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1. INTEGRATION OF BUSINESS AND
COMMONWEALAND CHALLENGES
IN THE ERA OF CHARITABLE
ECONOMY
Wang Zhenyao
China Philanthropy Institute of
Beijing Normal University
Nov. 03, 2014
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2. Convergence of Charity and Business
2
I, Mankind has entered the
era of charitable economy.

3. Turning Point of World
Economic Development
• According to World
Bank data, in 2001,
world GDP was
$32.3467 trillion;
• In 2011, it was
$70.0204 trillion;
• In 2012, it reached
$72.4404 trillion.
• In 2001, world GDP per
capita was $5,301;
• In 2011, it was $10,040;
• In 2012, it amounted to
$10,281;
• Starting in 2011, the
entire human race
entered the era when
GDP per capita reached
ten thousand US dollars.
3

4. Human Civilization Entered
a Major Transition Period
• In 2011, world GDP
reached $70.0204 trillion;
• Meanwhile, GDP per capita
reached $10,040;
• This is the first time in
human history to achieve
such a high social level;
• Significant changes have
taken place in the world
situation.
• Companies in Chinese
mainland have also
entered into a
transition period;
• Society there is in
transition as well: it is
entering a stage of ten
thousand US dollars
per capita.
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5. • In respect of economic composition, the tertiary industry
becomes increasingly developed. Generally, it accounts for
more than 70% in the United States, France, Britain,
Germany, Japan and other developed countries.
• In respect of industrial form, pension, health, tourism,
children education, etc. have become the pillar industry. In
2013, Chinese tourist arrivals reached 3.262 billion, and
total tourism spending was 2.6276 trillion yuan.
• In respect of development speed: in those countries whose
GDP per capita is more than ten thousand US dollars,
especially more than forty thousand US dollars, its
economic growth rate will tend to be less than 5%. In
recent years, development speed of the United States,
Japan and other countries is usually less than 3%; in 2013
it was even lower than 1% in Germany, France and Italy.
Economic Characteristics of Charitable Economic Times:
Affluence with No Growth
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6. The growth of wealth makes the entire
wealth of human race transfer from quantity
to quality, and closely integrates economic
and social responsibility.
Social Services with social values have
become the leading industry, and the world
has entered into the era of charitable
economy objectively.
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The World's Wealth Shifts
from Quantity to Quality

7. The Inherent Logic of Charitable Economy
Social value determines economic value
7
Economic
value
determines
social
value
Social
value
determines
economic
value

8. 8
social
services
economic
development
modern
charity
coincidence
New pattern: coincidence of economic development,
social services and modern charity; convergence of
business and charity!

9. The unprecedented
growth of modern charity
function
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II. New Development Pattern
of China’s Philanthropy

10. • Stimulate the vitality of social organization. Correctly handle
the relationship between government and society, and
accelerate the separation of the government agency from
social organizations to promote the latter play its role with
clear responsibilities and self-governance in accordance with
the law.
• - The decision of The Third Plenary Session of
the 18th Central Committee of the Communist Party (48)
Repositioning of Government and Social Policy
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China's new policy landscape:
Facilitate the generation of
a large community

11. • In 2012 and 2013, the government launched a
major reform to promote religious charities,
abolish authorities, and determine to purchase
social services from community organizations;
• Annual expenditure of private foundation is
over 100 million yuan! Laoniu Foundation
spent more than 140 million yuan in 2012;
philanthropists begin to promise more than ten
billions of donations!
• The rise of philanthropic entrepreneurship and
influential investment!
New Stage: positive interaction between officials and the people,
and a comprehensive reform is coming.
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12. 12
Economy
Soci
ety Politics
Society
Social Structure Transformation of
the Charitable Economic Times

