Literary Master 1983

Chapter 393 Foundation

Donate the royalties from mainland China!

This statement sounds simple, but it actually represents a lot of money!

Zhang Li instinctively said, "Brother Yu, this is hundreds of thousands of yuan! You really donated it!"

Chen Xiaoxu, resting her chin on her hand, immediately chimed in, "Is it for now, for the next few years, or for ten or twenty years?"

"Let's do it in ten-year increments; we've donated them all for now."

They were both startled, and they could see the worry in each other's eyes.

This is all my brother Yu's money! No matter how much it is, we can't have too much!
Seeing this, Yu Qie explained why he wanted to donate his royalties:
"There are two main reasons. First, my royalties have already exceeded the 'Provisional Regulations.' The maximum royalty should be 20 yuan per thousand words. 'October' and 'People's Literature' knew that my overseas royalties were high, so they raised it to 30 yuan or even 40 yuan, but that was still far from enough."

"Even if it's eighty dollars, so what? Can it compare to the US or Japan? I might as well donate it; it's no big deal to me."

"And on the other hand?" Chen Xiaoxu asked.

"On the other hand, this money is not given to others and never seen again, but a foundation is established so that any future donations can be drawn directly from this foundation."

A matter like Lu Buxuan's would be easily resolved thirty years from now; there's no need for Yu Qie to personally intervene! Just find a pretext to donate a customized "scholarship" to him.

For example, requirements such as being from a certain province, being a Chinese literature major, having certain family conditions, or having a certain ranking in university grades are all easily solved.

In fact, this is equivalent to a charitable foundation organized by an individual. Historically, it wasn't until 04 that an American businessman from Jiangsu or Zhejiang successfully applied for a license and obtained foundation certificate number "001," with a total investment of approximately two million (in 04). After that, the application for foundations in the names of individuals and companies became very common. This is because the "Regulations on the Management of Foundations" were only introduced in 04.

However, although there were no regulations in the 1980s, it was actually easier to implement them. All it took was the approval of a few key figures.

If there are no regulations, we can create one for Yu.

Zhang Li and Chen Xiaoxu had both studied economics and knew that "foundations" were not a new concept abroad. After Yu Qie explained it to them, they understood that the money still belonged to them, and they had complete control over the management and donation projects.

However, they were still somewhat puzzled. Currently, all charitable foundations are publicly run and seem to be doing quite well. The "Spring Rain Action" is organized by the "Children and Youth Foundation" under the Women's Federation, and its reputation has even spread overseas.

Yu Qie and they worked together very well, so why did he insist on doing it himself?

Yu Qie explained, “Because it’s more convenient this way. It’s a small matter that poor students at Yenching University can’t afford pork ribs. No public foundation would be willing to help. I was busy with all sorts of things at the time, and I also had to take care of many impacts inside and outside the college… It would be better to set up a foundation and let someone I trust do it.”

If this were to actually happen, who could Yu Qie trust? Naturally, it would be the two of them.

Upon hearing this, Zhang Li and Chen Xiaoxu were overjoyed, realizing that there was still hope that the money could remain with the Yu family: "Setting up a foundation is great! Setting up a foundation is wonderful!"
-
The following day, Yu Qie went to Jianguomen East Road to inquire whether he could open a personal fund.

He was received by Chen Yun, who was from Taiwan. She thought it was no big deal and readily agreed: "I'll apply for it for you!"

As a result, Chen Yun soon broke out in a sweat and realized that this was not an easy task.

In mainland China, even publicly-run charitable foundations have only recently emerged, let alone private charitable foundations. A manager from the UNICEF came and said, "There's no precedent for this in mainland China. Professor Yu, after much thought, I've come up with a suggestion: you could register the foundation in Hong Kong, find someone you trust to act as your agent, and ensure the funds are used exclusively for their intended purpose... I believe there's a chance."

Chen Yun also said, "When the Thai beverage tycoon came to China to invest before, he also donated a sum of money. Wasn't it you, Teacher Yu, who facilitated that? He got the approval from above with just a few words."

Chen Yun is truly a talented woman! No wonder she's Lin Yifu's wife.

She knew she had to find overseas Chinese and foreigners to handle it.

But Yu Qie refused. He shouted unreasonably, "I am a genuine native of Wanxian, Sichuan Province. I don't want to find any Hong Kong businessmen. Now that I've made money, what's wrong with giving back to society?"

The commotion drew everyone's attention. Chen Yun, worried that something bad might happen, pulled Yu Qie in for a long talk.

