An Empirical Analysis on the Influential Elements of the Development of Individual Donation

Transcription

1 Asan Socal Scence An Emprcal Analyss on the Influental Elements of the Development of Indvdual Donaton Chao Zhang School of Economcs, Southwestern Unversty of Fnance and Economcs Chengdu , Chna E-mal: Nan Zhang School of Economcs, Southwestern Unversty of Fnance and Economcs Chengdu , Chna E-mal: Abstract Indvdual charty s an mportant way for provdng publc products and s a sgnfcant complement for socal guarantee system, whch s proved by the snow dsaster of Chna at the begnnng of However, the development of ndvdual charty n Chna s not promsng. At present, there s lttle exploraton on the nfluental elements of the development of ndvdual donaton n Chna. Ths paper, from theoretcal aspect, analyzes the elements that nfluence the development of ndvdual donaton of Chna at present stage from the perspectves of supply and need. Further, ths paper, based on the nvestgaton data collected n the cty of Chengdu, conducts an emprcal analyss on the nfluental elements and comes to meanngful concluson. Keywords: Indvdual donaton, Influental elements, Secton data, Emprcal analyss 1. Introducton As a way for ndvduals to provde publc products, charty has been ncluded nto the research feld of publc economcs. Donators and charty organzatons are usually the research objects of publc economcs. For one hand, donaton s the man source of charty funds and s the base of the development of charty. Foregn economcs fled has conducted emprcal researches n donaton and has establshed many theores. However, n Chna, researches on donaton are just at ther ntal stage. For another hand, wth the mprovement of Chnese economc level, corporaton donaton gradually draws people s attenton. Nevertheless, there s lttle emprcal analyss on ndvdual donaton wth the background and nvestgaton materals of Chna as the base. Let us take the US as an example. Accordng to statstcs, n the US, above 75% of the charty funds come from ndvdual donaton. Plus nhertance donaton, ndvdual donaton accounts for more than 80% n socal donaton. Seeng from the present stuaton of Chna, ndvdual donaton accounts for less than 20%. However, wth the ncrease of average ndvdual ncome and the enlargement of mddle class, ndvdual donaton may develop towards the man source of charty funds. Therefore, t s necessary to conduct researches on the elements that nfluence the development of ndvdual donaton. The arrangement of ths paper s that part two s the lterature revew on ndvdual donaton and the defntons of ssues that ths paper focuses on; part three s the theoretcal analyss on nfluental elements of ndvdual donaton; part four takes 292 ndvduals who have made donaton as sample and on the bass of questonnare analyss, examnes the concrete nfluences of ncome level, tax preference, donaton cost, donaton return, government expendture, charty awareness and meda propaganda on ndvdual donaton expendture; and part fve s about polcy connotatons. 2. Lterature revew and the defntons of ssues As a behavor choce, to gan return s one of the basc ams of donators. The return ncludes nner return, fame return, and pure socal return. Some scholars beleve that the motve for donaton manly comes from the satsfactory feelng brought by the donated money amount, that s, nner return and fame return (Harbaug, 1998). Some do researches on the nfluence of thumb a rde on the donators ganng of pure socal return, that s, the donaton of others squeezes out the donaton wllng of the behavors (Cornes & Sardlert, 1984). Wth regard to donaton cost, we can dscuss from the followng aspects: 12

2 Asan Socal Scence July, 2008 (1) The transparency degree of the charty operaton. Bll Harbaugh (1995) thnks that to open the donaton to the outsde wll be actve for enhancng the wll of ndvdual donaton and can enable to decrease the cost of supervson. Robert D. Cooter and Boalt Hall (2003) put forward to make publc of donaton and suggested to regster donaton. (2) The sncerty of the helped n the process of donaton. Alberto Alesna and Elana La Ferrara (2002) found out that the lack of sncerty wll brng about the decrease of donaton level and the ncrease of cost. (3) The dversfcaton of donated objects. The donated objects nclude tme, money, and non-captal objects. Tore Ellngsen and Magnus Johannesson (2007), Lorenzo Cappellar, Paolo Ghnett and Glberto Turat (2006) came up wth that the