Reflections on Foundation Management Fees

Time：2011-06-13

○ Secretary General of Zheng Weining Charity Foundation

On May 17, Shi Yuzhu said in his microblogging: "The management fee of Ai You Huaxia Charity Foundation is 0%, and 100% of the donations are used for congenital heart disease children from poor families. The management fees incurred are shared by the directors, the directors of the bulls: Wang Bing, Ma Yun, Ma Huateng, Shen Guojun, Feng Lun and I, etc., the eyes are not rubbed into the sand, the foundation operates in a very standardized. Ai You Huaxia Charity Foundation management fee of 0% without universality, but hopefully will not have an impact on other charitable funds."

This microblogging immediately attracted the attention of the industry, first of all, what is "sand"? First of all, we questioned what "sand" is and whether it is needed.

The so-called "sand" is the salary of the full-time staff, administrative costs, the charity does not make any investment, financial outsourcing.

This is the first time I've ever seen a person who has been a member of an organization.

In fact, Shi Yuzhu's management fee of 0% of the said, but only a transfer of payment, the rich councilors to bear the management fee, the change of personal not accounted for donations, is not a real "management fee of 0%".

The management fee issue has always been a problem in China's public welfare sector: on the one hand, the public does not understand the management fee, there are many doubts; on the other hand, the "Regulations on the Administration of Foundations" stipulates that: "non-publicly funded foundations used to engage in the statutes of the public welfare expenditure shall not be less than 8% of the balance of the fund of the previous year. less than 8% of the fund balance of the previous year; foundation staff salary and welfare and administrative office expenditure shall not exceed 10% of the total expenditure of the year." This makes it difficult for the public welfare sector to attract and retain good professionals, especially for small public welfare organizations. Let's say, for example, a non-public foundation with a total of 2 million, if a year for public welfare projects spend 50% (already much higher than 8%), that is, 1 million, then the management fee shall not be higher than 100,000, if there are no less than five full-time staff (the annual review of the foundation stipulates that less than five full-time staff to reduce the score), the organization's rent, water and electricity, plus the operation of public welfare projects itself, then, the The average monthly salary per person is less than one thousand dollars, which is lower than the minimum wage guarantee in Shenzhen, and is obviously unreasonable. But for large foundations, if the total annual expenditure of two hundred million, means that the management fee can be 20 million, which of course will become the reason for public skepticism.

How the foundation management fee should be managed is an issue that deserves to be studied by the relevant departments.

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