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March 29, 2009

Association of Fundraising Professionals
Fund-Raising Lessons From China

American fund raisers may have a few things to learn from their counterparts in Chinese nonprofit groups about cultivating corporate philanthropy, said presenters at a session of the annual conference of the Association of Fundraising Professionals in New Orleans.

“The 80/ 20 rule is alive and well in China” said Vivian Ann Smith, a consultant at Liberty Quest Enterprises, who was among 28 fund raisers who toured China and Hong Kong in December to meet with representatives of local charities through an exchange sponsored by the fund-raisers association and People to People’s citizen ambassadors program.

But, she said, while North American nonprofit organizations may rely on individuals for 80 percent of their support, Chinese organizations receive 80 percent of their support from corporations and foundations, and only 20 percent from gifts by individuals.

“There’s a big conversation in China about corporate social responsibility,” said Barbara Talisman, a fund-raising consultant.

And some groups, she said, are using that dialogue to build strong relationships with multinational corporations operating in the region. The Hong Kong Council of Social Services, for example, has helped quantify and market companies’ charitable engagement through a competitive “caring company program” that honors 1,700 companies for their support of volunteering, their efforts to provide mentors to young people, and their donations to charity.

By contrast, said presenters, efforts to raise money from individuals are much less developed in China, although the 2008 Sichuan province earthquake may have opened opportunities for nonprofit groups by helping shift the culture of giving from family and village-based networks to broader national causes.

Some organizations have had success raising small amounts from individuals through text-message fund raising, which circumvents some of the fund-raising challenges posed by an unreliable postal system and a tendency of the National Bank of China to retain or divert small amounts intended for charity.

But, said Timothy Burcham, vice president for advancement at Kentucky Community and Technical College System, there are many untapped opportunities to cultivate wealthy Chinese donors with the ability to give large stock or cash gifts. “The place for opportunity in China is individual giving,” he said.

— Paula Wasley

Sunday March 29, 2009 | Permalink

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