The Yantai Charity Federation, Shandong province, denied that it misappropriated donated funds, chinanews.com reported on Tuesday.

According to a statement issued on its official website, the federation said that the funds for a traffic accident victim who was run down by Wang Hongtao, former director of the federation's general office, was not a donation from the federation.

The compensation was 810,000 yuan ($132,300).

Of this, 119,780 yuan came from an insurance company.

The balance was paid by Wang himself.

The accident took place on Oct 16, 2012.