The China Charity Transparency Report (2011), issued by the China Charity and Donation Information Center, showed that only 8 percent of 1,063 questioned people were satisfied with the transparency of Chinese charitable organizations.

According to the China Foundation Center, there were 2,735 foundations operating in China by July 24. However, only 777 of them had established official websites.

According to Deng Guosheng, a professor with Tsinghua University's School of Public Policy and Management, few charitable organizations in China disclose how donated money is spent.

Li Liguo, minister of civil affairs, said, "Openness and transparency are key for public charitable organizations to win public trust. It's of great importance to developing philanthropy in China."

During the fund-raising for the veterans, information such as names of donation recipients, the credentials of the companies set to supply them with materials, and the quantity and quality of the products were all disclosed on Taobao.com.

This didn't stop the scheme's validity being questioned, however. One Internet user with the screen name "Hunterzzb" demanded, "Is this donation credible?" "Gideon_ji" also took issue with the Taobao online shops that the system allowed to bid to supply the veterans with goods. "Why are the ratings of many bidding shops so low? Is their selection some trick by the suppliers?" the netizen demanded.

In reply, Taobao's Qi Xiaopei explained that the nomination of suppliers is open to the public. Anyone making a donation gets to choose what items are bid on, and all sellers on Taobao can participate in the bidding. It's the donors who vote for the suppliers, according to Qi.

Under the supervision of Internet users and monitoring by Taobao, two bidding sellers were found to be faking votes. Their licenses were later revoked and they were named and shamed on Taobao.

"Internet technology and strict rules help provide a more transparent environment. Neither we nor Taobao dare neglect the willingness of more than 40,000 donors," said Sun.

This is not the first public welfare activity that Taobao has undertaken by taking advantage of its large number of users and vast sets of data. In August, the online retailer and the China Foundation for Poverty jointly initiated "Games Among Mountains", donating sporting goods to 35 primary schools in the poverty-stricken areas of Daliang Mountain in Southwest China's Sichuan province.

In addition, a Taobao-sponsored charity project named "Magic Beans" and has helped many poor mothers start their own businesses.

"Donors will play a stronger role in future. The combination of the Internet and public welfare allows everyone to become the master of charitable activities. Everybody can participate in public welfare in the most convenient way," Sun added.