China
2019.12.08 11:08 GMT+8

Concerns over integrity of charitable donation platforms

Updated 2019.12.08 11:08 GMT+8
China 24

Philanthropy is an act of giving, generosity and kindness, but unfortunately, many aren't entirely sure where their good-natured donations end up.

Shuidichou, a crowd-funding platform which specializes in raising money for medical treatments, has come under fire for taking advantage of the system.

It's been accused of deliberately dispatching charity promoters to hospitals to persuade patients to register new campaigns. These promoters received commission based on the amount of campaigns they registered, and the number of donors.

They also conjured up fund-raising targets, and neglected to run any background checks.

Shuidichou management has apologized for their actions and said they would assume full responsibility. But it may be too late.

"I've made donations before on the platform, but I'm not going to do that in the future. I feel like my kindness has been taken advantage of," said one citizen.

Shuidichou, which began operations in 2016, has helped millions to source financial aid for their medical problems. The platform allows users to share stories, post medical records, and they are also allocated a special page for donations.

Charities, of course, also need money – they themselves need professional staff to ensure people know and understand what they're offering. They often need to take a certain percentage of what they collect to pay these employees and other expenses.

But it was Shuidichou's controversial commission system, for its charity promoters, which has come under scrutiny.

Bao Ran, a financial commentator said that the platform had proposed clear performance indicators for the charity promoters, and there's even a bonus-malus system, which is against the law. The promoters of a charity program should be volunteers. In addition to that, all expenditures and financial statements were required to be exposed to the public.

Many are now highly skeptical about donating to such platforms, which are designed to help those most in need. It seems to be an issue which needs serious attention going forward.

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