Wang Xingzui Deputy Executive Director China Foundation for Poverty Alleviation

1. China’s NGOs and Poverty Reduction Wang Xingzui Deputy Executive Director China Foundation for Poverty Alleviation

2. 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)

3. 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

4. I. History of China’s NGO 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.

5. I. History of China’s NGO Development There were fewer than 100 National NGOs, mainly including: • All China Federation of Trade Unions • All China Women’s Federation • Communist Youth League of China • China Young Pioneers • Red Cross Society of China • All China Federation of Industry and Commerce • All China Federation of Returned Overseas Chinese • Chinese Writers Association • China Federation of Literary and Art Circles

6. I. History of China’s NGO Development • Locally, there were about 6000 NGOs of this kind. Most of them were the branches or subsidiaries of the above-mentioned National NGOs.

7. I. History of China’s NGO Development • 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.

8. I. History of China’s NGO Development • 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.

9. I. History of China’s NGO Development 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.

10. I. History of China’s NGO Development • 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.

11. 2. Classification of China’s NGOs (1) Characteristics of China’s NGOs (2) Classification of China’s NGOs (3) NGOs involved in poverty reduction efforts

12. 2. Classification of China’s NGOs (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

13. 2. Classification of China’s NGOs 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.

14. 2. Classification of China’s NGOs 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.

15. 2. Classification of China’s NGOs Management Characteristics • Double-track management NGO’s establishment and activities must be under the double 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-track system and the registered NGOs become subsidiaries of their business management departments and lose their own independence.

16. 2. Classification of China’s NGOs Internal Characteristics Most Chinese NGOs have the following characteristics: • Irregular internal management • Weak capacity • Insufficient self-discipline • Transparency: a problem • Poor credibility • Sustainability remains a question

17. 2. Classification of China’s NGOs (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

18. 2. Classification of China’s NGOs Government-operated NGOs. There are two types: Type one: NGOs are quasi-government organs, which are 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

19. 2. Classification of China’s NGOs 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.

20. 2. Classification of China’s NGOs The innovative NGOs are the main force in China’s charitable field. • China Youth Development Foundation • China Foundation for Poverty Alleviation • China Children and Teenagers’ Fund • China Women Development Foundation • China Association for NGO Cooperation

21. 2. Classification of China’s NGOs 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

22. 2. Classification of China’s NGOs 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.

23. 2. Classification of China’s NGOs (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

24. 2. Classification of China’s 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.

25. 2. Classification of China’s NGOs 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.

26. 2. Classification of China’s NGOs 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.

27. 2. Classification of China’s NGOs 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

28. 3. Fundraising of China’s NGOs (1) In China, the annual donation to charity only accounts for 0.1% of its annual GDP

29. 3. Fundraising of China’s NGOs (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.

30. 3. Fundraising of China’s NGOs (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.

31. 4. A General Profile of NGOs’ Poverty Reduction Efforts National, local and overseas NGOs in China and their poverty reduction projects

32. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

33. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

34. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

35. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

36. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

37. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

38. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

39. 4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs

40. 4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs

41. 4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs

42. 4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs

43. 4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs

44. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

45. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

46. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

47. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

48. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

49. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs

50. 4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs