Setting Up International Nonprofit Organizations in China
In light of China’s encounter with the current global economic crisis, the types of services that international nonprofit organizations (INPOs) offer are now more vital than ever. INPOs—defined broadly as foreign charitable organizations, private foundations, trade and industry associations, business leagues, and educational organizations—contribute to the needs of the rapidly developing country in disaster prevention and relief, education, environmental protection, HIV/AIDS, labor and migration, rural development, and animal welfare but have also encountered many bureaucratic hurdles. There is a growing need for INPOs—whether charitable organizations that wish to provide aid, or INPOs set up by corporations to extend their corporate social responsibility (CSR) efforts—to have a greater presence in China, yet their efforts are often hampered by a system that lacks efficient mechanisms for charity because of the limitations on the establishment of transparent, independently registered charities and nonprofit organizations. As China develops, INPOs can help China foster greater public awareness on issues that are fundamental to a developing society, such as environmental protection. Trade and industry associations give Chinese industries a platform to connect with other global industry players, and other INPOs can help multinational investors establish effective CSR activities in China.