On September 1, 2016, the first day on which Charity Law of the People's Republic of China took effect, under the guidance of Fujian Banking Regulatory Bureau and Fujian Provincial Department of Civil Affairs, China Industrial International Trust Limited gave full play to the function of trust, practiced corporate social responsibility, submitted files of “IB Trust·Happiness Stage I Charitable Trust Scheme” to Fujian Provincial Department of Civil Affairs, and succeeded in being kept on file. It was among the first batch of charitable trusts in China after the Charity Law came into force.
Charitable trust, a kind of public welfare trusts, refers to the truster, for any charitable purposes, entrusts the property to the trustee, and the trustee manages and deals with the property, and carries out charitable activities in the name of the trustee and in accordance with the intention of the truster. Charitable trust, specifically defined in the Charity Law, not only enriches the way of China's charitable operation, but also helps trust system take root in social life.
It makes a contribution to elderly care, education and poverty alleviation
“IB Trust· Happiness Stage I Charitable Trust Scheme” does not set the duration and the charitable funds focus on elderly care, education and poverty alleviation: in terms of elderly care, providing basic pension program for the old who can’t take care of themselves, don’t have an income or are childless, and assisting various public welfare organizations or warm-hearted people in providing pension benefits; in terms of education, ameliorating infrastructure, enhancing children's mentality and intelligence level and improving teaching conditions in order to promote the development of education cause; in terms of poverty alleviation, cooperating with the government and foundation for poverty alleviation and other charitable organizations to add muscles to poverty alleviation efforts. The “Happiness Stage I” Charitable Trust keeps in store “Fujian Rural Nursing Home” program, teenage education program, program concerning education for the left-behind children and other public welfare charitable programs.
For charitable cause, the introduction of trust mechanism will bring a variety of positive factors, firstly, the rules of charitable trust become stricter, guiding charitable activities to obey the rules. Apart from that charitable trust must comply with the Charity Law and relevant laws and regulations in fundraising and management, the trustee need to fulfill duties in accordance with the Trust Law; secondly, the asset as a result of donations can achieve a better value preservation and appreciation. Once donations raised by the charitable trust become trust property, it will be isolated from the donor, trustee and beneficiary, and will not be affected by other interests or disputes. Of particular note, trust company, as the mainstay of charitable trust, can give expression to professional asset management and selection of public welfare organizations and projects, expand the coverage of the fund, improve the duration and effectiveness of the fund in helping a disadvantaged minority; thirdly, as the financial institutions under regulation, trust companies give priority to interests and rights of trusters and beneficiaries in accordance with the law. Rigorous internal control mechanisms and strict external supervision norms make the trust a standard, transparent and professional one and an engine driving the development of public welfare charity.
For trust companies, specifying the rules of charitable trust will make full use of its value. Firstly, enhance the effectiveness of the trust company's inclusive finance. As the threshold of trust wealth management and investment exists, the public often attach trust with high-end investment. While in reality the trust originated from the grassroots of the society, and also makes its existence in the civil life. The development of charitable trust will help trust and the concept of trust take root in the society and in people’s mind through charity. Secondly, expand trust company’s business scope. Charitable trust can not only realize the public wish to contribute to public welfare, but also customize exclusive charitable funds for high-end clients, especially develop specialized services in cooperation with investment trusts, family trusts and other businesses. Thirdly, enhance trust company’s management capabilities. Public welfare charity is related to the public, and needs standard, fair and efficient management capabilities as well as a balance between steady and continuous development and increment in profits. what's more, it tends to be more professional in selecting public welfare organizations, and screening and managing public welfare projects. These requirements will further enhance trust company's asset management capabilities and organization capabilities in the society.
Being trustees for all donors
IB’s Charitable Trust is designed and operated in strict accordance with principles of the Charity Law, and possesses the following five characteristics: firstly, ensure donation security based on strict regulatory framework. Strict supervision mechanism is designed for conducting scrupulous fund management and fulfilling duties of the trust. Internally, the risk control line of defense and management principle throughout the process is set up in accordance with the regulatory requirements of the CBRC and the Ministry of Civil Affairs. Externally, Boo China Shu Lun Pan Certified Public Accountants LLP is appointed as supervisor of this trust plan and IB serves as the safekeeping bank. Secondly, give expression to the function of inclusive public welfare. There’s no threshold and donor limit in donation. IB acts as trustees for all donors who want to make donations and is in charge of management and use of donations in order to achieve the effect that many hands make light work. Thirdly, give full play to the management ability of financial assets. Donations are under prudent allocation by a professional team to ensure value preservation and appreciation before put into use. Fourthly, carry out public welfare all the way. All partner carry forward the spirit of charity, i.e., the trustee does not charge the trust remuneration, the trust supervisor does not charge supervision fee and the safekeeping bank does not charge the safekeeping fee. Fifthly, adopt the structure of “trust + professional organization”. Asset management ability of trust companies and public welfare operation ability of funds and other charitable organizations are combined to make public welfare funds and operation and management of projects in line with regulation and more professional.
“Bear charity in the mind and put charity into practice”. While creating corporate value, IB Trust has also actively conducted various public welfare activities and fulfilled corporate social responsibility since its inception. It is active in making financial donations to help develop education, to relieve people in stricken areas and to alleviate poverty: building hope primary schools in poverty-stricken areas of eastern Fujian, western Fujian and northern Fujian; donating money and goods to “May 12th Wenchuan earthquake-stricken area”, “Aug 8th Typhoon Morakot-stricken area in Taiwan”, “Apr 14th Yushu earthquake-stricken area in Qinghai province”, “Apr 20th Ya’an earthquake-stricken area in Sichuan province”, “Aug 3rd Ludian earthquake-stricken area in Yunnan province” and “northern Fujian flooded area”, and helping rebuild a homeland. It continues to explore new mode of public welfare charitable trust, and launched two specialized trust plans in 2012 and 2013 respectively, with an accumulative donation of over RMB 1.8 million used for public welfare activities including providing assistance to people in need, earthquake relief and developing education.
Love is like a spring that purifies the world. As a new type of charity, charitable trust introduces trust company as the most suitable trustee and asset managers, and will make charity more transparent and efficient. It gives impetus to the development of charity in China. IB Trust issued “IB Trust Happiness Stage I Charitable Trust Scheme” on the first day the Charity Law took effect, carrying forward the spirit of charity, popularizing the culture of trust, promoting social justice and revitalizing public welfare charity in China.