Giving birth to civil society

Former reporter finds his niche in assisting start-up charities
Lu Zhao has discovered his own way of keeping a smile on his face - by helping others.

"I smile all the time, because philanthropy makes me happier and younger, " said Lu.

Five years ago the now 40-year-old set up an organization called Non-Profit Incubator (NPI), which assists in the development of non-profit organizations (NPOs) and social enterprises.

But he came upon this career path indirectly. Before embarking on philanthropy, Lu was a reporter, which led to an interest in business, especially in trade and public relations, an area he would develop over the next decade.

During his Master of Business Administration studies in 2000, he made contacts with many government officials and had the chance to approach people in well-paid positions.

"I would call it a 30-year-old's crisis, when you really wanted to jump out of your old life and do something genuinely meaningful," Lu said in explaining why he turned down the potential to work for a private domestic firm.

At the same time, he was invited by an MBA classmate, a senior government official, to lead a newspaper involved in charity - an area he suddenly realized combined all his skills.

"Whenever I did volunteer work for either school dropouts or drug addicts, I felt so fulfilled. It's totally a different logic from doing business.

"Business seeks the biggest profit, where you earn a lot of money, but the joy is only for yourself. Charity, in contrast, brings about a much broader social effect."

Lu not only found a sense of fulfillment in doing charity, he also discovered many problems that face NPOs, such as poor training and funding.

According to current laws, only organizations registered with local bureaus of civil affairs can receive subsidies from the government.

But governments in China tended to take cautious stances towards these civil organizations. So most received licenses only from local bureaus of industry and commerce, which means they had to be self-financing.

Lu decided to lend a helping hand. To come up with a concrete plan, the northerner with a smiling face and a fairly easygoing personality headed to Shanghai, because he heard the city embraced a more relaxed environment for NPOs.

"It was really hard in the beginning. Nobody listened to you or believed in you. I didn't even get one cent of income and I doubted if all my efforts were worthwhile," Lu recalled. "But I thought I had to persist, because there were people who pinned their hopes on my work."

He has since set up offices in Shanghai, Beijing, Chengdu and Shenzhen, and has helped almost 30 grassroots organizations get off the ground.

The growing awareness of social responsibility in China has been a major source of funding for NPI. But persuading the private sector to put money into NPOs was not an easy task, as they were more willing to put money into state-backed philanthropy, Lu said.

"But I convinced themthat supporting NPOs would be unique (as a marketing technique), and the strategy worked," he said.

Convincing China-based computer company Lenovo to sponsor nationwide NPO-building programs marked a milestone for NPI's cooperation with the private sector.

Another milestone is the integration of government procurement projects in the incubator model. Lu said global experience has demonstrated that governments can supply public goods that meet basic needs, but are incapable of providing personalized services.

So Lu's mission is to persuade local governments to purchase services provided by social organizations, leading to a win-win situation.

But it isn't always easy.

"When we tried to help a drug rehabilitation center get a license, one district government in Beijing abruptly turned down our proposal because they considered all drug addicts hopeless and thought the idea was a sheer waste of time and money," Lu said. "Once the stereotype is there, it is unlikely to change overnight."

Another concern for Lu is the sustainability of an NPO once it becomes established.

"Assistance from NPI does not necessarily guarantee an organization's success," he said. "NPI may serve as a platform, but its role is limited. NPOs need joint efforts by the government, the private sector and themselves."

Lu said philanthropy has turned him from a quick-tempered man into someone mild and peaceful, and he was glad to see more people in China, especially the younger generation, dedicated to NPOs.

"If you regard charity as a shrine, you are mistaken. Being part of a charity does not necessarily make you a noble person. You still have to face everyday trivial things and office politics," Lu said.

"But if you hold firm to the belief in helping people realize their dreams and reach out for a genuine civil society, you can feel the warmth and strength from philanthropy that nothing else can bring about."

Source: China Daily