• For China business – charity helps – VOLUNTARY SECTOR
The ‘third sector’ in China is developing rapidly. Companies with charitable alliances can create goodwill and influence. Graham Davies provides an insight into the historical background and recent trends, showing how companies can use charity to help themselves.
Charity in China has a long history, dating back at least to the arrival of Buddhism in the 5th century BC, through the appearance of benevolent societies in the later Ming period, such as the Society for Sharing Goodness (1590), to the further expansion of private philanthropy during the Qing dynasty (1644–1911). By the early 20th century, cities such as Shanghai hosted thousands of independent charitable organisations built around shared occupation, locality of origin, belief or cause, but many also sponsored for general charitable purposes.

The re-emergence of private philanthropy in recent times is sanctioned by a government policy that encourages ‘social forces’, facilitated by economic growth - especially the rise of a wealthier middle class - and underpinned as of yore by Confucian traditions of ren (benevolence) and yi (righteousness). The government supervises the sector at arm’s length through a registration process involving the Ministry of Civil Affairs, much as charities in the UK have to be approved through the Charities Commission. In a country as large as China this is made practicable by recognising only those local charities that have been ‘sponsored’ by a select few officially approved and funded bodies such as the All-China Women’s Federation, the All-China Federation of Trade Unions, and the China Association of Science and Technology. Not all such organisations have sponsored independent charities, but the All-China Women’s Federation (or Fu Lian) has led the way, forming China’s first independent voluntary organisation in modern times, the China Children and Teenagers’ Fund (CCTF) in 1981.

Charities sponsored and registered in this way can publicly raise funds, issue tax exemption certificates to donors and initiate or fund charitable projects. Private individuals cannot as yet register foundations directly without the need for an intermediary government sponsor. International charities may operate in China but cannot raise public funds nor initiate projects without local partners.

Against this background, Western companies with business interests in China and seeking charitable opportunities as a natural adjunct to their corporate social responsibility typically work through the agency of a local Chinese registered charity, as it is these that wield influence with government, the media and the public and, perhaps most importantly, can get projects implemented swiftly and efficiently.

Notable examples include the sports shoe maker Nike, direct selling company Amway and IT group Hewlett Packard, all of whom work with CCTF on corporate social responsibility in three distinct ways. Amway set up a foundation, An (comfort) Tong (children) Foundation, under the umbrella of CCTF to support children’s health and welfare through CCTF community centres. By such means Amway have taken their brand, originally little known in China, into millions of households, fostering goodwill with officialdom and their customers in the process. Nike, a brand already known in China, has reinforced its image with an imaginative programme of projects and events to encourage self-confidence and esteem through sport amongst street children and young people in disadvantaged areas. Hewlett Packard has developed IT skill training for poor children using its own products through CCTF.

Other interesting examples include a UK music publishing and artist representation agency in discussions with CCTF for design of a ‘Rising Stars’ series of charitable concerts working with talented young performance artists, often from deprived backgrounds; deployment of volunteers from the banking industry working to build much-needed facilities (including playgrounds, sports courts, kindergartens and parks); and working with engineering companies on environmentally sustainable bio-mass apparatus for creating energy for schools in remote areas.

Whatever the particular interest of the overseas company doing business in China it helps to line up an appropriate local charity to work with. The benefits that can be achieved take in:
• brand exposure and positioning
• access to officials and centres of
influence
• tax advantages
• customer goodwill
• assurance of transparency and accountability
• media support (TV, radio and print media)

CBBC members may access these benefits starting by contacting the CCTF network in China or in the UK. — Graham Davies

Graham Davies is a trustee in the UK of China’s first charity, China Children and Teenagers’ Fund, trustee of the Global Exchange for Social Investment, and founding principal of Pall Mall Principals, raising market capital for Chinese development. Formerly the head of Global Trustees for Charities Aid Foundation in the UK he currently advises the Chinese charitable sector on governance and best practice. Contact: graham@cctf-uk.org

Reaching out to build a better future

China Children and Teenagers’ Fund is a registered UK charity and the first operational charity established outside of China by China’s oldest charity China Children & Teenagers’ Fund (CCTF). CCTF’s mission is to reach out to care for, foster and educate China’s children, teenagers and young people, especially in minority and impoverished regions, and rural and urban areas of deprivation.

CCTF China is an independent non-profit voluntary association entirely funded from private and corporate donations. CCTF operates under the governance of the All-China Women’s Federation and the supervision of the Ministry of Civil Affairs of the PRC. CCTF is a strong organisation capable of delivering projects on the ground in China. With a revenue of £8.7m in 2007 (mainly from fundraising in China) expenditure on projects of over £6m and with expenses at only 4 per cent of total funds raised, CCTF follows stringent standards of governance in managing its revenue and expenditure, and describes itself as “an efficient and well managed charity well worthy of your support”.

CCTF projects
• CCTF has established a broad network of Children’s Community Centres across the nation, operating in over 500 urban communities and townships. Each centre provides services to help keep children in school and away from crime, prevent injury and illness, and attain relevant skills.
• The charity’s Training for Future Employment and Entrepreneurship projects provide support to enable hard-working youth in both
rural and urban areas to stay out of trouble, get a job or start up a small business.
• The Ping An Medical Foster Home project has supported the needs of hundreds of Chinese orphans born with mild to serious physical handicaps that require surgery and, or, medical attention.
• CCTF works with many organisations to encourage the development of young artists, musicians, film makers, writers and poets. Cultural exchange between young contemporary artists in China and overseas is an important avenue for donors.
• Making biogas from school and farmyard waste for providing heating and cooling; and using solar and wind power for providing energy means affordable and sustainable energy for schools and training centres lacking budgets for expensive fossil fuels. In a village school near the Great Wall in Badaling, Yanqing County, an hour’s drive from Beijing, children benefit from a CCTF project to power the school, including their computer.

Fundraising
All CCTF’s funds are raised from companies, private individuals and grant-making found-ations.

For more information, visit the website www.cctf.org.cn/English/index.htm or www.cctf-uk.org for its UK-based sister charity.

Working with CCTF
CCTF actively seeks support from grant-making foundations, trust-ees, and companies seeking opportunities to help disadvantaged children and goals for corporate social responsibility.

CCTF has used these funds to improve the lives of disadvantaged youth under the areas of health, sight and sound, education and training, literacy, poverty relief
and job creation, the arts, and more, aiding those who live in backward rural areas, as well as those in cities.