effectve collocaton of donated objects can rase effcency. Income level has strong restrant feature (Meer, 2006) and restrcts the donaton capacty at fundamental level. Schwartz (1968) appled the sum of tme seres data and examned the ncome elastcty of donaton. He opnes that the ncome elastcty of donaton s rather hgh and s n between 0.53 and Nelson and Levy (1970), Shatto (1978), and Clotfelter (1985) came to smlar concluson n ther researches. At present, the researches on the nfluences of tax on corporaton donaton are plentful. Navarro (1988) appled secton materals and found that wth the ncrease of tax rate, the amount donated by corporatons wll decrease. The secton research of Carroll and Joulfaan (2005) ndcates that the prce elastcty of donaton s negatve and remarkable. Boatsman and Gupta (1996) adopted panel date to conduct research and proved that the ncrease of tax rate wll result n the decrease of donaton. Many foregn lteratures show that the nfluence of government on ndvdual donaton s ntangble. The concluson of Warr (1982, 1983), neutral outcome, says that f only the nner Nash equlbrum exsts, the nfluence of government support on ndvdual donaton wll be neutral. Before Warr, Becker (1974) also came to such concluson. Subsequently, Barro (1974) proved Becker s concluson. Kemp (1984) further developed the concluson of Warr. Blume and Varan (1986), Cornes and Schwenberger (1996), Cornes and Itaya (2003), and Boardwar, Pesteau and Wldsasn (1989) put forward that even f the ndvdual ncome tax and the subsdy of government to ndvdual donaton are dstorted, such neutral outcome wll stll exst. Therefore, t s not sure that whether the nfluence of government expendture on ndvdual donaton s squeezng n or squeezng out. Foregn lteratures dscusson on charty awareness manly focuses on relgous feld (Harbaug, 1998; Gruber and Hungerman, 2006) and s about the correlaton between charty awareness and relgous belefs. Phlp H. Brown and Jessca H. Mnty (2006) prove that, based on the emprcal data collected from the donaton for the tsunam of 2004, to ncrease the propaganda frequency of meda wll powerfully advance nternet donaton. 3. Analyss on the nfluental elements 3.1 Influental elements of the supply of ndvdual donaton Income level s an mportant element n nfluencng ndvdual donaton. Accordng to the need-herarchy theory of Maslow, the need-herarchy of human bengs mproves wth the ncrease of ncomes. It s commonly agreed that the need of ndvdual donaton s sprtual need of hgh-herarchy. Accordng to such reference, for one hand, ndvdual donaton can be consdered as sprtual consumpton of ndvduals. The same as other consumpton behavors, donaton s the ncreasng functon of ncome and s restrcted by ncomes; for another hand, the sprtual consumpton whch s of hgh-herarchy, s a luxury, s of rather hgh ncome need elastcty, and s under sgnfcant nfluence of ncome level. Donaton cost refers to the entre cost ncurred by a donator n donaton, such as search cost and supervson cost. To put t smple, the donaton cost s the transacton cost of donaton. Ths paper consders donaton as a consumpton of sprtual products of an ndvdual or famly. Although donaton s dfferent from other common sprtual products, t s stll a consumpton behavor. We can probe nto the relatonshp between donaton cost and donaton behavor. Tax nfluences donaton by two means. One s to decrease donaton cost through makng out of targeted tax ncentves, that s, replacement effect. For example, deducton before tax can decrease the tax cost of the donators; the set-up of property transfer tax and the set-up of nhertance tax can transfer cost though ncreasng captals and thus decrease the donaton cost comparatvely. The two ways wll stmulate ndvduals to ncrease donaton. The other s ncome effect, whch ndrectly lmts ndvdual donaton by way of controllng the dsposable captal after tax through the fxng of tax rate. For example, the entre tax rate can be decreased; as a result, the dsposable captal after tax s ncreased and the donaton can be ncreased too. The frst system has been commonly recognzed and has become a polcy system on donaton of many states. Donaton return s also an mportant element n nfluencng ndvdual donaton. Donaton return ncludes nner return, fame return and pure socal return and s represented by way of donaton behavors. Due to the dfference of ndvdual preference, dfferent return type weghts dfferently n the decson-makng systems of donators. Hence, ther nfluence on donaton behavors and donaton amount vares. The specal groups wth hgh ncomes, such as mllonares and stars, manly care about ther fame returns; hence, the fame element weghts greatly n ther decson-makng system on donaton. The Hurun charty ht parade s an example. However, the startng pont of some relgous men or men wth 13

