Support Organizations: An Emerging Constructive Force in Promoting Philanthropy in China

1. Support Organizations: An Emerging Constructive Force in Promoting Philanthropy in China Ailing Zhuang (PhD) President, China Foundation Center Chair, NPO Development Center Shanghai \ Harvard China Philanthropy Conference 2011

2. Definition of Support Organizations (SOs) • Support organizations (also called as Infrastructure Organizations in US) aim at empowering and enabling nonprofits with resource, knowledge, ideas or solutions to solve social problems and make social impact more effectively, efficiently and innovatively and achieve organizational mission and goals. Harvard China Philanthropy Conference 2011

3. Background of the SOs Emergence in China around 2000 • Increasingly diversified social needs for more social services providers beside the existing government public services • Increasing expectations of government, foundations, corporations for high-quality and effective professional services to be provided by the direct service nonprofit organizations to needed clients at communities; • Increasing competition of nonprofit organizations for limited resources requires more capable and transparent nonprofit sector; • Increasing concern of the sector itself about the risk of unsustainable development of the nonprofit sector Harvard China Philanthropy Conference 2011

4. Types of SOs Existing in China • Sector associations/federation (行业协会/联合会） • Networking organizations （联盟） • Capacity building and incubation organizations （能力建设与孵化机构） • Grant-making organizations （资金支持机构） • Research organizations （研究机构） • Consultancy and evaluation organizations （咨询评估机构） • Information service organizations （信息服务机构） • Other professional organizations: finance, legal services （其他专业支持机构） • Sector Service Organizations （行业服务机构）等 Harvard China Philanthropy Conference 2011

5. Sector Association • To advocate partnership among nonprofits to enhance their social impact and avoid unnecessary competition for resources • To represent the interest and voice of the nonprofits in dialogue and communicate with government • To build up sector legitimacy • To make sector self-regulations and standards for sustainable development Examples: A) Shanghai Pudong Social Workers Association B) Shanghai Jing’An Social Organization Association C) China Social Work Association D) China Social Organization Association Harvard China Philanthropy Conference 2011

6. Capacity Building and Incubation Organizations • To enhance the capacity of nonprofit professionals I service delivery and professionalism • To assist nonprofit to focus on bigger social themes and issues • To help nonprofit to gain legitimacy and accountability Examples: A) NPO Development Center B) NPI (Nonprofit Incubator) C) Pact Beijing D) Huizeren Volunteer Service Center E) Amity NPO Incubation Center Harvard China Philanthropy Conference 2011

7. Funding Providing Organizations • To provide or distribute funding and other resources • To support social innovation • To support the development of the nonprofit sector Examples: • Narada Foundation • SEE • Jet Li One Foundation • Amity Foundation Harvard China Philanthropy Conference 2011

8. Research Institute • To do research about the sector, identify problems and make recommendation with feasible solutions or choices for improvement in using new methodologies and perspectives • To summarize and advocate new models or solutions for further duplications to more places • To provide advice and recommendations for government in policy making Examples: A) NGO Research Center, Qinghua University B) NGO Law Research Center, Peking University C) Public Policy Research Center, CASS D) NPO Research Center, China Renmin University E) Civil Society Research Center, San Yet Sam University F) One Foundation Academy on Philanthropy, Beijing Normal University Harvard China Philanthropy Conference 2011

9. Professional Service Organizations • To assist nonprofit with special skills and knowledge (legal, finance, consultancy, evaluation) to enhance performance and capacity Examples: • China NGO Legal Services for Nonprofits • Enyou Finance Services for Nonprofits • NPO Development Center Shanghai • Shenzhen Research and Evaluation Institute on Nonprofits Harvard China Philanthropy Conference 2011

10. Information Service Organizations • To assist nonprofit to enhance organizational performance in problem solving, communication and management with information services • To assist nonprofit to analyze problems with solid statistics and make more reasonable decision • To enhance the transparence of nonprofits and gain more social trust and impact Examples: • China Foundation Center: www.foundationcenter.org.cn • China Development Brief: www.chinadevelopmentbrief.com • China Charity Donation Center Harvard China Philanthropy Conference 2011

11. Interaction between SOs and nonprofits Social forces • External Challenges • - Public Legitimacy • Relations with other • stakeholders including • government, corporate, • media, and academia support organizations Nonprofits Programs Sector Social Impact • Internal challenges • - Low professionalism • - Limited focuses • - Lack of resources • Lack of collaboration • Low level of governance Resources within the sector Harvard China Philanthropy Conference 2011 Resource: David Brown

12. Social Impact of SOs in China • Enhancement of the capacity, professionalism, legitimacy and accountability of the nonprofit sector; • Strengthen the sector through promoting mutual learning, resources sharing and collaboration; • Experiment and promote social innovation in solving the social problems; • Improve the communication and relationship between the nonprofits and important stakeholders including government, corporate, media , academia ; • Build up sector standards for higher self-regulation to gain better understanding and trust from the public toward the nonprofits; • Promote cross-organization, sector, field and nation collaboration to solve common problems of the globe. Harvard China Philanthropy Conference 2011

13. Trend in Ten Years More support organizations will emerge: • Sector associations/Councils • Accreditation organizations • Bridging organizations • Consulting service organizations, etc. • HR service organizations • Fund investment and management organizations • Social venture agencies • Social media organizations • Professional educational institutions, etc Harvard China Philanthropy Conference 2011

14. Trend in Ten Years Way of operation: • More professionals from other sector will join the SOs either as full-time or part-time staff, or as volunteers or part-time to pursuit for social value • SO s will get more focused in terms of the services they provide • More SOs will adopt way of social enterprise in its operation and management to improve its performance and financial sustainability Resources • Funding from local grant-making foundation, corporations and government will increase; • More nonprofits will pay for SOs service to fill the gap of their weakness will depend partly on services, and partly on funding; • More collaborative initiatives will be launched and SOs will play more active role; • Professional service fee will increase in the total budget of SOs. Harvard China Philanthropy Conference 2011

15. Trend in the Next Ten Years Professionalism • The professionalism of nonprofits inevitably requires of highly professional services from SOs. Generally speaking, SOs will play more constructive role in the frog-leaping development of philanthropy in China in the next ten years. Harvard China Philanthropy Conference 2011

16. Main Challenges of SOs in China Internal: • Lack of high-quality personnel to provide high-quality services; • Lack of resources for services for nonprofit, nor for organizational operation • High dependence on international funding • Lack of high-quality product and assessment mechanism External: • Low social understanding of its value and importance; • Low input neither from government and corporation nor from foundations and nonprofits; • Low level of involvement from media and academy Harvard China Philanthropy Conference 2011

17. Conclusion • In the past three decades (1980 – 2010) m China has focused its attention mainly on economic construction and development which has led to enormous success; • On the other hand, though China also has made great achievement in education, poverty elevation, housing, etc. Yet, social construction has lagged far behind the economic construction. The coming three decades (2011 -2040) will be time for social construction. • China shall make great efforts in further improve legal system, welfare system, etc. Philanthropy will be one of the most eye-catching social causes in the next thirty year. Support system for philanthropy will be in place. Philanthropy will be in full blossom in China and benefit the whole world. Harvard China Philanthropy Conference 2011

18. Thank you very much for your attentions! Harvard China Philanthropy Conference 2011