China Foundation for Poverty Alleviation China’s NGOs and Poverty Reduction Wang Xingzui Executive Director China Foundation for Poverty Alleviation

Main Contents 1. History of China’s NGO Development 2. Classification of China’s NGOs 3. Fundraising of China’s NGOs 4. A General Profile of NGOs’ Poverty Reduction Efforts National, local and overseas NGOs and Their Projects in China 5. Case Study: China Foundation for Poverty Alleviation (CFPA) 6. Roles of China’s NGOs in Reducing Poverty

I. History of China’s NGO Development Since the PRC was established in 1949, the development of NGO has experienced 3 periods: From 1949 to 1977 : Government-operated NGOs From 1978 to 1994 : Fast development period From 1995 to present: Regularized development

I. History of China’s NGO Development From 1949 to 1977: Government-operated NGOs During this period, China was implementing the planned economy system, no real NGOs existed and no related laws formulated to manage NGOs in the period. However, for the political needs, some government-operated NGOs were founded in the name of social association or people’s organization.

I. History of China’s NGO Development There were fewer than 100 National NGOs, mainly including: All China Federation of Trade Unions All China Women’s Federation Communist Youth League of China China Young Pioneers Red Cross Society of China All China Federation of Industry and Commerce All China Federation of Returned Overseas Chinese Chinese Writers Association China Federation of Literary and Art Circles

I. History of China’s NGO Development Locally, there were about 6000 NGOs of this kind. Most of them were the branches or subsidiaries of the above-mentioned National NGOs.

I. History of China’s NGO Development From 1978 to 1994: Fast development period During this period, China began to carry out the policy of reform and opening-up, China’s NGOs entered the period of fast development. The establishment of China Children and Teenagers’ Fund in 1981, the first Chinese NGO in its true meaning. A total number of 165,000 NGOs were legally registered in China by the end of last century. The most prestigious Chinese NGOs were founded in this period.

I. History of China’s NGO Development During this period, NGO management was not yet on legal track, though Chinese government had formulated some preliminary legal documents such as Rules for Foundation Management issued on September 27, 1988 and Rules for NGOs Registration issued on December 25, 1989.

I. History of China’s NGO Development From 1995 to present: Regularized development With the development of the China’s society and the establishing of NGO legal systems, China’s NGOs entered into the period of regularized development; By now, the legally registered NGOs total 289,000, of which, there are 1016 foundations and 135,000 non-profit organizations.

I. History of China’s NGO Development During the period, Chinese government formulated laws such as: Temporary Rules on Non-profit Organizations issued on October 25th, 1998 Donation Laws for Public Welfare of PRC issued on 1999 and Bylaw on Foundation Management issued on June 1st, 2004. And the Law for Promoting the Charity Cause of PRC is being formulated.

2. Classification of China’s NGOs (1) Characteristics of China’s NGOs (2) Classification of China’s NGOs (3) NGOs involved in poverty reduction efforts

2. Classification of China’s NGOs (1) Characteristics of China’s NGOs The mere 20-year development and China’s political structure has shaped a special environment for China’s NGOs: Legal Characteristics Management Characteristics Internal Characteristics

2. Classification of China’s NGOs Legal Characteristics The construction of legal system on NGOs lags behind and a complete legal system on NGOs is not yet formed. Current laws and regulations are mostly based on control and supervision, and do not specify NGOs’ rights and obligations.

2. Classification of China’s NGOs Legal Characteristics Some laws and regulations are not favorite for NGO development such as donation law in which only 3% of the enterprises’ before-tax income donated can be exempted from income tax. This reduces the donation enthusiasm of enterprises. By now, only 12 NGOs have the right to accept the donation which is fully exempted from income tax.

2. Classification of China’s NGOs Management Characteristics Double-track management NGO’s establishment and activities must be under the double approval and management of department of civil affairs and department of business management. High threshold for registration A lot of NGOs fail to be registered under the double-track system and the registered NGOs become subsidiaries of their business management departments and lose their own independence.

