Digitising Chinese charity
More people are making charitable donations in China, particularly with the advent of mobile payment systems that make it more convenient to donate to those in need. However, while charitable giving in China is up by about two-thirds since 2011, it is still very low by world standards.
While this may relate to a difference in the definition of charity – as Chinese giving often takes place within personal networks rather than in the public sphere – enduring government restrictions on charities (particularly foreign ones) continue to inhibit the generosity of many Chinese people.
In 2016 Chinese gave away sums equivalent to about 0.2 per cent of their country’s GDP, whereas Americans donated more than 2 per cent. As such, China placed second-to-last among 140 countries in the 2017 World Giving Index compiled by the Charities Aid Foundation (CAF), a British NGO that ranks countries based on the percentage of their population who say they donate their time or money to others.
It was only in the 1980s that historic government restrictions on charities in China began to be loosened and big state-backed charities were cleared to operate. However, the impressive involvement of independent charities in the disaster response to the 2008 Wenchuan earthquake in Sichuan encouraged many Chinese people to open their wallets to support smaller charities.
Despite its improved attitude towards large charities, the government continues to be selective about the types of organisations to receive charitable status. While it supports groups that care for people without food, clothing or shelter, charities that advocate for gay rights or against sexual harassment, for example, still find it hard to get official approval.
This could be one reason for the success of charitable donations via mobile payment platforms – such as Tencent Gong Yi, Ant Group Gong Yi, and Taobao Gong Yi – that Chinese people can use to make direct donations towards gong yi, or “public welfare” charities of their choice. These platforms have been particularly popular for encouraging micro-donations on a massive scale.
While most charitable donations are from companies, it is individuals – particularly those in their 20s and 30s – who have become enthusiastic about digital philanthropy, using mobile devices to raise 1.3 billion yuan (Bt6.2 billion) in 2016, more than 70 per cent of that year’s total donations.
Closer to home, there is also a promising increase of e-donation platforms in Thailand. In the same CAF Index, Thailand was ranked 16th, reflecting a generous society driven by a strong Buddhist culture. While some new digital platforms are available for Thais making donations, greater familiarity with and trust of e-payments would help in ensuring Thailand’s culture of giving can be fully harnessed digitally.
For more columns in this series please visit www.bangkokbank.com.
