80 per cent of Chinese philanthropists donations last year went to institutions outside mainland China, says survey

80 per cent of Chinese philanthropists donations last year went to institutions outside mainland China, says survey

Survey shows 80 per cent of funds went to institutions outside mainland

About 80 per cent of the charity donations made by Chinese philanthropists last year benefited institutions outside mainland China, a survey shows.

China Philanthropy Research Institute, at Beijing Normal University, has recently compiled a list of the top 100 mainland philanthropists that made the most donations during 2014.

The 100 philanthropists, including individuals and families, donated a total of 30.4 billion yuan (HK$38 billion).

More than 24.2 billion yuan – about 80 per cent of all donations – went to Hong Kong, Macau, and foreign institutions, the institute found.

Last year was the first time donations to non-mainland institutions had exceeded those made to mainland ones since 2011, when the survey began.

Jack Ma Yun, chairman of mainland’s e-commerce giant Alibaba Group, topped the list by donating to a foreign charity group shares valued up to the end of last year at 16.9 billion yuan.

Pan Shiyi and Zhang Xin, the Soho China real estate tycoon couple, also ranked high for US$15 million in donations to Harvard University in the US, which is a part of their US$100 million fund to help the university’s Chinese students.

Mainland charities received about 15 per cent of all donations, with charities affiliated to higher education institutes most popular with the donors.

Former premier Zhu Rongji was 82nd in the list after donating 15.22 million yuan in royalties from his book, Zhu Rongji Meets the Press, to a charity that helps students in poverty.

Only 1.18 per cent of all donations went to organisations owned or administrated by the mainland authorities.

Mainland tycoons have shown more interest in donating to foreign institutions over the past few years, especially given the lack of favourable tax policies for mainland charities, Zhang Gaorong, research director of the project, said .

“If foreign charities cash shares [of a company] donated by the owner, the charity need not pay as much income and added-value tax as mainland counterparts,” Gao said.

“That makes a huge difference in the work a charity could do with the donations.”

While charity donations are popular among mainland tycoons, they are not yet as common as in countries like the US.

Individual mainland donors must still pay income tax on the part of donations that surpass 30 per cent of his or her annual income.

Companies, likewise, must pay income tax on the part of donations that surpass 12 per cent of their annual net profits.

Until 2009, mainland companies and individuals were not allowed to donate shares.

But mainland tycoons were still unable to have a charity asset trust endowment registered if all of the capital was in shares, rather than cash – something that was common in many foreign nations, Gao said.

A lack of transparency in the administration of mainland charities also led some mainland donations to go abroad, Gao said.

Chinese Red Cross was criticised in 2011 when Guo Meimei, claiming to be general manager of “Red Cross Commerce”, flaunted her lavish lifestyle on social media.

“However, the transparency concern is not as great as before because many tycoons now run their own charities,” Gao said.

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Robert Chaen

Global CEO-Founder of ChangeU and Movsha Movers & Shakers, Hero-CEO Whisperer, Writer, The #1 Alpha Change Expert, Father of Asian FireWalking Robert Chaen is an International Keynote Speaker, writer, researcher, and corp games designer. He is famously known to be the “Hero-CEO Whisperer”, 1-on1 coaching with many CEOs and Celebrities for corporate strategies, staff & office political issues, personal branding, and even public figure OSHA safety drilling called Drager Defense. He has transformed CEOs and managers in Coca-Cola China, TVB Hong Kong, Cathay Pacific, Hong Kong Airport Services, VADS, TM, Public Bank, Auditor General's Office Maldives, etc. He is the prolific creator and online Author of innovative management tools such as DragonCEO, Diamond Leader, Papillon Personal Effectiveness, OSHA Drager Defense, KPI Bank, etc. He is also the Founder of Movsha, an international networking with monthly mingles with MOVers & SHAkers, Angels, Entrepreneurs, CEOs, Celebrities, HR-PR-CSR, HODs, and the Most Influential IDEA people. ​Chaen is widely considered as one of the top International Platform Keynote Speakers for Resorts World Genting Senior Management Conference (Manila), 7-Eleven HK, Samsung, Coca-Cola China Mini-MBA @Tsing Hua University, Cathay Pacific, Hong Kong Jockey Club, The Story Conference where he interviewed Datuk Kamarudin (Chairman of AirAsia) and Siti Nurhaliza. He has been widely featured in TVB, AWSJ, CNBC, SCMP, The Star, and Sin Chew. As “The Father of Asian FireWalking”, he coached TVB celebrities (Ekin Cheng Yee-Kin) to walk on 650°C fire; and raised HK$68M in the world’s 1st and only live TV Charity FireWalk (TVB Tung Wah Charity Show), before Tony Robbins even came to Asia. If Robert can get you to walk on 650⁰C fire, he can inspire you to be THE BEST. He champions CN-HK-EU-US Tycoons to be philanthropic, and to be angel investors to support the next generation of Jack Mas, Steve Jobs, Richard Bransons, Steven Spielbergs, or Barrack Obamas. With some slick motivational speakers with fake doctorates out there, graduates often describe Robert to be "the most credible, empowering, truthful Coach" who believe in his graduates to believe in themselves. ​However, clients have described Robert as "The #1 Cool Badass Alpha Change Expert". He has the coolest first class stature, rapport and trust from clients. He will not hesitate to tell the badass truth ever so gently because clients are paying him big bucks to reveal the truth, find solutions, persuade the hostile HODs, and align cross-teams within the organization. Originally based in Hong Kong for 20+ years, he had worked with top Branding/Ad agencies at J Walter Thompson and Leo Burnett, and was a certified FranklinCovey (7 Habits) in USA, and NLP MasterCoach (USA). His warmth is known to soften the most hardened, resistant sceptics. He will inspire your team to Go for Top 1, or to be a Dragon CEO. With boundless energies, Robert owns 15+ successful business Joint-Ventures, and created unique products under his global VC network called Chaen's Angels VC. He is deeply passionate about ChangeUTH Youth CSR, Science-Based Medicine (vs. quackery), short films and Reality TV. Touched by a personal tragedy through the loss of his HK-born Portuguese wife, co-coach and business partner, Brenda José of 18 years, Robert explores the many ways in which the spirit world is communicating with the living with real scientific studies and evidence. He gives inspiring conferences on The Secret Afterlife.

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