贝恩-中国网络慈善事业报告（英文）-2019.1-36页_2mb

Digital Philanthropy in China: Activating the Individual Donor Base

Core Content

This report explores the growing role of digital philanthropy in China, emphasizing the potential for expanding individual donor participation in the sector. It outlines the current state of China's philanthropy landscape, the evolution of digital fundraising, and the implications for stakeholders. The report is authored by Yin Chen, Weiwen Han, Ming Wong, and Jiakai Yuan from Bain & Company and United Way Worldwide.

Main Points

1. China's Philanthropy Sector

• Growth and Fluctuation: The philanthropy sector in China has grown rapidly over the past 30 years, but it has experienced significant fluctuations, especially between 2007 and 2011, due to natural disasters and scandals.
• Current Status: In 2017, total charitable donations reached RMB 156 billion, representing only 0.2% of China's GDP.
• Individual Participation: Individual donors account for about 7% of the population, contributing approximately 20% of total donations. This number is expected to grow as younger generations become more engaged.
• Regulatory Environment: The government is actively developing policies and regulations to ensure transparency and trust in the sector, which is still in its early stages.

2. Digital Philanthropy

• Digital Transformation: Digital technology is reshaping the philanthropy sector by making it more accessible, transparent, and efficient.
• Online Fundraising: Online fundraising is growing rapidly, especially among younger donors. It accounts for over 60% of online donations in the past three years.
• Platform Dominance: Currently, Tencent and Alibaba dominate the online fundraising landscape, with 90% of total donation value flowing through these two platforms.
• Donor Trends: Young people (especially those born after 1990) are the primary online donors, showing a strong interest in specific causes such as health, poverty alleviation, and education.
• Opportunities for Growth: Despite its current size, online fundraising still represents less than 6% of total individual donations, indicating significant potential for expansion.

3. Challenges and Implications

• Trust and Transparency: Foundations and NGOs must work to build and maintain public trust through transparent reporting and efficient operations.
• Talent Retention: Low salaries are a major challenge for retaining talent in the sector.
• Regulatory Development: The regulatory environment is still in its early stages and needs to evolve to support innovation.
• Strategic Considerations: Stakeholders must define clear digital objectives and develop integrated strategies to engage donors and enhance impact.

Key Information

• Donor Penetration: Only 7% of the Chinese population are individual donors, with a large potential for growth.
• Digital Fundraising Growth: Digital fundraising accounts for slightly more than 2% of China's total donation value, but it is growing rapidly.
• Platform Influence: Online platforms such as Tencent and Alibaba are playing a crucial role in driving digital fundraising, with the ability to generate and drive traffic being a key differentiator.
• Project Distribution: A small number of projects capture the majority of online donations, following the Pareto principle.
• Economic Factors: Rising disposable income and improved digital infrastructure are enabling more individuals to participate in philanthropy.
• Regulatory Support: The Chinese government is supporting the development of the philanthropy sector through policy and regulation, which is vital for long-term growth and trust-building.

Strategic Questions for Stakeholders

• Customer and Channel Engagement: How can we leverage digital infrastructure to maximize donor engagement?
• Products and Services: What donation options and donor services can we develop for digital platforms?
• Operations: How can we improve internal operations using digital tools and capabilities?
• Data and Analytics: What analytics can we use to measure and track key activities, and how can we apply digital tools to manage them?
• Operating Model and Partnerships: How can we tailor our operating model to cater to digital needs? Do we need ecosystem partners?
• Talent and Culture: Do we have the right talent and culture to make our digital plan work? If not, how can we practically close the gaps?

Conclusion

Digital philanthropy is unlocking new opportunities for individual participation in China, with the potential to significantly expand the sector. While the current landscape is dominated by a few key platforms, the sector is poised for further growth and diversification. To fully capitalize on this potential, stakeholders must develop integrated digital strategies, build trust, and adapt to the evolving regulatory and technological environment.