Generosity & Philanthropy in China - It's About Context - Collective Responsibility

12/18/2020 Generosity & Philanthropy in China: It's About Context - Collective Responsibility
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About Context
By The Collective on 2017/03/03
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THE QUESTION: IS CHINA GENEROUS? NGO Profile:

Shanghai Make-A-
Much of our work here at Collective centers on the business side of Wish Foundation
“social entrepreneurship” in China – going beyond business as usual to Why CSR
work towards the development of a better world. Yet, we also run into a Professionals
certain question from the more philanthropic side of that mission: Is Should Engage
China generous? Their Legal,
Finance, and Tax
Answering such a loaded question risks overgeneralizing a country with Teams Early!
nearly a billion and a half citizens of dozens of ethnicities, backgrounds, NGOs in China
languages, and beliefs. Instead, let’s reframe the question while taking a Grow Through
closer look at the context in which Chinese philanthropy and general Crisis.
generosity must operate.
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The CAF 2016 World Giving Index ranks 140 countries on energy events
their generosity. Image Credit: CHARITIES AID
FOUNDATION food government
hackathon healthcare
Many have attempted to capture “the Chinese view on generosity” by impact informal
putting numbers to it. Most recently, the Charities Aid Foundation (CAF) recycling
issued their 2016 Giving Index in October, in which they ranked 140 innovation
countries on various measures of “generosity,” using parameters like investment labor
helping a stranger in need or donating money. The finding that China
Leadership
ranked in last place on the global spectrum made headlines, causing
manufacturing
many to wonder what about the country makes it seemingly so averse to
Migrants
giving.
migration
But here at Collective, we specialize in demystifying trends in China’s philanthropy Plastic
market at the society level. As is often the case, we need discuss the Pollution Recycling
context surrounding what the CAF survey findings suggest. Regulation reports
Let’s take an alternative look at the culture of philanthropy in China.

stakeholder
There’s more to it than meets the eye.
engagement
students
Sustainability
HISTORY AND CONTEXT sustainability
ambassadors
To start, overall giving in China has long been facilitated at the macro-
level. A top-down approach has characterized much of the donation
technology
transparency
culture, with portions of employees’ paychecks automatically pooled
together for corporate donations, making individual giving compulsory transportation
rather than voluntary. This hierarchical structure applies in volunteering urbanization

as well, with leadership making executive decisions to dedicate the time waste water
of subordinates for a cause, instead of individuals volunteering their

downtime. EN 中文
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For those who did give as individuals – often the wealthy elite and/or
executives – an unspoken agreement of mutual benefit influenced giving
as well. The reality of “quid pro quo philanthropy” implied that donating
to a notable cause would earn a meeting with political leadership,
advancement in the bureaucracy, prestige, etc. Something would be
given, and something would be expected in return.
While there’s nothing inherently wrong with this top-down, give-and-

take system of giving, by not engaging with citizens as individuals,
China’s philanthropic culture was limited to the executive level.
The 2008 Earthquake, and What Changed

When the 2008 earthquake hit Sichuan province – causing over 130
million USD worth of damage and displacing 4.8 million people – the
Chinese masses gave a historic outpouring of aid. Domestic public
donations hit unprecedented levels, reaching 877 million RMB in
aid within 48 hours of the disaster. Giving was not just financial either,
as volunteers stepped forward in droves to help the victims as well.
The generosity was there.

EN 中文
CONTACT US
An outpouring of public aid and volunteers jumped to serve victims in the wake
of the 2008 Sichuan Earthquake. Photo Credit: SHIHO FUKADA/NEW YORK
TIMES
Additionally, corporate donations were expected and measured against

each other, but for once, employees faced peer pressure at the individual
level, too. Rankings of donations were passed around publicly – and of
course, no one wanted to end up last on those lists, upping their
contributions accordingly.
The Red Cross Fiasco and Donor Expectations

With the sudden influx of aid and giving, the Red Cross Society of
China was well-positioned as the leading charity to receive and manage
proceeds. However, this new ground for China proved rocky for both the
donors and the organization.
For starters, there was a disconnect in expectations: Most of the funds

raised went to the Chinese government to support reconstruction and
development in the wake of the disaster, rather then directly aiding the
victims – which, while beneficial, was not where the average
citizen intended for their donation to end up.
Public discontent worsened with the reveal of the Guo Meimei scandal,

in which proceeds not only failed to reach benefactors in need, but
supported a scandalous affair.
Misappropriation of funds in a time of increased public engagement

ultimately resulted in overall mistrust of charities and foundations,
hurting other organization besides the Red Cross. Since 2008,
fundraising has taken a hit in China as many NGOs work to rebuild the
trust that was betrayed over 10 years ago. EN 中文
SYSTEMIC CHALLENGES & REALITIES OF PHILANTHROPY

