Taobao war vet donation highlights charity transparency

Chinese veterans of the Anti-Japanese War (1937-1945) are set to be eased through winter by a donation raised via China's largest online retailer, Taobao.com.

The program has raised the profile of this often-overlooked group of heroes and also pointed the way forward for the Internet's role in ensuring the trustworthiness of charitable initiatives.

A total of 1,154 former members of the China Expeditionary Force, aged around 90 and mostly living in poverty, will be given goods like walking sticks, artificial limbs, radios, socks, shoes and noodles, worth 300,000 yuan (about 47,700 U.S. dollars).

The fund-raising, jointly launched in September by Shenzhen Longyue Charity Foundation, Taobao and Taobao's owner, Alibaba Group, will benefit veterans living in Hunan, Guizhou, Guangxi and Shanxi.

The Anti-Japanese War entered its darkest days in 1941. Japanese forces were bombing China's major cities day and night. Their campaign to cut China off had left only one route of communication open with the West -- the Yunnan-Myanmar Road in China's southwest.

From 1942 to 1945, the China Expeditionary Force, comprising 400,000 soldiers, fought in Myanmar to ensure the security of the home front and the only communication route.

In spite of the great contributions made by the unit, the survivors have long been neglected by the public.

Sun Chunlong, director of Shenzhen Longyue Charity Foundation, said, "It's our responsibility to offer our care and help to the veterans, who need recognition from the public."

Since donations began to be accepted via the Taobao e-commerce platform in early September, more than 42,000 netizens have donated each week.

"Many Internet celebrities gave their support to the activity, attracting more public attention to the veterans," said Sun

"In addition, donors had a more transparent donation experience on Taobao. They know who will benefit from their donations, and they can vote for what is bought with their money. The donors have the final say."

This second point indicates the potential of e-commerce as a sound technical platform for charitable organizations. Such programs can be not only convenient to operate for China's booming number of Internet users but also easier to supervise in an era in which the the country's trust of charities has been hammered by a number of high-profile scams and abuses.

China has witnessed a sharp increase in the number of Internet users in recent years. By the end of June 2012, 538 million Chinese were regularly going online. The medium has gradually become a good choice for small and medium-sized charitable organizations.

As China's largest online retailer, Taobao has 370 million registered users, all of whom are ready targets for public welfare schemes and information.

"We are doing charity affairs through a business model. Taobao covers a wide range of people. Our charity activities usually get wide attention and support by grassroots Internet users in a short time," according to Qi Xiaopei, Taobao's public relations manager.

Last year, a young girl named Guo Meimei, claiming to hold a senior position at the Red Cross Society of China, used a web forum to show off her luxury cars and handbags, causing public speculations that that her income had been embezzled from charity. The scandal underscored public distrust of charities, and the transparency of the sector has since become a major concern.

The China Charity Transparency Report (2011), issued by the China Charity and Donation Information Center, showed that only 8 percent of 1,063 questioned people were satisfied with the transparency of Chinese charitable organizations.

According to the China Foundation Center, there were 2,735 foundations operating in China by July 24. However, only 777 of them had established official websites.

According to Deng Guosheng, a professor with Tsinghua University's School of Public Policy and Management, few charitable organizations in China disclose how donated money is spent.

Li Liguo, minister of civil affairs, said, "Openness and transparency are key for public charitable organizations to win public trust. It's of great importance to developing philanthropy in China."

During the fund-raising for the veterans, information such as names of donation recipients, the credentials of the companies set to supply them with materials, and the quantity and quality of the products were all disclosed on Taobao.com.

This didn't stop the scheme's validity being questioned, however. One Internet user with the screen name "Hunterzzb" demanded, "Is this donation credible?" "Gideon_ji" also took issue with the Taobao online shops that the system allowed to bid to supply the veterans with goods. "Why are the ratings of many bidding shops so low? Is their selection some trick by the suppliers?" the netizen demanded.

In reply, Taobao's Qi Xiaopei explained that the nomination of suppliers is open to the public. Anyone making a donation gets to choose what items are bid on, and all sellers on Taobao can participate in the bidding. It's the donors who vote for the suppliers, according to Qi.

Under the supervision of Internet users and monitoring by Taobao, two bidding sellers were found to be faking votes. Their licenses were later revoked and they were named and shamed on Taobao.

"Internet technology and strict rules help provide a more transparent environment. Neither we nor Taobao dare neglect the willingness of more than 40,000 donors," said Sun.

This is not the first public welfare activity that Taobao has undertaken by taking advantage of its large number of users and vast sets of data. In August, the online retailer and the China Foundation for Poverty jointly initiated "Games Among Mountains," donating sporting goods to 35 primary schools in the poverty-stricken areas of Daliang Mountain in southwest China's Sichuan Province.

In addition, a Taobao-sponsored charity project named "Magic Beans" and has helped many poor mothers start their own businesses.

"Donors will play a stronger role in future. The combination of the Internet and public welfare allows everyone to become the master of charitable activities. Everybody can participate in public welfare in the most convenient way," Sun added.