Two lists successively released in April have made the word "philanthropist" the latest fashion this spring.

Entitled "Most Generous Chinese Mainland Philanthropists", the lists were published by an expat in Shanghai and later a newspaper in Beijing. The first ranked 50 of the most generous individuals and the second listed the top 135, according to the scale of their donations. Most of the donors are private entrepreneurs.

Most of the mainland rich began to emerge after the reform policy was adopted by the Chinese Government in the late 1970s. Their wealth is gradually being unveiled and how they use their money is also becoming more of a concern to the public.

A philanthropist list was released in 2004 for the first time. Since Rupert Hoogewerf, a British professional list-maker, and China Philanthropist Times (CPT), a State-run newspaper under the Ministry of Civil Affairs, released their rankings this year, another list of the same theme is about to be published by Forbes (Chinese version).

"The charity culture is deepening in China," said Rupert Hoogewerf, the list-maker who recently released a ranking of philanthropists along with other lists concerning China's private sector, such as China's Rich.

He cited several examples to illustrate his point. "Last year, 17 entrepreneurs on my China's Rich list were included in the philanthropist's list. This time, the number has increased to 24," he said. "And you will find Huang Guangyu, the richest individual on my list last year as well as Ding Lei, the richest listed in 2003 have made their first donation - to the tsunami cause - this year."

Huang and Ding both contributed 10 million yuan (US$1.2 million), from their billions of wealth.

"In addition, the government has given an explicit guideline to support domestic charities," he added. His view was confirmed by a source with the Ministry of Civil Affairs, which supports the compilation and publication of the other list, by China Philanthropist Times (CPT).

"To encourage the development of Chinese charities is one of the tasks emphasized by Minister Li Xueju. Now a department under the Ministry of Civil Affairs has taken charge of it," said the source.

In June 2004, a regulation on charitable foundations was approved and implemented by the government to ensure better operation of these foundations. Furthermore, China's Premier Wen Jiabao has included the development of domestic charities in the 2005 Government Work Report, the first time the Chinese Government has taken this step.

This new policy is regarded as a reflection of "the establishment of a harmonious society", a new concept proposed by the government.

"We made such a list to commend generous donors and encourage more rich people to contribute to society," said Xu Jianmei, editor-in-chief of the China Philanthropist Times (CPT).

Favourable policy

However, while charity is being encouraged by the authorities, some drawbacks existing in the tax policies and legislation have become increasingly conspicuous, impeding potentially wider enthusiasm for contributing.

"A much wider favourable policy is needed to encourage more donations," said Ma Zhongqi, spokesman for the Shanghai Charity Foundation, which was founded in 1994 and has collected more than 1.1 billion yuan (US$132.5 million).

According to Ma, there are about 1,200 charitable foundations in China. However, there are only eight designated ones to which individuals and enterprises can donate and receive a tax break, regardless of how much they give.

If any enterprise wants to donate more than 3 per cent of its total profits to the other domestic foundations, it must pay tax on the amount that exceeds the specified tax-free limit. For individuals, the limit is 30 per cent of their income.

"The Shanghai Charity Foundation is in the group of designated foundations but obviously, this group is very small," Ma said.

What's more, an inheritance tax law is still absent in China, though the government said they intend to initiate such a law.

"In the US, people who inherit more than US$30 million have to give up half of their fortune, according to their inheritance tax law, which can take as much as 55 per cent," said Chen Bing, assistant to Rupert Hoogewerf. "This may be why the US rich are more likely to donate to society and thus earn a good reputation."

As a matter of fact, Chinese charities have lagged behind the West in terms of the amount of donations and consciousness.

According to Ma, charities account for nearly 9 per cent of the US GDP while in China, the proportion of charities to GDP is only 0.1 per cent.

The gap in individual donations is also revealed in Hoogewerf's list. It shows the gross donations made by the 50 entrepreneurs since 2003 to be

1.35 billion yuan (US$162.6 million), accounting for 3 per cent of their wealth. The 50 American entrepreneurs listed by Business Week have contributed US$65 billion, 45 per cent of their fortune in the past five years.

"The gap is rooted in different economic capabilities as well as culture and customs," Ma observed. Many scholars believe that Chinese philanthropists have a long way to go to catch up with their foreign counterparts.

Reluctant donors

Deng Jianguo, an expert with the NGO (nongovernmental organization) Research Centre under Tsinghua University said Chinese entrepreneurs are more concerned with how to increase their fortune and develop their enterprises, because a majority of them are still in their initial capital accumulation phase.

"A philanthropist like Carnegie cannot be expected currently in China," said Ma Jinlong, an economist. "Most of the Chinese rich are thinking more about their kids than donation."

Maybe this is true. A large number of domestic entrepreneurs are ready to leave their businesses to their offspring or relatives, including Huang Rulun, who donates the most of anyone in the country.

A netizen named Tang Hao commented that many new rich have not developed a charitable consciousness because the government shoulders most responsibility for supporting the poor and providing appropriate funds for relief, education, disasters and so on. "People typically expect the government to give this kind of support, and regard poverty as none of their business," the netizen said.

The push for more donations from entrepreneurs is becoming gradually apparent in society as the gap between rich and poor widens. But when it comes to "donate or not donate", the Chinese rich have their own concerns. Even the listed donors have their worries and complaints. Some of them are not pleased to have their names and donations appear on the list. This reveals their wealth to the public and possibly raises a danger for them. Also, many Chinese still hold prejudices against rich people, considering their way of earning money to be somehow indecent.

"I wish the list makers could protect the entrepreneurs' enthusiasm," said one listed philanthropist.

Philanthropist Yu Pengnian has expressed annoyance at the corruption and abuses of donation existing among some charitable foundations and their executives. "I want all of my donations to be used to help the poor. However, it is very disappointing to find out that 10 ambulances I gave to a hospital were refitted as vehicles for local officials," he said.