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The Future of
Philanthropy in China
Opportunities and Challenges
Wang Zhenyao
The Philanthropy Research Institute
The Beijing Normal University and One Foundation
China
After China’s per capita GDP
Reaches $4000
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In 2010, China’s per capita GDP is already
more than $4000; 40yrs earlier than Mr.
Deng Xiaoping’s prediction;
But the social policy remains at the level
when the country has less than $1000 per
capita GDP;
So more mass incidents are happening;
Now the philanthropic affairs are needed
to mitigate the social conflicts.
The space of China’s
Philanthropy Development
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Comparing with the USA, Chinese GDP in
2008 was 4326.2 billion dollars and US is
14204.3 billions at same time. China is
already 30% of that of the USA.
But the foundation numbers is 2000 in
China and about 100000 in USA, just 2%;
The donation: 50 billion yuans in China vs.
the 300 billion dollars in USA one year;
Chinese philanthropy needs to do a lot.
2010 events: progress
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The biggest event was Bill Gates and
Warren Buffett visiting China on
September 29;
The One Foundation transformed from a
private foundation to a public foundation;
The donations for the Yushu Earthquake
and the NGOs’ arguments against the
government’s policy;
The Foundation Center was established.
New Challenge: How to construct
all kinds of linkages between the
poor and the rich people;
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This is the biggest challenge in the history
of China because there was only the
experience of rebellions;
Now the rich people want to learn from
international examples about charity and
philanthropy; and the poor people also
need the help from the rich; they both need
a lot of linkages but what there are now is
not enough.
Strategy one: Encourage rich
people to establish foundations
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Make rich people helping poor people or
doing social advocacy through
foundations;
The corporations applying for the
foundation registration enjoy more
advantages than ordinary people;
The corporations can get tax exemption
but they must spend 8% donation in one
year and so the NGO get benefit.
Strategy two: Establish the
training programs supporting the
foundations
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In face of more and more foundations, the
big pressure is short of the talents for
organization management;
The NGO’s leaders need different training
programs so they can get more skill about
management;
How to make foundation’s leaders more
efficient and more skilled?
2011 would be the turning point
for Chinese philanthropic history
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Corporation or family foundation numbers
maybe increase from 300 to 1000;
The donations may reach 100 billion Yuan;
Local competition about philanthropy will
be unfolding;
Billionaires will go through the great
transition from capitalists to social
capitalists.
How to provide supporting
programs at the universities?
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How to establish the different think tanks
about the Chinese philanthropy?
How to make foundation’s work more
professional and more efficient?
Now the big challenge is: short of skilled
trainers and organizations;
There needs the global philanthropy
education platform to provide the service
for Chinese philanthropic development.
Three questions
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First, how to make the training programs
more efficient and more influential?
Second, how to establish the international
training program to foundation leaders;
Third, how to encourage exchange
program between US and China
foundation leaders?