Wang Xingzui Deputy Executive Director China Foundation for Poverty Alleviation

Wang Xingzui

Deputy Executive Director

China Foundation for Poverty Alleviation

Main Contents

1. History of China’s NGO Development

2. Classification of China’s NGOs

3. Fundraising of China’s NGOs

4. Social impacts of China’s NGOs

5. A General Profile of NGOs’ Poverty Reduction Efforts– National, local and overseas NGOs and Their Projects in

China

6. Case Study: China Foundation for Poverty Alleviation (CFPA)

I. History of China’s NGO Development

Since the PRC was established in 1949, the development of NGO has experienced 3 periods:

– From 1949 to 1977 : Government-operated NGOs– From 1978 to 1994 : Fast development period

– From 1995 to present: Regularized development


From 1949 to 1977: Government-operated NGOs

During this period, China was implementing the planned

economy system, no real NGOs existed and no related laws formulated to manage NGOs in the period.

However, for the political needs, some government-operated NGOs were founded in the name of social association or people’s organization.


There were fewer than 100 National NGOs, mainly including:

All China Federation of Trade UnionsAll China Women’s FederationCommunist Youth League of ChinaChina Young PioneersRed Cross Society of ChinaAll China Federation of Industry and Commerce All China Federation of Returned Overseas ChineseChinese Writers Association China Federation of Literary and Art Circles


• Locally, there were about 6000 NGOs of this kind. Most of them were the branches or subsidiaries of the above-mentioned National NGOs.


• From 1978 to 1994: Fast development period

During this period, China began to carry out the policy of reform and opening-up, China’s NGOs entered the period of fast development.

The establishment of China Children and Teenagers’ Fund in 1981, the first Chinese NGO in its true meaning.

A total number of 165,000 NGOs were legally registered in China by the end of last century.

The most prestigious Chinese NGOs were founded in this period.


• During this period, NGO management was not yet on legal track, though Chinese government had formulated some preliminary legal documents such as Rules for Foundation Management issued on September 27, 1988 and Rules for NGOs Registration issued on December 25, 1989.


From 1995 to present: Regularized development

• With the development of the China’s society and the establishing of NGO legal systems, China’s NGOs entered into the period of regularized development;

• By now, the legally registered NGOs total 289,000, of which, there are 1016 foundations and 135,000 non-profit organizations.


• During the period, Chinese government formulated laws such as: – Temporary Rules on Non-profit Organizations

issued on October 25th, 1998 – Donation Laws for Public Welfare of PRC issued on

1999 and – Bylaw on Foundation Management issued on June

1st, 2004.– And the Law for Promoting the Charity Cause of

PRC is being formulated.


(1) Characteristics of China’s NGOs

(2) Classification of China’s NGOs

(3) NGOs involved in poverty reduction efforts

(1) Characteristics of China’s NGOs

The mere 20-year development and China’s political structure has shaped a special environment for China’s NGOs:– Legal Characteristics– Management Characteristics – Internal Characteristics



Legal Characteristics

• The construction of legal system on NGOs lags behind and a complete legal system on NGOs is not yet formed.

• Current laws and regulations are mostly based on control and supervision, and do not specify NGOs’ rights and obligations.

Legal Characteristics

• Some laws and regulations are not favorite for NGO development such as donation law in which only 3% of the enterprises’ before-tax income donated can be exempted from income tax. This reduces the donation enthusiasm of enterprises.

• By now, only 12 NGOs have the right to accept the donation which is fully exempted from income tax.



Management Characteristics

• Double-track management NGO’s establishment and activities must be under the d

ouble approval and management of department of civil affairs and department of business management.

• High threshold for registration A lot of NGOs fail to be registered under the double-trac

k system and the registered NGOs become subsidiaries of their business management departments and lose their own independence.


