In the last few days, the trustee of SDIC Taikang Trust Company finished filing with Beijing’s Ministry of Civil Affairs, marking the establishment of China’s first equity charitable trust. The trust was set up principally by one individual, whose contribution to the trust exceeded 480 thousand yuan, which will be used to promote nationwide literacy education research and other education-related projects. The trust is being administered by Shanghai Adream Charitable Foundation with Beijing Zhong Sheng Law Firm acting as its trust supervisor and Bohai Bank acting as the treasurer.
Since the implementation of the Charity Law in September 2016, charitable trusts have been developing at a rapid pace in China. Out of the 28 charitable trusts that have been established to date though, 27 are monetary charitable trusts. Gao Chuanjie, a researcher at Beijing Normal University’s China Philanthropy Research Institute, told reporters that equity charitable trusts are much more capable of carrying out lasting benefits and sustainable development in the charity sector than monetary trusts. The establishment of the first equity charitable trust is a great breakthrough in developing non-monetary charitable trusts in China. It not only channels more diverse assets into the charity sector, but also provides additional means for the public to take part in charitable activities.
