A Study of Chinese Philanthropy by Danqing Li

Danqing Li, Changing Our World's go-to Chinese Philanthropy expert, was kind enough to follow up Connette's profile of philanthropy in Australia with her own take on Philanthropy in China.  A mystery for most Americans, China's booming economy and massive population will play an ever-increasing role in the philanthropic sector. A FLiP with his (or her) eye on the future will definitely keep their other eye on China.

With the increasing gap between the rich and the poor, philanthropy is playing an important role in wealth redistribution and building civil society world wide.  In the process of globalization, the success of philanthropy depends critically on its ability to adapt to local cultures and environment.

With advancement in technology, the world continues to shrink, naturally and socially.  We can be physically relocated to another continent in a matter of hours.  We can also be an offending intruder of another society without physically moving across the borders.  What do these suggest to us?  Thinking and acting with caution and being aware of local cultures and practices is essential for success.

In international philanthropic practices, we see good intentions everywhere.  Developed countries have spent a lot of money and effort to help the developing regions.  They deserve respect and appreciation for their efforts.  Do they get it in reality?  Sometimes yes, and sometimes not necessarily.  To help others in ways that others can accept and appreciate is the key.  We also need to communicate precisely to our target audience in ways they understand.  I have no objection to conditional help but sometimes it is so crucially important to find that common ground with respect for differences.  We as outsiders can come up with solutions that do not address the intrinsic texture of the society we intend to help. However, if we listen and think, the right solution can be a product of a joint effort between the helped and the helping.

China represents an interesting opportunity to observe a thriving third sector with unique characteristics, including international, government affiliated, and local NGOs.  Since the country has had a very long history of a strong central authority, most recently the communist party for the past half century, philanthropy has traditionally been developed within the boundary of the unified authority and leadership.  Chinese government requires all fundraising NGOs to be affiliated with a government organization before they can be officially registered, whereas grant making NGOs can be registered directly with the Ministry of Civil Affairs. 

In this context, a lot of international NGOs came into the country starting to collaborate with the government.  The United Nations Children’s Fund, UNICEF, was the first international NGO that was authorized by the Chinese government to manage raised funds within China.  This status can be better characterized as a pass of its experiment of fundraising in China.  Direct mail has been considered a well established and accepted way of fundraising in many developed countries for a long time.  However, while UNICEF tried to use direct mail to raise funds from the public in China, some people raised concern of invasion of their privacy.  Not only did direct mail appear so new to the public here, many Chinese citizens considered charity a matter of the rich.  UNICEF will need to continue its experiment so that it can find ways friendly to local cultures to educate the public and achieve its goals. 

In general, we see international NGOs hiring more local employees and depending more on local governments and NGOs to implement programs.  The more successful the organization is, typically the more integrated it is with the Chinese society.  Oxfam is a charity based in Hong Kong.  It has done very well in projects at local levels, which is partly a result of the advantage of coming from a similar culture. 

On the other hand, Chinese government has played an important role before the open market policy by initiating large “government organized NGOs” (GONGOs), which are considered a part of the government even though they are supposed to be part of the third sector.  After the country opened its market to the western world, a separate third sector started to develop while the central government still has firm control with a clear focus on political and social stability.  In recent years following a thriving economy and a friendlier political environment, some GONGOs appeared to become more independent.  For example, the China Foundation for Poverty Alleviation, one of China’s leading anti-poverty groups, has removed all but two of the government representatives on its 21-member board.  It has stepped up fundraising efforts though it still depends on government support.  It has also revamped its micro-credit program, establishing independent loan offices to replace branches co-managed by provincial officials.  In the case of government affiliated NGOs, we see more of them loosen their ties to their Zhuguan Danwei, the government branches that they affiliate with.

In contrast, some local governments are still rather conservative and reluctant to take the political risks of assisting NGO practices, therefore, it take more for local NGOs to emerge and be successful.  Guizhou province is an example.  The provincial government appears to be much more cautious in supporting NGO practices.  It took Guizhou PRA more than a year to find a willing affiliate from a local government branch.  It is also difficult to find and hire local talent to work with these NGOs and there are much fewer local grass roots initiatives.  However, Guizhou Highland Research Institute succeeded through better communication and establishment of reputation through customized local practices.

Meanwhile, after the central government encouraged establishing a harmonious society, some other provinces appear to be more open-minded and we see more grass roots NGOs there.  For example, local NGOs focusing on environment, poverty alleviation, education etc. thrived in Sichuan province.  And one of the first NGOs focusing on gay rights emerged in Shandong province.  These organizations owe their success in their deep rooted understanding of critical issues and ways to leverage local government support for their missions.

After all, we are at a challenging time in history: Globalization brings opportunities as well as challenges in the 21st century.  I hope people can cultivate awareness and sensitivity for the human ecosystems.  Philanthropy can only be effective when we incorporate understanding of local cultures into our implementation within and across borders.  We will taste harmony only when we truly open our heart to listen and learn, to respect the differences, and find that invaluable common ground.