the mid 2000s with the establishment of the Corporate Social Responsibility
Institute (CSRI) at the SET (Stock Exchange of Thailand), the CSR department at
the Royal Foundations, and The Network of Non-Governmental Organizations and
Business Partnerships for Sustainable Development. Initially CSR efforts consisted
of employee volunteer and community service programs, but were later expanded
externally through direct project interventions, financial donations and non-cash
contributions (Prayukvong, P. and Olsen, M. 2009). Some question, however, the
degree to which CSR concepts are integrated into core business practices and
concern is diffuse that there is a significant amount of green-washing occurring to
profile the company as environmentally sound (Kraisornsuthasinee and Swierczek
2006). Besides CSR, wealthy individuals, families and corporations show a growing
interest for social impact investment as a new subset of the venture capital market
that provides expansion capital to seek social impact and financial return at the
same time. Investments are made in a new brand of social enterprises as companies
that pursue profit, while claiming to also contribute to social causes.
Generally, it can be said that the majority of Thai foundations and CSR, social
enterprises and social impact investment initiatives focus on ameliorating human
suffering and immediate welfare problems with some intervention in economic
processes. They avoid, instead, the more transformational approaches addressing
the root causes of social problems and refrain from advocacy, engagement in policy
reforms, governance or human rights support. This is partly due to heightened
concern for reputational risks and potential conflict with the government and other
parties that may affect corporate activities. This risk-averse attitude also implies
Diversity and Change
in Charitable Giving in Thailand
39
that private local philanthropy, similar to individual donors, rarely funds CSOs and
particularly stays away from advocacy-oriented ones, and this at a time when they
need help most in the face of shrinking resources.
Some change could come with the emergence of greater social consciousness
among the youth and the spreading of technological innovation. Most CSOs see
value in broadening their donor base with crowd-funding and other electronic
platforms for donations and try to form circles of “friends” who join in providing
support. These and other innovations could popularize social causes and the work
of CSOs to the general public in a positive manner ensuring vetting of worthy
initiatives and provide an alternative to religious and charitable giving by directing
donations toward social development causes. Indeed, online giving has been
adopted by the CSO community in Thailand for fund raising purposes. International
NGOs and large local NGOs have links to payment providers on their websites or
refer the public to international social giving portals such as Global Giving or to
those specific to the region like Give2Asia. The Thai version TaejaiDotcom, roughly
translated as “giving from the heart” was established in 2012 by a consortium of
non-profit organizations including Change Fusion, the Khon Thai Foundation, Ashoka
Thailand, the Thai Young Philanthropists Network (TYPN), Open Dreams, and Krung
Thep Thurakit newspaper, to connect individual donors directly to the work of local
NGOs, communities, and charities. To this day TaejaiDotcom has received a total of
Diversity and Change
in Charitable Giving in Thailand
40
60 million baht from at least 30,000 people for 281 projects with donations growing
from about 400,000 baht in 2012 to 23 million baht in 2018 (Chirapaisarnkul 2019).
A mixed picture also appears from the drastic increase in charitable giving driven
by celebrities and ‘influencers”. Most renown among them, rock star Artiwara “Toon
Bodyslam” Kongmalai, who gained fame with a 55-day marathon that raised 1.37
billion baht for public hospitals in 2017 and since then has been raising funds with
the Kao Kon La Kao-Kao (Take One Step Each) Foundation charity runs for
cash-strapped public hospitals across the country. While there is general appreciation
for this running-for-charity sensation and companies compete to associate their
brand to the charity runs, there are some doubts about the sustainability and
strategic value of this approach in resolving the country’s endemic under-funding of
hospitals. Such fund-raising efforts are also poorly scrutinized and, like in the case
of donations for religious purposes, there is little public interest in knowing how the
funds are used once the collection is over, at risk of abuse. A recent example are
the irregularities that occurred in the distribution of the more than 400 million baht
raised by actor and volunteer rescue worker Bin Bunluerit to help flood victims in
North Thailand in 2019 (Bangkok Post 2019a).
Capitalizing on these new forms of giving thus seems to require —not unlikely
efforts to enhance the effectiveness of traditional forms— more adequate endeavors
to develop monitoring systems for transparency and accountability. This also implies
a cultural shift away from viewing giving as an end to itself independently of its
actual and a policy and fiscal environment more supportive of strategic giving and
sustained impacts (Phaholyothin 2017).
