PwC, CPRI co-de­velop char­ity eval­u­a­tion sys­tem

China Daily (Hong Kong) - - BUSINESS - By ZHANG YU zhangyu1@chi­nadaily.com.cn

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.

per­cent

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.

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