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Published on Asia Pacific Philanthropy Consortium (http://www.asiapacificphilanthropy.org)

Profile: China - Individual and Corporate Giving

Overview [0]
Individual and Corporate Giving [0]
Volunteerism [0]
Policy Environment
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Taxation [0]
Foundations/ Intermediaries
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References [0]
 

INDIVIDUAL AND CORPORATE GIVING

In China, the prevailing attitude toward charity is that it is an endeavor for the rich. This applies to both individuals and businesses, who feel that their wealthier counterparts have a greater responsibility to be philanthropic.

According to the most recent available statistics, charity contributions to over 100 formal charity organizations in China make up less than 1% of the country’s GDP. Contributions made through informal channels, however, such as direct giving to service organizations and vulnerable individuals, are difficult to estimate.

In 2002, the Ministry of Civil Affairs received $140 million in cash donations and $24 million in in-kind donations. In 2003, the government system of civil affairs, including government departments and their affiliated social organizations, reportedly received about $550 million in both cash and in kind contributions, almost a 125 percent increase over the 2002 figures.

Corporate Giving
"Unprecedented growth" and "economic transformation", these are terms used regularly to describe what is happening to China today. At the same time, concerns about the social and environmental impacts of economic progress -- pollution, natural resources management, health, etc -- are raised just as often. The robust industries that have contributed to this growth are now expected to act in a responsible, and sustainable, manner.

Corporate social responsibility is still relatively new to China, but companies have begun partnering with NPOs to see how helping communities can make good business sense as well.

Private Wealth
Private wealth in China is growing, and a "new philanthropy" is emerging as these wealthy executives begin to "give back." Forbes Asia's recent "Heroes of Philanthropy" list names four from China for their contributions to philanthropic causes in recent years. The personalities selected are an indication of the emerging diversity in ages and backgrounds of philanthropy's big names: Chen Guangbiao is chief executive of Jiangsu Huangpu Investment; Shi Zhengrong, founder and chairman of Suntech Power; Yang Huiyan, of real estate developer Country Garden is 26 years old; and Jet Li is an internationally-renowned martial arts actor.

Diaspora Philanthropy
Chinese nationals who have found success in other countries or territories are known to give back to their hometowns. An example is Hong Kong business leader Li Ka-Shing, who has financed the establishment of a university in Southern China, near his birthplace. The foundation that bears his name has also sponsored a number of other causes, majority of which are not explicitly publicized.

China Philanthropy List [1]
The Hurun Report Magazine, which caters mostly to China’s elite circles, published the first ever China Philanthropy List in 2005. The list includes China’s top 100 individual and top 50 corporate givers. It provides information on the corporations’ locations, industry type, amount of cash donations, and a description of the causes to which donations have been made. The list is published annually.

Donations to victims of the 2004 Asian Tsunami
After the Asian Tsunami in 2004, only two civilian organizations – the China Red Cross and the China Charity Federation - were entrusted by the Chinese government to raise funds and receive donations. By the first month, the combined contributions sent to these two organizations had reached US$60 million. Donations from individuals made up the bulk of these contributions.

The China Donation Website [2]
The country’s first public benefit website, contains information on:

  • Charitable and other public-benefit undertakings in China
  • Updates on related laws, regulations and policies, and
  • Recommended public-benefit and charity activities.

 

Read more:
Forbes Asia - "48 Heroes of Philanthropy" [3]
The Guardian - "Charity: new cultural revolution" [4]
The Corporate Philanthropist - "Philanthropy in China" (PDF) [5]


Source URL:
http://www.asiapacificphilanthropy.org/profile-ch2