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September 21, 2012

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Ministry vows to improve transparency of charities

CHINA'S Civil Affairs Ministry yesterday pledged to improve the transparency of the country's charity organizations in a bid to rebuild their creditability.

The ministry would strictly carry out annual inspections of charity organizations, especially of financial records, Civil Affairs Minister Li Liguo said. He added that the ministry would try to engage third-party agencies to assess their performance in the future.

Li also promised to further promote the publishing of organizations' information.

"Not only the results of the inspections and assessments should be released ... but donations that attract attention should also be included in the publicity platform," Li said.

China's charity organizations suffered a blow last year, with its total public donations in 2011 dropping to 84.5 billion yuan (US$13.4 billion), down 18 percent annually. Donations to the Red Cross Society of China, in particular, fell 59.39 percent. That was mainly attributed to a scandal last June, when a young woman who claimed to work for an association affiliated with the RCSC, posted online photographs showed her lavish lifestyle. This led to speculation that charity money might have been embezzled.

While donations to official channels dropped, an emerging charity form called micro-charity, independently organized by users of social networking services, became increasingly popular in helping disadvantaged groups such as rural students.

Li said while such innovative acts deserve supports, public scrutiny is needed to ensure their "healthy growth."

Li pledged sound institutional mechanisms within the existing legal framework to promote the transparent operation of charity initiatives. New guidelines on charity activities had been drafted.





 

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