Internet is changing China's charity?

Individuals and organizations that hold smart phones have the equal rights and opportunities to join in the distribution of charity resources. However, in the power of redistribution of ‘new media given rights’, the winner must be those non-profit organizations that owe higher credibility and efficiency, catching up with technical revolution.

Information technical revolution bringing communication revolution is deeply altering the power pattern of China’s charity as sudden as lightning. Mobile internet and new media meet demand of transparency, alternative and immediacy of charity donation, which provides a  unprecedentedly convenient condition for the normal public to get involved in welfare activities.

As ‘china website donation research report’ showed that, for now there are 560 million Chinese netizens having taken part in the online donations. This means individuals and organizations that hold smart-phones have the equal rights and opportunities to join in the distribution of charity resources. However, in the power of redistribution of “new media given rights”, the winner must be those non-profit organizations that owe higher credibility and efficiency, catching up with technical revolution.

Redistribution of power in charity filed.

Recently,'charity'has always been a sensitive word. From official charity affairs being doubted by the public to the civil organizations being exposed for not obeying regular operations by supervisors which need to disclose their information, China's charity is experiencing tough period under the pressure of official and civil.

Where is the money from? And how to spend them?

Fifteen years ago, China's charity joint-association deputy chairman, Narada foundation's president of a council Yongguang Xu once wrote an article, said that internet charity, the selection of donation in internet charity and transparency and convenience are greatly beneficial to those merit charity organizations obtaining resources, so as to the participation of general public.

In the view of 'god-father' Xu, there are three factors of the value of  internet charity. First of all, alternative, you are free to choose the project that you like via internet. Then, convenience, the payment is convenient, followed by transparency factor.

Fifteen years later, those three factors become the truth. Xu considered that internet charity has a great advantage on public participation, and individuals and firms that donate something have six rights.

Firstly, you are free to choose donate or not, which means it is all freewill. As long as you pay the tax, you are seen as completing your obligation.

Secondly, you own the right to choose a organization you want to and it is all your will.

Thirdly, you own the right to choose a project you are interested in, which means that you can select some areas that you pay more attention to.

Fourthly, you own the right of supervising the usage of your money.

Then, you own the right of asking invoice from the organization. Because if you get the invoice, you achieve the last right, which can be deducted before taxing.

The development of information technology is changing the world,present and future of China's charity business.

Internet, mobile internet, communication of new media, internet fiance and the rising of sensor technique on internet of things bring a pair of wings for civil charity, personal charity and micro-welfare.

The micro-welfare of Sina platform show online in 2012, and its slogan is that ‘equally satisfying every user’ s help-seeking and caring’, which correspond to the aim of internet micro-welfare.Up to 31st March in 2014, the platform of micro-welfare has continually assisted charitable organizations starting the number of 10147 events and helping raising donations up to 2100 millions; Among them in the year of 2013, within 72 hours for supporting Ya an earthquake, the platform raised donations over 100 millions for 32 micro-welfare projects from 16 public-raising foundations. The micro-welfare attracts over 1700 millions of users contributing their compassion via different ways.

Tecent micro-welfare is aimed at creating a social charity platform, starting‘ monthly donation’, and‘happy to donation’ projects. Until September in 2013, the achievements included 32600 shares of free lunch, 150 thousand loving nutritional bags, 40 thousand cotton clothes, new shoes, bedding sets, 834 thousand fruits trees and tea trees, 133 book-stores, living and studying expenses of 4000 students, 10000 bags and offering help for 4300 unhealthy children who are living in the poverty and some people with cataract.

 Building up Internet micro- welfare and platform of happy to donation is a revolution in the field of charity. It provides a great convenience to the public who are willing to join in charitable activities, choose the interested donation projects and organizations as their own wish. Apart from that, users even can launch and design their own projects, cooperating with charitable organizations. The era of everyone joining in the charity becomes true. Through the communication of internet and new social media (like Webo, Wechat), applying internet financial instruments, cloud management and big data management, the ability of charitable events management on efficiency and disclosure has improved a lot. 

The era of mobile internet offers a redistribution of power in the area of charity, civil organizations gain a chance to more equally compete with large charitable organizations based on the same platform. It is possible that the model of Dengfei can be copied.  

