Charity Organizations Created to Help Carry Out Reforms
The city is planning to establish two more charity organizations that will help them carry out reforms in building a more transparent charity system in the span of three years. Due to several charity scandals in the past years raised concerns on the misuse of the funds donated and led to the mistrust between the public and charitable organizations.
The two organizations will be set up this year as part of the pilot reforms, and the Shenzhen Economic Special Zone Charity Federation will be in charge of the collection of the donated funds, while the Shenzhen Charity Foundation will be in charge in the managing and utilizing the money. And the two organizations financial operations will be closely monitored by an outside third party.
A market mechanism is also being applied to local charity efforts and enterprises are encouraged to participate in the charity operations thus more donations will be collected by profit sharing, dividend use and job placements. The city will then set up charitable trusts and will try to do philanthropy programs by next year to help diversify charity operations. Also a new law will be implemented to regulate local charities.