Clearing the way to create philanthropic society

Clearing the way to create philanthropic society

Bambang Nurbianto, The Jakarta Post, Jakarta

The spirit of philanthropy has long been enshrined in
Indonesian culture and is still cherished by many Indonesians,
even if not all people here are familiar with the English term.

In Bahasa Indonesia, there is the term gotong royong,
literally meaning "mutual cooperation", which means about the
same thing as "philanthropy". The term is famous as all
Indonesians are taught about it at school. According to
textbooks, "gotong royong" describes the real character of
Indonesians culturally.

The spirit of helping each other can still be seen in many
remote areas. In remote villages in Java, for example, people
automatically help neighbors who are building houses.

In other regions, people will donate food to neighbors who are
planning wedding parties.

In urban areas, such traditions may no longer be practiced by
many people, but urban people have their own ways of expressing
their care for others. Many people donate money to charitable
organizations to help the needy.

The recent response of Indonesians to the suffering of
hundreds of thousands of tsunami victims in Aceh and in Nias,
North Sumatra, was evidence that the spirit of philanthropy still
exists among urban people.

Tens of billions of rupiah was collected by various
organizations from institutions and individuals in Indonesia
after the tsunami.

There are numerous charitable organizations in the country
with different focuses of attention and sources of funds. Some of
them rely on donations from individuals, religious institutions
or the corporate sector. Some deal with education, while others
focus on health, the environment or people's welfare.

These charitable organizations have done a lot to help many
people, particularly the disadvantaged, but there are still many
more people who need help from such organizations.

Thousands of children across the country each year are forced
to drop out of schools because they do not have the money to pay
their school fees. Many children are suffering from malnutrition
due to a lack of food, and there are still many people who cannot
afford to seek treatment at a hospital.

The chairman of the Association of Fundraising Professionals
Indonesia (AFP Indonesia), Elam Merdy, said that given the strong
philanthropic spirit in Indonesian culture, charitable
organizations had a lot of room for growth in the country.

Yet, for a number of reasons, local fund-raising organizations
have failed to explore much of this potential and optimize their
fund-raising efforts.

First, many organizations have been unable to professionally
manage the funds they raise. As an example, there are still many
reports about the misuse of charitable funds.

"As a result, many people are reluctant to channel their
donations through such organizations," Elam said.

Second, many Indonesians prefer to channel their donations
through religious organizations like mosques and churches, which
they believe can better manage the funds.

And third, the government has not provided the support
necessary for the emergence of professional fund-raising
organizations.

This is evident in the fact that the government has yet to
create a mechanism to ensure transparent management of charitable
funds. Furthermore, the government does not provide tax
deductions for donations to charitable organizations.

The program director at the Indonesian Humanitarian Committee,
Sri Daryanti, said AFP Indonesia was a forum for Indonesian
charity fund-raisers to exchange experiences and views to help
them improve their professionalism.

"AFP Indonesia wishes to become a forum where philanthropic
organizations can learn to improve their professionalism through
various activities," said Sri.

She said AFP Indonesia held regular events to improve the
professionalism of its members, most of whom are executives of
charity fund-raising organizations.

The association sets standards for fund-raising professionals,
provides guidance for members on ethical fund-raising, enhances
the credibility of member organizations and advocates policy to
the government.

Elam said his association, which has 42 members from some 20
organizations, would push the government to draft a bill on
philanthropy.

According to Elam, there are two important tasks such a law
must perform. First, its must set high standards for the
management of charitable funds. Second, it must set rules on tax
cuts for people who give donations to charitable organizations.

In order to ensure that charity fund-raisers have high
standards of fund management, he said, the law should also
establish a certifying body for charitable foundations.

It must also establish an accreditation team for fund-raising
organizations.

"All these efforts are aimed at helping charity fund-raising
organizations to better manage funds. It will encourage people to
distribute their donations through these organizations because
they can have confidence their money will be managed properly,"
Elam said.

"The final goal of all these efforts is to create a
philanthropic society. That society would consist of people who
are ready to help those in need without worrying their money will
go to the wrong address," he added.