RCSC Capacity Building on RCSC Capacity Building on Resource MobilizationResource Mobilization

Su YanSu Yan Deputy Director of Fundraising and Finance Department,Deputy Director of Fundraising and Finance Department,

Sept. 04, 2013Sept. 04, 2013

I. Legal Basis and Income Sources of Resource MobilizationII. Overview of Resource Mobilization III. Resource Mobilization Models IV. Case Study: Lushan Earthquake

Resource mobilization strategic goals in 2020 Strategy:

1.Maintaining the leadership in emergent resource mobilization2.Increasing non-emergence revenue in international and domestic works3. Strengthening resource mobilization capability of National Societies.

Law of the People’s Republic of China on Donations for Public Welfare, regulating pubic donation and receiving donation behavior

Article 2: This Law applies to any natural person, legal person, or other organization that is willing to donate assets to any legally established social bodies engaged in public welfare and to non-profit welfare administration units for the use of public welfare undertakings.

Law of the People’s Republic of China on the Red Cross Society ， stipulating the rights of Red Cross for raising fund and receiving donations.

Article 20 The funds of the Red Cross Society come mainly from: membership subscription, money and goods donation, incomes derived from movable and immovable property and government appropriations .Article 22 The Red Cross Society may, for the purpose of extending relief and assistance, solicit contributions.

I. Legal Basis and Income Sources of I. Legal Basis and Income Sources of RCSC Resource Mobilization RCSC Resource Mobilization

收入（经费来源）

筹资 创收

会费 捐赠款物 动产和不动产收入政府拨款

其他

This diagram is based on the Law on Red Cross Society. Fundraising refers to a broad sense, including membership subscription and government appropriations; Government appropriations include annual budget and lottery public welfare fund supported by the Ministry of Finance (service purchased by the government); Donations include donations by domestic and international enterprises, individuals and organizations; Generating revenues, including interests, operating income, asset appreciation, service income etc.

Revenue (Funding Source)

Fundraising Generating revenue

Subscription DonationGovernment

appropriations

Incomes derived from movable and

immovable property

Others

II. Overview of Resource Mobilization II. Overview of Resource Mobilization of RCSCof RCSC

Revenue data only include government appropriation, domestic and foreign donation, subscription and earned income excluded;Red represents the year with catastrophe, blue represents ordinary year, social donations are increased in disaster years, and thus the overall revenue is increased; Revenues are stably increased in ordinary years even affected by Internet incident, remained a stable growth compared to previous figure.

Similar to domestic donation, international donations are affected by disasters; Except for dropped in 2009, appropriation from government remained growth in other years.

Position of Resource Mobilization: It is meaningful to accelerate continuous and healthy development of Red Cross cause. It is the precondition for Red Cross to fulfill its mission and duties. It provides material guarantee for the survival of Red Cross and economic foundation for Red Cross to forge ahead.

Donors Total Value of Donations

Capital Flow

Decision-making and Control

Info Flow

Total Quantity of Donations

Public Welfare Projects

Use Flow

Relationship Chains of Resource Mobilization Relationship Chains of Resource Mobilization within the Organizationwithin the Organization

Project Evaluation(Supervision and

Auditing Management)

Information Disclosure

(Info Disclosure)

Fundraising, Donation

(Donor Management)

Capital Management(Financial Info Management)

Project Execution (Donation Usage Management)

Promotion (Public Welfare

Marketing)

Donors (Social Demands)

Donors (Consignor)

RCSC (Consignee)

“Three-Relief”, “Three-Donation”（ Beneficial)

Donation info flow

Usage Info Flow

Info feedback flow

Info feedback flow

External Relationship Chain of Resource Mobilization External Relationship Chain of Resource Mobilization

III. Typical Models of RCSC III. Typical Models of RCSC Resource MobilizationResource Mobilization

Special Fund Model

• Special fund is a fundraising model widely recognized and welcomed by large donor clients.

• Principles of establishing special funds: Guided by Red Cross, normalized governance, democratic decision-making and information transparency. In line with Red Cross missions, respect for the willingness of donors.

Definition of Special Fund

• Definition: Sustainable funds served for the intended purposes.

• The nature of capital of “Special Public Welfare Fund”:

Exclusively using for public welfare projects (public welfare use only) + certain sustainability (the nature of fund).

Establishment and Operation of Special Fund

• Classified by different establishment methods:

A. Self-initiation

B. Established by initiators

C. Established by corporate donations

Fundraising for Special Fund:• I. Self-initiation, mainly from public

fundraising and funded by government.

• II. Initiators establish the special fund. Two major fundraising methods: donated by initiators and key donors at the beginning, and public fundraising at the later stage.

