Jet Li, founder of One Foundation (HUANG BENQIANG)

Public involvment crucial

According to Li, One Foundation's private status has prevented it from direct public fundraising, and its lack of an independent bank account has led to other problems. The stress has taken its toll. "Within five or six months in 2007, all my hair went white from thinking about the various ways to carry [the organization] on," Li said.

The difficulties faced by One Foundation reflect the plight of philanthropy in China, especially that of non-governmental charities, in spite of rapid growth in the sector. According to statistics from the Ministry of Civil Affairs, at the end of 2009 there were over 1,800 foundations in China, with 991 public foundations (including the Red Cross Society in all provinces). Private organizations, which have only had a presence in the country since 2004, have boomed to over 800. However, Chinese philanthropic groups are hampered by an incomplete system of laws and regulations aimed at charities.

"China's charity field faces many challenges. But currently the most crucial one is the lack of a sound internal mechanism," said Wang Zhenyao in an interview with people.com.cn. He is the director of the One Foundation Philanthropy Research Institute at Beijing Normal University and was formerly director of the Social Welfare and Charity Department under the Ministry of Civil Affairs.

"In China, the general public tends to trust official organizations more than non-governmental organizations (NGOs). Government plays an important role in social causes, and many NGOs in China are underdeveloped," Jia said about the challenges facing China's private philanthropy groups. She thinks it is important to establish an independent decision-making mechanism for charitable organizations.

"We have long misunderstood the concept of 'charity.' Charity by nature should be run by the public and for the public. Government should only take its public responsibilities. It is not supposed to play a major role in charity," she said.

Growing Chinese charity

The low profile of Chinese tycoons in the philanthropy world has ignited hot debate about the future of Chinese charity. Many people blame the rich for being mean. On tieba.baidu.com, one of China's biggest online communities, a popular post written by "Charyleen" contended that the country lacks a tradition of charity. The poster also discussed historical reluctance over giving money because a family's fortune is meant for its descendants.

The generous donations by Chinese citizens after natural disasters somehow disproves such allegations. According to the "Report on Charitable Donation in China 2008" released by the Ministry of Civil Affairs, China's total charitable donations in 2008 hit a record high of 107 billion yuan ($15.74 billion). Much of this was in response to the February snow storms and Wenchuan Earthquake in May of that year. Pledges after the two major disasters accounted for 72.3 percent of total donations in 2008. 

"It shows that the hope for China's charitable cause lies in the general public," said Wang. In his view, Chinese philanthropy is underdeveloped because of systemic but also cultural barriers. "In some other countries, there are often activities to mobilize donations from everyone. Charity needs social atmosphere," he said.

Jia thinks the determining factor is history. "Philanthropy in America has a history of nearly 200 years. Compared to that, China's charitable [effort] is young," she said. According to "Giving USA," a report published by the Giving USA Foundation in the United States, donation to charitable groups nationwide amounted to $307.65 billion in 2008, accounting for about 2.2 percent of GDP. In China, even in 2008 when donations reached their peak, this only accounted for 0.36 percent of GDP. Chinese philanthropism still has a long way to go, she said.

Jia remains optimistic. She believes policies directed at private charitable groups will improve in the future. "Now there is a growing public awareness toward private philanthropy, and our country is revising regulations on charity," she said. "In the future, public fundraising should – and will – be open to private charities. It's just a matter of time."