3 Asan Socal Scence the sense of sn may be that they pursue nner balance rather than socal fame. Smlarly, people who care about publc nterest and are of ctzen awareness may care more about pure socal returns. Charty awareness plays postve nfluence on donaton. Donaton s an economc behavor and s more a socal behavor. Donators are encouraged by economc benefts and are nfluenced by cultural awareness. The non-compulsory nature and voluntarness of charty requres that the development of charty must be n a socal envronment full of love and care. It requres donators to have wllng-to-help moralty, humansm-care value vew and behavor modes, and strong charty awareness. Relgous motves, socal and culture motves and moralty motves wll all exert nfluence on the formaton and cultvaton of charty awareness. 3.2 Influental elements of the need of ndvdual donaton Elements dscussed above start from the perspectve of ndvdual donaton scale nfluenced by supplers. Besdes, there are some elements that nfluence donaton from the angle of donaton need. The fnal scale of donaton s determned by ndvdual s wllngness to supply donaton and the need of socety on donaton. Generally speakng, the need of socety on donaton far exceeds the supply. Hence, the determnant elements usually come from the supplers. However, for certan donators, the donaton need wll sometmes play mportant role. Most of the donaton ultmately goes to the feld of envronment, educaton and other publc careers. Part of the reason s that those felds lay strong need for donaton funds. For example, the proporton of populaton recevng educaton accounts for a relatvely large part of the entre populaton. Therefore, educaton nsttutons need more captal resources. Under the crcumstance when other elements are fxed, the pretty hgh proporton of populaton recevng educaton and populaton supported by the lowest guarantee wll result n rather hgh donaton needs. The occurrence of some specal events would rapdly rase the need on donaton n short perod, such as flood, tsunam and other natural dsasters that can result n substantve losses. In 1998, many areas of Chna were flooded severely. The donaton amount n 1998 far exceeds other neghborng years. In 2006, Chongqng was ht by severe draught. The captal donaton receved by Chongqng n 2006 s nearly twce that receved by Chongqng n 1998 for the floodng dsaster. Lmng Pan (2005) analyzed the relatonshp between socal donaton amount of Chna and the drect economy loss ncurred from natural dsasters coverng from 1996 to 2002 and found that the socal donaton of Chna s of evdent need-pushng effect. 3.3 Government expendture and meda propaganda: both nfluence the need and supply of donaton The nfluence of government expendture on ndvdual donaton s complcated. Frst of all, from the perspectve of donaton need, the ncrease of government expendture on charty affars wll replace ndvdual donaton and squeeze out ndvdual donaton. Besdes, some researches have proved that government, donators and charty organzatons are of the same strategy mutual-actve envronment. Charty organzatons have changed from nactve watng to actvely gatherng funds.the donated amount s drectly nfluenced by the endeavor of charty organzatons. When government ncreases ts captal support to certan charty career, the charty organzaton wll cut down ther endeavor. Hence, the government expendture squeezes out the endeavor for donaton rather than donaton and results n the decrease of ndvdual donaton. However, f the government expendture on charty organzaton requres ndvdual donaton to go wth, the ndvdual donaton may be squeezed n and form the complement nature. Secondly, government expendture wll nfluence donaton by way of supply, whch may ether squeeze n or squeeze out ndvdual donaton. For one hand, the support of government on charty organzatons wll cause the charty organzatons to lose fork ndependence. The potental donators wll doubt the pureness of the fork organzatons and ther wllngness to donate are hence lowered. For another hand, government expendture can be vewed as the sgnal of the qualty of the charty