IN CHINA
With this history in the back CONTACT US let’s take a look at what
of our minds,
barriers stand in the way of Chinese philanthropy today. How and why
people do people give money in general, and why can’t we directly
compare China with other countries today?
The answers lie in protective policies, social infrastructure, and

perceptions of giving.
1. Protection Laws & Policies

What many countries take for granted is the existence of bystander
protection policies, such as “Good Samaritan” laws. If you witness
someone in need who might be injured or endangered and decide to
step forward and help them out, you might be heralded as a hero.
But in China, that very stepping forward into the situation might expose

you to the risk of being sued or extorted by the victim.
Many cases have demonstrated the unfortunate negative

repercussions some face in return for their altruism – as well as tragic
cases of resulting negligence from bystanders in fear of this risk.
Shanghai recently instituted a Good Samaritan law in November, but
reversing attitudes towards random acts of kindness will take time. For
many, offering aid is simply not worth the risk of personal endangerment.
On a similar note, making charitable donations as an individual, from

religious tithing to sending funds to NGOs, might earn you a tax break or
other incentive in other countries. However, in China, it wasn’t until a
new charity law went into action last year that charitable giving would
offer would-be donors with any tax benefits.
Yet even this is policy works at the business level rather than the
individual, offering up to 12% in corporate income tax waivers for
donations. For individuals, the positive incentive still simply isn’t strong.
It remains to be seen how these new policies will influence China’s

standings in the CAF 2017 Index – which will be the first to use the 2016
data.
EN 中文
CONTACT US
China (top right) falls behind other Asian countries in the CAF
generosity index. Image Credit: CHARITIES AID FOUNDATION
2. Social Infrastructure
Looking back at the CAF giving survey, many of the “most
generous” countries have high or majority populations of the Muslim,
Buddhist, or Christian faiths. For many, giving donations and tithes to
religious centers doubles as supporting the local community.
Additionally, many of the high-ranking countries in the Middle East are

currently experiencing war and conflict on a daily basis. A crisis of social
need and collective endangerment prompts a unique response among
the average individual. For many in these situations, it’s “stand together,
or not at all.”
China, on the other hand, is far more secular and continues to work
towards growing its economy during a time of peace. The relative lack of
external threat and other motivators for community giving can lower
drive for individual generosity.
3. Perceptions of Giving
What some might call “donations,” individuals in China might not give a
definition at all. Family and community ties do garner mutual support, EN 中文
financial or otherwise – and as in the case of “quid pro quo
philanthropy,” quietly helping a neighbor can be seen as an investment
HOME
towards a future need for help ABOUT US
in return. SERVICES INSIGHTS EVENTS
Even at the corporate level, disclosing degrees of charitable giving is
even kept hush-hush rather CONTACT US talked about. Many opt to keep
than openly
donation amounts and frequency discrete.
Furthermore, the Chinese government has a very active role in

supporting the welfare of its citizens. Practically a “safety net” to its
citizens, it offers many necessary social services and aid through the
income the population already gives. Here, a top-down approach
overcomes the necessity for individual engagement upon which other
countries rely.
HOW CAN WE UNDERSTAND THE CONTEXT OF GIVING IN

CHINA?
At the basic level, people give to causes they care about, whether due to
sympathy or empathy – personal connection motivates generosity.
One area in which China differs from other countries in the CAF index is
the notion and power of community. Community ties are certainly
strong here, but recent geographic and demographic shifts have called
into question what counts as one’s “community.”
China is currently in the middle of one of history’s largest migrations –

by 2020, an additional 300 million people are expected to move from
the rural regions of central and western China to the eastern
metropolises. Where rural roots of communities held strong in the past,
urban centers unravel and reform connections between strangers from
across the country’s provinces and cultures. As the masses reforge
their idea of “community”, it will take time to reach the same level of
trust and unity as that of the past.
NGOs often help foster this forging of new relationships at the

macro level by providing platforms, centers, and causes for people to
care about. However, NGOs attempting to gain a foothold in China face
several obstacles, from bureaucracy to policy barriers, to the little trust
from the public – which is still hesitant about “charitable organizations”
in the wake of the 2008 incident. NGO laws have the potential to make
or break an organization’s potential for gaining public support. EN 中文
Check out this clip on starting a charity in China, from #AskTheCollective

