Panel, Conference Presentation
Asia Summit 2014 - Long-Term Impact: Multigenerational Commitment to Change
- The Milken Institute session focused on the intersection of philanthropic advisory and family programs, specifically addressing intergenerational commitment, capital recyclability, and the sustainability of mission across generations.
- Grace Forrest (Youngest Generation/Early Philanthropist) recounted an early lesson at age 14 where her parents refused to fund a trip to Nepal, forcing her to secure employment to cover costs, establishing a value system that treating charitable engagement as a privilege and a choice.
- Grace and her parents launched "Walk Free" after discovering the prevalence of modern slavery within Fortescue's global supply chain of 3,000–3,500 suppliers.
- An initial audit of Fortescue's supply chain revealed that approximately 12 suppliers refused to sign a no-slavery affidavit, while three were found to have rampant forced labor.
- Andrew Forrest (Andrew) utilized a pragmatic, business-oriented approach to anti-slavery advocacy, framing the issue to political leaders as an economic opportunity to expand the tax base and strengthen the economy through workforce integration.
- The Forrest family established a "Global Slavery Index" and a "fire engine team" of experts to measure progress, utilizing the argument that slavery is a solvable crime of opportunity rather than a condition of poverty.
- Mike (Third Generation/Indonesia) described a family foundation established in the 1970s in Batam, Indonesia, which grew from zero infrastructure to employing a community of 1.3 million people, necessitating a shift from direct business employment to a dedicated foundation to address systemic issues.
- Mike's foundation is currently expanding its scope from the island of Batam to a national level across Indonesia, utilizing data to measure scholarship success and aiming to turn recipients into "ambassadors of goodwill."
- Sustainability in Batam is achieved through business seeding rather than handouts, specifically by providing fish fry and materials for local fishery farms, which allowed the indigenous population to transition from declining fishing industries to successful small businesses.
- Lawrence (Third Generation/Lien Foundation) detailed a strategic pivot in 2002 from tertiary education (the founder's original focus) to early childhood education and elder care, driven by data showing Singapore was under-invested in these sectors despite having high tertiary funding.
- The Lien Foundation employs a "radical philanthropy" model characterized by "co-creation" rather than traditional grant-making, involving partners in designing high-risk interventions like preschools built atop bus interchanges.
- Approximately 90% of Lien Foundation projects are not based on unsolicited proposals; instead, they are developed through study trips and deep partnership discussions to break the traditional grantor-grantee relationship.
- Lawrence highlighted a generational governance shift where the third generation moved from a patriarch-led, quiet charity model to a democratic board structure with elected family members, requiring robust governance to manage the transition of power.
- The foundation has successfully advocated for government policy changes, such as increased investment in preschool education, by commissioning independent research (e.g., Economist Intelligence Unit) to expose Singapore's lagging rankings and creating new models (e.g., dementia hostels) that the government subsequently adopted and funded.
- Lawrence emphasized the disparity in government risk aversion, noting that philanthropic capital is best deployed for "risky endeavors" to prove concepts before governments can safely scale them.
- The panel identified a critical need in philanthropy to move toward paying competitive salaries for talent and performance-based metrics, contrasting the current non-profit culture with business standards.
- The group discussed "venture philanthropy" structures capable of absorbing first-loss risks to attract follow-on investment capital to generate social returns.
- A forward-looking consensus emerged that future philanthropy must leverage technology (crowdfunding, digital integration) and that time/expertise is often more valuable than capital, urging next generations to evolve mission scope and avoid rigid adherence to past mandates.