organzatons and hence, decrease the search and supervson cost of potental donators. At the same tme, government expendture can generate example effect for ndvdual donaton and s benefcal to rasng the confdence of donators. Meda propaganda s mostly consdered as an element that nfluences supply, that s, the chartable propaganda of Medas can be vewed as a method to mprove supply level. However, from the perspectve of the condton of Chna, t s known that the relgous tradton s not remarkable and the development of charty organzatons and funds lag behnd; therefore, meda propaganda can be seen as the element that nfluences both supply and need. For one aspect, to propaganda tradtonal moralty and socal clmate can help to popularze charty awareness and get forward chartable donaton. For another, to publsh the nformaton of the helped and areas receved gvng and to form overwhelmng meda callng wll brng about drect need of ndvdual donaton. 4. Date descrpton and emprcal analyss 4.1 Date sources The nne dstrcts of Chengdu are the areas nvestgated of ths paper. 980 questonnares were gven out and 947 were collected, of whch 826 are vald. 352 ndvduals (or ther famly members) have made donaton, accountng for 42.6%. 14

4 Asan Socal Scence July, donators earn less than RMB1600 per month. Because the mportant element, tax preference, cannot be analyzed (n Chna, one who earns less than RMB1600 does not pay any tax), the 60 donators wll not be ncluded nto the analyss. The nvestgaton s retrospectve and the data collected are about ndvdual annual donaton of 2006, of whch the data on government budget and populaton proporton are from the year book 2007 of Chengdu. The data are secton data. 4.2 Defntons of varables (1) Donaton expendture: regressve dependant varable. The nformaton of donators, ncludng the donaton of objects and labor, are collected through questonnares. Captal s the fnal statstcal method (labor s converted nto captal by captal/labor). RMB s the unt. (2) Income level: the ncome of ndvdual s the budget restrant of ndvdual donaton. Ths paper adopts the result of questonnare nvestgaton and takes the pre-tax ncome of the nvestgated as the ndex and RMB as the unt. (3) Donaton cost: accordng to the types of costs, the donaton cost can by dvded nto the cost for searchng for donaton nformaton, the cost for analyzng the future of charty programs, the cost for selectng proper donaton forms, the cost for donaton behavor, and the cost for supervson. Ths paper descrbes donaton cost by settng up vrtual varables. (4) Tax preference: for ndvduals, donaton felds vary wth each other n the algorthm of tax preference. For the convenence of statstcs, ths paper unformly adopts 30% as the tax rate for the tax amount that enjoys donaton preference. From the actual nvestgaton results, t can be seen that the donaton amount s bascally wthn 30%. Therefore, the calculaton formula for tax preference s: Tax = (ndvdual ncome 1600) * progressve tax (ndvdual ncome 1600 donated amount) * progressve tax (5) Donaton awareness: ths paper adopts the educaton background of donators as ndex and converts the educaton background nto the educaton recevng years of the nvestgated. The data nformaton comes form the questonnares. Although t s not so comprehensve to use educaton recevng years as ndex for charty awareness, t stll represents the charty awareness. (6) Government expendture: data are from the government budget of the dstrcts of Chengdu, ncludng expendture on educaton and socal guarantee funds. The government expendture s measured by the ndvdual average of the sum of the two tems. RMB s the unt. (7) Meda propaganda: TV Medas of the man stream are the statstc focus. The tme of the nvestgated spent n watchng the news and consultaton and nformaton TV programs s taken as the measurement and mnute s the unt. (8) The proporton of students at campus and people recevng the lowest guarantee: the two ndexes are used to express the donaton need. The hgher the proporton s, the greater the donaton need s. Ths paper apples the number of students and populaton recevng the lowest guarantee of Chongqng n Descrpton of the statstcs The average donaton amount of the sampled ndvdual s RMB , of whch the hghest ndvdual donaton s RMB1, 500 and the lowest s RMB5. The donaton expendture s annual expendture. The average before tax ncome of the sample group of year 2006 s RMB3, The average tax preference s RMB The average donaton