Episode 004: HOME ABOUT US SERVICES INSIGHTS EVENTS
Bike Sharing in China, China's

CONTACT US 5-Year Plans, How to Fundrai…
Fundrai…
WHAT CHANGES ARE NEEDED TO FOSTER CHINA’S

PHILANTHROPY?
Ultimately, five key areas will need to see considerable shifts for China’s
culture of philanthropy to thrive in 2017 and beyond. We all bear
responsibility for achieving change – across stations, sectors, and
industries.
1. Shift the top-down approach to philanthropy, and instead

support voluntary giving of time, money, and effort at the
individual level. With China’s vast citizen base, stimulating the
masses can promote exponential growth of active generosity for
the country’s benefit.
2. Protect and support potential donors and volunteers through
implementation of more Good Samaritan laws and increased
positive reinforcement through tax incentives.
3. Support small and medium NGOs by lowering barriers to entry
and supporting those crucial first steps in gaining trust and
traction.
4. Professionalize the industry of giving by setting clear and
reasonable expectations between organization and individual
donors. Then, meet those expectations through accountability,
transparency, and open communication. Both donors and

benefactors need to understand the pipeline and process for EN 中文
giving – and receive guarantee of promises being met.
5. And ultimately, broaden our understanding of China’s nuanced
HOMEpastABOUT
context of giving. Looking USstatistics,
surface SERVICES INSIGHTS
we are EVENTS
responsible for opening our minds to a more holistic view of the
environment in which China’s government, citizens, and
organizations operate.CONTACT US
You might also be interested in our reports on CSR in China and Social
Innovation in China. Follow Collective on social media to receive the
latest updates on articles, videos, and events.
This article was written by Gabrielle Williams, Research Analyst at

Collective Responsibility.
Categories: Business & Strategy

Tags: consumers, migration, philanthropy, urbanization.
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12/18/2020 Generosity & Philanthropy in China: It's About Context - Collective Responsibility

HOME ABOUT US SERVICES INSIGHTS EVENTS

THE QUESTION: IS CHINA GENEROUS? NGO Proﬁle:

Let’s take an alternative look at the culture of philanthropy in China.

rather than voluntary. This hierarchical structure applies in volunteering urbanization

of subordinates for a cause, instead of individuals volunteering their

While there’s nothing inherently wrong with this top-down, give-and-

The 2008 Earthquake, and What Changed

The generosity was there.

HOME ABOUT US SERVICES INSIGHTS EVENTS

Additionally, corporate donations were expected and measured against

The Red Cross Fiasco and Donor Expectations

For starters, there was a disconnect in expectations: Most of the funds

Public discontent worsened with the reveal of the Guo Meimei scandal,

Misappropriation of funds in a time of increased public engagement

SYSTEMIC CHALLENGES & REALITIES OF PHILANTHROPY

The answers lie in protective policies, social infrastructure, and

1. Protection Laws & Policies

But in China, that very stepping forward into the situation might expose

Many cases have demonstrated the unfortunate negative

On a similar note, making charitable donations as an individual, from

It remains to be seen how these new policies will inﬂuence China’s

HOME ABOUT US SERVICES INSIGHTS EVENTS

Additionally, many of the high-ranking countries in the Middle East are

Furthermore, the Chinese government has a very active role in

HOW CAN WE UNDERSTAND THE CONTEXT OF GIVING IN

China is currently in the middle of one of history’s largest migrations –

NGOs often help foster this forging of new relationships at the

Check out this clip on starting a charity in China, from #AskTheCollective

Bike Sharing in China, China's

WHAT CHANGES ARE NEEDED TO FOSTER CHINA’S

1. Shift the top-down approach to philanthropy, and instead

transparency, and open communication. Both donors and

This article was written by Gabrielle Williams, Research Analyst at

Categories: Business & Strategy

You may use these HTML tags and

Your email address will

NOTIFY ME OF NEW POSTS BY EMAIL.

About Us Services Events Insights Contact Us

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