Of course, they couldn't reach an agreement.

"Professor Yu, why do you want to start a personal foundation?"

"That's convenient."

"We have no precedent for this!"

"You'll have it soon."

"This matter requires going through procedures, and to be honest, I can't make that decision."

"Then don't decide yet. I'll go see your boss directly, okay?"

……

Two hours later, Yu Qie left Jianguomen East Road. The people in the lobby were talking about it, and it seemed that rumors would soon start circulating.

Sure enough, Ai Feng came to Yenching University to find Yu Qie that afternoon.

Ai Feng is a senior reporter for the Economic Daily, and has interviewed many political and business figures, and has deep connections with the upper echelons.

He laughed and asked, "What kind of tricks does Teacher Yu have up his sleeve this time?"

Yu Qie told him about what had happened at Yenching University. He added, "Personal foundations play this capillary role. There are many charitable projects in our lives with short time windows and few beneficiaries, but it's not good not to do them. If you have the ability, it's best to do them."

“You’re right!” Ai Feng handed Yu Qie a cigarette.

"I don't smoke."

"Sigh, it's like a market economy that doesn't allow capital appreciation. Of course it's allowed, but it's a bit strange."

Yu Qie burst into laughter.

Ai Feng is a "market-oriented" person. He has a deep understanding of the "market," for example, he believes that state-owned enterprises can use idle funds for capital operations—such as investing in private enterprises and lending to industrial capital, etc.

These views are far more outrageous than Professor Yu's ideas.

In 85, Ai Feng wrote an inspirational article reflecting on income distribution, titled "Facing the Inequality of Life," encouraging people to view the issue of "inequality" correctly. This was a motivational news article, reflecting his earlier observation that the rich were becoming increasingly wealthy.

“Good, good!” Ai Feng said, “I was just about to write an article on distribution, and I thought you had set a good example! When you have money, you should do good deeds, don’t wait for society to force you to do good deeds.” For the next few days, Yu Qie just waited.

Because "The Way of Dawn" was published in People's Literature, Yu Qie received a royalty payment. The novel was over 100,000 words long, and Wang Meng overruled objections to settle the payment at 40 yuan per thousand words, so Yu Qie's royalty payment was as high as more than 6,000 yuan.

Is that high?
It's tall, but not tall either.

Wang Meng called Yu Qie to apologize: "Our royalties are far less than those abroad, only a tenth, or even a fraction of what they pay. It's even less than the Formentor Prize, which is fifty thousand US dollars! I'm truly sorry!"

As a literary GOAT, Wang Meng felt ashamed because of the dramatic changes that had taken place in the past two years. Since Yu Qie received a staggering $46,000 in royalties from Taiwan's United Literature, writers have flocked overseas, only to be astonished by the royalties offered there.

A new round of reforms to royalties has begun.

Because their own interests were involved, these writers, who had long lived under a planned economy, quickly figured out things like "contracts, royalties, agency agreements, and commissions," and became quite shrewd.

They suddenly realized that the royalty system of the planned economy era was very disadvantageous to established writers like them. Just like the egalitarian system, even if you became a great writer, you would only get twenty yuan per thousand words at most, while a slightly more talented literature freshman could get six to twenty yuan. There was no difference.

Moreover, due to various reasons, royalties are related to ideology and always exhibit huge swings like a pendulum.

Yao Xueyin, who wrote the novel "Li Zicheng", completed the first volume of 460,000 words in 1963 and received 20,000 yuan in royalties. The second volume, 800,000 words, takes place in the 1970s. Due to the "salary cap" on royalties, he received no royalties and only a living allowance of 270 yuan.

Ironically, his wife received 350 yuan as payment for typing up his novel.

The publisher felt sorry for Yao Xueyin and sent him a lot of sample books as compensation—exactly 250 sets!
Then Yao Xueyin broke down: I only have a basic salary of forty yuan a month and no royalties, how am I supposed to keep writing?
When royalties shifted to the other end of the spectrum again in the 1980s, Yao Xueyin began writing novels like crazy. The writer Eryuehe criticized Yao Xueyin for "adding too much drama to Li Zicheng" and "overly elevating this character."

"For some reason, he almost portrayed Li Zicheng as a flawless leader."

This could be due to Yao Xueyin's personal preference, or it could be because of the new royalty system, which led Yao Xueyin to lavish praise on Li Zicheng in order to pad his articles.

Wang Meng discussed the difficulties of running a magazine nowadays.

