The China Charities Aid Foundation for Children (CCAFC), a nongovernmental group that provides financial assistance to needy families, is one of the country's most respected charitable institutions. That reputation is now threatened by reports that a staff member for one of the organization's programs defrauded donors of nearly 10 million yuan ($1.37 million).
The individual, Ke Shanxiao, enticed parents of children with acute illnesses to donate to an emergency medical relief fund with the promise that they would later receive substantial financial aid supported by matching gift contributions from third parties, plus other donations and investment returns. The benefits would fill gaps in health care expenses not covered by commercial insurance or China's national social security system. Ke's association with the CCAFC was enough to persuade parents to donate to the fund.