2. Classification of China’s NGOs Internal Characteristics Most Chinese NGOs have the following characteristics: Irregular internal management Weak capacity Insufficient self-discipline Transparency: a problem Poor credibility Sustainability remains a question

2. Classification of China’s NGOs According to its basic characteristics of emergence and development and relations with government, China’s NGOs can be divided as followings: Government-operated NGOs (GONGO) Market-based NGOs Grass-root NGOs

2. Classification of China’s NGOs Government-operated NGOs. There are two types: Type I: NGOs are quasi-government organs, which are directly derived from government organs and still possess management rights on certain trade such as China National Light Industry Council China National Textile And Apparel Council . Type II: NGOs are initiated or directly controlled by the government or NGOs have the resources monopoly privilege endowed by the government such as: Red Cross Society of China China Charity Federation China Disabled Persons’ Association

2. Classification of China’s NGOs Market-based NGOs NGOs had governmental background but have grown up in the reform process and are able to carry out their activities independently. Though they are not large in quantity, this type of NGOs have larger scale, stronger ability and more extensive social impacts.

2. Classification of China’s NGOs The market-based NGOs are the main force in China’s charitable field. China Youth Development Foundation China Foundation for Poverty Alleviation China Children and Teenagers’ Fund China Women Development Foundation China Association for NGO Cooperation

2. Classification of China’s NGOs Grass-root NGOs There are two types of grass-root NGOs Type I: NGOs have the legal status such as: Association for Rural Development of Yilong, Sichuan

2. Classification of China’s NGOs Type II: NGOs that are registered with the commercial and industrial administration departments such as: Globe Village of Beijing Xingxingyu Education Research Institute China NPO Network a large number of grass-root NGOs which have not been legally registered but are very active in rural and urban communities.

2. Classification of China’s NGOs (3) NGOs involved in poverty reduction efforts It is estimated that there are nearly 100 NGOs involved in poverty reduction efforts and about 20 are at the national level. They can be categorized into three types: Full-time professional poverty reduction NGOs Intermediary poverty reduction NGOs Part-time poverty reduction NGOs

2. Classification of China’s NGOs Full-time Professional Poverty Reduction NGOs There are over 50 professional poverty reduction NGOs including national and local foundations or development associations for poverty reduction and some grass-root NGOs. These NGOs directly target the poor population in China’s rural areas and, among which, the biggest are China Foundation for Poverty Alleviation and China Association for Poverty Alleviation and Development.

2. Classification of China’s NGOs Intermediary Poverty Reduction NGOs They mainly provide intermediary services to overseas or domestic organizations or enterprises involved in poverty reduction in China The most famous NGOs of this kind are: China Association for NGO Cooperation Poverty Reduction Relaying Plan of China Young Volunteers Association.

2. Classification of China’s NGOs Part-time Poverty Reduction NGOs Over 20 such NGOs in China They target poor and vulnerable groups in extensive fields such as education, health, population, environment protection, women, children, ethnic minorities and urban unemployment.

2. Classification of China’s NGOs The famous NGOs of this kind are: China Youth Development Foundation China Children and Teenagers’ Fund China Women Development Foundation The Amity Foundation China Vocation Education Association China Foundation for Population and Welfare China Disabled Persons’ Federation

3. Fundraising of China’s NGOs (1) In China, the annual donation to charity only accounts for 0.1% of its annual GDP

3. Fundraising of China’s NGOs (2) The funds raised by China’s NGOs is rather small and since 1980s, total charitable fund raised by NGOs annually amount to 5 billion yuan (USD 525 million) The largest NGOs only have an annual income of 100 million yuan (USD12.5 million) . For example, China Foundation for Poverty alleviation raised 182 million yuan (2005) China Youth Development Foundation 105.2 million yuan (2004) China Charity Federation 80 million yuan (2004)

3. Fundraising of China’s NGOs (3) Most of the donation to China’s NGO are from overseas organizations or institutions. For example, 80% of donations to China Charity Federation in 2002 were from overseas donors and almost all the donations to China Association for NGO Cooperation are from overseas market.

