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Charity Law of the PRC (2024)

 

Chapter I: General Provisions

Article 1: This law is drafted so as to develop the charity field, to promote a culture of charity, to regulate charitable activities; to protect the legal rights and interests of charitable organizations, donors, volunteers, and beneficiaries; and to promote social progress and share the developmental accomplishments.

Article 2:This law applies to natural persons, legal persons and unincorportated organizations carrying out charitable activities or activities related to charities. Where other laws have special provisions, follow those provisions.

Article 3:“Charitable activity”as used in this law indicates initiation of the following non-profit activities on a voluntary basis by natural persons, legal persons and unincorporated organizations through means such as donating assets or providing services, or voluntarily carrying out the following public interest activities:

(1) Poverty alleviation and assistance;

(2) Eldercare, aid for orphans, aid for the ill, assistance for the disabled, or special aid;

(3) relief from damage caused by natural disasters, disasters caused by accidents, public health incidents and other emergencies;

(4) promotion of the development of areas such as education, science, culture, health, and sports;

(5) prevention and control of pollution and other public harms, and protection and improvement of the environment;

(6) Other public interest activities compliant with the provisions of this law.

Article 4:Charity work is to uphold the leadership of the Communist Party of China.

The implementation of charitable activities shall follow the principles of lawfulness, voluntariness, integrity, and non-compensation; must not violate social morals, and must not harm national security, the societal public interest or the lawful rights and interests of others.

Article 5:The State encourages and supports natural persons, legal persons, and unincorporated organizations putting the socialist core values into practice, carrying forward the traditional virtues of the Chinese people and conducting charitable activities in accordance with law.

Article 6: People’s governments at the county level or above shall do the overall planning, coordination, and oversight, urging and guiding relevant departments in supporting efforts on the development and regulating the management of charitable affairs within the scope of their respective duties.

The civil affairs department under the State Council is responsible for work on charities throughout the entire nation; the civil affairs departments of all levels of people's government at the county level or above are responsible for work on charities in their administrative regions; the relevant departments of people's government at the county level or above are to follow this law and other laws and regulations to do a good job on relevant work within the scope of their own duties and strengthen oversight, management, and services for charitable activities; and where charitable organizations have professional supervisory units, they shall conduct guidance and oversight of them.

Article 7:September 5 of every year is "China Charity Day".

 

Chapter II: Charitable Organizations

Article 8: "Charitable organizations" as used in this Law refers to lawfully established non-profit organizations that comply with the provisions of this law and whose main purpose is carrying out charitable activities aimed at the public.

Charitable organizations may adopt organizational forms such as foundations, social groups (社会团体), or social service organizations.

Article 9: Charitable organizations shall comply with the following requirements:

(1) Have carrying out charitable activities as their main purpose;

(2) Not have a profit-making motive;

(3) Have their own name and location;

(4) Have an organizational charter;

(5) Have necessary assets;

(6) Have institutional framework and responsible parties meeting requirements;

(7) other requirements provided for by laws and administrative regulations.

Article 10:The establishment of charitable organizations shall be by application for registration to the civil affairs department at the county level or above, and the civil affairs department shall make a decision within 30 days of accepting the application. Where the requirements provided for in this law are met, registration is permitted and announced to society; where the requirements provided for in this law are not met, registration is not given and the reasons are explained in writing.

Non-profit organizations such as trusts, social groups, and social service organizations established prior to the promulgation of this Law may apply to the civil affairs department that handled their registration to be confirmed as charitable organizations, and the civil affairs department shall make a decision within 20 days of accepting the application. Where the requirements for charitable organizations are met, confirmation is granted and announced to society; where the requirements for charitable organizations are not met, registration is not permitted and the reasons are explained in writing.

Where there are special circumstances requiring an extension of the period for registration or confirmation, an appropriate extention may be given upon permission of the civil affairs departments under the State Council, but the extended period must not exceed 60 days.

