The Guangzhou Municipal Charity Federation is working on a new administration system aimed at improving transparency and efficiency. It will allow individuals and companies to track their donations.

"In the past, donors have often questioned how their donations were used. Some doubted whether the funds were used for needy people," said Li Weijie, vice director of the federation.

The federation will make its expenditures public, hoping to boost interest in the city's charity efforts, Li said.

People who are in need, including the elderly and orphans, make up nearly 10 percent of the population of Guangzhou.

Many of them do not have such protections as social medical insurance.

The federation has aided more than 100,000 needy people in the city in the past years, Li said.

Since its establishment in June 1994, the federation has received donations worth 230 million yuan (US$27.8 million) from individuals and companies.

The municipal government has also earmarked 40 million yuan (US$4.8 million) to establish charity hospitals in the past 10 years. The federation invested about 190 million yuan (US$23 million) to set up 20 free clinics.

In 2002, the Guangzhou Municipal Charity Hospital was established with an investment of 140 million yuan (US$17 million). To date, the hospital has provided free services for more than 1,200 needy people.

Construction of a special medical center is also under way for the impoverished elderly. At a cost of about 1.1 million yuan (US$133,000), the center is expected to start operating at the end of this month and will provide 60 beds for needy senior citizens, Li said.

(China Daily July 5, 2004)