Philanthropy has undergone significant evolutions in the age of connected technologies. The mesh of social media, mobile platforms and online payment systems have created an unprecedented information highway. Leveraging the powers of such a vast network, internet companies worldwide have fundamentally shifted the role of charitable giving, setting off a "tech for good" movement.
Digital philanthropy harnesses the capabilities of the connected world to increase the impact of charitable giving and social engagement. While traditional forms of philanthropy provided critical short-term relief in response to disasters, they do not facilitate long-term perpetual charitable efforts. In contrast, modern digital philanthropy promotes engagement and collective action, encouraging sustained, lasting benefits to society.
"Many internet companies, such as Tencent, have designed interesting welfare products," said Edison Tse, associate professor of Management Science and Engineering at Stanford University, at the 2023 "TECH FOR ESG" innovation conference. "Through creative product design, people can actively participate in the process of charity and donations. It's not just about donating money; you can also donate your time, contribute through physical activities, and explore new channels to give. This concept is quite new, and it allows young people to donate in different ways, even if they don't have a lot of money."
Global internet technology companies have integrated philanthropy into their corporate strategies to build trust and engagement with users. Recognizing that social and business development must coexist, the tech sector has become a hotbed of philanthropists, with companies including Amazon, Meta, Microsoft, Tencent, and others significantly ramping up their charitable activities. The Economist reported that in 2021, more than 25 billion USD in charitable giving came from donors with tech as their source of wealth in the U.S.
The willingness to digitally engage with charities has been observed across the globe. The Digital for Good: A Global Study on Emerging Ways of Giving by the Indiana University Lilly Family School of Philanthropy highlighted a growing in the U.K. belief that charities will pivot towards online donations, and that social media will play an important role. The same study found that in Brazil, there has been a rise in donations through social media platforms and even through cryptocurrency.
In China, this transformation was so successful that philanthropy has evolved from simple fundraising to holistic approaches that address systemic issues. It has become a component of the national welfare system to supplement the country's economic safety net.
On this front, Tencent's "99 Giving Day" charity program has seen exceptional success. Since its inception in 2015 through 2022, 280 million people have participated in the event, collectively contributing more than 13 billion yuan (~1.8 billion USD). For its 2017 event, Tencent launched the "Kid's Gallery" initiative that auctioned artwork created by children with special needs. The initiative garnered 15 million yuan (~2.04 million USD) from more than 5.8 million donors within a mere six hours on social media platforms.
This long-term initiative extends beyond simple fundraising to target societal welfare and sustainable living. Tencent also introduced the "Little Safflower" philanthropy account on WeChat, China's most popular social platform, to promote recycling and donating used goods. Similar eco-friendly efforts have been established by Ant Financial, which launched the "Ant Forest" that encouraged people to make choices that reduce carbon emissions.
However, there are differences in the way each country's tech sector engages in digital philanthropy. Tse explained in his book "Do Good and Prosper: Interplay Between Philanthropy and Business Innovation" that much of Meta's philanthropic actions are oriented towards brand building, hence Mark Zuckerberg's headline-catching, billion-dollar donations. In contrast, Tencent encourages employee participation with greater visibility for individual contribution. While this approach does not generate spikes in donations, they foster a culture of lasting contribution. Nevertheless, although methods differ between cultures and countries, the goal of contributing to the greater good remains the same.
Dr. Zhan Zhang, assistant professor of International Communication at the University of Nottingham Ningbo China, compared Meta and Tencent in their philanthropic efforts at the 2023 "TECH FOR ESG" innovation conference. According to Zhang, Meta primarily relies on Facebook and Instagram to support non-profit charities and offer free social media training. However, charities simply can't keep up with the pace of technological change, making it challenging for them to encourage user donations and influence social media users effectively. On the other hand, Tencent takes a more innovative approach by not just providing cash donations but also integrating charitable causes into its entire social media platform.
Although the advent of digital philanthropy was enabled by technology, it also calls for the adoption of newer technologies to become more secure, transparent, convenient, and ubiquitous for everyone to participate.
"Besides product innovation, they are also using technology to strengthen the entire charity ecosystem," said Tse. "For instance, blockchain technology-internet companies are incorporating blockchain technology into charity activities."
Beyond the technological factor, Tse highlighted that ethical decision-making is essential in leveraging technology for philanthropy. Cross-cultural learning and collaborations will be the key in shaping more meaningful and inclusive charity models.
* This is a contributed article and this content does not necessarily represent the views of techtimes.com