Article 11:Charters of charitable organizations shall comply with laws and regulations and clearly contain the following matters:

(1) Name and domicile;

(2) Organizational model;

(3) purpose and scope of activities;

(4) Asset sources and composition;

(5) the composition and duties of the decision-making and implementation bodies;

(6) internal oversight mechanisms;

(7) asset management and utilization systems;

(8) project management systems;

(9) conditions for termination and method of settling accounts [liquidation] after termination;

(10) other important matters.

Article 12:Charitable organizations shall follow laws and regulations and their charters to establish sound internal governance structures; clarify responsibility and powers for areas such as major decision-making, implementation, and supervision; and carry out charitable activities.

Charitable organizations shall implement a unified national accounting system, shall undertake accounting according to law, shall establish a sound accounting supervision system, and shall accept the supervision and management of relevant government departments.

Article 13:Each year, charitable organizations shall submit an annual work report and a financial accounting report to the civil affairs department that handled their registration. Reports shall include information on annual fundraising and donation acceptance, the use and management of charitable assets, the implementation of charitable projects, fundraising costs, staff salaries and benefits, as well as collaboration carried out with foreign organizations and individuals.

Article 14:The founders, major donors and managers of charitable organizations must not use their association to harm the interests of charitable organizations or beneficiaries, or the public interest.

Founders, major donors, and managers who partake in transactions with the charitable organization must not participate in the charitable organizations' decision-making process regarding the transactions, and conditions related to the transactions shall be made public.

Article 15:Charitable organizations must not engage in or fund activities that endanger national security or social public interests, must not accept contributions that have conditions attached that violate laws and regulations or are contrary to social morals, and must not attach conditions for beneficiaries that violate laws and regulations or are contrary to social morals.

Article 16:Persons with any of the following circumstances must not serve as the responsible person for charitable organizations:

(1) Persons lacking or having limited civil capacity;

(2) Those who have been punished for an intentional crime, where 5 years have not yet elapsed since the completion of the criminal penalty;

(3) Those who have held a position of responsibility at an organization whose certificate of registration has been suspended or cancelled, and 5 years have not yet elapsed since the date upon which the organization's certificate of registration was suspended or cancelled;

(4) Other situations provided for by law or administrative regulations.

Article 17:Charitable organizations shall be terminated in any of the following circumstances:

(1) Where conditions for termination provided for in the charter manifest;

(2) Where termination is required due to division or merger;

(3) Where they have not engaged in charitable activities for three consecutive years;

(4) Where they have been deregistered or the registration certificate revoked in accordance with law.

(5) other circumstances where laws or administrative regulations provide they shall be terminated.

Article 18:Charitable organizations that are terminated shall conduct a settling of accounts.

The decision-making body of a charitable organization shall establish a liquidation team to conduct liquidation 30 days of conditions for termination manifesting, and announce this to the public. Where a liquidation team is not formed or it does not carry out its responsibilities, the civil affairs department that handed their registration may ask the people's courts to appoint relevant personnel to form a liquidation team and to conduct liquidation.

After liquidation, the residual assets shall be transferred to a charitable organization with the same or similar charitable purpose in accordance with the charitable organizations' charters; where the charter does not have provisions, the civil affairs department that handled their registration is to preside over their transfer to charitable organizations with the same or similar purposes, which shall be announced to the public.

After charitable organizations complete liquidations, they shall handle the withdrawal of registration with the civil affairs department that handled their registration, and this will be announced to the public by the civil affairs departments.

Article 19: Charitable organizations are to establish industry organizations in accordance with law.

Charity industry organizations shall reflect the demands of the industry, push for industry-wide communication, improve the credibility of the industry, and promote the development of charities.

Article 20: The State Council will formulate specific methods fro charitable organizations' organizational forms and registration management.

 

Chapter III: Charitable Fundraising

Article 21:"Charitable fundraising" as used in this law refers to charitable organizations' activities raising assets for their charitable purpose.

Charitable fundraising includes public fundraising and directed fundraising aimed at specific targets.