4. A General Profile of NGOs’ Poverty Reduction Efforts National, local and overseas NGOs in China and their poverty reduction projects

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Charity Federation Founding year 1994 Total Income 1.8 billion yuan by the end of 2004 Main Achievements Except the main project of disaster relief, the Smiling Train project provides surgical services to patients in poor families, which has benefited 6000 patients among 30 provinces and raised 230 million yuan. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Youth Development Foundation Founding year 1989 Total Income 2.732 billion yuan Main Achievements Main projects include Project Hope, Action on Protecting Mother Rivers, Action on Red Ribbon. The Project Hope has financially supported 2.75 million poor students, built 11,888 hope primary schools and 150 internet schools and trained 19,000 rural teachers. Project Areas Nationwide with focus on poor rural areas

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Women Development Foundation Founding year 1988 Total Income Main Achievements Main projects include Mother Water Cellars, Healthy Mother Express and projects to help dropped-out students and women microfinance. The Mother Water Cellars project has built nearly 90,000 water cellars and 1,100 water supply projects which benefited millions of people, of whom 65% are women and children. Project Areas Focusing on western China

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Children and Teenagers’ Fund Founding year 1981 Total Income 600 million yuan by the end of 2004 Main Achievements Main projects are Spring Bud Plan and Ankang Plan. The former has helped 1.5 million poor girls and built 300 Spring Bud Schools; the latter has built 604 Ankang Classrooms, 12 Ankang Families, 380 Ankang Long-distance learning classrooms and 9 Ankang Computer Classrooms and helped 241 Children with weak eyesight to be treated in Beijing, 98% cured. Project Areas Nationwide with focus on poor rural areas

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Legal Aid Foundation Founding year 1997 Total Income 80 million yuan in 2004 Main Achievements It provides legal assistance to poor and vulnerable groups. Over the past years, it has provided legal assistance to 1 million cases and legal services to 1.55 million people. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Disabled Persons’ Federation Founding year 1988 Total Income 370 million yuan by the end of 2004 Main Achievements It provides medical treatment, vocational training and living support to disabled people and nearly 20 million disabled people benefited from its various projects. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Association for NGO Cooperation Founding year 1993 Total Income 11.08 million yuan in 2003 and 11.66 yuan in 2004 Main Achievements It managed 26 projects in 2004 related to poverty reduction, environmental protection, woman’s rights and NGO capacity building etc.. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts National NGOs Name China Foundation for Poverty Alleviation Founding year 1989 Total Income 1.5 billion yuan by the end of 2005 Main Achievements More details will be introduced later Project Areas Nationwide with focus on western rural areas

4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs Name The Amity Foundation Founding year 1985 Total Income 800 million yuan Main Achievements Main projects target rural teachers, drop-outs, poor college students, immigrant workers’ children, orphans, women, people living with HIV and poor rural residents. Project Areas Nationwide with focus on western areas

4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs Name Association for Rural Development of Yilong County, Sichuan Founding year 1996 Total Income Funds come from UNDP and a German NGO Main Achievements Main projects include micro-finance, rural community development, farmer’s training courses, drinking water and pig breeding. At present, there are 70,000 members in the association. Project Areas Yilong County

4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs Name Yunnan Health and Development Research Association Founding year 1994 Total Income USD 700 thousand which is mainly supported by Ford Foundation Main Achievements Focusing on Reproductive health and women participatory projects. Project Areas Yunnan Province

4. A General Profile of NGOs’ Poverty Reduction Efforts Local NGOs Name Beijing Sun Village Research Institute for Helping Special Children Founding year Total Income Public donations and self-generated income Main Achievements Nursing and educating children of prisoners free of charge. At present, it has adopted 113 children. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Ford Foundation（US） Entry Year 1988 Investment Annually USD 12 million Main Achievements Support 5 projects of reform of legal system, sexual and reproductive heath, environment and development, economic reform and its social influence, education and culture diversity Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Heifer Project International （US） Entry Year 1985 Investment Annually USD 288,000 Main Achievements Donating high quality livestock and training farmers with advanced technology. Project Areas Central and western China

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Islamic Relief （UK） Entry Year 2002 Investment Annually EUR 200,000 Main Achievements Disaster relief, Drinking water, rural community development Project Areas Gansu, Shaanxi, Xinjiang