Diversity and Change
in Charitable Giving in Thailand
41
Ecosystem Favors
Charitable Giving
Policy in Thailand has paid scant attention to the operation and growth of the
non-profit sector leaving many aspects unresolved or poorly regulated, while the
sector itself shows little interest for self-regulation and information disclosure
(WINGS 2002). The limited legislative and regulatory mechanisms that exist de
facto discourage institutionalized philanthropic giving in favor of more traditional
forms of a religious and charitable rather than developmental nature.
Summarizing, it can be said that there are limited incentives for NPOs to register
and scant tax privileges for donors to donate to them. From the institutional side,
benefits of registering are not sufficiently attractive to both donors who want
to start a foundation and CSOs that aim to receive donations. The possibility of
building an endowment and operate as a grant-making foundation in a sustainable
manner is impeded by legal restrictions as foundations can only keep funds in saving
accounts and are forbidden from investing their capital. The majority is also unable
to attain complete exemption from income and corporate tax and cannot offer full
deductibility as a PCI due to the usually burdensome and lengthy process to be
officially started after 3 years from registration. Estimations show that only 600
out of more than 30,000 registered NPOs or about two per cent —a large part of
them, as previously mentioned Royal Foundations— had attained this PCI status
in Thailand in 2014 (Anand and Hayling 2014) and the situation is probably not
much different today. For most associations and foundations, they have to suffice
with corporate income tax exemption only on membership fees, registration fees,
donations or gifts, while they are charged between 2-10 percent on the incomes
depending on the source (see Table 9). Moreover, registering and maintaining
registration as an NPO requires substantial capital and time, so smaller CSOs
choose to operate informally also because there is little enforcement of laws to
compel concerned parties to become official.
Diversity and Change
in Charitable Giving in Thailand
42
Table 8: Summary of incorporation, reporting, and tax regulations
FOREIGN NPOS
FOREIGN NPOS
(BASED IN
ORGANIZATION (BASED AND
FOUNDATION ASSOCIATION THAILAND AND
TYPE OPERATING IN
OPERATING
THAILAND)
REGIONALLY)
Reporting/ National Culture National Culture Ministry of Ministry of
Regulatory body Commission Commission Labour and Foreign Affairs
(NCC); Ministry (NCC); Ministry Social Welfare –
of the Interior; of the Interior; Department of
Social Welfare Social Welfare Employment
Promotion Board Promotion Board
(for organizations (for organizations
with Public with Public
Benefit status) Benefit status)
Formal in Yes, seek Yes, seek Yes, must report Apply to the
corporation permission from permission from to Department ministry to set
NCC before NCC before of Employment up an office in
registering with registering with every 6 months. Thailand and seek
the ministry. the ministry. approval from
the Cabinet;
successful
applicants are
required to sign
an MOU.
Formal Yes, must No, unless Yes, failure to As per
accounting summit audited designated comply may requirements
standards financial as a Public result in laid out in MOU
statement and Charitable withdrawal of with Ministry of
an annual Institution. permission to Foreign Affairs.
report can result operate.
in fine of up
to USD670
or a year of
imprisonment.
Public reporting None None None None
Diversity and Change
in Charitable Giving in Thailand
43
Table 8: (Continue)
FOREIGN NPOS
FOREIGN NPOS
(BASED IN
ORGANIZATION (BASED AND
FOUNDATION ASSOCIATION THAILAND AND
TYPE OPERATING IN
OPERATING
THAILAND)
REGIONALLY)
Income tax 2% corporate 2% corporate 2% corporate Exempted from
requirement tax; 10% income tax; 10% income tax; 10% income local tax
tax on the gross tax on the gross tax on the gross requirements
income received; income received; income received;
Corporate income Corporate income Corporate income
tax exemption on tax exemption on tax exemption on
membership fees, membership fees, membership fees,
registration fees registration fees registration fees
and donations or and donations or and donations or
gifts; Complete gifts; Complete gifts; Complete
exemption from exemption from exemption from
income and income and income and
corporate tax is corporate tax is corporate tax is
only available to only available to only available to
Public Charitable PCIs PCIs
Institution (PCIs)
Entitled to Donations to PCI Donations to PCI Donations to PCI None
tax-free status deductible status deductible status deductible
donations up to 10% of net up to 10% of net up to 10% of net
income income income
Governed by Civil and Civil and The Entry of Must adhere to
Commercial Code; Commercial Code; Foreign Private regulations laid
National Culture National Culture Organizations out in MOU with
Act Act to Operate in Ministry of
Thailand B.E 2541 Foreign Affairs
(1998)
Source: Anand, P. U. and Hayling, C. 2014.
