Analysis framework and investment strategy for China’s philanthropic infrastructure

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The unveiling of the Analysis Framework and Investment Strategy for China’s Philanthropic Infrastructure Report recently marked a significant milestone. This report, funded by the Narada Foundation, represents a comprehensive exploration of China’s philanthropic infrastructure, following the 2020 launch of the China Philanthropic Infrastructure Review Report,

Expanding on previous evaluations, the report seeks to establish and enhance an analysis framework for philanthropic infrastructure development. Within this framework, it presents strategic recommendations that advocate for collaborative efforts across government, market, and philanthropic sectors to advance philanthropic infrastructure in China.

The report emphasizes a crucial conceptual shift from tangible infrastructure like roads and bridges to intangible ones such as healthcare, education, and environmental stewardship. These soft infrastructure, recognized as a form of “social capital,” plays a pivotal role in cultivating human potential and fostering social harmony.

The origins of philanthropic infrastructure research trace back to the 1990 concept of civil society support organizations introduced by L. David Brown and others. Globally, the World Initiatives for Grant-maker Support (WINGS) played a pivotal role, initially defining philanthropic infrastructure from an organizational standpoint.

However, a 2017 evolution broadened the definition, highlighting the need for a conducive environment empowering philanthropic organizations to fulfill their missions. This positive environment, encompassing legal frameworks, tax incentives, accountability systems, organizational capacity, and a robust donation culture, constitutes philanthropic infrastructure.

Recent trends see WINGS favoring the term philanthropy support ecosystem (PSE), synonymous with philanthropic infrastructure. The shift lies in perceiving the ecosystem as dynamic, interconnected, and vital compared to the static nature of traditional infrastructure. It comprises a community fostering philanthropy by nurturing resources, capacities, connections, and credibility.

Addressing the distinction, the report notes that while philanthropic infrastructure emphasizes support and activation roles (functional perspective), the philanthropy support ecosystem underscores complex interactions among diverse stakeholders (systemic and actor-oriented perspective). Variations like philanthropy support system (PSS) and philanthropy development system (PDS) exist, with subtle emphasis differences.

Infrastructure development’s resource-intensiveness necessitates coordinated, holistic planning aligned with strategic priorities like common prosperity. Central oversight from the government ensures equitable distribution, resource allocation, and prevents regional disparities.

However, diversifying financing channels via public-private partnerships and philanthropic ecosystems is vital, considering the unsustainable reliance on government funding. International cases provide models, but purpose-driven infrastructure that prioritizes social over economic returns should guide investments. Impact assessments safeguard against financial considerations overshadowing societal benefits.

The report underscores infrastructure’s transformative role in shaping lives and fostering social participation. Straying from top-down interventions, public feedback integration into planning legitimizes infrastructure and enhances resilience. Empowering grassroots communities leverages local insights for sustained positive outcomes.