Article 22:Charitable organizations conducting public fundraising shall obtain public fundraising credentials. Charitable organizations that have been lawfully registered for one year may apply for public fundraising credentials to the civil affairs department that handled their registration. Civil affairs departments shall issue a decision within 20 days of receiving an application. Where charitable organizations meet the requirements for internal governance and regulation of operations, a public fundraising credential document is issued; where requirements are not met, a public fundraising qualification certificate is not issued and the reasons are to be explained in writing.

Civil affairs departments are to directly issue public fundraising qualification certificates to non-profit organizations that other laws and administrative regulations provide may publicly fundraise.

Article 23:Public fundraising may employ the following methods:

(1) Setting up donation boxes in public places;

(2) Holding charity events aimed at the public such as charity performances, charity competitions, charity exhibitions, charity auctions, and charity galas;

(3) releasing fundraising information through radio, television, newspapers, the Internet and other media;

(4) Other means of public fundraising.

Where charitable organizations carry out public fundraising by employing methods provided for in items 1 or 2 of the preceding paragraph, they shall do so within the administrative jurisdictional region of the civil affairs department that handled their registration, but where it is necessary to do so outside of the administrative jurisdictional region of the civil affairs department that handled their registration, they shall report for recording to civil affairs department of the people's government at the county level or above for the region where the public fundraising will be carried out. There is no geographical restriction on donors making donations.

Article 24:Fundraising plans shall be formulated to carry out public fundraising. Fundraising plans include information such as the purpose of fundraising, the starting and ending time, geographical regions, the names and business addresses of the responsible personnel, the methods of accepting donations, bank accounts, beneficiaries, the purposes of the funds and materials raised, the cost of fundraising, and the disposition of residual assets.

Fundraising plans shall be reported for recording to the civil affairs departments where charitable organizations are registered before fundraising activities are carried out.

Article 25:In conducting public fundraising, information such as the name of the fundraising organization, the public fundraising credentials certificate, the fundraising plan, contact information, and methods of inquiring about fundraising information, shall be prominently displayed at the sites of fundraising activities or on fundraising media.

Article 26:Organizations or individuals not possessing public fundraising credentials may cooperate with charitable organizations that possess credentials for public fundraising to conduct public fundraising when based on a charitable purpose; and that charitable organization will carry out the public fundraising and manage the assets raised through public fundraising. Charitable organizations that have public fundraising credentials shall conduct assessments of their collaborators, sign agreements with them in accordance with law, indicate their relevant information in fundraising plans, and conduct guidance and oversight of the collaborators' related conduct.

Charitable organizations with public fundraising credentials are responsible management and accounting of collaboratively fundraised assets, and are to put the entire amount into their accounts.

Article 27:Where charitable organizations carry out public fundraising through the internet, they shall do so through the public fundraising platforms designated by the Civil Affairs Department of the State Council, and may also concurrently do so on their own websites.

The Internet public fundraising service platforms designated by the State Council Civil Affairs Department is to provide services such as the display of fundraising information, donation payment, and inquiries into the use of donated assets; they must not refuse to provide services to charitable organizations that possess public fundraising credentials, must not charge them, and must not insert commercial advertisements or links for commercial activities on public fundraising information pages.

Article 28:Radio, television, and press, as well as network service providers and telecom operators, shall verify the registration certificates and the public fundraising qualification certificates of the charitable organizations that utilize their platforms to conduct public fundraising.

Article 29:Charitable organizations may begin conducting targeted fundraising from the day on which they are registered.

Charitable organizations carrying out targeted fundraising shall do so within the scope designated by their founders, board members, members, and so on, and explain matters such as the purpose of the fundraising and the use of assets raised to the targets of the fundraising.

Article 30: The methods provided for in article 23 of this law must not be employed, or covertly employed, in carrying out targeted fundraising.

