China's first four private foundations were granted certificates in Shanghai yesterday, the first day that new Foundation Administration Regulations were put into effect, according to Wednesday's Shanghai Daily.

Previously existing foundations could raise funds publicly. Under the new regulations, the four new foundations can only generate funds privately.

Individuals, once unable to set up foundations, are also now permitted to form private ones for the first time.

"Private foundations will serve as a bridge between corporations and social sectors, helping the government collect more social resources for the public welfare," said Zhou Taitong, vice mayor of Shanghai.

He said under the new regulations, corporations, institutes and individuals with original funds of more than 2 million yuan (US$240,100) are qualified to set up a private foundation. The previous minimum requirement for setting up a foundation was 4 million yuan.

Another key difference is that new private foundations were required to spend no less than 8 percent of last year's funds.

Public foundations must spend at least 70 percent of the previous year's income on social welfare. "We will try to attract more funds from abroad to help improve the prevention of natural disasters worldwide," said Huang Zhenyan, director-general of Shanghai Fudao Natural Disaster Reduction Foundation, which focuses on earthquake forecasting research.

He said the Mading Alliance Welfare Charity Foundation in the United States donated US$1 million to his foundation, and promised to donate at least US$1 million every year for 20 years.

"We believe many foreign friends and philanthropists share our wish to save more people from disasters," he said.

The other three private foundations are Shanghai Fudan University Foundation for Education Development, Shanghai Wumengchao Medical Science Foundation and Shanghai Nature and Health Foundation.

(Shanghai Daily)