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Why are charity scandals frequent in China?
The reporter Zhou Xiaoyun posted the financial statement of China Children's Association 20 1 1, and marked suspicious items. Network screenshot

Last night, in response to Zhou Xiaoyun's report, the Chinese Children's Association issued a statement. Network Screenshot Yesterday, Zhou Xiaoyun Weibo, a network reporter, reported that the amount of "other cash paid related to business activities" in the accounts of China Children's Charity and Relief Foundation 20 1 1 was 4.84 billion yuan, much higher than the cash received from the donation of more than 80 million yuan in that year. Zhou Xiaoyun suspects that the foundation may be involved in money laundering. Last night, the China Children's Association issued a document clarifying that the financial personnel had made a major mistake and wrote an amount that should have been 475 million yuan into 4.75 billion yuan. In this post titled "The Mysterious Missing of 4.8 Billion Yuan from the Official Charity Fund Erci Society", Zhou Xiaoyun said that at least 4.8 billion yuan was missing from the financial statements of China Erci Society 20 1 1, and some financial statements of China Erci Society 201were posted. Zhou Xiaoyu said that the 4.8 billion items of income and expenditure in this financial statement are not detailed, but cash inflows and outflows. "People must be related to money laundering," he said, because there is no conclusive evidence, which needs to be determined by the public security organs. ■ official website, the China Children's Charity Association, issued an apology last night, saying that the decimal point of the "short-term financial management of banks" in the report was misplaced, and 475 million yuan was written as 4.75 billion yuan. As a result, the "other cash received related to business activities" in the 20 1 1 cash flow statement of the Foundation reached the wrong figure published in the annual report, that is, 4,766,273,045.02 yuan. Why do scandals about charity break out frequently in China? What is the weakness of charity in China? What are the legal and regulatory problems? What causes the trust crisis of charities and even charities? Q: How to define the concepts of "public welfare" and "non-profit"? Expert: The core concept "profit-making activities" is not clearly defined. Professor Zhu Li introduced that there are a series of laws and regulations on charity in China, such as People's Republic of China (PRC) Public Welfare Donation Law and Foundation Management Regulations. In this regard, China does not seem to lack supporting laws and regulations for charity. However, China's charity law is vague and prominent on many issues, mainly in three aspects: First, the definition of specific issues and core concepts is abstract and empty. For example, what is a "public welfare undertaking" is not clearly defined in our laws and regulations, which gives people a lot of imagination and operation space in the process of charity, making our current charity law an empty shelf and unable to play a practical role. Moreover, this is only a drop in the bucket in China's current charity legislation. Secondly, although China prohibits charitable organizations from engaging in business activities, it does not clearly define "business activities". The unclear definition of "for-profit" and "non-profit" makes some charitable organizations take advantage of legal loopholes and continue to engage in for-profit activities. Thirdly, non-profit organizations enjoy preferential tax policies, but China's charity law does not define such behavior as self-transaction. As a result, some people secretly launder money and evade taxes in the name of charity. The second question: why do you only see the violation of the law and not the punishment? Expert: How to correct and punish is not specified in the relevant laws. Professor Zhu Li said that China's charity law has positively stipulated the code of conduct that people need to follow in charity. However, once people violate the code formulated by laws and regulations, how to correct and punish them is not specified in relevant laws and regulations. This situation objectively caused the charity law to be greatly discounted in the implementation process, which provided a considerable space for the law not to be obeyed. Professor Zhu Li believes that "the current situation of philanthropy in China is actually a problem with a lot of laws, and there are also many legal defects." Three questions: Why is the demand for charity increasing and the supply of charity decreasing? Expert: Because the positioning of charitable organizations is not clear and the functions in real life are not divided, we often encounter such a phenomenon. Some entrepreneurs have the idea of giving back to the society and fulfilling their social responsibilities, but they don't trust charitable organizations and finally fail to realize their charitable ideals. As some entrepreneurs complain, we have money but don't know how to help those in need. At the same time, we will encounter some new phenomena. Some old, weak, sick and heavy people need the help of caring people and society, but they miss opportunities or have no opportunities. Why are there "supply" and "demand", but they can't be organically combined? In this regard, Zhu Li said that the definition of "charity organization" in Chinese law is vague, and the lack of operational definition of private equity foundations and public charitable organizations directly leads to the mixed functions of charitable organizations in China at present. For example, some charitable organizations, on the one hand, raise funds for the public, similar to the role of public funds, on the other hand, undertake the functions of providing charity and operating charitable projects, similar to the role of charitable organizations. The superposition of multiple functions will inevitably lead to the phenomenon of paying attention to one thing and losing the other in daily operation. What's more, some organizations use donations in the commercial field, which leads to an increase in charitable demand and a decrease in the supply of charitable services. Four questions: Why are scandals of charitable organizations frequent? Expert: Government supervision is too passive. There are frequent scandals in charitable organizations. Zhu Li pointed out that at present, the way the government supervises charities and charitable organizations is still very passive. No complaints, no management; If there is a complaint, take care of it. Therefore, although China has strictly supervised charitable organizations in system design, in practice, the government's supervision of charitable organizations is quite weak. This is also one of the reasons for the frequent scandals of charities and charitable organizations. Question 5: Can the public monitor the flow of donations? Expert: There are many disadvantages in the single supervision mode of the government. Some netizens said that since the government has limited energy, whether the public can supervise, at least the donors themselves can know where their donations have gone. In this regard, Zhu Li introduced that at present, the supervision of charities and charitable organizations in China is mainly implemented by the government, and the main body of supervision is too single, causing many drawbacks. For example, the responsibility of the government has increased, but the efficiency and effectiveness of supervision have decreased. For another example, the public wants the government to fulfill its regulatory responsibilities, but the government lacks sufficient resources and capabilities; The government wants the public to participate in supervision, but the public lacks effective channels, which leads to the inability to form an effective supervision method of multi-party linkage.