• III. Established through corporate donation, mainly donated by companies or other members. 。

The Statement of RCSC Funds （ In RMB）

Fund NameBalance (as of the beginning of 2013)

Balance (as at June 30, 2013)

Mobile short message donation 40,829,632.31 44,682,334.60

Taobao Charitable Fund 19,914,523.44 19,346,005.24

CMSC Universal Love Fund 7,511,161.67 6,358,380.67

Li Chunping Universal Love Fund 7,460,000.00 7,410,000.00

Red Cross Society of China Universal Love Fund

4,269,986.37 10,175,921.87

Chinese Red Cross One Percent Foundation

2,073,572.09 2,038,509.59

DEC Universal Love Fund 1,999,982.00 1,999,982.00

Huatai Insurance Group Love Fund 1,899,960.00 2,212,732.00

Bashu Recovery Foundation 1,219,360.52 1,230,622.79

CCB Red Cross Society Youth Development Fund

722,712.92 722,712.92

RCSC Communication Fund 5,026.29 5,026.29

Total 87,905,917.61 96,182,227.97

New Media Fundraising Models

• Raised funds through mobile text messages

• Raised funds through online e-commerce platform (e.g. Taobao Fund)

Fundraising methods: Send short messages to the phone number of public welfare. Many a little makes a mickle . Previous records: Wenchuan Earthquake, nearly RMB 200 million, over 40 million people. In 2012, over 2.8 million people, with the

donations of nearly RMB 7.8 million. 2012 Trend: The amount is large at the beginning and end of year due to holidays.

Have stable individual donor group, with a large number of loyal supporters.

Donation amount (RMB)

The Number of Donors

JanJan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

Platform: Taobao, the world’s largest e-commerce platform.Fundraising methods: “Public Welfare Treasure”, i.e. online shop venders would donate certain amount of their sale value to Red Cross. Achievement: Raised RMB 5 million in 2012, over 60 million donors. The trend is similar to Taobao trade volume. As of July 2013, raised funds of RMB 5.05 million, exceeding the total donation in 2012, the number of donors reached nearly 58.96 million. Through new emerging online platforms, Red Cross attracts a large number of long-term stable donor clients.

Donation amount (RMB)

The Number of Donors

IV. Case Study: Lushan EarthquakeIV. Case Study: Lushan Earthquake

At 08:02 of April 20th, 2013, A magnitude-7.0 earthquake hit Lushan, Yaan, Sichuan. RCSC responded immediately and provided disaster relief. The special fundraising program was carried out:

Total donation of RMB 1.1878173 billion, among which, received money of RMB 918.1947 million (including foreign capital) and materials of RMB 269.6226 million.

全国红会系统捐款排序

0

5000

10000

15000

20000

25000

30000

总会

四川

广东

山东

江苏

浙江

上海

福建

贵州

基金会

新疆

北京

河南

广西

安徽

内蒙古

湖南

青海

辽宁

江西

陕西

吉林

云南

天津

重庆

河北

湖北

黑龙江

山西

海南

甘肃

宁夏

兵团

西藏

1系列

Donation Ranking

Series 1

Personal and organizational donor segmentation. RCSC totally receives 1,638,164 donation transactions, including 1,598,675 personal donations, accounted for 97.59% of total donations. The amount of personal donations accounts for 21% of total donation amount, while organizational donation accounts for 79%.

Money and material donation segmentation. According to statistical data, money donation accounts for 77% of total amount of donation, while material donation accounts for 23%. The fundraising quality is ideal.

中国红十字会芦山地震手机短信捐款日统计

0

50, 000

100, 000

150, 000

200, 000

250, 000

300, 000

捐款人次 手机捐款额

During Lushan Earthquake, mobile short message donation accounted for 1,017,395 times, with a total value of RMB 2.970023 million.

RCSC received daily donations through mobile text messages for Lushan Earthquake

Donation People/Times

Mobile Donation Amount

Summary of Resource Mobilization for Lushan Earthquake Better fundraising performance. According to the incomplete

statistics of social donation for Lushan earthquake by China Charity & Donation Information Center”, as of June, total donation accounted for around RMB 3 billion. According to this figure, Red Cross donation accounts for 40% of total social donation in China.

Social donation beyond expectation. Headquarters scientifically predicts fundraising for Lushan earthquake based on disaster situation and fundraising for Wenchuan and Yushu earthquakes. The initial goal is RMB 300 million. Statistical data shows that the actual amount is 4 times more than our predication, beyond the expected goal.

High public participation. According to national statistical data, general public donation accounts for 97.59% of total donation. RCSC has stable donor groups, including a large number of personal donors.

Thank you！