Netease announced this week that they are diverting funds away from the Red Cross Society of China and to other NGOs because of transparency issues. Similarly my staff at ChinaCSR.com and CharityInChina.org say they have received emails from people asking how to figure out where and how their funds will be used in China.

Chinese NGOs have always come under strict scrutiny, especially by foreign multinationals who wish to fulfill a bit of their corporate social responsibility by unloading cash on a Chinese not-for-profit entity. But it's awfully tough to figure out — even in times of non-tragedy — how money is being used and to where it is going.

The American Chamber of Commerce in Shanghai compiled a list of vetted NGOs last year for companies to use in their charitable contributions, and interestingly the Red Cross Society of China is not on that "approved" list. It makes me wonder if many of the good-intentioned people on websites and blogs around the world understand what they are promoting when they put logos/icons on their websites for various charities.

During times of heightened emotion and tragedy, people's emotions always take control of their rationality. When the USA first invaded Iraq, Americans were called unpatriotic if they had any doubt of the rationale for going into that country. And in China now, anyone that doubts the goodness of NGOs and charities helping the earthquake victims is riddled with guilt and admonitions from one's peers. I think it's a question of "If not now, when?" in discussing these issues.

That being said, our friends (and client) at Turkish Airlines are working with The Presidential Beijing Hotel to put together a benefit tomorrow night (Friday) to donate money to the Red Cross of Beijing. Turkey unfortunately knows too well the pain of earthquakes, and the benefit tomorrow night is bringing together some of the top Beijing city government and foreign embassy personnel.

Our other services in China have been busy this week as we have opened up to NGOs our marketing databases for free for them to reach donors around the world. Here are two interesting English-language calls for donations from UNICEF and Care for Children, respectively, that we helped send out.