It follows a welter of goodwill gifts from the public over the past seven years that have left officials scratching their heads about how to store and distribute the money and items to the needy.

A total of 12.3 billion yuan (US$1.5 billion) in donations -- 8.3 billion yuan (US$1 billion) in cash, 800 million items of clothing and 4 billion yuan-worth (US$484 million) of materials -- have been made by the public during that period.

The donations have been distributed to 340 million people in need, statistics from the Ministry of Civil Affairs reveal.

Altogether 18,883 regular donation collection centers have been set up in cities, the report said.

This network has made it possible for urban residents to make donations at any time of the year and conveniently near their homes, the report stated.

Local governments of many cities have also drawn up management and supervision regulations for the collection, transportation and distribution of donations.

According to a report from Xinhua News Agency, the number of social welfare institutions in China has reached more than 39,300, which offer more than 1.24 million beds.

These institutions are funded mainly by the government and local collectives while the number of non-governmental ones is increasing very quickly, the report said.

They serve as homes for senior citizens without family support, disabled persons, orphans and abandoned infants.

Of these institutions, 2,000 are non-governmental ones equipped with 51,000 beds.

The report said China's social welfare is currently being developed through various means and in different forms.

The government and collectives were solely responsible for social welfare in China for a long time.

Such a situation resulted in many problems, including a lack of funds for social welfare and low quality services, and failed to meet the demand of the general public for welfare services.

In addition, the country has reformed the internal management systems of governmental social welfare institutions and improved their employment and distribution systems.

Such measures have upgraded management and service in governmental social welfare institutions, the report said.

(China Daily October 8, 2002)