The ‘boomerang effect’: How strategic philanthropy pays a purpose premium

IN THE conventional ledger of philanthropy, the accounts appear straightforward. Capital flows in one direction. Donors – whether individuals or institutions – allocate financial or human resources to a chosen cause. The return on investment is tallied in social good: lives improved, ecosystems preserved, knowledge advanced. Any benefit to the giver is typically recorded as reputational enhancement or moral satisfaction.

This model, however, is incomplete. It overlooks a fascinating and powerful anomaly I have observed in the micro-dynamics of fundraising, particularly for causes with significant social externalities. The act of giving can generate a substantial, non-pecuniary return for the fundraisers and donors themselves – an “altruism dividend” that flies back, enriching the giver in unexpected ways, much like a boomerang.

Uncharted waters

My most recent and moving encounter with this boomerang effect came through an initiative to establish Singapore’s first dedicated counselling centre for individuals with attention-deficit/hyperactivity disorder (ADHD). In a city-state synonymous with precision, efficiency and productivity, the experience of ADHD can feel like a profound kind of systemic friction. In Singapore, an estimated 6 per cent of children and 3 per cent of adults live with this neurodevelopmental condition, yet societal institutions – from schools to workplaces – often fail to accommodate their distinct cognitive patterns. The result is a persistent, costly gap in our social infrastructure.

As a corporate representative tasked with assessing the viability of funding this project, I found the due diligence process an education in itself. It opened my eyes to realities I had not fully grasped. For instance, up to 70 per cent of individuals with ADHD experience a co-occurring condition, such as anxiety or depression, often stemming from years of misdiagnosis, academic struggle and social stigma.

Parents of children with ADHD frequently face unwarranted blame for their child’s behaviour, while capable, undiagnosed adults are unjustly labelled as lazy or inattentive. The broader economic and social costs – academic underachievement, workplace attrition and increased burdens on the healthcare system – were starkly clear, yet support remained fragmented and inaccessible to many.

The initial corporate calculus was seemingly straightforward: mobilise financial capital to scale a needed service. The primary metric of success was the sum total of donations secured. Yet, as the project moved from concept to reality, a more complex and valuable yield emerged – one that would never appear on any balance sheet or in any financial model. This was the beginning of the boomerang’s return.

From transaction to transformation

The value proposition of a dedicated hub such as the Unlocking ADHD Mindset Counselling Hub is both socially compassionate and economically rational. Evidence consistently shows that support for neurodiversity cannot be piecemeal; it requires integrated, early intervention. The hub is designed as an upstream solution, engineered to intercept the cascade of coexisting medical conditions that can define a life. A child who receives behavioural therapy to improve executive function may avoid a severe anxiety disorder later in life. An adult who obtains a diagnosis and learns coping strategies can reduce their vulnerability to depression and occupational burnout. This is strategic social investment: proactively improving long-term life outcomes while reducing downstream societal costs.

Such an approach is not mere charity. It is the deployment of strategic capital with a dual return. When corporate social responsibility is directed by on-the-ground intelligence and deep due diligence, it can achieve significant material impact. It represents a vote of confidence in a previously underserved area, transforming a grassroots initiative into a sustainable, institutional asset that benefits the entire community. This alignment with national priorities – such as building a more resilient mental health ecosystem – creates a powerful synergy between public good and private action.

But this describes the intended impact of the investment. The boomerang effect describes the unique impact on the investor.

Over the past decade, my role has involved steering corporate discussions towards funding meaningful social projects. These have included initiatives to train and place persons-in-recovery from mental health challenges back into the workforce, and programmes to help youths overcome emotional regulation issues linked to digital addiction. In case after case, a consistent pattern emerged: Donors, from individual contributors to corporate partners, turned into passionate advocates for the causes they supported.

Far more than a cheque-writing exercise, the experience can be a transformative journey for the giver. Transformation is the core of the boomerang effect: The initial objective may be fundraising, but a profound output is the creation of enhanced human connection and valuable new networks. A powerful community coalesces, united by a shared passion and a deepened understanding of a complex issue.

The ADHD hub catalysed a collective recognition that early, evidence-based intervention can dramatically alter life trajectories. Fulfilment becomes quantified not in dollars, but in the hub’s promise: the first family receiving a comprehensive support plan, the first young adult securing employment due to newly acquired organisational skills, the first parent reporting improved family dynamics.

The ascendancy of the “purpose premium”

The ultimate “boomerang”, however, lies in the accumulation of these small victories and the accretion of what behavioural economists might term a “purpose premium”. In a hyper-competitive, market-driven economy like Singapore’s, where individual utility is often narrowly defined by career progression and material acquisition, participation in a transcendent cause provides a vital recalibration of value. Like many fundraisers and donors who report a heightened sense of agency and a clearer, more meaningful narrative for their own endeavours, I too have come to this conclusion.

This sense of purpose is a non-monetary good that directly impacts subjective well-being – a metric increasingly recognised as crucial to holistic assessments of national prosperity and individual fulfilment. It is the antidote to the alienation that can sometimes accompany purely commercial or corporate pursuits. When one helps to construct a latticework of support for others, grounded in the powerful thesis that with the right help, individuals can channel their unique energies into productive lives, one inadvertently constructs a more resilient sense of self.

Redrawing the flow of capital

This altruism dividend underscores a provocative thesis: In the intricate economy of human motivation, the most strategic investment one can make in one’s own personal and professional resources – time, intellect and social capital, not just financial – might just be an investment in the well-being of others.

For those who are accustomed to a commercial environment, this may seem counterintuitive but here’s the unspoken magic: It enriches the giver’s life with context, compassion, and a connection to something larger than quarterly results. The boomerang does not just return; it returns having gathered speed and value on its journey, reminding us that in the calculus of a life well-lived, purpose is the ultimate currency.

I know, as I too benefited from the boomerang.

The writer is group general counsel of Jardine Cycle & Carriage, a member of the Jardine Matheson Group. He sits on the board of mental health charity Mindset Care Limited, which funded the establishment of the Unlocking ADHD Mindset Counselling Hub.