cost s RMB1.7295, whch s calculated by addng the vrtual varables. The charty awareness s measured by the years recevng educaton coverng from 0 to 18 and the average value s 15, whch shows that the educaton degree of the sample group s rather hgh. Correspondently, the meda propaganda s measured by the tme spent n watchng news or consultaton and nformaton programs and coverng from 0 to 180 and the average value s 80 mnutes. In addton, the average government expendture n the 9 dstrcts s RMB However, the dfference s knd of huge. The standard devaton reaches and the dfference between the hghest and the lowest s RMB531. The proporton of students and the populaton recevng the lowest lfe guarantee of the 9 dstrcts vary slghtly, whose average value are respectvely and Ther fluctuaton ranges are respectvely between and and between and Regressve results and analyss Based on the aforesad analyss, ths paper chooses the followng regressve equaton: Gvng 5 = β 0 + β 1 ncome + β 2 r gvngprce j 1 j + j β 3 tax + β 4 sense + β = 5 budget + β 6 meda + β 7 educaton + β 8 poor + u The common matlab s adopted to conduct estmaton. Because there may exst n the sample data multcollnearty and heteroskedastcty, three regressons are made (regresson forward). Snce the data are secton data, n the regressons, covarance matrx that s consstent wth heteroskedastcty autocorrelaton s adopted to rectfy the heteroskedastcty and autocorrelaton whose form s unknown (the HAC estmaton s obtaned through newey-west). The followng table 15

5 Asan Socal Scence reports the regressve reports of the equaton. Regressve Results Dependant varables: gvng 292 observed values Regresson No. 1 Regresson No.2 Regresson No.3 16 Independent varables Estmated coeffcent value T value Estmated coeffcent value T value Estmated coeffcent value T value Income Gvng prce Tax Sense Budget Meda * Educaton Poor * * R-squared Adjusted R Note: * means that the markedness level s remarkable below 20%; the default markedness level s 5%. Regresson No.1 ncludes all the explanaton varables n the basc equaton. Its results show that ncome level, donaton cost, tax preference and charty awareness exert remarkable nfluence on ndvdual donaton expendture, whlst government expendture, meda propaganda, and the proportons of students and the populaton recevng the lowest lfe guarantee just exert slght nfluence on ndvdual donaton. Because there s evdent lnear correlaton between charty awareness and ndvdual ncome level, regresson No.2 excludes charty awareness. The results of regresson No.2 show that the nfluence of government expendture, meda propaganda, and the proportons of students and the populaton recevng the lowest lfe guarantee on ndvdual donaton expendture s stll not remarkable. However, the nfluence of meda propaganda s evdently ncreased. As the t value of the proporton of students fluctuates the most, n order to further examne the nfluence of meda propaganda on ndvdual donaton expendture, regresson No.3 excludes the proporton of students (whose t value s too low) and focuses on the nfluence of ncome level, donaton cost, tax preference, government expendture, meda propaganda and the proporton of the populaton recevng the lowest lfe guarantee on ndvdual donaton expendture. The results of regresson No.3 ndcate that except government expendture, the statstcal nfluence of other varables on ndvdual donaton amount s remarkable. What s more, the goodness of ft s slghtly changed compared wth regresson No.1 and No.2 and s rather fne. The fnal regressve results of ths paper are: Gvng 5 = ncome r gvngprce j 1 j j tax = (2.3896) (5.1619) ( ) ( ) budget meda poor ( ) (1.2842) (1.3223) Adjusted R 2 = , D.W. = 2.116, F= Seeng from the fnal results, ndvdual donaton expendture s of remarkable postve correlaton wth ndvdual ncome, whch means that the addng of 1unt of ndvdual ncome brngs about the ncrease of unt of donaton. Ths result s smlar to the research result of Stephan Meer (2006). However, the research of ths paper s dfferent from that of Stephan Meer n that the ncome restrant strength s lower than Stephan s result the ncome elastcty s rather low, whch mght result from the random nature of ndvdual donaton n Chna. Indvdual donaton s of remarkable negatve correlaton wth donaton cost. The hgher the donaton cost s, the lower the ndvdual donaton s. What s more, the estmated coeffcent value s rather hgh, whch ndcates that because of the problems exstng n donaton channels, charty operaton system and sncerty awareness, the transacton cost n the process of donaton s rather hgh whch severely nfluences the development of ndvdual donaton. Wth the development of market economy, people gradually become aware of cost. So do people n makng donaton. They wll

