Apparently, having a private charity foundation with your name attached is no longer a privilege reserved for the wealthy. According to a report by the Beijing Times (March 31st, 2009), the only requirement is to wire a minimum of 5 RMB (USD 0.73) per month to the Chinese Foundation for poverty Alleviation (CFFPA), a government-run foundation.
On April 1, 2009, CFFPA officially launched the program called "All Citizens Charity Program" in which every Chinese citizen can set up a "foundation" in his own name simply by maintaining ongoing monthly donations. To participate in the program, an applicant can either fill out a survey conducted by CFFPA about what areas of social need to give to or send a text message with their preferences. CFFPA will reply by sending back a confirmation. Once the applicant confirms the information, the "foundation" is considered established.
CFFPA will manage these mini-foundations and report to donors through text messages. Donors will also be able to monitor the use of their money by texting the same number they used to set up their foundation. Once the funds in an individual’s account reach an amount sufficient to support a charity, the CFFPA will transfer the funds to a project that corresponds to the sponsor's preferences. Every year, CFFPA will merge account with similar giving preferences that lack enough funds to an entire project.
As the program is still new, many details remain unclear. How will CFFPA choose and identify projects? Can donors choose projects by themselves? Will grassroots NGOs be in the running for donations? Who is responsible for following-up on how the money is used and how will they keep track? Can sponsors refuse to merge with others even though the foundation size is too small to fund a project?
If donors don't have much freedom in choosing projects, this program is more like a monthly donation plan rather than one that allows individuals to actually set up their own foundations. Despite the many questions raised by this new initiative, the "All Citizens Charity Program" will have a positive impact on the philanthropy sector in China by bringing philanthropy into the Chinese conscience. While domestic support of charities in China has been lacking in the past, this program may very well encourage individuals to long-term giving.
--Leo
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