China’s Charities Contract for First Time as Donors Turn to Universities

China’s philanthropic sector is shrinking for the first time on record as a slowing economy and a stringent regulatory crackdown force hundreds of foundations to close their doors. Yet even as overall donations fall, Chinese billionaires are pouring record sums into the country’s elite universities.

In the first half of 2026, 156 Chinese foundations were deregistered or revoked, more than double the 76 newly established organizations. This continued a historic contraction that began in 2025, when the sector recorded its first-ever annual net decrease in operating foundations, according to data from the Foundation Center Network.

The total number of foundations nationwide stood at 9,747 by the end of June, down by 85 from a year earlier. Of these, 1,283 are public fundraising foundations and 8,464 are nonpublic foundations.

The contraction stems from a steep drop in new registrations since 2021 and a surge in closures, driven by both economic headwinds and Beijing’s intensified scrutiny of the sector. “We have been paying attention to the decline in the number of foundations since last year,” said Wu Aisi, assistant director at the Beijing Foundation Youth Social Organization Service Center, which operates the data network.

In late 2024, the Ministry of Civil Affairs and four other government departments launched a nationwide campaign to regulate social organizations. This was followed by a December directive mandating strict enforcement against illegal activities, accelerating the eradication of “zombie” foundations. Simultaneously, some organizations voluntarily shut down under mounting financial pressure from China’s sluggish economy, Wu noted.

The broader financial strain is evident in the sector’s balance sheets. Total donation revenue across all Chinese foundations fell 15% to 108.8 billion yuan ($16.05 billion) in 2024, down from 128.57 billion yuan in 2023. Cash donations alone dropped 12% year over year.

Part of the steep decline reflects an unusually high baseline in 2023, which was inflated by a massive 23.6 billion yuan non-cash overseas donation to the China Primary Health Care Foundation. Despite the recent drop, total philanthropic giving remains robustly above the 100 billion yuan annual mark, exceeding pandemic-era levels.

Public fundraising campaigns have helped cushion the blow for some organizations. Operating a public campaign demonstrates a foundation’s capacity and provides donors with transparent project destinations, rather than generalized charitable causes, Wu explained.

While donations remain the lifeblood of these groups, alternative revenue streams like government subsidies provide a modest safety net. In 2024, 1,048 foundations received state subsidies totaling 5.2 billion yuan, accounting for roughly 4% of overall sector income.

The fundraising environment remains challenging. While full 2025 financial reports are only partially available, preliminary observations suggest the downward pressure persists. Philanthropic organizations have become increasingly cautious in deploying capital, Wu said.

Amid the broader contraction, higher education stands out as a booming sanctuary for Chinese philanthropy. While corporate and government-affiliated foundations broadly reported declining revenues, nearly half of all university-affiliated foundations posted income growth in 2024.

Large-scale giving to universities — defined as single donations exceeding 10 million yuan — hit a record 12.17 billion yuan in 2024. That marks a 130% surge from the 5.25 billion yuan collected in 2023, according to a recent report by corporate social responsibility consultancy Ming Shan Dao.

The explosive growth was driven largely by massive infusions into the Tsinghua University Education Foundation and the Ningbo Eastern Institute of Technology Education Foundation. Over the past three years, total donations to Chinese university foundations have surged 38.3%, climbing from 14.96 billion yuan in 2022 to 20.69 billion yuan in 2024.

Tech billionaires are leading the charge. Yu Renrong, founder of semiconductor giant Will Semiconductor Co. Ltd., topped the donor list with a cumulative contribution of 2.65 billion yuan. When combined with funds from affiliated entities, Yu’s total pledge reached a staggering 5.26 billion yuan, primarily earmarked to fund the construction of his newly established Ningbo Eastern Institute of Technology.