Commercialization of the establishment of efficient charities

The issue of charity buried very deep. Harvard Business School master the management of Michael Porter said: "The general fund scandal took place in additional wages and benefits, but the real scandal is that there are a lot of money in the event of no effect. A lot of money has been wasted on inefficient On philanthropy. " He believes that charities can learn from the world of industry, which was progress. Many of the new generation of philanthropists leaders agree with him. In the next 20 years, there will be plenty of opportunities to make philanthropy more efficient.

Many of the new generation of philanthropists are also aware of the tradition of philanthropy efficiency is not high, they want their own applications, the world's best profit business principles in a charity cause changes in productivity. This has prompted the industry to adopt and adapt to people familiar with some of the world business jargon.

Philanthropists are talking about "social investment" and "the risk of charity" and "social entrepreneurs" and the "triple bottom line". The new methods of philanthropy is "strategic" and stressed that "market awareness" and "knowledge base" and often "a high degree of input", and always include donor funds "leverage" to maximize the Purposes.

"Leverage" of the new philanthropists are especially important. They know that regardless of personal wealth of the number in front of the Government's financial resources is still very small. In order to reflect the difference, they must focus their financial resources to the Government not involved in the field. However, not everyone is convinced that philanthropists must become more business-minded. Management scholar Jim Collins said, to a charity in the social sector to excellence, become "more like a business" was inappropriate.

However, even Collins has agreed to this approach - the money from philanthropist first submitted to the charities, to use the most in need of assistance. In recent years, many new enterprises and institutions set up and good luck combined with good management, will provide a charity of the capital market infrastructure and intermediaries, in order to provide an effective philanthropist way their money to those who "Social entrepreneurs" and other people who need the money - these newcomers, including a management consultant and research company as a "charitable investment bank."

At present, there is no market discipline to promote the adoption of innovative approaches philanthropist. In addition, the new philanthropists, and try to help them become more efficient innovators may find it harder to do than think. As the commercial business is becoming increasingly concentrated, charitable organizations are increasingly difficult to maintain its simple. International charity organizations responsible Bolalefu said, charity is the main part of the body, but that does not mean that it is pure. More and more enterprises shall cast from a base line (which is what has been done by the community) into the three bottom line - you (charity) for the company to do what? You have investors done? You what to do for the community?

In this case, both the company's philanthropy or charity, are faced with increasingly complex business environment. "Charitable business" is doing it gradually into the scope of the study.

In the UK, currently there are even two universities - South Bank University and City University Business School has "charitable business" in the MBA curriculum on the basis of the development to another subject - "MVA", including charity accounting and financial management , Charitable and philanthropic management, market specific charity programs.

South Bank University professor of strategic management that Bruce, the charity has been increasing business value. In the face of fierce competition, the charity must be good to do business planning.

Professor at Duke University, said the new philanthropists is not just money, the charity should be defined as - and the mobilization of private sector allocation of resources, including money, time, social capital and expertise to We have to improve the lives of the world.

The global elite is seeking to change the world, their approach is to a large amount of money and new ideas, business skills, marketing wisdom, beneficial to citizens and to mobilize the political link. All this will in some areas sounding the alarm. Well-known philanthropist George Soros hedge fund, a charitable organization in the role of being involved in a dispute. Philanthropy seems to be growing into a really hot "political potato."

Increase the wealth of opportunities for charity

Bill Gates - today's most prominent philanthropist, has donated 31,000,000,000 U.S. dollars to the "Bill and Melinda Gates Fund", used mainly to solve the world's poor health care issues. This generous act, so that Bill Gates and his wife were "Time" magazine nominated as a "man of the hour in 2005."

In the philanthropist Bill Gates and so on under the influence, the next generation of high-tech industry leaders have accepted the same moral standards. E-Bay auction site's founder Pierre Omidyar and the first CEO Fu Jie Haskell, each donated billions of dollars. Google founders Sergey Brin and Larry Page in their publicly listed company, announced that the search engine's stock and profits will be put into a charitable cause.

On the charity of this new enthusiasm to a great extent in recent years and the increase in the wealth created by the uneven distribution of the results. According to the "Forbes" magazine "in 2005 rich list" of statistics, the world's 691 billionaires, of which 388 are "self-struggle". These new rich are not involved in charity, there are many people in support of a number of public institutions, such as support for their alma mater.

