Human services
Heisman said that China's main focus for philanthropy is human services, like health and welfare issues, and it "could take some time" before any evolution in the trends.
"There are some tax incentives for charitable giving in China but they are not as well developed as in the US," said Mary Brown Bullock, chairman of the China Medical Board (CMB), who took part the panel discussions at the Asia Society. "That's something that will evolve over time, and it will be fascinating to watch how an increasingly affluent society begins to set up the institutions and structure for philanthropy."
CMB was started in 1914 and was endowed by Rockefeller as an independent American foundation to advance health in China and Asia by strengthening medical education, research and policies.
Yuen, with Kordant Philanthropy, said the due diligence required from people looking to give to charity in China is also a bit of a deterrent in the overall trend of Chinese philanthropy.
"If you want to give in the US, you can go online, send a check, so it's very easy," Yuen said. "In China, if you want to have a tax deduction for your gift, you have to check and make sure the nonprofit you worked with is registered so you can get that tax deduction."
"The US is such a hospitable place for philanthropy that some Chinese are setting up their philanthropy here," she said. "There's much more of an incentive in the US for taxes, and a lot of these individuals understand this."
Heisman said despite challenges like modest tax incentives for philanthropists and transparency issues for nonprofits and NGOs alike, China's nonprofit sector is growing. But philanthropists in China will have to find a better way to encourage potential donors going forward, she said.
A February report on China from the Council on Foundations, a philanthropy advocacy group, said: "Recent changes in tax legislation have increased the portion of taxable income that individuals (30 percent) and enterprises (12 percent) can deduct for public benefit donations to qualifying nonprofits."
Huang with the CFR said in a May 30 post on the CFR's Asia Unbound blog that middling growth in China's philanthropic sector stems from a lack of transparency and accountability. But people in China are already asking for change in these areas, he wrote.
"The Third Plenary session of the 18th CPC Central Committee already sent a signal, saying that the government is going to encourage and promote social organizations - the terms used to refer to the non-governmental organizations," Huang said in an interview with China Daily. "They are also going to simplify the registration and approval of the social organizations. These are all positive developments."
The future
What is the future of philanthropy in China?
"The rapid rise of social media and the advent of online giving have empowered new donors and grantees alike," wrote Emily Weaver on the Asia Foundation's website in April. Weaver served as program adviser for the foundation in China from September 2012 through March 2014.
"By being able to donate online easily while gaming, shopping, or socializing, ordinary citizens are able to respond instantly to issues they care about through sites such as Tencent Online Donation Platform, Sina Micro-Philanthropy Platform, and Alipay E-Philanthropy Platform," Weaver wrote.
According to the China Online Donations Report, total online donations through third-party social network donation platforms surpassed $83 million in 2013.
Weaver noted that during the Lushan earthquake in April 2013 many donors turned to online platforms for giving and that more than $48 million was raised in just 10 days, according to the China Online Donations Report.
Heisman also highlighted the growth of social media in giving in China.
"This is my prediction," she wrote in a September 2013 article for the Non-profit Quarterly. "Chinese philanthropy will leapfrog over American philanthropy. They will seize social media and new technologies because US-based techniques, like direct mail and checks, won't be part of their 'old guard' or existing infrastructure."
"I, for one, will not be surprised when the day comes that we look to China's non-profit organizations' achievements and wonder, "How'd they do that?"
Contact the writer at jackfreifelder@chinadailyusa.com
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