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As China pushes ahead with its "Internet Plus" initiative of integrating Internet technologies with modern manufacturing, its philanthropists are promoting their own "philanthropy plus" initiative that hopes to use new investment models and technological innovations to maximize social giving.
At a recent forum organized by Ai You Foundation, a Beijing-based national nonprofit organization that focuses on providing medical aid to children, and Forbes China, the chairman of Ai You Foundation Wang Bin said that as the world has entered the mobile Internet age, the Chinese philanthropic community must keep up and embrace innovations in the field.
One innovation that was up for discussion was the rise of venture philanthropy.
Xu Yongguang, chairman of Narada Foundation and emeritus chairman of China Foundation Center, said one of the biggest trends philanthropy has encountered in recent times is the convergence between public good and business, largely as a result of the rise in mobile Internet use.
"We can no longer rely on traditional charitable practices to solve society's problems, we need to use business practices to achieve our charitable goals," he said.
This convergence has led to modern concepts of corporate finance being used in the philanthropic sector.
Elliot Donnelley, founder of White Sand Investor Group LP and a board member of LGT Venture Philanthropy Foundation, told the forum that people use donated capital much like financial capital, "but instead of trying to make money, philanthropic capital tries to increase the impact that can be achieved within a certain amount of impact risk over a specific period of time.
"This approach can be used to bridge gaps where the market and government do not contribute, to help incubate new technologies and innovations, as well as buy businesses and use them for further social impact," said Donnelley.
Large foundations such as Ai You, set up to cure children of congenital heart disease, have already branched out from their primary operations to include venture philanthropy.
Ai You started its own venture project in June 2013 and had invested 3.15 million yuan ($514,000) in 10 organizations by the end of last year.
Wang explained that Ai You's projects are aimed at collaboration, with invested organizations helping to use their innovative resources, such as apps, to help achieve philanthropic objectives.
One of Ai You's earliest venture projects was with the Institute of Public and Environmental Affairs, whose founder Ma Jun recently won the Skoll Award for social entrepreneurship.
"Through our initiative we aim to support the creation of 30 more Ma Juns, who can then go on to create more and more, to create a large philanthropic ecosystem that will be easily accessible to donors," said Wang.
Despite impressive advances made in the sector in recent years, China's philanthropy community has yet to match the progress of the wider economy.
According to Forbes China's philanthropy list, donations from the top 100 Chinese philanthropists rose 10 percent year-on-year to a four-year high of $793 million in 2014.
muchen@chinadaily.com.cn