13. 13
The total value of China’s all kinds of
donations was over 136.3 billion yuan
in 2013
“Total social donations in 2013 will exceed 110 billion yuan. This is the third time to exceed
100 billion after 107 billion yuan in 2008 and 103.2 billion yuan in 2010, and there is a
substantial increase over 2012."Yang Tuan, editor of Charity Blue Book and researcher at the
social policy research center of Chinese Academy of Social Sciences said: donations at all
levels of charity society and civil systems have substantial growth than in 2012. With the
funds to buy services of social organizations and the national volunteer service hours
conversion value, in 2013, the total value of all types of donations is expected to more than
136.3 billion yuan.
According to the reports, in 2013, the purchase of social organization services by the
government has become an important policy, both to promote the transformation of
government functions, and to open up important sources of funds for social organization.
Generally, the nature of government funds to buy social organization services can be
divided into three categories: special funds, budgetary and extra-budgetary funds. Funding
sources consist mainly of financial funds and lottery. According to incomplete statistics and
estimates of the Blue Book , the total amount of government funding in 2013 to purchase
social organization services is about 15 billion yuan.

14. 14
The age of large donations (more
than ten billions) is coming.
• According to “China’s Top 100 donator List“, from 2011 to
2013, a total of 20 donations were over two hundred million
dollars; a total of 54 were over 100 million yuan.
• In May 2012, Mr. Lu Dezhi has promised to donate 10 billion yuan
to Huamin Charitable Foundation in the next five years;
• In June 2012, Mr. Wang Wenbiao declared in "Rio + 20" meeting
to invest 10 billion yuan to Elion Foundation;
• In 2013, Hainan Airlines decided to donate shares of more than 8
billion yuan to Hainan Liberation Commonweal Foundation.
The Advent of the Era with Ten Billions of Donations

15. Development Situation for China
Foundation: One More Foundation Every Day
• In October 18, 2014, the total number of foundations was up to 4041, of
which 1,477 are public foundations, 2564 are private foundations;
• In December 2012, the total number of China Foundation officially broke
3000; In September 2014, there were more than 4000 foundations.
891
1056
1280
1533
1826
2213
2608
3009 3109
0
500
1000
1500
2000
2500
3000
3500
2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年3月
2006年3月，第1000
家基金会成立
2010年下半年，第
2000家基金会成立
2012年12月，第3000
家基金会成立
Changes in the overall number of foundations
In March 2006, the 1000th foundation was
established.
In March 2006, the 1000th foundation was
established.
In the second half of 2010, the 2000th
foundation was established.
In December 2012,
was established.

16. 2013, the First Year of
Pension Service
• • Social services, social
benefits, home environment,
etc. have been added into the
Old Age Security Act and
begin to implement;
• • The State Council issued
the Opinions on Accelerating
the Development of Pension
Services to make a
comprehensive plan for the
pension service system.
• Combine elderly welfare,
government investment and
enterprise development;
• Charitable business with social
values begin to develop in a
start-round way;
• Respect for the elderly has
become intrinsic pursue of
pension services businesses.
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17. The Basic Mission of
Chinese Modern Charity
• European and American
historical experience shows
that after the Industrial
Revolution, a wide range of
social charity campaign is
often needed.
• Britain began earlier, while
American philanthropists
profoundly shaped the
whole human civilization.
• Promote the transition of
economic system;
• Promote social reform to
become more benign;
• Establish a sound link
between the public and the
rich;
• Enhance social morality, and
promote the spirit of
volunteerism.
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18. How to fully reflect the social
value of business?
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III. Strategic Choice in
the Intersection of
Business and Charity

19. Can business leaders be involved in
charity to lead the trend of Chinese
social reform and reshape China's
commercial civilization?
• Learn the century-long
experience from the United
States;
• Establish universities,
hospitals, libraries, parks and
the like;
• Support social services,
volunteer services, and social
work.
• Corporate social
responsibility;
• Cooperation in global
charity;
• Organize pension and
children's causes;
• Develop social enterprises;
• Make influential investing.
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20. CHINA IS LOOKING FORWARD
TO THE CHOICE OF BUSINESS
LEADERS!
BUSINESS LEADERS ALSO
EXPECT FURTHER
TRANSFORMATION OF THE
CHARITY SECTOR!
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