"Previously, we had no articles to publish; veteran writers dared not write, and young people didn't know how to write. Now we have too many articles and too many writers, but the best writers are still scarce... Everyone is desperately raising royalties to compete for these people! But unexpectedly, the wolf from outside has arrived!"

Yu Qiedao: "How about you publish People's Literature in Taiwan and Hong Kong, and in Chinese communities in Europe and America?"

"Not very good! If you could accomplish this, you should be the Minister of Culture!"

Yu Qie was clearly joking, and Wang Meng knew it. He poured out his grievances: "In short, we can't afford to follow the overseas standards; and we dare not implement the 'Provisional Regulations'... I know that the writers have grievances, and we are in a difficult position. We can only try our best to get subsidies for them."

Of course.

Wang Zengqi complained about the low royalties and even cursed, vowing never to work with Ta Kung Pao again. Are you expecting Yu Qie to curse too?
Yu revealed that he plans to donate all his royalties from mainland China in the future.

However, he did not mention his personal foundation.

Wang Meng was both surprised and delighted. He knew of Yu Qie's popularity overseas. In 1985, Yu Qie gave a speech in Japan and received 40,000 yuan in interview fees for just one program. This was a fee that many magazine editors-in-chief in mainland China would not dare to ask for even if they went to jail.

Yu Qie has earned countless royalties overseas over the past two years. He no longer cares about royalties from mainland China.

People were actually happier after donating it!

Wang Meng was overjoyed: "You've learned from Ba Jin? He donates 150,000 a year too, well done! In that case, we dare to pay you higher royalties, because you're going to donate it! And don't worry, others will demand such high royalties, because they won't donate it."

On the 11th, Ai Feng published a detailed account of his interview with Yu Qie in the Economic Daily, which caused quite a stir among the higher-ups. He described the sponsorship of Yenching University's canteen as a remedy for unequal distribution, writing with heartfelt sincerity, as if it were a perfect ideal kingdom.

Yu Qie went to play bridge in the final round and was asked about this by Qiao Gong: "I saw your article in the newspaper. I remember you were the one who came up with it. Do you think this can be implemented on a large scale?"

“Impossible,” Yu said frankly. “This is too advanced for us.”

Mr. Qiao nodded in satisfaction.

Nie Weiping was also playing cards. He usually didn't participate in the discussion, but when he heard that Xiao Yu wanted to donate money, he couldn't help but ask:

"The West is also establishing personal charitable foundations. Why can't China try it on a large scale? Can't we take a shortcut and overtake them?"

Yu Qie became slightly more serious and said solemnly, "Personally, I think it's better to let some visionary people apply on their own; but the government should never promote and implement it, as this could trigger a crisis of trust."

Old Nie didn't understand this, but seeing that Yu Qie was very serious, he scratched the back of his head and said awkwardly, "Brother, you're joking. Don't take it too seriously."

Then, Qiao asked, "Then why do you want to set up a personal charitable foundation? You could have done what Mr. Shen (Mao Dun) did and donated your royalties to establish the Yuqie Literary Prize. Why make it so complicated?"

"That was something I did after I died, or when I was about to die. I can assure you, I did it entirely out of good intentions."

“Of course I believe you,” Qiao Gongdao said.

After that, these matters were not discussed again, and everyone tacitly played cards. Less than a week later, Yu Qie received approval to set up a personal charitable foundation.

Having this note makes things much easier.

The next steps are simply a series of procedures: setting up an office, hiring full-time staff, forming a board of directors, drafting bylaws, and so on.

This will have to wait until Yu Qie returns from Spain before it's finished. He asked Zhang Li to start things up, and Chen Xiaoxu to help.

Zhang Li was very excited: she had always wanted to go into business, and the preparation of this foundation was like a rehearsal for doing business. The foundation's operation cannot rely solely on Yu Qie's royalties from mainland China. If she can maintain a basic balance between income and expenditure, or even make a profit, she can be considered a good businesswoman.

Are there really no privately owned charitable foundations in China?
Of course it's impossible.

However, this foundation is still a "mass organization" and belongs to a type of public institution. Its board members are all key leaders and are also managed by the Central Organization and Establishment Commission.

"In any case, setting up a private foundation is a groundbreaking first for us, and everything is difficult at the beginning!" Yu said.

Many things are being done through trial and error these days. Even Yu Qie doesn't fully understand how to proceed.

Zhang Li herself treated this as a major event, but her current health condition does not allow her to study and run the foundation at the same time.

She could only ask Chen Xiaoxu for more help.

(End of this chapter)