Press Room

The 1st Anniversary of Lushan Earthquake
How the ¥1.7 billion Donations Go Received by 219 Foundations?

 

Summary of donation flow in Lushan Earthquake China Foundation Center
Apr. 20th, 2014

 

 

Till 8:02 am, Apr 20th, 2014, according to the statistics collected through online public information and data disclosed by Chinese foundations, China Foundation Center (www.FoundationCenter.org.cn), a platform for foundation sector information disclosure, draws the conclusion that there are 219 foundations are involved in the emergency aid and disaster relief for Lushan Earthquake. All these 219 foundations have received 1.7 billion RMB from the whole society, including 1.5 billion cash and 0.2 billion in-kind donation; for the expenditure, 645 million has been expended, which accounts 38% of the total donation. Among these foundations, the top three biggest recipients are the One Foundation (380 million in incomes, 47 million in expenditure), China Foundation for Poverty Alleviation (270 million in incomes, 81 million in expenditure) and China Women's Development Foundation (130 million in incomes, 51 million in expenditure). In the support of Give2Asia, China Foundation Center (CFC) has established a dedicated website(News.FoundationCenter.org.cn/YaAn), to disclose the detailed flows of donations in real time. For the next 3-5 years, CFC will track the flow of remaining donations in this earthquake and timely disclose it to the community, which is submitted to the supervision from the public.

 

Table 1 Expenditure on Lushan Earthquake-Top 10 Biggest Donation Recipients

 

 

Figure 1 Donation Expended for Lushan Earthquake

 

 

Based on the statistics gathered by CFC, five major characteristics in Lushan Earthquake can be noticed:

 

1.76% of donation goes to foundations are more transparent and actively participate in self-regulation, which indicates the trend of transparency Figure 2

 

After 72 hours of the strike of Lushan Earthquake, collaborated with 42 influential Chinese foundations, China Foundation Center (CFC) established the "Chinese Foundations' 4•20 Self-regulation Alliance for Disaster Relief (SRA)" to promote the spirit of the Ministry Of Civil Affairs on Lushan 7.0 Earthquake Relief Donation Announcement and China Charity Alliance's Emergency Initiative to Mobilize Members and the Community Lushan Earthquake Relief. All members of this alliance formed the Pact of Chinese Foundations' 4•20 Self-regulation Alliance for Disaster Relief and committed to disclose information initially and receive social supervision actively. On the basis of statistics collected by CFC, among all the 42 members of the alliance, eight foundations, exclusively, received more than 76% of social donations as a whole. Further, these foundations occupy 8 seats in the Top-10 biggest recipients of donation. As a result, it could be concluded that there is a positive correlation between foundations' transparency and donations they received.

 

Figure 2 Donations Received for Lushan Earthquake- Members of SRA

 

 

2.40% of donations flow to local foundations; 60% of donations flow to national foundations Figure 3

 

During the Lushan Earthquake, foundations registered in local areas receive more than 40% of total donations. Especially, Jet Lee One Foundation (registered in Shenzhen City) and Shanghai Charity Foundation (registered in Shanghai City), for instance, are outstanding in mobilizing social funds; along the China Foundation for Poverty Alleviation, China Women's Development Foundation and China Youth Development Foundation, these five foundations rank the top-5 recipients of social donation, which are also tied for the first place of Foundation Transparency Index.

 

Figure 3 Donation Flow of Lushan Earthquake- Registration of Foundations

 

 

3.39% of donations are used on emergency aid; 61% of donations are used on Post-Disaster reconstruction Figure 4

 

During the stage of emergency aid, foundations expended 254 million RMB, which accounts 39% of the total expenditure. On this period, many foundations organized dozens of private professional rescue teams rushed to the disaster area on the first time. They actively participated in tasks like search and rescue, transferred wounded. Meanwhile, they also took roles of mobilizing urgently-needed supplies, drinking water, instant food, medicines, first aid tents, simple replacement housing, etc.

 

After the accomplishment of emergency aid, each foundation actively deployed the reconstruction work on the basis of the actual situation of disaster areas. Until now, 391 million RMB has been expended, which accounts for 61% of the total expenditure. Among this, through building infrastructure, over 100 million RMB was used on restoring normal production and life of the earthquake zone, mainly due to the earthquake damaged houses, schools and other reconstruction. On the other hand, more than 10 million RMB was used on providing integrated training for teachers in the affected areas and skills training for all types of affected population. In addition, another 10 million RMB was applied for psychological assistance provision, for example, psychological counseling to earthquake-stricken women, children. To sum up, a wide variety of projects have been undertaken by foundations, to help Lushan in all aspects of post-earthquake reconstruction both in in-kind and psychological assistances.

 

A delegation of foundation leaders then visited the US where they discovered that public access to data is the key to building public trust and credibility.  

 

Figure 4 Different time periods on expenditure for Lushan Earthquake

 

 

4.Foundations initiative to strengthen mutual cooperation, donations will be more systematic and effectively use. Figure 5

 

The whole donation collected by eight Chinese foundations from the society exceeds 900 million RMB. These 8 foundations, namely, China Foundation for Poverty Alleviation, China Youth Development Foundation, China Women's Development Foundation, China Guanghua Foundation, One Foundation, Narada Foundation, Tencent Foundation and The Amity Foundation held a "Foundation for Relief Coordination Conference" in Chengdu on April 16, 2014. On this conference, in return of the public trust and love, these foundations clearly defined their coordination, that is to strengthen the communication, exchange and cooperation in disaster relief among foundations; promote relief operations and reconstruction plans of foundations with government; coordinate the working methods of foundation-funded social organizations being involved in disaster relief and strengthens the use of donations systematically and effectively.

 

Figure 5 Foundations establish cooperation network, Enhance usage of funds systematically and effectively

 

 

5.More than 100 million RMB was applied for supporting emergency aid and reconstruction through diversification channel, like foundations, governments, China Charity Federation, Red Cross Society and other social organizations. Figure 6

 

Foundations implement projects through their own team; meanwhile, they participate in Lushan Earthquake's relief and reconstruction through a variety of channels. For instance, more than 80 million RMB were executed by the trustworthy partners funded by foundations; over 30 million RMB were executed by China Charity Federation; more than 20 million RMB were executed by related governments; over 10 million RMB were executed by Red Cross Society and more than 10 million RMB were executed by other social organizations.

 

Figure 6 Diversification of Lushan Earthquake's donation flow

 

 

Social trust is the fundamental basement for the survival and healthy development of foundation and philanthropic sector, transparency is the basis for building this trust. Therefore, it is warm welcomed for foundations to open and update information in time; at the same time, the public is encouraged to be involved in supervise the flow of donations and the philanthropic sector as a whole, and build a better home and a new life in the disaster areas.