The Guiding Opinions on Encouraging the Distinction between the Raising and the Use of Charitable Donations and on Giving Value to Different Types of Charity Organizations (《关于鼓励实施慈善款物募用分离 充分发挥不同类型慈善组织积极作用的指导意见》) was issued by the Ministry of Civil Affairs (MCA) on October 14. The Ministry pointed out that charity resources are currently not equally distributed among different organizations. Small but service-oriented organizations often have difficulties in acquiring funds, while big organizations are not taking good advantage of their resources. According to the “Guiding Opinion”, by separating the process of fund-raising and project-operating, big grant-making organizations can focus on fund management; and organizations that excel in project operation can concentrate on providing services.
The opinion aims to help balance charity resources by promoting efficient cooperation between grant-making organizations and service-oriented organizations, and it provides four ways to achieve this goal: (1) Consignment agreement. Grant-making organizations can commission service-oriented organizations to operate their charity projects; (2) Philanthropic bidding. Grant-making organizations are encouraged to find suitable service-providing organizations to implement their projects through public biddings; (3) Joint fund-raising. Grant-making organizations can set up special funds for service-oriented organizations, or they can start up fund-raising activities together. (4) Venture philanthropy. Grant-making organizations are encouraged to support selected service-oriented organizations, especially promising start-ups.
