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UPDATED: December 14, 2007 NO.51 DEC.20, 2007
Should Charity Fundraisers Be Rewarded With Commission?
Charity is not always its own reward
 
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With China's economic boom have come a host of new occupations not seen before in the country. One such job category, that of professional charity fundraiser, on the face of it, seems a more than worthwhile addition to a country where the many needy can benefit in volumes from profit-reeking enterprises and the rise in nouveau riche.

Yet when the Hunan Charity Federation initiated a big fundraising campaign, giving financial incentives to volunteer fundraisers, it became a major bone of contention, focusing on the ethics of charity institutes and the controversial "rewards" for funds collected.

The debate began after the Hunan Charity Federation issued regulations stipulating that volunteer fundraisers approved by the federation as qualified members can collect funds on behalf of it. Fundraisers are entitled to claim expenditure on travel, accommodation and setting up meetings with contacts in a form of commission fees, ranging from 8 to 12 percent, of the sum raised. As additional income the fundraisers receive 5 percent of the annual total funds they have collected.

Federation Director Jiang Jianhua explained that, due to a severe shortage of fundraisers, his federation had to come up with a remuneration package that was attractive. And it seems to have worked, as according to Jiang, over the past three years the policy has been quite effective.

The arguing point is whether a charity institute is entitled to offer payouts from successful fundraising. Those who favor this policy believe that most charity organizations in present-day China need assistance. And a reasonable and transparent bonus given by charity programs will attract more to apply for the jobs, which helps to sustain the development of this sector in the long term.

Those who questioned the legitimacy of such commissions, say that all charity funds collected represent the compassion and social responsibility of the community. To raise funds and assess volunteers by sales mode that often used in business is against the principle of charity, they say, adding that it puts charitable funds on the same level as commercial funds.

Hard to sustain

Zhang Gong (www.sohu.com): Traditionally, everything related to charity should be on a volunteer basis, instead of being confined to the give-and-take culture.

But every instance of giving demands a proper return, and this is merely a moderate commission. It is noble to do good without asking for something in return, while at the same time, people doing goods should not be blamed for the legal benefits they earn through their efforts. On the contrary, they will be encouraged by such benefits. The numerous occasions on which fundraisers have been successful in helping to sustain China's charity development show that they deserve the commissions they receive.

With doubts over whether anyone donating to a charity program would like to see their money flow to the pockets of collectors, or its threatening potential to be the new bedrock of corruption, China's fledging charity sector needs to be closely monitored by society.

Jia Xijin (www.thebeijingnews.com): As a matter of fact, the system of professional fundraising already exists in the area of international charity. A large number of these professional fundraisers are living off charity programs organized by worldwide institutes. Also business principles have been introduced into charity work, such as fundraising planning and consultation. Though charity itself is for the public good, fundraising activities for charity programs are not always non-profitable.

It is understandable for charity organizations to raise funds through various means, such as hiring brokers or subcontracting joint institutes. These costs can be offset by a small portion of the funds raised as commissions. As charity for the public good prospers, professional fundraisers will emerge, in the same way lawyers deal with legal proceedings.

To make money from charity funds, however, may not be acceptable in an ethical sense. It is true that fundraisers have meant quick expansion of the charity concept and programs. Not every donor, of course, is willing to see their funds end up in the pockets of fundraisers. Given this, international practice does not prohibit "profitable" fundraising activities, but has devised other solutions to secure public confidence by strictly disciplining the use of funds raised.

Professional fundraisers, along with other commercial phenomenon newly emerged in the process of China's charity development, have aroused public concern over deficiencies in the current legal system, such as embezzlement of funds or tax dodging. But if commercial tools are properly used, however, commissions for fundraisers will help further promote charity development.

Xi Xuchu (www. jcrb.com): Ethical standards are useful when judging between evil and good, honest and fraudulent, just and inequitable. We do have helpful and kindhearted people in this world, but many of us have different values. Of course it is nobler to give without asking for anything in return, but commissions for fundraisers are a small thing and not that big a deal.

Over commercialized

Sheng Xiang (www.jcrb.com): The term "commission," which is often referred to in commercial sales, indicates an incentive in business. But charity can never be seen as a business.

Charity funds can only be used for relief and aid. If charity organizations have to change the use of funds, they must get permission from donors. In fact, secret embezzlements of funds, either for rake-offs or covering fundraising costs, will automatically make donation contracts invalid, meaning donors have the right to revoke the contract and withdraw funds.

China's charity sector is long challenged by much bureaucratic intervention and low public confidence. And Hunan's initiative will add more fuel to the fire. What needs the most attention may not be persuasive collectors, but credibility of charity organizations.

Le Yi (informationtimes.dayoo.com): Hunan's commission quota for charity collectors opens a loophole in the system. For example, if one collector gets 1 million yuan ($131,600) in Changsha, capital of Hunan Province, he can transfer this money to another city, then move the money back to Changsha, where the headquarters of the Hunan Charity Federation is located, and claim double-sized commission pursuant to the regulation.

It is even worse to misappropriate state assets or launder money. A state enterprise manager could pretend to be a donor to get millions of yuan worth of commissions.

Now, charity is in huge demand in Chinese society, thus collectors are keen to raise more funds. But that should be preconditioned by clarity of the account and each cent should be accounted for.

Liu Yibin (www.people.com.cn): Donors need respect, which could maximize their confidence to continuously support charity undertakings. For a developing country like China, it, on one hand, needs to raise public awareness on the importance of charity, while on the other hand, it is in urgent need of strengthening fund management and the overall improvement of the charity system.

Volunteers should be aware of the significance and nature of the charity that they are involved in to discipline themselves. Professional fundraisers may be given necessary "payments" to cover their costs through administrative budgets.

Xiao Hua (Ganzhou Evening News): Charity donations indicate an open heart and an attitude of dedication to the public good. A person who is devoted to charity will never think about making money out of the process.

In addition, lucrative commission fees go against the current legal principle, since donors are susceptible to fraud in the use of their contributions.

Dear Readers,

"Forum" is a column that provides a space for varying perspectives on contemporary Chinese society. In each issue, "Forum" will announce the topic for an upcoming issue. We invite you to submit personal viewpoints (in either English or Chinese).

Upcoming Topic: Are we really helpless in the fight against sex bribes due to the absence of a legal definition for this crime?

E-mail us at byao@cipg.org.cn

Please provide your name, telephone number, zip code and address along with your comments.

Editor: Yao Bin

 

 



 
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