Bain Social Impact Report

Digital Philanthropy in China: Activating the Individual Donor Base Digital is unlocking new avenues for individual participation in philanthropy, promising significant development of the sector. This report was authored by Yin Chen, Weiwen Han, Ming Wong and Jiakai Yuan. Yin Chen is a Bain & Company partner in Shanghai and leads the firm’s social impact efforts in Greater China. Also based in Shanghai, Weiwen Han leads Bain’s Greater China offices. They can be reached via email at yin.chen@bain.com and at weiwen.han@bain.com. Ming Wong is a Hong Kong-based vice president with United Way World-wide and leads UWW’s Asia-Pacific practice. Jiakai Yuan is the chief China representative for United Way Worldwide and is based in Shanghai. They can be reached via email at ming.wong@uww.unitedway.org and at jiakai.yuan@uww.unitedway.org. Bain Radar 360SM is a service mark of Bain & Company, Inc.Copyright © 2018 Bain & Company, Inc. All rights reserved. Digital Philanthropy in China: Activating the Individual Donor Baseii. .pg1375237Chn1a .1g33’33s5 ..3R3MCB65.2b3l.otContentsEmbracing the digital revolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..1At a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..31. China’s philanthropy sector: Potential and challenges. . . . . . . . . . . . . . . . . .pg ..72. Digital philanthropy: Evolution and characteristics. . . . . . . . . . . . . . . . . . .pg ..153. Digital fund-raising: Vision and implications. . . . . . . . . . . . . . . . . . . . . . .pg ..25 Digital Philanthropy in China: Activating the Individual Donor Baseiii. .pg1375237Chn1a .1g33’33s5 ..3R3MCB65.2b3l.ot Digital Philanthropy in China: Activating the Individual Donor Base1i. .pg1375237Chn1a .1g33’33s5 ..3R3MCB65.2b3l.otEmbracing the digital revolutionDear Colleague:In life, we benefit when ability and opportunity meet. Having a skill is important, but more so if there is a productive way to use it. Similarly, if an opportunity presents itself but you don’t have the capability to take advantage, the moment goes unrewarded.The potential for philanthropic growth in China is a tremendous opportunity for organizations with the ability to seize the moment. As this report describes, China, a nation of about 1.4 billion people, possesses an untapped philanthropic market in an early stage of development. We need a tool—a way of working—to help philanthropic organizations take advantage, increase their impact and strength-en more communities.China’s potential philanthropic growth represents a tremendous opportunity for organizations with the ability to seize the moment. Right now, in countries around the world, digital technology is reshaping society. To make a purchase, for instance, shoppers used to go to a store and choose from what was physically on the shelf. Today, with the Internet delivering knowledge right to our fingertips, data is plentiful. Shoppers can research any number of options at home, learn about brands and make a selection from the comfort of their sofa. Digital technology is having a similar effect on philanthropy. Today, people don’t have to rely on tradi-tional charities to act on their behalf. Instead, when they identify an issue they care about, they can go online, donate, get involved and see the progress they’re making. That’s the growth opportunity for charities today.The philanthropic opportunity in China aligns with our vision at United Way and the digital capabilities that we are developing. This report shows that while donor penetration in China is low, Internet pen-etration continues to rise—creating a pathway for philanthropies to connect with people more directly than ever.Several years ago, I spoke with my board of directors about the importance of United Way embracing digital technology if we wanted to stay in business. That’s why we have shifted our strategy to build tools to support today’s empowered individuals. We are helping people find causes they care about, develop community partnerships and opportunities, and multiply their impact. We are helping them not only to volunteer, but also to engage their friends and family and to share stories and ideas that increase their reach. Digital Philanthropy in China: Activating the Individual Donor Base2i. .pg1375237Chn1a .1g33’33s5 ..3R3MCB65.2b3l.otTo be effective, philanthropic organizations in China must embrace this digital revolution. They must build connections, show people how they can make a difference and develop a culture of giving. That’s what United Way is working to accomplish, and it is how charities in China and around the world will build trust and support across our collective sector. In China, these efforts must be aided by the estab-lishment of a regulatory environment that keeps pace with today’s technological innovations.I encourage you to thoroughly review the data and conclusions in this report. The opportunity provid-ed by digital t