CRI听力:China's Foundation Development Report Unveiled

The Ministry of Civil Affairs has issued a new report on the development of China's Foundations this past year.

As CRI's Li Dong reports, the study shows China's foundations lack sustainable development strength.

In China, foundations are divided into two types: public foundations, which can raise funds from the public; and private foundations, which may not take public donations but rely entirely on funding from individuals or organizations.

According to the report, in recent years, private foundations have expanded more quickly than their public counterparts, surpassing public ones in number for the first time in 2011.

Figures from the report show by 2011, the country had nearly 1,300 private foundations, accounting for more than half of the total.

The report says as the number and scale of private charity foundations increase, they are gradually evolving into an important force for solving social problems, resolving social conflicts and promoting social development.

Liu Zhongxiang, deputy director of the non-government organization administration of the Ministry of Civil Affairs says the rising of non-public foundations brings more pressure to the public foundations.

"The large scale emergence of non-public foundations may give some pressure to the donations to the public foundations, because big enterprises and wealthy individuals tend to establish their own foundations. This requires the public foundations to have higher standards for credibility and to attract donations from the public."

The report indicates that China's foundations lack the strength to realize sustainable development.

Figures show that foundations' income comes mainly from donations. The report indicates that, currently, more than 90 percent of foundations' income relies on donations.

Ma Xin is the director of the foundation administration of the Ministry of Civil Affairs.

"This indicates that currently China's foundations lack the ability to live by themselves. Many overseas foundations don't rely on donations to maintain their operation and development. They mainly rely on assets investment."

Regarding foundations' expenses, the report shows that in 2011, the total expense of the foundations in China was about 29 billion yuan; more than 97 percent were used on public welfare. Only about 1 percent was spent on executive operations and staff salaries. Ma Xin says this restricted the development of the foundations.

"Foundation's budgets for development and training their staff are very limited. To some extent, it shows that the foundations' expertise development is restricted."

Figures from the report show the total assets of foundations across the country reached 78.5 billion yuan (nearly 12.60 billion U.S. dollars) in 2011, up about 30 percent year on year.

For CRI, I am Li Dong.