Strategic Philanthropy Sweeps through China

By Adam Lane, Associate, Advisory Services, and Pei Bin, Director, Partnership Development

The topic of philanthropy in China is rivaling the environment and climate change—and even the financial crisis—for top headlines in China, and two BSR-hosted events on strategic philanthropy were telling of this new trend.

The growth in public awareness of philanthropy after the 2008 earthquake (and pressure on individuals and corporations to donate) has led to a massive increase in donations—which reached almost US$2 billion in 2008. Since new regulations were established just a few years ago, the number of private foundations has grown to over over 1,300 (with capital of almost US$1.5 billion). As a result of increased attention by the media, public, and government, Chinese public fundraising charities are increasing their transparency and private foundations are establishing voluntary guidelines to fill the regulatory gaps. And as the awareness and capacity of grassroots NGOs improves, more donors are partnering with them in innovative ways.

BSR’s first event, “Designing a Signature Philanthropy Program,” brought together 100 key stakeholders from the Chinese philanthropy sector, including foreign and local companies, international and local NGOs, private foundations, and government officials. The event was so popular, demand to attend outstripped our supply of chairs!

During the meeting, it became clear that the philanthropy sector in China can no longer be termed “nascent;” rather, it is better described as “developing”—and very quickly at that! BSR President and CEO Aron Cramer opened the meeting by explaining six clear steps to strategic philanthropy:

1) Identify the link between public needs and business strategy.
2) Develop clear goals.
3) Utilize the core competencies of the business or foundation.
4) Develop effective partnerships.
5) Communicate internally and externally.
6) Measure impact and re-evaluate frequently.

A second event on this topic—which brought together heads of eight private Chinese foundations—revealed that the potential for these foundations should not be underestimated. Many of them have significant financial and non-financial resources to add to the talented and experienced foundation leadership and program management teams they are creating. They are also experimenting with innovative ways to support grassroots organizations, pilot entrepreneurial solutions to poverty reduction, and explore creative partnerships with other like-minded organizations.

These events were a successful indicator that there is interest—even demand—for us to play a stronger role in this area. We will be working with international partners to leverage their experience to support Chinese organizations in developing strategic philanthropic programs. Keep an eye out for more details coming in 2010.