Philanthropy is playing a major role in boosting funding for Chinese universities, with donations on the rise. As a result, more Chinese universities are setting up teams to work with philanthropists and philanthropy organisations.
According to a report by Corporate Citizenship in Action, a philanthropy consulting firm in China, 2021 saw donations totalled at $1.2 billion, the highest since 2015 and 41 per cent growth compared to 2020.
Private businesses and entrepreneurs account for 80 per cent of donations. Of this group, half came from foundations, with individuals and their foundations contributed some 25 per cent of donations.
Major donors come from real estate, technology and financial services industries.
Almost 95 per cent of donations were in cash, while equity donations saw an increase.
Despite the rise, philanthropic donations still only account for 5 per cent of total university revenue. Most institutions rely heavily on government funding. In Europe and the US, gifts can account for anywhere between 5 per cent and 16 per cent of total funding.
Anthony Gao, head of Asia philanthropy services at Pictet Wealth Management, said the rise in philanthropic donations to Chinese universities are a result of “accumulated wealth”.
“It is also about s changing social norm in which people support and understand the need to share their wealth with others under the common prosperity goals,” he told the Asian Investor publication.
Shafi Musaddique is a news editor at Alliance magazine
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