Philanthropy Makes a Comeback in China

Filed in archive Blogs on September 29, 2007

While the topic is not directly related to either venture capital or private equity, I found it interesting this week to read that philanthropy seems to be on the rise in China.

The Chronicle of Philanthropy carried an article in it's September 20th edition on how the generation of wealth in China's booming economy has begun to begun to result in philanthropy.

The Chronicle notes that new millionaires are being created in China at about the same rate as in the United States. "While many of the affluent are known for their lavish way of life, members of this growing generation of wealthy Chinese are developing a taste for charity," the journal said.




Between 2003 and 2006, China's five richest individuals gave $640 million to charitable causes, according to one source.

The article in the Chronicle looked at some of the regulatory issues involved in the rise of philanthropy in China. A couple of ironies emerge. One is that charity was despised by Mao. Another is that American institutions (like colleges and universities, for example) are now sending their fund raisers to find money in China.