Profile: China

Overview
Individual and Corporate Giving
Volunteerism
Policy Environment
Taxation
Foundations/ Intermediaries
References
 
OVERVIEW

Philanthropic giving in China is a growing practice, but one that is rarely directed to strangers. This is attributed to the Chinese system of guanxi or personal connections, which extend to those who share a certain identity.

Because of this, voluntary donations are often mobilized through organizational hierarchies. Supervisors and managers call on employees to donate to specific charities or relief efforts, and then disclose the amounts of the individual donations. This has reportedly encouraged giving from those who would not do so otherwise.

Traditional Chinese charity emphasizes mutual help and personal relationships. These concepts reflect Confucian and Buddhist beliefs. Charitable activities based on these beliefs have existed in China for centuries within communities, clans, and kinships. Diaspora philanthropy is also on the rise, providing generous support to these associations for the development, social welfare, and education of the people in their clans and counties.

The start of the Communist Party’s rule heralded an almost 30-year decline in philanthropy in China. This was reversed in the 1980s when the government declared a reform and open door policy, reviving giving and volunteering practices in the country.

The Yangtze River's catastrophic flood in 1998 pushed China's philanthropy up to a peak in the history of its development. In 1998, more than 11.5 billion yuan ren min bi (RMB) was collected as donation for philanthropic purpose by China's Charities Federation, the Red Cross Society of China, and other third sector organizations. More recently, China donated millions for the benefit of victims of the 2004 Indian Ocean tsunami.

Economic progress has changed the landscape of philanthropy in China. Corporate philanthropy is gaining more attention, due to the social and environmental impacts of this progress. Another significant contributor is the emergence of private wealth in the country. In an environment where the divide between rich and poor is growing at a brisk pace, both government and non-profit intermediaries are appealing for China's wealthy individuals and corporations to be socially responsible. Precisely to encourage charitable activities, the government is reportedly introducing more tax incentives for donations, and is giving non-government organizations more freedom.

Read more:
Asia Times - "The new Chinese Philanthropy"
China Daily - "Tax policy on charity widened"