However, more wealth is to create a large number of new charities. A recent report on the charity of "forward-looking" author Catherine Fulton said: "This is philanthropy in the development of a historic moment. If the new billionaires in 5-10 percent of the wealth to the people The imagination, then they will be in the next 20 years to change the face of philanthropy. "

Now, every look of the rich - from the billionaire New York Mayor Michael Bloomberg, the giant hedge fund and movie stars, are open for the charity of their wallet. These days, in Manhattan, 10 were in the fund-raising dinner table is the price of 1,000,000 U.S. dollars. There were more money into the charity, and play their traditional role - to use their fame to other people fund-raising. For example, movie stars Angelina Jolie refugee organizations to actively support the fund-raising activities.

Usually not very concerned about the philanthropy of the media, strongly commended for its generous donation of the billionaire, who denounced their view that mean the rich. The recently published "Business Weekly" lists of the past five years star charity, the founder of Intel Gedengmuer and his wife Betty in the first place, Bill Gates and his wife retreated to the second. Warren Buffett, the second largest in the world still rich in order to focus to make money, rather than come out to donate a large amount of wealth. But he said that in the event of their death, all the property will be donated to charity.

Enthusiastic about the charity is not just the U.S. billionaire, made a lot of money European entrepreneurs are also committed to philanthropy, they have British cosmetics chain Body Shop founder Anita Roddick and French hedge fund boss Appalachian De Basen. India's new rich, two high-tech company owner Emupulai Muji Nan Danni Le Kani and became enthusiastic philanthropist. China and Russia and even the new rich have become lovers charity. For example, the purchase of Chelsea Football Club's rich Russian Roman Abramovich come up with millions of dollars to improve the Kamchatka Peninsula, the living conditions of residents.

Have a strategic vision of the company will be able to tend to their own society and the emergence of a major event or a major accident linked. Experts have pointed out that with the marketing, the company's philanthropy is not the most important thing is that the number of inputs, the lies and be able to advance to seize the best time. The Indian Ocean tsunami, is one of the most obvious case in point.

A U.S. public relations firm Hill & Knowlton survey, in the disaster, the nation's largest 500 companies provided cash, supplies and other relief services to a total of 253,000,000 U.S. dollars. And all U.S. companies for tsunami donations add up, reached 750,000,000 U.S. dollars, or even more than the historical record - "9.11" incident of 682,000,000 U.S. dollars.

Rich and poor

These rich, why is it so generous? Many of the rich to donate very sensitive to doubt if they have a hidden political purposes or commercial purposes; or because of money and a sense of crime; or want duty-free concessions. However, the rich become so generous, there are a large number of admirable reasons, and the more important thing is to ensure that these contributions have been very good to use. Charities do a good job, can have an enormous beneficial impact. Former philanthropists such as Andrew Carnegie, John Rockefeller, Joseph Terry and the young William Wilberforce's achievement is evidence. If a new generation of philanthropists get it right, they can give to the world a huge impact. However, in order to achieve this goal, charities have to get rid of amateur and turned into a modern and efficient global industry.

In the past more than half a century, Americans on the charity's enthusiasm is very high. U.S. economists, high-Di Anni Klein will be divided into philanthropy to alleviate poverty and address the investment potential of the two sides of the issue. But in fact, these two lines are often blurred.

Over the years, many of the richest Americans, followed by Andrew Carnegie in 1989 of a "wealth" in the article as a blueprint designed to join the charity. The steel king of the view that growing inequality in wealth creation, social progress so that the inevitable process of price. He pointed out that the rich would be obliged to their wealth for charity, not to do so is the biggest personal failure was also a ignominious death of this.

Carnegie created the Carnegie Foundation was among the first group of modern charitable organizations, its commercial operation will be injected into the modern concept of charitable organizations which operate.

As a result, when compared with other developed countries, the United States has a high proportion of hospitals, libraries, universities and welfare organizations through private donations to raise funds established. Other developed countries to pay the government a lot of money, it is still difficult to satisfy public expectations. Of course, the difference may be exaggerated. The basic health of the U.S. investigation by the Government to raise funds, while the other hand, in the United Kingdom, the survey by the Wellcome Trust charity to raise funds. Recently, the British Government is trying hard to encourage the spirit of fraternity, and other European countries have also begun to follow suit. But as the world's wealthy to engage in charitable donations and influence a lot of people found out, the American model of the school's charity more and more serious defects. This is not only a donor's private affairs, because the United States for a charitable donation of a large tax breaks is also a question of public scrutiny. Charitable Fund of the United States occurred in a series of scandals, mainly over pay for work of the location of the fish for family members and other acts of extravagance and waste, has aroused the anger of the Congress, through the threat of more stringent laws and regulations. State Attorney-General also expressed these issues a great deal of interest.

