Society

China seeks to expand modern philanthropy

(Xinhua)
Updated: 2011-05-27 13:41

BEIJING - Zong Qinghou, once the richest man on the Chinese mainland, has confirmed in an exclusive interview with Xinhua that he will set up a charity foundation named after him with one to two million yuan as initial capital.

"Donation is not charity. A true philanthropist should be able to help people in need by continuously creating social wealth," Zong says.

The charity foundation will be continuously supported by Zong, the chairman of Wahaha, China's largest beverage producer. He topped the 2010 Forbes China Rich List with a personal fortune of $8 billion in net worth.

Zong is not alone in his pursuit of modern philanthropy in China. The number of professional charity foundations in China is booming, and donations are increasing every year. China is changing the way it approaches philanthropy.

Philanthropy: love is mutual

There is an urgent need to clarify philanthropic ideas in China, says Wang Zhenyao, director of the Beijing Normal University One Foundation Philanthropy Research Institute.

Philanthropy not only means giving without expecting anything in return, but is also a chance for the donor to realize his or her wish of expressing love and care, according to Wang.

Modern charity is based not in religion, but in the innate desire for people to want to help, according to Yvonne Pang, deputy chair of the PR committee of the Rotary Club of Beijing.

As the world's first service club organization, the Rotary Foundation is a non-profit group that encourages its members to foster global understanding, goodwill and peace through the improvement of education and the alleviation of poverty.

"Happiness goes both ways. We become happy ourselves when we see other happy people. Seeing a smiling face is a fantastic experience," says Chris Verrill, a ten-year member of the Beijing Rotary Club.

"We cried when we saw Chinese kids who received life-saving heart operations with our help. We were so happy to see that our efforts could bring them new, productive lives," Verrill says.

Modern philanthropy is well-developed in most Western countries, in comparison with China's relatively new-found sense of charity. However, as a late bloomer, China can learn from the experiences of these nations.

Be professional, be effective

In contrast to his previous philanthropic efforts, Zong is determined to ensure that his charity foundation is managed professionally in order to ensure that resources are directed to where they are most needed.

"I will make a difference by ensuring that my charity is effective. I was annoyed by previous problems with donations; I never knew exactly where my money went," Zong says.

Zong has instructed his charity's staff to do research and learn from professional charities and organizations such as the Nobel Foundation.

"There is no one specific way to do things. There are many ways of doing them effectively," says Kevin Fong, former president of the Beijing Rotary Club.

Rotary clubs around the world are largely autonomous, and many of them adapt international standards to serve local needs.

Most Rotarians are professionals, working as lawyers, engineers, doctors and accountants. "Our backgrounds allow us to provide professional services and proposals to people in need," Verrill says.

To ensure donation transparency, Rotary clubs regularly invite accountants to check their books. China is seeking to create new regulations to ensure transparency in the philanthropic sector.

China's first regional law concerning charitable donations was passed on May 1 in Central China's Hunan province. The law specifies punishments for charities that do not abide by strict rules concerning the transparency and accountability of their donations.

Where to start?

Coming from humble roots and struggling to succeed by one's own efforts are common experiences for China's new order of philanthropists. Many of them choose to donate to education and other related areas.

Zong aims to devote his foundation to the support of education and technological innovation in China.

However, other philanthropists are taking a broader approach.

"Needs can be found everywhere. We try to make a difference by focusing our resources and effort," says Verrill.

"Our money and resources are limited, but we just try to do what we can. We try to be as professional as possible and create real change," he says.

The Beijing Rotary Club established its "Gift of Life" program in 1997. The program provides surgery for children with congenital heart diseases, which are almost always fatal if left untreated.

"We don't always have huge amount of money to pay for all kids in need, but with the help of professionals, we can select those children who can be saved by one major operations. Then, we can save more kids," says Yvonne Pang.

"It is such an honor for us to change people's lives just by offering what we can," Verrill says.

Peter Buffett, the son of famed philanthropist Warren Buffett, has expressed his own opinion on modern philanthropy in China.

Buffett says, "Chinese people will come to their own conclusions about the role of philanthropy in their culture."

"Philanthropy means 'the love of people.' I believe we all share a common concern for humanity," Buffett says.