Funding to the social sector has remained mostly unchanged. Domestic funding (from individuals, foundations and companies) remains the main funding source for SDOs across Asia, comprising 64% by proportion of the average SDO’s budget. Government funding (20%) and foreign funding (15%) as a proportion of an SDO’s budget have also remained steady.
Funding shortfalls, staffing challenges, and staff upskilling/reskilling are the top challenges facing the social sector. Almost three-quarters (73%) of SDOs struggle to recruit staff, and 69% report difficulty retaining them.
Governments continue to send mixed messages on social sector regulations. While some governments embrace the social sector as a partner, others are showing a hot-and-cold approach, at times encouraging its growth and at others implementing overly burdensome regulations and restrictions.
The role of SDOs remains important, and they generally feel supported. There is also strong optimism within the sector, even after the turmoil of the last few years. This demonstrates the resilience of SDOs in the face of unprecedented challenges.
Mr. Ronnie Chan, the Co-Founder and Chair of CAPS, said, “With ongoing crises ranging from regional conflicts to climate change, Asia faces an uphill battle to create a more equitable future.
