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Donations nosedive 90% after Red Cross's trust crisis

Donations to Chinese charitable organizations in June to August nosedived nearly 90 percent compared to March-May period, after the Red Cross Society of China was embroiled in a trust crisis.

The amount the charitable organizations received from June to August stood at 840 million yuan (US$131 million), a sharp decrease from 6.26 billion yuan recorded in March to May, according to the Ministry of Civil Affairs, the Beijing Times reported today.

The credibility of the Red Cross was put on the line after a young girl boasting her wealth and lavish lifestyle online claimed to be the general manager of the "Red Cross Commerce" in June.

Meanwhile, donations made directly to the people in need shot from 39 million yuan in March-May to 127 million in June-August, reflecting people's distrust in charitable groups, an official with the ministry told the newspaper.



 

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