6 Asan Socal Scence July, 2008 not spend too much tme and energy to conduct charty donaton. Indvdual donaton s of hgh postve correlaton wth tax preference. The regressve estmated value of coeffcent s and s remarkable n statstcal perspectve. The common explanaton for t s that tax preference postvely bestrs ndvdual donaton. The polcy to deduct before tax of the ndvdual ncome tax drects obvously on donaton, whch s also smlar to the prevous researches. The dfference s that the estmated regressve coeffcent of ths paper s very hgh, whch shows that the sgnal functon of tax preference polcy (the encouragement and support on ndvdual donaton) s very evdent. Because ndvdual profts are drectly nvolved, tax senstvty of ndvdual donaton s far hgher than that of cooperaton donaton. The results of the three regressons cannot reflect the relatonshp between government expendture and ndvdual donaton. The estmated values of coeffcent are very small and are not remarkable n statstcal perspectve. Therefore, t can be drawn that government expendture does not have obvous nfluence on ndvdual donaton. Ths paper, wth the detaled data collected from Chna, proves the neutral outcome rased by Warr (1981, 1983). As stated n the above, t s not certan whether government expendture squeezes out or squeezes n ndvdual donaton and t s determned by the mutual acton degree of the two. Emprcal researches abroad (Phlp H. Brown & Jessca H. Mnty, 2006) show that meda propaganda and ndvdual donaton amount s of rather obvous postve correlaton. However, the results of regresson No.1 ndcate that such correlaton s not remarkable. Be excludng varables, the results of regresson No.1 and No.2 show that the correlaton between meda propaganda and ndvdual donaton s remarkable when the markedness level s below 20%. Generally speakng, Chna, as a whole, lacks relgous tradton and the development of charty organzatons and funds lag behnd; hence, meda propaganda should have wde nfluence on ndvdual donaton. However, the regressons ndcate that the correlaton s not obvous, whch reflects the defect of ths paper, that s, to take place of meda propaganda wth the tme of the nvestgated spent on watchng news and consultaton and nformaton programs. Experences show that Medas propaganda charty manly through news and consultaton and nformaton programs (some through commonweal advertsement). Hence, the tme the nvestgated spent on watchng those programs s of representatve nature. However, seeng from the current stuaton of Chna, charty propaganda just accounts for a small porton n the broadcastng of news and consultaton and nformaton programs. What s more, the programs and channels that broadcast charty propaganda s not flexble, whch, to great extent, weakens the nfluence of meda propaganda on ndvdual donaton. Indvdual donaton amount s nfluenced by the proporton of people recevng the lowest lfe guarantee (the markedness level s remarkable below 20%; actually, the markedness level s close to 10%) and the estmated coeffcent s pretty hgh, whch shows that the populaton recevng the lowest lfe guarantee strongly pushes ndvdual donaton. The nfluence of the proporton of students on ndvdual donaton shown by both regresson No.1 and No.2 s not remarkable, whch to great extent results from the overflowng nature of donaton. It can be found from the sample data that the average ncome s rather hgh n dstrcts where the student proporton s low; where the student proporton s hgh, the average ncome s low. The dstrcts where average ncome s hgh may not have many schools because of ther hgh land values, whch causes that ther donaton flow may generate overflowng effect and results n the unremarkable correlaton between the two. As a whole, the nfluental elements from supply aspect, such as ncome, tax preference and donaton cost, exert much more remarkable nfluence that those from the need aspect, whch s consstent wth the actualty of ndvdual donaton n Chna at present, that s, the need of ndvdual donaton far exceeds ts supply. Therefore, the elements of supply shall hold the domnant poston n ndvdual donaton. 