Internal Characteristics

Most Chinese NGOs have the following characteristics: Irregular internal managementWeak capacity Insufficient self-disciplineTransparency: a problemPoor credibility Sustainability remains a question


(2) Classification of China’s NGOs

According to its basic characteristics of emergence and development and relations with government, China’s NGOs can be divided as followings: Government-operated NGOs (GONGO) Innovative NGOs Grass-root NGOs


Government-operated NGOs.

There are two types: Type one: NGOs are quasi-government organs, which ar

e directly derived from government organs and still possess management rights on certain trade such as

China National Light Industry Council China National Textile And Apparel Council .

Type two: NGOs are initiated or directly controlled by the government or NGOs have the resources monopoly privilege endowed by the government such as:

Red Cross Society of China China Charity Federation China Disabled Persons’ Association


Innovative NGOs

NGOs had governmental background but have grown up in the reform process and are able to carry out their activities independently.

Though they are not large in quantity, this type of NGOs have larger scale, stronger ability and more extensive social impacts.

The innovative NGOs are the main force in China’s charitable field.

China Youth Development FoundationChina Foundation for Poverty AlleviationChina Children and Teenagers’ FundChina Women Development FoundationChina Association for NGO Cooperation



Grass-root NGOs

This type of NGOs are numerous and are truly non-governmental, but most of them are small and weak and their existence conditions are not favorable. There are two types of grass-root NGOs

Type one: NGOs have the legal status such as: Association for Rural Development of Yilong, Sichuan

and some research, cultural and trade organizations

Type two: NGOs that are registered with the commercial and industrial administration departments such as: Globe Village of Beijing

Xingxingyu Education Research Institute

China NPO Network

and a large number of grass-root NGOs which have not been legally registered but are very active in rural and

urban communities.



(3) NGOs involved in poverty reduction efforts It is estimated that there are nearly 100 NGOs involved in

poverty reduction efforts and about 20 are at the national level. They can be categorized into three types: Full-time professional poverty reduction NGOs Intermediary poverty reduction NGOs Part-time poverty reduction NGOs


Full-time Professional Poverty Reduction NGOs

• There are over 50 professional poverty reduction NGOs including national and local foundations or development associations for poverty reduction and some grass-root NGOs.

• These NGOs directly target the poor population in China’s rural areas and, among which, the biggest are China Foundation for Poverty Alleviation and China Association for Poverty Alleviation and Development.


Intermediary Poverty Reduction NGOs

• They mainly provide intermediary services to overseas or domestic organizations or enterprises involved in poverty reduction in China

• The most famous NGOs of this kind are: China Association for NGO Cooperation

Poverty Reduction Relaying Plan of China Young Volunteers

Association.


Part-time Poverty Reduction NGOs

Over 20 such NGOs in China They target poor and vulnerable groups in extensive fields

such as education, health, population, environment protection, women, children, ethnic minorities and urban unemployment.


The famous NGOs of this kind are:

China Youth Development Foundation

China Children and Teenagers’ Fund

China Women Development Foundation

The Amity Foundation

China Vocation Education Association

China Foundation for Population and Welfare

China Disabled Persons’ Federation


(1) In China, the annual donation to charity only

accounts for 0.1% of its annual GDP


(2) The funds raised by China’s NGOs is rather small and since 1980s, total charitable fund raised by NGOs annually amount to 5 billion yuan (USD 525 million)

The largest NGOs only have an annual income of 100 million yuan (USD12.5 million) . For example, in 2004: China Foundation for Poverty alleviation raised 116.8 million

yuan China Youth Development Foundation 105.2 million yuan

China Charity Federation 80 million yuan.


(3) Most of the donation to China’s NGO are from overseas organizations or institutions.

For example, 80% of donations to China Charity Federation in 2002 were from overseas donors and almost all the donations to China Association for NGO Cooperation are from overseas market.