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Kadoorie Charitable Foundation (HK) Entry Year 1997 Investment Main Achievements Microfinance, recovery of disabled people, health education, HIV prevention, rural community development. Project Areas Central and western China

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Mercy Corps International（US） Entry Year 1999 Investment Nearly USD 1 million annually Main Achievements Microfinance, disaster relief, training on local NGOs Project Areas Fujian, Guizhou, Shaanxi and Sichuan

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Misereor Foundation（Germany） Entry Year 1980s Investment Main Achievements Rural community development, social welfare, HIV education and prevention and training on social workers. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Oxfam Hong Kong Entry Year 1987 Investment Annually USD 3 million Main Achievements Rural community development, education, HIV prevention, women and NGO capacity building. Project Areas Nationwide with focus on western China.

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Plan International（Europe） Entry Year 1995 Investment Annually USD 3 million Main Achievements Target group is children. Projects in China include maternal and infant health training, children vaccination, education support, women microfinance and drinking water. Project Areas Shaanxi and Beijing

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Save the Children （UK） Entry Year 1988 Investment Annually EUR 3.5 million Main Achievements Care and support to disabled children including children education methods, orphan adoption, care about HIV children and anti-trading of children. Project Areas Nationwide, focusing on Anhui, Tibet, Yunnan, Xijiang

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Action Aid（UK） Entry Year 1998 Investment Annually USD 400,000 Main Achievements Projects include food safety, drinking water, livestock breeding, women health and participatory poverty reduction projects, rural community development and training on immigrant workers. Project Areas Beijing, Hebei and Guizhou

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name PlaNet Finance （France） Entry Year 2002 Investment Annually EUR 175,000 Main Achievements Microfinance project. It has trained 250 credit officers, built 20 project websites and provided computers to 33 projects. Project Areas Nationwide

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Salvation Army (HK) Entry Year 1988 Investment Annually HKD 2.2 million Main Achievements Disaster relief, rural community development, HIV prevention, basic education and environmental protection. Project Areas Yunnan, Inner Mongolia, Anhui, Hubei and Hebei

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name Sowers Action（HK） Entry Year 1992 Investment Annually USD 2.2 million Main Achievements Support basic education. Financially assisted 146 thousand primary students, reconstructed 400 schools, rewarded outstanding rural teachers and supported training program on rural teachers. Project Areas Guangdong, Guizhou, Hunan, Sichuan and Yunnan

4. A General Profile of NGOs’ Poverty Reduction Efforts Overseas NGOs Name World Vision International （US） Entry Year 1992 Investment Annually USD 12 million Main Achievements Disaster relief; rural community development programs in 27 counties; Candlelight Project to support rural poor teachers and microfinance program for the urban poor. Project Areas Beijing, Shaanxi, Yunnan, Guangxi, Hebei and Guangdong

For Poverty Alleviation (CFPA) 5. Case Study: China Foundation For Poverty Alleviation (CFPA)

Contents Mission and History Organization Beneficiaries and Annual Income Programs Events Future Development

Mission help the poor people in the poor communities to enhance their capacity; upgrade basic production conditions and primary social service level; mitigate social sufferings and disturbances, to deliver love and charity and to promote harmony and civilization of the human society.

History: From a GONGO to a pure NGO I Founded as a GONGO

History: From a GONGO to a pure NGO II Reformed to become a pure NGO Independent in terms of finance and personnel

Our Organization

Organization CFPA has 80 employees at its headquarter and 200 full-time and 400 part-time employees in its field offices. CFPA has 9 branches and subsidiaries throughout the country

Beneficiaries & Annual Income In the past 17 years, CFPA raised nearly RMB 1.5 billion yuan for poverty reduction initiatives improving the lives of more than 3 million poor people

Programs At present, CFPA is implementing 5 brand projects Micro-finance Project Maternal and Infant Health Project The New Great Wall Project Project Angel Disaster Relief Project. In additional, we also have China Poverty Eradication Award, and HIV program is under design

6. Roles of China’s NGOs in Poverty Reduction (1) Provide additional funding support to the poor and vulnerable people Facilitate innovation of poverty reduction models and improve fund use efficiency (3) Promote accountability and progress of beneficiary participation and democracy (4) Policy impact

Thank you!