Rely mainly on public donations to charities have been the mainstream of public attacks. As the American Red Cross will be "9.11" at the expense of families to raise money to be transferred to other uses have been exposed. In the event of the Asian tsunami and "Katrina" hurricane, the two responsible for the fund-raising, former President Bill Clinton and George HW Bush, who must give up the public's concerns and promised to oversee the use of funds.

Enron's collapse exposed one of the problems is that the company's philanthropy is also a very bad management. A manager of the company may not be illegal, the use of charitable funds to the accounts of the company's money to support business partners and members of the Board of Directors of the cause in order to curry favor with them.

Charitable donations towards commercialization

In the West in the middle of the rich and famous, donations have never been so fashionable. It is reported that the well-known search engine company Google recently hired online pioneer in the field, philanthropist Andrew Lalibuli to be responsible for the operation of charitable funds. Due to continued growth in the number of Monopoly, the charity is out of amateur sex has become more commercialized.

These rich, why is it so generous? Many people suspect that they have a hidden political purposes or commercial purposes. However, the rich become so generous, there are a large number of admirable reasons, it seems that charity is indeed become an increasingly hot in the "political potato."

Poor management of funds

In order to strengthen the first national anti-poverty funds management and improve efficiency in the use of anti-poverty funds, based on "CPC Central Committee and the State Council as soon as possible on food and clothing for the rural poor decision" (made in [1996] 12) and "State of the State Council issued on Seven-Year Priority Poverty Alleviation Program of the notice "(National Development [1994] 30), the development of this approach.

The second refers to the national anti-poverty funds to address the central problem of food and clothing of the rural poor, poverty-stricken areas to support the socio-economic development and special funding arrangements, including support for underdeveloped areas of economic development funds, "the West" special construction of agricultural subsidies, the new financial Anti-poverty funds, work-relief funds and special loans to help the poor. A third of the national anti-poverty funds should be in accordance with the overall objective of aiding the poor and demands the use of facilities, to form a concerted effort to play as a whole benefits.

Article IV of the national anti-poverty funds to be used in all major support from the state poverty-stricken counties, and these poor counties in the townships and villages, as families money, and the implementation of projects to benefit the target. Non-poverty-stricken counties scattered in isolated rural poverty, village, family and provinces, autonomous regions and municipalities to determine the poverty-stricken counties, by the local governments at all levels to raise their own funds for support.

Article V to support the economic development of underdeveloped areas and new financial fund anti-poverty funds, focusing on poverty-stricken areas to improve agricultural production conditions, and develop a diversified economy, the construction of rural roads, universal compulsory education and eliminate illiteracy, to carry out practical technical training of farmers , Prevention and treatment of endemic diseases, and so on.

"Three of the West," the building of agricultural subsidies in the management of special use, according to the Ministry of Finance, "" West "special subsidies of agricultural building to use the funds management" (Choi farmers words [1995] No. 10).

Work for the Dole funding for the construction of key county and township roads (not including the provincial, national) to help the poor and supporting the development of roads, construction of basic farmland (including grassland animal husbandry, forest fruit), farmland irrigation water to address the drinking water And so on. Special loans to help the poor, focusing on support for direct help to solve the food and clothing for the rural poor farming, aquaculture and agricultural products as raw materials for local processing industry of the good benefits, repayment ability.

Article VI of the local governments at all levels should be based on needs and possible increase in anti-poverty investment. Provinces, autonomous regions and municipalities to support the state's key poverty-stricken counties into anti-poverty funds, according to the regional level of economic development and financial status, should be accounted for to achieve the national anti-poverty funds total 30 percent to 50 percent. Of which: Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang, Inner Mongolia, Yunnan, Guizhou, Sichuan, Chongqing, Tibet, Guangxi 12 provinces, autonomous regions and municipalities where the ratio of matching funds should reach 30% to 40% ; Heilongjiang, Jilin, Hebei, Henan, Shanxi, Hubei, Hunan, Jiangxi, Anhui, Hainan Province, 10 local matching funds ratio should reach 40 percent to 50 percent.

