The investment income earned by Dunhe Foundation (浙江敦和慈善基金会) reached 100 million yuan in 2014, said Zhang Zhizhou, general manager of the Dunhe Asset Management Company, during a recent public speech. This figure is remarkable, especially taking into consideration that most Chinese foundations put their money into savings accounts, and even for those that venture into investment, the average rate of return is less than 4%.
The Dunhe foundation is a regional non-public fundraising foundation founded in May, 2012 by Ye Qingjun, chairman of the board of directors of Dunhe Asset Management Company. According to Zhang, the foundation has received more than 70 million yuan in donations since its establishment, but its charitable expenditures have exceeded 110 million yuan in total thanks to the huge proceeds form investments.
As to how to spend the 100 million yuan, Liu Zhouhong, director of Dunhe Foundation, explained during an interview that 20 million will be used as reserve funds for new projects and emergencies, 55 million for supporting the public welfare sector, 20 million for promoting Chinese traditional culture, and 5 million for administrative fees. In 2015, the foundation is also planning to set up training programs in investment and asset management for Chinese Foundations.
