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Boosted by new charity law, Chinese philanthropy set for rapid expansion - experts

by Astrid Zweynert | azweynert | Thomson Reuters Foundation
Saturday, 24 September 2016 08:30 GMT

Tencent Chairman and Chief Executive Officer Pony Ma Huateng speaks during a news conference announcing the company's results in Hong Kong, China March 17, 2016. REUTERS/Bobby Yip

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With a new charity law announced, what are the other factors driving the rapid growth in Chinese philanthropy?

By Astrid Zweynert

HONG KONG (Thomson Reuters Foundation) - Chinese philanthropy is growing and the China Charity Law, introduced last month, is likely to spur further growth, according to experts.

Unlike in the West, several types of philanthropy evolved almost at the same time in the world’s most populous nation - private, corporate and institutional giving, Elizabeth Knup, China country director of the Ford Foundation, said during a session at the Philanthropy For Better Cities Forum, the first conference of its kind in Asia focusing on metropolitan social issues and what part philanthropy can play to address the many challenges cities face from mushrooming populations.

The pace of growth and sophistication in China's philanthropic sector exceeded that of the regulatory framework, said Knup, stressing the need for building skills in the sector and an ecosystem that provides philanthropic actors with support and opportunities to share each other’s experiences.

Yongguang Xu, chairman of the Narada Foundation, a private foundation in China, said the growth of the country'’s philanthropic sector had coincided with the government’s economic and social reforms during the 1980s which had led to a gradual decentralisation.

The sector had been held back by controversies over the use of charitable funds following government efforts about a decade ago to support charitable giving to alleviate poverty and to provide an additional opportunity to collect money, he explained.

The enforcement of new Charity Law, created to provide a set of social and ethical standards, is expected to further boost donations and volunteerism, he said.

Technology and its transformative role has had a “game changing” impact on philanthropy in China, he said. Another factor he cited as important in the changing landscape of giving in China are the growth of social enterprises, which use business models to create social impact.

One example of how technology plays a big part was the announcement of Chinese billionaire Pony Ma Huateng, the founder of internet group Tencent, during the Philanthropy For Better Cities forum that his company would donate 2 percent of its annual profit to charity. Speaking during a panel discussion at the forum he also  flagged growth in the use of mobile internet in China's philanthropy sector.

Jianmei Peng, executive secretary-general of the China Charity Alliance said Chinese people had a tradition of philanthropy but the concept of giving to a charity had become recognised only recently. She cited China’s rapid urbanisation as one of the issues that had led to some people being “left behind” during the country’s rapid economic growth during the last 20 years.

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