Source details in image. Link to page: https://kevinlbrown.substack.com/p/global-south-remittances-vs-global

Did you know that each year the Global South diaspora sends up to $590 billion USD in remittances back to countries in the Global South?

This is in comparison to just $180 billion in Official Development Assistance (ODA), $70 billion in philanthropic outflows and $0.4 billion in private capital investment, according to the Indiana University Lilly Family School of Philanthropy. As well known international development leader and founding partner of MIGHTY ALLY, Kevin L. Brown, explains this means that “[the quiet diaspora] of giving [is donating] more to families and communities than all other international aid combined”. And yet the mentality of the Global North “propping up” the Global South via traditional forms of aid persists.

These significant patterns of diaspora giving and remittances are also true of the many migrant communities that make up Australia’s diverse and multicultural society. Every year, Australians send billions of dollars home to support family, friends, and communities overseas. In 2024 alone, $38 billion AUD flowed out of Australia in remittances, according to Money Transfer Australia. These funds represent more than just economic support, they’re an expression of care, belonging, and transnational connection.

Yet beyond remittances also lies a powerful, largely untapped opportunity: diaspora philanthropy.

Whilst diaspora giving is playing such a quiet but vital role in supporting education, healthcare, and community development across borders, much of this generosity remains unstructured, informal, and disconnected from Australia’s broader philanthropic system. When harnessed strategically, and with the right infrastructure, a significant opportunity is emerging for sustained, high-impact change both abroad and within Australia.

Building a bridge for diaspora philanthropy 

This emerging opportunity is increasingly underpinning the strategic direction of several organisations in the international development and philanthropic sector. In the United States, Indiaspora is on a mission to inspire and position the Indian diaspora as a force for good. They are aiming to unite the 32 million Indian diaspora by providing a platform to collaborate and build community engagement. In 2024, they released one of the first-ever data-driven reports showcasing the contributions of the Indian diaspora in the US. In Australia, Bridging Lanka works with Sri Lankan communities to create a bridge between Sri Lankan diaspora communities and ongoing inequities in Sri Lanka.

More philanthropic intermediaries are also looking to provide safe, tax-deductible pathways for diaspora giving. As a trusted intermediary, at Myriad Australia we are increasingly committed to making diaspora giving inclusive and easy to navigate. Did you know that only Foreign Contribution (Regulation) Act (FCRA) accredited charitable organisations in India can legally receive foreign funding? Donations routed outside these compliant channels can expose both the donor and recipient to legal penalties, including fines or restrictions on future funding. Myriad Australia provides the compliant, tax-effective pathways that allow Australian donors to give overseas with confidence. For diaspora communities, this means being able to support causes close to their hearts – whether it’s redirecting child labourers into education across India or building women’s entrepreneurship programs in a Ugandan refugee camp – through compliant, legitimate, transparent channels that meet both local and Australian charitable regulations.

Understanding the Indian Diaspora’s Giving

To strengthen this work, Myriad Australia has also recently commissioned new research on the philanthropic engagement of the Indian diaspora in Australia, in partnership with independent think tank Per Capita. This study builds on the landmark Asian Australian Diaspora Philanthropy (2018) report co-authored by Dr Wesa Chau. This report revealed that much giving within diaspora communities is generous, driven by familial connections, compassion, yet often unstructured and disconnected from systems that could amplify its impact. For example: many donors are unaware of tax-effective channels for giving abroad and miss out on opportunities to receive a tax deduction.

This new research project between Myriad Australia and Per Capita will aim to better understand how the Australian Indian diaspora is giving back and contributing to some of the most complex challenges of our time in India: from climate change, to gender inequality, health and education. The research will also seek to explore motivations, barriers and opportunities that shape this form of global giving and diaspora generosity. By uncovering how and why people give, the research project aims to help inform the design of more inclusive, strategic and impactful approaches to international philanthropy. At the heart of this work is also the objective to recognise the powerful yet often overlooked contributions of the Indian community to global development – beyond just traditional forms of Global North-to-Global South giving that is often credited as the biggest philanthropic financial flow in our sector.

Indian women in Australia celebrating Diwali. Source: the National Library of Australia..

Towards inclusive and strategic international giving

It’s time to recognise diaspora giving as not just a financial flow, but as a powerful force for connection, inclusion, and global impact. It is also important to recognise migrants and diaspora communities as key contributors to development in the same way we afford this status to foundations, donors and major philanthropic organisations.

This change in how we perceive and credit the major flows of global giving is still emerging. However, it is a shift worth keeping an eye on within our sector, particularly as organisations such as Indiaspora, MIGHTY ALLY and the Indiana University Lilly Family School of Philanthropy continue to produce new data driven evidence on this topic. Alongside Per Capita, at Myriad Australia we are also aiming to unlock the potential of diaspora philanthropy, strengthen its impact, and promote platforms that make giving safer and easier.

By connecting the generosity of Australia’s diaspora with trusted charitable pathways, we can shift from ad hoc remittances to strategic philanthropy that drives lasting change. By offering a safe and compliant channel, culturally appropriate resources, and tax deductibility, we can also help empower diaspora generosity to build stronger, more prosperous communities across the world.

 

Anita Toy is a recognised leader in cross-border giving in Australia and a seasoned community investment professional with deep expertise in both domestic and international philanthropy. After more than a decade in the corporate sector, she transitioned to the not-for-profit world, bringing her strategic and relationship-building skills to global giving. She currently serves as Chair of the Myriad Alliance Steering Committee and is the Founding Executive Director of Myriad Australia.

Myriad Australia (formerly Give2Asia Australia) is a registered DRG1 and exists to facilitate thoughtful, effective giving across borders.

Myriad Australia is a member of the Myriad Alliance, a global network of like-minded partners dedicated to making cross-border giving simple, safe, and effective. Each partner supports philanthropy in the region where they are based, enabling donors worldwide to give with confidence and impact. The Alliance currently counts nine members: Myriad Australia; Myriad Canada; Myriad Europe; Myriad USA; The Gift Trust (New Zealand); Give2Asia Foundation Ltd (Hong Kong SAR); Prism The Gift Fund (United Kingdom); Temasek Trust Foundation Advisors (TTFA, Singapore); and Give2Asia (serving as a global gateway for philanthropy in and out of China).

Feature image: Varanasi, India. Source: Srivatsan Balaji on Unsplash