The prospect of grassroots public welfare industry is not clear, and the problem of fund shortage needs to be solved

category:Finance
 The prospect of grassroots public welfare industry is not clear, and the problem of fund shortage needs to be solved


According to the survey report on challenges and needs of public welfare organizations under the epidemic situation released by China development brief in May, 49.4% of public welfare organizations have been moderately and negatively affected by the epidemic, but they can still adhere to it; 14.8% of public welfare organizations have been greatly affected and have been unable to continue.

Liu Zhongliang, executive director of China development briefing, said in an interview with China times that the grassroots public welfare organizations that can truly provide services to the society are often the most affected in the epidemic situation, and the development status of these institutions will directly affect the vulnerable groups they help.

The proportion of funded foundations is small

After the outbreak of novel coronavirus pneumonia, overseas foundations have been making global grants to help countries tide over difficulties. Among them, the Ford Foundation issued $1 billion in social bonds to fund non-profit organizations struggling with the epidemic. However, compared with western countries such as the United States, which has a large proportion of funded foundations, the number of domestic funded foundations is small and their capacity is limited.

According to the statistics of civil affairs in the second quarter of 2020, the number of foundations in China has reached 7979, and the proportion of funded foundations is less than 1%.

It is worth noting that compared with large foundations, grassroots public welfare organizations are small in scale, short of resources and poor in anti risk ability. After the outbreak of the epidemic, small and medium-sized public welfare institutions are faced with a series of problems, such as insufficient reserve funds, unable to carry out projects, serious staff turnover and so on. Among them, a large number of grassroots public welfare organizations are in trouble because they cant pay their employees wages or rent.

The future of the industry is still uncertain

Liu Zhongliang believes that at present, there are three main problems in domestic foundations. Firstly, the number of funded foundations is small and resources are scarce; secondly, most foundations with enterprise background are utilitarian and unable to operate independently from enterprises, which leads to less attention to the disadvantaged groups; thirdly, at present, the funding process and mode of domestic foundations are not mature enough, and the circle is small, which means that some foundations usually devote themselves to public welfare undertakings but do not pay attention to establishing relationships Departments are more vulnerable to crisis.

Since April, the discussion on how the foundation can become a warm partner of social organizations has been a hot topic in the industry. Liu Zhongliang said that although domestic foundations still have a long way to go in this regard, they have made some progress, such as adopting a more flexible way to deal with problems such as approval and adjustment of funds in emergencies.

Although with the effective control of domestic epidemic situation, more and more public welfare organizations gradually return to normal work order, but the whole industry still faces many difficulties, and the situation is not optimistic. Liu Zhongliang pointed out that one of the three aspects of social stability will be affected by the closure of charitable organizations.

Liu Zhongliang said that it is better to be cautious about the future of public welfare organizations. On the one hand, the whole social resources are shrinking, and the shortage of funds is still an urgent problem for public welfare organizations. On the other hand, if the foundation can actively use social resources and government procurement will not be reduced, it will effectively alleviate the impact of the epidemic and help public welfare organizations to resume work as soon as possible.

Editor in charge: Fang Fengjiao editor in chief: Wen Mei