4. A General Profile of NGOs’ Poverty Reduction Efforts

National, local and overseas NGOs in China and their poverty reduction projects

National NGOs

Name China Charity Federation

Founding year

1994

Total Income 1.8 billion yuan by the end of 2004

Main Achievements

Except the main project of disaster relief, the Smiling Train project provides surgical services to patients in poor families, which has benefited 6000 patients among 30 provinces and raised 230 million yuan.

Project Areas Nationwide


National NGOs

Name China Youth Development Foundation

Founding year 1989

Total Income 2.732 billion yuan

Main Achievements

Main projects include Project Hope, Action on Protecting Mother Rivers, Action on Red Ribbon. The Project Hope has financially supported 2.75 million poor students, built 11,888 hope primary schools and 150 internet schools and trained 19,000 rural teachers.

Project Areas Nationwide with focus on poor rural areas


National NGOs

Name China Women Development Foundation

Founding year 1988

Total Income

Main Achievements

Main projects include Mother Water Cellars, Healthy Mother Express and projects to help dropped-out students and women microfinance.

The Mother Water Cellars project has built nearly 90,000 water cellars and 1,100 water supply projects which benefited millions of people, of whom 65% are women and children.

Project Areas Focusing on western China


National NGOs

Name China Children and Teenagers’ Fund

Founding year 1981

Total Income 600 million yuan by the end of 2004

Main Achievements

Main projects are Spring Bud Plan and Ankang Plan. The former has helped 1.5 million poor girls and built 300 Spring Bud Schools; the latter has built 604 Ankang Classrooms, 12 Ankang Families, 380 Ankang Long-distance learning classrooms and 9 Ankang Computer Classrooms and helped 241 Children with weak eyesight to

be treated in Beijing, 98% cured.

Project Areas Nationwide with focus on poor rural areas


National NGOs

Name China Legal Aid Foundation

Founding year 1997

Total Income 80 million yuan in 2004

Main Achievements

It provides legal assistance to poor and vulnerable groups. Over the past years, it has provided legal assistance to 1 million cases and legal services to 1.55 million people.



National NGOs

Name China Disabled Persons’ Federation

Founding year 1988

Total Income 370 million yuan by the end of 2004

Main Achievements

It provides medical treatment, vocational training and living support to disabled people and nearly 20 million disabled people benefited from its various projects.



National NGOs

Name China Association for NGO Cooperation

Founding year 1993

Total Income 11.08 million yuan in 2003 and 11.66 yuan in 2004

Main Achievements

It managed 26 projects in 2004 related to poverty reduction, environmental protection, woman’s rights and NGO capacity building etc..



National NGOs

Name China Foundation for Poverty Alleviation

Founding year 1989

Total Income 1.1 billion yuan by the end of 2004

Main Achievements

More details will be introduced later

Project Areas Nationwide with focus on western rural areas


Local NGOs

Name The Amity FoundationFounding year 1985

Total Income 800 million yuan by now

Main Achievements

Main projects target rural teachers, drop-outs, poor college students, immigrant workers’ children, orphans, women, people living with HIV and poor rural residents.

Project Areas Nationwide with focus on western areas


Local NGOs

Name Association for Rural Development of Yilong County, Sichuan

Founding year 1996

Total Income Funds come from UNDP and a German NGO

Main Achievements

Main projects include micro-finance, rural community development, farmer’s training courses, drinking water and pig breeding. At present, there are 70,000 members in the association.

Project Areas Yilong County


Local NGOs

Name Yunnan Health and Development Research Association

Founding year 1994

Total Income USD 700 thousand which is mainly supported by Ford Foundation

Main Achievements

Focusing on Reproductive health and women participatory projects.

Project Areas Yunnan Province


Local NGOs

Name Beijing Sun Village Research Institute for Helping Special Children

Founding year

Total Income Public donations and self-generated income

Main Achievements

Nursing and educating children of prisoners free of charge. At present, it has adopted 113 children.



