PwC, CPRI co-develop charity evaluation system
An online self-evaluation system for Chinese charitable organizations was launched recently. It aims to help charities promote openness and transparency in their operations and fundraising.
The system was launched by PricewaterhouseCoopers International Limited, a multinational network of firms that provides services in assurance, advisory and tax, and was co-developed by the China Philanthropy Research Institute.
The self-evaluation system includes 57 questions about charities’ aspects like financial information, management and level of development.
The questions were selected based on national regulations and policies.
After answering all the questions, a charitable organization can see whether its transparency report is aligned with policies, and if the report can communicate the organization’s information clearly and adequately to the public, donors and recipients of the charity’s services and funds.
The self-evaluation system is the first of its kind in China, said Cheng Fen, a researcher at the CPRI.
According to Cheng, Chinese charities are becoming increasingly transparent about how they have used donated money.
“More than 90 percent of the charities in China are telling the public about what they do with donations received,” Cheng said.
But many of them are not doing it thoroughly, she said.
According to a report on last year’s transparency in nongovernment philanthropic organizations, the average score of the organizations’ transparency was 32.44, higher than before but much lower than the maximum score 100.
“More than half of the organizations got a zero on revealing financial information,” said a report in Southern Weekly.
the share of donors that check out a charity’s credibility before they donate to it
Serious charity-related scandals in recent years had shaken the public’s confidence in philanthropic organizations.
According to Cheng, 94 percent of donors check out a charity’s credibility before they donate to it.
China enforced its first law on charity in September, in order to promote and regulate the development of the field.
The Charity Law stipulated that philanthropic organizations should reveal financial information in a timely manner, and account for how and where the donations are used.
“Having recognized how important transparency is for charities to gain credibility, we launched the system to help them improve their levels of transparency and openness, “said Callum Douglas, the director of The Social Responsibility Department of PwC China.