From the point of view of (wealthier) givers who aim for tax deductions, if not
to the limited number of PCIs and particularly royal foundations, they would opt
for religious institutions, public hospitals and educational institutions, selected
government funds and sport activities. Only in these cases, they can attain 100
per cent deduction up to ten percent of net earnings or profits (i.e., income after
taxes and other deductibles) for individuals and two percent for corporates (PWC
2017). Tax deductions of up to 200 percent are also given for donations to specific
government projects and funds in education, child care, juvenile justice and sports.
In practice, it is easier is to donate to registered religious institutions, and secondarily
to public education and health institutions, interestingly a reflection of general
preferences among givers in Thailand. One cannot but wonder here, if reforming
Diversity and Change
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44
fiscal regulations to be more supportive of giving to social development causes
would result in changes in current patterns of giving. Or, as many argue, would still
not make much difference since fiscal incentives are too small anyway, especially
in countries where the effective tax rate is relatively low and so is tax compliance
(Hayling, Sciortino and Upadhyay 2014).
No matter what legal and fiscal reforms are made, if individual giving is to transform
in institutional giving and move from charitable to philanthropic, the sector will need
to establish a support infrastructure. This, starting from systematically collecting
data that accurately capture the state of giving to enable greater efficiencies in
funds allocation and use and multi-stakeholder collaboration. Awareness raising and
public education would also be needed to advance more strategic and accountable
giving. In a previous paper on four countries in Southeast Asia, including Thailand,
my co-authors and I concluded that all the counties “would benefit from concerted
donor education to advance strategic philanthropy and move beyond chequebook
charity” (Hayling, Sciortino and Upadhyay 2014). Here the experience of ThaiHealth
could serve as a useful model of institutionalized giving to be possibly duplicated
by private donors. Furthermore, as Anand and Hayling 2014, p. 78) recommend
“services and mechanisms to support donors and facilitate giving—such as advisory
services, knowledge sharing, and networking platforms [are essential to channel]
resources where they are needed most”.
Diversity and Change
in Charitable Giving in Thailand
45
Conclusion
Thailand’s rich giving culture has been explored highlighting both the diversity of
giving values and practices among different groups in society and the variety of
institutional arrangements in donating and raising funds. It has been discussed how
each tradition is supported by its specific religious, spiritual, and socio-cultural beliefs
and how the interplay of religious and ethnic dynamics with other social structures
such as gender and class results in differentiated giving among diverse groups.
In this context, the issue has been raised about how to ensure that the significant
financial resources donated by individual and institutional donors are responsibly
used and can have a more lasting impact. If giving is to contribute to social
development a shift may be needed from charitable giving to strategic philanthropy
within each giving tradition and form of giving. In doing so the praised generosity
of Thai people will become a force of transformation for Thai society.
Diversity and Change
in Charitable Giving in Thailand
46
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Previously, Dr. Sciortino was IDRC Regional Director for Southeast and East Asia in
Singapore (2010-2014), Senior Adviser for the Health Program to the Australian
Agency for International Development in Indonesia (2009-2010), and Founder
Regional Director for Asia of the Rockefeller Foundation (2000-2007) establishing
during her tenure the Foundation’s Southeast Asia Office in Bangkok. Prior to that,
she was program officer Gender, Health and Human Development at the Indonesia
and Philippines offices of the Ford Foundation from 1993 to 2000.
She fluently speaks Italian, English, Indonesian and Dutch and has published widely
on development issues in Southeast Asia, in particular philanthropy, international
development, regional integration in the Greater Mekong Sub-region and ASEAN,
poverty and vulnerability, social protection, migration, gender, social health, sexual
and reproductive health (see further www.rosaliasciortino.com).
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