Have foundations become an independent sector in China? Exploring the links between foundations and the state

Abstract

The Regulations on the Management of Foundations (2004) potentially marked a watershed in the development of foundations in China. Many practitioners and researchers believe that, since then, foundations have become an independent sector with significant characteristics. This note addresses this matter, based on available data from various sources. It counters the belief about the independence of foundations by indicating that most are state-linked, with state-granted privileges in choosing their fundraising status and the policy areas in which they work. Their state connections serve, at least in part, to explain their structures and modes of operation.

Keywords:

• foundations
• fundraising status
• state-foundation relationships
• China

Acknowledgements

Specials thanks to Ji Ma for checking and improving data accuracy, to Lingxiang Sun for research assistance, to the volunteers at the Research Infrastructure of Chinese Foundations for their continuous data support, to the Zhejiang Dunhe Foundation for its financial support, and to the Beijing Yifang Foundation for its Jinge Fellowship.

Notes

1. In China, “social organisations” are formally registered non-governmental organisations comprising social associations, social service organisations (formerly known as civic non-enterprise institutions), and foundations.

2. The annual number of foundations recorded by the RICF (Ma, Wang, Dong & Li, 2017) is similar to that recorded in the Chinese Statistical Yearbook (2016). For 2014, the two sources report 4,229 and 4,117 foundations, respectively. The data set on state-links created for this note is accessible at: http://doi.org/10.13140/RG.2.2.35141.55525.

3. Literature on corporate charitable donations in China highlight the extent to which the political ties of entrepreneurs with government officials, their membership in political organisations such as the People’s Congress, and the quality of market institutions at the provincial level all significantly affect the decisions of entrepreneurs and firms on whether to donate and the size of the donations (Ma & Parish, 2006).

4. The justice and courage foundations praise and reward individuals who save lives, prevent and stop crime, and return lost property to owners or the police.