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.