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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
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
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
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;
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
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
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
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?
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
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?