With the municipal government of Foshan, Guangdong ready to disperse RMB 2.4 million to social organizations in service procurement, the government is finding that social organizations are unable to accept this significant amount of funding. In recent conferences, the government has announced that only 3.9% of social organizations have received the rating of 3A or above that qualifies them to receive government funding, most of which are industry and commercial associations.
In 2012, 112 social organizations received funding, a relatively small number that officials admitted was limited by a hesitancy to distribute funds to “outside” the system, or to organizations that were not closely affiliated with the government. The government has also failed to develop a comprehensive system for the contracting of services, another factor limiting the participation of “outside” organizations. On the other hand, officials explained that the majority of social organizations lack the capacity to accept funding, and so the options in dispersal of funds were limited. Some recommended that the Foshan government model the Dongguan and Shanghai programs, which include a public welfare competition, through which organizations submit project designs that are selected to receive government contracts.