5. Polcy connotatons In countres where charty s developed, charty organzatons and fund assocatons are partcularly engaged n charty and are n charge of the use of donated funds. Such concept s wdely recognzed n the entre socety. Donators only need to send the donated objects to the charty organzatons. However, n Chna, the recognzng of charty organzatons s not so optmstc. Donators have not yet formed the concept of donaton-charty organzatons. Although t s hard to gauge the donaton returns, the use compensaton of donaton for donators cannot be dened. Therefore, t s necessary to set up a sustanable ncentve system to strengthen the fame return of donaton. The occurrence of Hurun charty ht parade brngs about a group of new chartarans n Chna. However, Hurun charty ht parade just focuses on mllonares. What s more mportant s to encourage people wth common ncome to actvely partcpate n donaton. We can set up Chna charty dctonary or regster the donaton nformaton of donators through webste publcaton and coordnate nformaton collecton organs to rase donators credt class. Tax preference s controllable. The ncrease of ncome wll of course rase the charty donaton capacty of people. Hence, to rase tax preference of donators wll help to enlarge the scale of ndvdual donaton. Governments should rase tax preference through ncreasng the tax exempton rate and realze that the donaton expendture of donators 17

7 Asan Socal Scence comes from the tax that should be pad so as to demonstrate postve polcy gude. We can also mprove the donaton cost from varous aspects that consttute of the cost. The donaton forms shall be dversfed and the non-captal donaton forms, such as free labor and the donaton of second hand objects, shall be encouraged. We can wden the donaton channels by way of settng up communty love supermarkets and ntatng nternet donaton. For the supervson cost, we should emphasze on enforcng the legslatve supervson on charty organzatons and establshng transparent supervson system. We can also set up valuable charty projects, such as educaton of poor areas, helpng the poor, socal commonweal programs, health, entronment, Olympc projects, and emergency system guarantee for sudden publc health ncdents, to rase the recognzng degree of potental donators and attract charty funds. To cultvate and heghten charty awareness s benefcal to advancng ndvdual donaton. However, the aforementoned donaton behavors establshed on the moralty bass are not nner responsblty behavors, whch lack systematc and standard operaton system and are not sustanable. At present, Chna s at the transformaton perod towards modern socety. Indvduals of Chna have not yet formed ntegrated rght and oblgaton concept and are not aware of that donaton s a responsblty that a ctzen shall bear for the socety. Seeng from long term, the long lastng development of donaton behavors shall depend on the popularzaton of ctzen awareness, the establshment of oblgaton concept, and the enforcement of the constructon of donaton system. References Alesna, Alberto and La Ferrara, Elana. (2002).Who trusts others? Journal of Publc Economcs, Volume 85,Issue 2, pp Andreon, James. (1990).Impure altrusm and donatons to publc goods: a theory of warm-glow gvng. The Economc Journal, Volume 100, Issue 401, pp Bradley, Ralph, Holden, Steven and McClell, Robert. (1999). A robust estmaton of the effects of taxaton on chartable contrbutons. Journal of Publc Economcs. Cappellar, Lorenzo, Ghnett, Paolo and Turat, Glberto. (2006).On tme and money donatons. Journal of Publc Economcs, November10. Davdson, Wllam. (2006). Meda coverage and chartable gvng after the 2004 tsunam. Insttute Workng Paper, No.855, December. Edln, AaronS. (2005).The Choose-your-Charty tax: a way to ncentvze greater gvng. The Economsts Voce, Volume 2, Issue 3. Harbaugh,Wllam T. (1998).The prestge motve for makng chartable transfers. Amercan Economc Revew, 88:2, Navarro P. (1988). Why do corporatons gve to charty? Journal of Busness, 61: Pan, Lmng. (2005). Research on Publc Object Market and Voluntary Supply of Chna. Shangha: Shangha People s Press. Rbar, Davd and Wlhelm, Mark. (2002). Altrustc and joy-of-gvng motvatons n chartable behavor. Journal of Poltcal Economy, Vol. 110, Aprl. Schwartz, R.A. (1968). Corporate phlanthropc contrbutons. Journal of Fnance, 23: Zhang, Xn, Cao, Hongbn and Sh, Wenpo. (2006). Emprcal research on corporaton donaton of Chna. Thess paper publshed at the sxth Chnese Economcs Annual Conference. 18