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Foundations to promote charity steps abroad

By Meng Fanbin | China Daily | Updated: 2015-07-23 07:28

45 agencies carried out about 92 projects in 40 countries in 2013 China's charitable foundations have been carrying out more work overseas as well as at home, according to new research from a leading service platform for the sector.

The study, the Development of Chinese Foundations: An Independent Research Report, published by the China Foundation Center, shows 45 foundations carried out 92 overseas projects in 40 countries in 2013, acrossing a diverse range of activities including disaster relief, medical aid and cultural exchange.

Tao Ze, the center's vice-president, said that with the implementation of the Belt and Road Initiative, China's charity organizations are expected to launch more global projects.

"The international community is increasingly expecting China's foundations to take more international responsibility as the country's economic influence grows.

"As a result, a group of foundations have started to appear with international vision and an ability to work on a global stage while supporting our own public service sector," said Tao.

He said the Chinese government has been encouraging public service institutions to spread their wings and carry out overseas projects.

As a result, more exchanges and cooperation between non-governmental organizations of countries along the two ancient Silk Road trade routes are expected, and public interest activities involving education, healthcare, poverty reduction, biodiversity and ecological protection are likely to be organized.

Tao said the opportunities offered to both sides as a result, in terms of gaining experience of advanced management and project skills, could be limitless.

One of the issues facing China's charitable foundations is finding the necessary funds to grow overseas.

Increasingly, charitable organizations have become reliant on donations and few have been able to carry out their own investment activities, with most Chinese foundations simply putting their money into savings accounts.

One exception has been the Hangzhou, Zhejiang province-based Dunhe Foundation, a regional non-public fundraising foundation created in 2012 by Ye Qingjun, chairman of the board of directors of Dunhe Asset Management Company, which has set up its own professional investment branch to ensure maximum appreciation of its donations.

According to Zhang Zhizhou, general manager at Dunhe Asset Management, the foundation has received more than 70 million yuan ($11.43 million) in donations since its creation, but its charitable expenditures have exceeded 110 million yuan in total thanks to its proceeds from investments.

In 2015, the foundation is believed to be planning to set up training programs in investment and asset management for fellow foundations.

The Foundation Center report shows that at the end of last year, there were 4,211 charitable foundations registered in China, a rise of 584 from the year earlier, meaning 1.5 new organizations were being set up daily. Most of the newly established foundations were private and cannot solicit contributions directly from the public.

Public foundations accounted for just over 35 percent of the total.

The study said assets of foundations have maintained double-digit growth over the past several years, and by the end of 2013 they were worth 95 billion yuan.

In Western countries, around 70 percent of charitable donations come from the general public, it said, compared with China where private contributions in 2013 were worth 12.6 billion yuan, accounting for just 36 percent of the total.

"More and more Chinese are participating in charity donations and public services, influenced by improvements in their own living standards and the ongoing improvements in the transparency of foundations. In 2012, normal persons' donations accounted for only 22 percent," said Tao.

mengfanbin@chinadaily.com.cn

 

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