There are many ways of charity. According to my exploration of ways for more than ten years, you can donate directly or indirectly. You can set up a charity fund, find a parent, or even try a new DAF (Donor Advice Fund), that is, a donation service fund or a donation willingness fund. Or you can set up a family foundation. If you think the governance structure of the family foundation is too closed, you can develop an independent foundation, that is, ask professionals to help you manage the foundation. You can also set up social service organizations and build hospitals, schools and entities. We can even set up charitable trusts, which is our next concern. Broadly speaking, there are public welfare enterprises and social enterprises, but these words are not strict legal terms, and there are also social influence investment, public welfare venture capital, public welfare marketing and so on. I don't have time to talk about it today. Today I will mainly talk about charitable trusts.

There are charitable trusts and charitable trusts in China, and they coexist. The Trust Law of 200 1 stipulates charitable trusts with a special chapter, and the Charity Law of 20 16 also stipulates charitable trusts. Because the charitable trust stipulated in the Trust Law of 200 1 has not become a reality, mainly because there are defects in the establishment process. Therefore, when formulating charity legislation, there is a special chapter that stipulates charitable trusts. There are still many differences between them. However, the Charity Law also stipulates that charitable trusts belong to charitable trusts, which turns them into a master-slave relationship. Fortunately, the Charity Law clarifies the application of the law.

Charitable trust is not a management method of charitable property. If you only regard it as a way of property management, it is all wet. In fact, it should be in parallel with charitable organizations or charitable foundations, private non-enterprise units and social groups. It is a new way of charity with competitive significance and a new charity path. It has many advantages, such as convenient setting, just filing; The administrative cost is low, because it only has the trustee and does not need to set up a complete organization; It relies on the purpose and locking principle of trust wealth, so that its purpose will not fail; With the help of the trust trustee's ability, the value of the property is increased and preserved; With the flexibility of the trust system, the client's wishes can be fully realized. When it is combined with family trust, intergenerational trust or special purpose trust, it will perfectly realize the problem of wealth inheritance and wealth destination.

Why do trust companies act as trustees of charitable trusts? The Charity Law clearly stipulates that not everyone can be a trustee, but there are only two kinds, one is a charity organization and the other is a trust company. Actually, I'm not very satisfied with this rule. In principle, the most active charitable trustees in common law are natural persons, professional service organizations, law firms, accounting firms and so on. When we legislated at that time, considering that we must be responsible for our own property safety, we found two organizations with the strongest credibility, charitable companies and charitable organizations. So what problems will trust companies encounter? For example, trust companies do this business, and the Trust Industry Association requires a trust company to have three charitable trusts in order to get a score on the rating. I calculate that 68 times 3 is 200 trusts, and now it is 5 1, which shows that many trust company targets have not been completed this year.

Why don't trust companies do this? Haven't you thought about it? Or do they think that the efforts made are not profitable, or it is too uneconomical from the perspective of formal rational analysis? I think the significance of charitable trust to trust companies far exceeds the significance of property feedback. For example, charitable trust is to let the trust return to its original nature from commercial trust. When we carefully observe charitable trust, it is far from commercial trust. Commercial trust is a commercial organization that does not have corporate form, but has corporate reality, which is the incisive result of the application of British trust system by the United States in business circles. But I just forgot that the core factor of trust is the trust and obligation of the trustee. Therefore, in China, when the trust system came in, we put too much emphasis on its commercial attributes, and even called trust companies non-bank financial institutions, confusing them with general asset managers. Therefore, the entry of charitable trust, or the rise of family trust and civil trust, just questioned all our trust companies. Are you a qualified trustee? Do you have a competitive advantage that other asset management companies don't? It depends on how you do in family trust, charitable trust and civil trust.

In my opinion, charitable trust is the way to make the whole trust industry Do not forget your initiative mind. We see that if you really understand charitable trust, civil trust or family trust, you can assume the fiduciary duty in the true sense. Because family trust, civil trust and charitable trust are not only property management, but also a lot of social management and the work of many people.