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Why Does China Lag Behind on Charitable Giving?
by Felicia Sonmez
China Real Time ReportToday, 3:42 AM
A new law on charitable activities aims to uncork China's untapped reserve of giving.
Despite propelling scores of freshly minted tycoons into the ranks of the global rich during the long economic boom, China lags behind when it comes to philanthropy. A new law on charitable activities aims to uncork that untapped reserve of giving. As WSJ’s Josh Chin reports:
The Charity Law, which is set for an almost certain “yes” vote by the legislature on Wednesday, would fill a legal void that critics say has led to corruption in the sector and driven some newly rich to hold back on giving.
When Jack Ma and his co-founder in Alibaba Group Holding Ltd. set up a charitable trust backed by share options in the e-commerce giant valued at around $3 billion, they did so in Singapore because, Mr. Ma said, rules in China are “not yet perfect.”
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Mr. Ma’s trust has struggled to spend the funds in China. “Giving donations to charities is more difficult than earning money,” he said in September while inaugurating a graduate program in social-enterprise management at Peking University that he helped fund.
For many would-be philanthropists the avenues for giving are narrow, with few trustworthy partners and little clarity on rules or incentives. The new law seeks to address such concerns by making it easier for charities to register and raise funds, allowing charitable trusts to be formed and expanding tax incentives for individual and corporate donors.
Read the full story on WSJ.com.
by Felicia Sonmez
China Real Time ReportToday, 3:42 AM
A new law on charitable activities aims to uncork China's untapped reserve of giving.
Despite propelling scores of freshly minted tycoons into the ranks of the global rich during the long economic boom, China lags behind when it comes to philanthropy. A new law on charitable activities aims to uncork that untapped reserve of giving. As WSJ’s Josh Chin reports:
The Charity Law, which is set for an almost certain “yes” vote by the legislature on Wednesday, would fill a legal void that critics say has led to corruption in the sector and driven some newly rich to hold back on giving.
When Jack Ma and his co-founder in Alibaba Group Holding Ltd. set up a charitable trust backed by share options in the e-commerce giant valued at around $3 billion, they did so in Singapore because, Mr. Ma said, rules in China are “not yet perfect.”
Advertisement
Mr. Ma’s trust has struggled to spend the funds in China. “Giving donations to charities is more difficult than earning money,” he said in September while inaugurating a graduate program in social-enterprise management at Peking University that he helped fund.
For many would-be philanthropists the avenues for giving are narrow, with few trustworthy partners and little clarity on rules or incentives. The new law seeks to address such concerns by making it easier for charities to register and raise funds, allowing charitable trusts to be formed and expanding tax incentives for individual and corporate donors.
Read the full story on WSJ.com.