Local matching funds amounted to less than the proportion of the preceding paragraph, will be central to next year to reduce the proportion of the province, autonomous regions and municipalities into the national anti-poverty funds; down to reduce the country's anti-poverty funds, will be to reach the required proportion of Provinces, autonomous regions and municipalities.

Article VII of the poor countries the fundamental basis for the allocation of funds are: provinces, autonomous regions and municipalities this year, the number of poor people and poor, poor efficiency in the use of funds, local funds supporting the implementation of proportion. The next year the poverty alleviation funds, by the Ministry of Finance, State Development Planning Commission, the Agricultural Development Bank of China were preliminary, poverty alleviation and development by the State Council Leading Group Office of the aggregate balance, put forward a unified distribution, poverty alleviation and development to the State Council Leading Group for approval And at the end of the first notice to the provinces, autonomous regions and municipalities directly under the Central People's Government. Related to poverty alleviation funds under the unified management of distribution, respectively, issued in a timely manner in accordance with the procedures of the specific plans, the allocation of funds.

Article VIII of the year to support economic development in underdeveloped areas of funds, the new finance anti-poverty funds to the specific plan by the Ministry of Finance in the year before the issue by the end of March, by the end of June before all the funds allocated to the provinces, autonomous regions and municipalities. Annual special loans to specific anti-poverty plan by the Agricultural Development Bank of China in the beginning when reached under the provinces, autonomous regions and municipalities directly under the central branch, by the end of March before the plan will be implemented in all projects, and projects in accordance with the progress of disbursement of funds in a timely manner.

Article 9 of the country down the anti-poverty funds, all of the provinces, autonomous regions, municipalities directly under the Central People's Government arrangements for the reunification of the use, poverty alleviation and development at the same level by the lead agency to coordinate the work of the specific charge of organizing relevant departments to plan and implement projects, and to ensure that the funds in a timely manner , In full. Major support from the state poverty-stricken counties should do a good job in poverty alleviation and development projects at an early stage of the preparatory work, not to allow funds for such projects.

Article X of the implementation of the Poverty Reduction Project should be targeted at poor households to adequate food and clothing for the goal to directly help improve the income of poor households as the main industry, in accordance with the focus on merging the region's poor planning, assessment, the first approval of the minutes Was implemented, in phases. The use of special loans to help the poor, should be reviewed in advance by the bank argues. Poverty alleviation and development should be at the county level offices by the end of October each year, according to the anti-poverty loan program of 150 percent raise next year's anti-poverty loan interest projects ahead of schedule to prepare for the preferred option.

Article 11 of the establishment of a comprehensive assessment indicators, a strict responsibility system for the use of anti-poverty loans. Provinces, autonomous regions and municipalities directly under the central leadership to coordinate the work of poverty relief and development agencies put down every year for central anti-poverty loan program of the stock, and will be completed with the new anti-poverty loans linked to the distribution. Poverty alleviation and development offices at all levels should actively support and assist the completion of the bank approved the loan collection and the highest proportion of the expiration of the loan recovery rate targets, and strive to enliven the stock of loans. Put the stock of loans to help the poor, the provinces, autonomous regions, municipalities directly under the central leadership to coordinate the work of poverty alleviation and development institutions in accordance with Article IV of this approach, stipulates that with respect to the use of unified arrangements.

Article XII of the establishment of a sound anti-poverty funds and inspection system. Central and local authorities, in particular the poor management of funds, the use of anti-poverty funds should carry out regular checks. On the anti-poverty funds can not be put in place on time, less than the required matching funds ratio of non-compliant investment, it should be corrected in a timely manner. At the same time, local people's governments at all levels should strengthen supervision and relevant social organizations, and administrative supervision, supervision of the masses, combined with public opinion.

Thirteenth article auditing departments at all levels should be in accordance with relevant laws and regulations on the use of anti-poverty funds to carry out special audit, and anti-poverty funds for the audit as an important element into the day-to-day work system. Any transfer, embezzlement, delinquency, poverty relief funds diverted for other uses and must be paid in full recovery, according to the law and held accountable by law; where corruption and poverty relief funds shall be held criminally accountable. Poverty alleviation and development offices at all levels and poor management of funds should actively cooperate with the audit department to help the poor use of funds audit.

The 14th article about helping the poor management of funds should be in accordance with the principles laid down in this way, namely the development of specific management practices. Provinces, autonomous regions and municipalities under this approach, combined with local conditions, the details of implementation. These measures 15th August 1, 1997 will come into effect.