Overseas NGOs

Name Ford Foundation （ US ） Entry Year 1988

Investment Annually USD 12 million

Main Achievements

Support 5 projects of reform of legal system, sexual and reproductive heath, environment and development, economic reform and its social influence, education and culture diversity



Overseas NGOs

Name Heifer Project International （ US ） Entry Year 1985

Investment Annually USD 288,000

Main Achievements

Donating high quality livestock and training farmers with advanced technology.

Project Areas Central and western China


Overseas NGOs

Name Islamic Relief （ UK ） Entry Year 2002

Investment Annually EUR 200,000

Main Achievements

Disaster relief, Drinking water, rural community development

Project Areas Gansu, Shaanxi, Xinjiang


Overseas NGOs

Name Kadoorie Charitable Foundation (HK)

Entry Year 1997

Investment

Main Achievements

Microfinance, recovery of disabled people, health education, HIV prevention, rural community development.

Project Areas Central and western China


Overseas NGOs

Name Mercy Corps International （ US ）Entry Year 1999

Investment Nearly USD 1 million annually

Main Achievements

Microfinance, disaster relief, training on local NGOs

Project Areas Fujian, Guizhou, Shaanxi and Sichuan


Overseas NGOs

Name Misereor Foundation （ Germany ） Entry Year 1980s

Investment

Main Achievements

Rural community development, social welfare, HIV education and prevention and training on social workers.



Overseas NGOs

Name Oxfam Hong Kong

Entry Year 1987


Main Achievements

Rural community development, education, HIV prevention, women and NGO capacity building.

Project Areas Nationwide with focus on western China.


Overseas NGOs

Name Plan International （ Europe ）Entry Year 1995


Main Achievements

Target group is children. Projects in China include maternal and infant health training, children vaccination, education support, women microfinance and drinking water.

Project Areas Shaanxi and Beijing


Overseas NGOs

Name Save the Children （ UK ） Entry Year 1988

Investment Annually EUR 3.5 million

Main Achievements

Care and support to disabled children including children education methods, orphan adoption, care about HIV children and anti-trading of children.

Project Areas Nationwide, focusing on Anhui, Tibet, Yunnan, Xijiang


Overseas NGOs

Name Action Aid （ UK ）Entry Year 1998

Investment Annually USD 400,000

Main Achievements

Projects include food safety, drinking water, livestock breeding, women health and participatory poverty reduction projects, rural community development and training on immigrant workers.

Project Areas Beijing, Hebei and Guizhou


Overseas NGOs

Name PlaNet Finance （ France ） Entry Year 2002

Investment Annually EUR 175,000

Main Achievements

Microfinance project. It has trained 250 credit officers, built 20 project websites and provided computers to 33 projects.



Overseas NGOs

Name Salvation Army (HK)

Entry Year 1988

Investment Annually HKD 2.2 million

Main Achievements

Disaster relief, rural community development, HIV prevention, basic education and environmental protection.

Project Areas Yunnan, Inner Mongolia, Anhui, Hubei and Hebei


Overseas NGOs

Name Sowers Action （ HK ） Entry Year 1992

Investment Annually USD 2.2 million

Main Achievements

Support basic education. Financially assisted 146 thousand primary students, reconstructed 400 schools, rewarded outstanding rural teachers and supported training program on rural teachers.

Project Areas Guangdong, Guizhou, Hunan, Sichuan and Yunnan


Overseas NGOs

Name World Vision International （ US ） Entry Year 1992


Main Achievements

Disaster relief; rural community development programs in 27 counties; Candlelight Project to support rural poor teachers and microfinance program for the urban poor.

Project Areas Beijing, Shaanxi, Yunnan, Guangxi, Hebei and Guangdong


5. Case Study:

China Foundation

For Poverty Alleviation (CFPA)

ContentsContents

• Mission and History

• Organization

• Beneficiaries and Annual Income

• Programs

• Events

• Future Development

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Wang Xingzui Deputy Executive Director China Foundation for Poverty Alleviation

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