Downturn to have limited effect on philanthropy

Despite companies cutting costs to get through the current global economic slowdown, a senior official estimated the impact on the country's charity industry would be limited.

Dou Yupei, vice-minister of civil affairs, said his estimate relied on the fast development of China's non-governmental organizations in recent years and the huge potential that remains for donations from local companies.

According to a recent report from the Chinese government, by the end of last September, a total of 1,361 philanthropic foundations and 4,100 charitable organizations had been registered in the country, an increase of 40 on the pervious year.

Additional statistics from the Ministry of Civil Affairs said public donations reached a record high of 100 million yuan last year, up from 30.9 billion yuan in 2007.

Out of this huge amount, more than 60 million yuan was devoted to relief efforts in areas hit by the May 12 earthquake.

According to Dou, the current economic crisis should be a golden opportunity to establish a comprehensive law on the country's charity sector and get more people involved in charitable activities.

In the current situation, as most business sectors face huge difficulties, more efforts should be made throughout society and by the government to help NGOs cope with the crisis, support the sustainable development of charitable activities, and promote more philanthropic activities in the future, said Lu Zhao, a senior manager from Non-Profit Incubator, a non-profit organization in China.

(China Daily 03/02/2009 page10)