4G changes the current situation of charitable spreading. 

In 1999, Yongguang Xu predicted the relationship between internet and charity in the article of ‘cheer internet, embrace new life’, which said that internet provide a positive qualification to non-profit organizations in the aspect of advertising and projects’ introduction, and the public can make contribution through internet, what’s more, those non-profit organizations have great influence and gain a merit reputation will grow up rapidly due to the multiple choice , convenience and transparency of online donation.

The prediction of fifteen years ago becomes true now. 

Even though these thoughts become true, Yongguang Xu still argue that the information level in the filed of charity is still low in China. He said that it even can not compare with a retaining store in my residential area. For example, when I order a bucket water in the store, I will immediately receive a text message that wrote some other items that they sell and welcome to buy. However in China, there are over two thirds foundations not having their website, which called it as ‘removing information survival’. It shows that the whole sector lags behind and many organization still do not want to make any changes. 

If the era of 3G communication drives the rising of image-text and voice social application software like Webo and Wechat, what changes will happen for the coming of 4G? 

The advanced industry researcher and analyst Juan Luo points out that microvision products will connect with mobile social platform(Webo and Wechat), which will open a brand new time. Also, 4G changes the problem in the parts of service of donator and spreading.

Juan Luo think that, from the scandal of Meimei Guo to the event of donating remains of a lay-dying youth, which the red cross can not deal with that in person, China’s foundation is always standing in the edge of the storm. The world changes so fast. The time of 4G changes social contact and communication. Meanwhile, charity is communication and vice versa. If foundation is unchanged, it will be marginalization and the acceptance of that foundation will decreasing among people. 

Even though the biggest change in the era of 4G is the communication of video, China’s nearly 3000 foundations are not capable of having such ability of visual communication according to the current condition. In the view of Juan Luo, 4G era will bring 3 barriers for foundations.

To start with transparency, the requirement of transparency has improved a lot not only on some revenue and cost data table that published on the website, but also on the display of vision record.

Next, the barrier is profession. Currently, the items of charitable donation are rough. Let us take the major disaster that people usually donate tents as example. That sometimes can not adapt to the actual situation of disaster assistance. In the rescue of Ya an earthquake, the high temperature in the tents over 35 degree centigrade plusing the wet climate can not make people fall asleep. So, it waste the resource.

Eventually, it should be the participation. The demand of participation of donator increasingly climbs a lot in the 4G era. One the one hand, donators want to take part in the specific activities. On the other hand, current foundations still do not have a perfect managing platform providing donators with a reasonable participated model. 

Promoting the construction of transparency in the field of charity.

According to the prospective research institute that published a statistic research named analysis of foundations’ sustainable operation and development model in China during the year 2013 to 2017, with the publishing of Regulation on Foundation Administration, the number of non-public offering foundations substantially rise and the annually increasing ratio can reach above 30% after 2005 compared to public offering foundations in same that just take up 10%. Up to the end of 2012, there were 3029 foundations all over the country, which increased 415 foundations and its rising ratio is 15.9%. Up to the end of July in 2013, the sum of foundation reach to 3249 in our country. Among them, the number of national foundations is 186, which accounts the total sum for 5.76% while the amounts of local funds are 3062. 

On 5th March 2014, Premier Li Keqiang pointed out in the report on government work that ‘support the development of charitable enterprise, let everyone in the trouble get the caring and mildness from society.’ This was the first time to clear the opinion of insisting the charitable enterprise and related indication showed ninth time since 2005 in the government  working report.

The 2nd board of president Wehua Gao from One Foundation said that for the problem of charity development, thinking highly value of Premier government working report, it was a signal which has a great impact on the development of this field. He also considered that the experience from developed countries indicates that to develop charity enterprise has become ‘an effective medicine’ to relieve the pain in the society in the time of expansion in the gap between rich and poor. In the developed countries, they called charity enterprises as a redistribution in the third time and an important motivation of boosting consuming, promoting employment and driving the economy. At the same time, Gao was looking forward the introduction of some charitable law and policy and suggested that introducing trust mechanism especially the independent third- party in trust and professional investing managing mechanism was an encouraging approach to improve charity management, adding concept of business and experience into charity, which promoted the construction in the aspects of transparency and credibility of charity.