Article 31:The implementation of fundraising activities shall respect and preserve the lawful rights and interests of fundraising targets, shall assure fundraising targets' right to know, and not use means such as false information to trick or entice fundraising targets into making donations.

Article 32:Forced apportionment, or covert forced apportionment, must not be used in carrying out fundraising activities, public order, business production and operations, and residents' lives must not be obstructed. [trans. note 'forced apportionment' '摊派' occurs where members of an organization are each compelled to pay a set portion of a donation]

Article 33:It is prohibited for any organization or individual to falsely use a charity's name or pose as a charitable organization to carry out charitable activities or to obtain assets by fraud.

 

Chapter IV: Charitable Donations

Article 34:"Charitable donations" as used in this Law refers to voluntary and uncompensated activities conducted by natural persons, legal persons, and unincorporated organizations in donating assets for charitable purposes.

Article 35:Donors may donate through charitable organizations and may also donate directly to beneficiaries.

Article 36:Assets donated by donors shall be lawful assets for which they have the right to dispose of. Charitable donations of property include currency, physical property, buildings, securities, equity, intellectual property rights and other tangible and intangible property.

The material objects donated by donors shall have usable value, and shall comply with standards such as for safety, health and environmental protection.

Where the donor donates a product of its own enterprise, it shall bear responsibility and obligations for the products' quality in accordance with law.

Article 37:Where natural persons, legal persons, and unincorporated organizations, in the course of conducting a business activity such as a show, a competition, a sale, or an auction, undertake to use part or all of the proceeds for a charitable purpose, they shall sign a donor agreement with the charitable organization or other recipient of the gift prior to the commencement of the activity, and shall perform the donation obligation pursuant to that donor agreement, and shall disclose the donation situation publicly.

Article 38:Charitable organizations accepting donations shall issue donation receipts to the donors, uniformly printed by or under the supervision of finance departments. Donation receipts shall state clearly the donor, the types and amount of assets donated, the name of the charitable organization, the name of the responsible person, the date of the receipt, and other information. Where donors are anonymous or decline to accept the donations receipts, charitable organization shall keep relevant records.

Article 39:Where a charitable organization receives a donation and the donor requests a written donor agreement, the charitable organization shall enter into a written agreement with the donor.

Written donor agreements include the names of the donor and the charitable organization, the type of assets being donated, their volume, quality, use, and time of delivery.

Article 40:When the donor and recipient agree on the uses and beneficiaries of assets, they must not designate or indirectly designate persons in whom the donor has an interest as beneficiaries.

Organizations and individuals must not violate the law by using charitable donations to promote tobacco products, and must not use charitable donations in any fashion to promote products and matters prohibited by law.

Article 41:Donors shall follow the donation agreement in performing their donation obligations. Where, in breach of the donation agreement, donors fail to deliver donated assets exceeding the time limit, and where one of the following circumstances exists, charitable organizations and other persons accepting the donations can request delivery; where the donors refuse to deliver, charitable organizations and other persons accepting donations can apply to the people's courts for an order for payment or raise a lawsuit:

(1) Where donors have publicly promised to donate through radio, television, press, the Internet, or other such media;

(2) Where donated assets are used in the charitable activities provided for by Items 1-3 of Article 3 of this Law, and a written donor agreement is signed;

Where after a donor publicly pledges a donation or signs a written donation agreement, economic conditions significantly deteriorate seriously affecting their production and operations, or household livelihood, performance obligations may be discontinued upon reporting to the civil affairs department for the area at the county level or above where the public pledge or written donation agreement was made, and after a public explanation of the circumstances.

Article 42:A donor has the right to inquire about or make copies of relevant data on the management and the use of his donated assets, and charitable organizations shall proactively give feedback to the donor on relevant situations.

Where charitable organizations abuse the donated assets in violation of the purposes agreed upon in donor agreements, the donors have the right to demand rectification; where rectification is refused, the donors may make a complaint or report to the civil affairs department at the county level or above, or raise a lawsuit in the people's courts.

Article 43:State-owned enterprises making charitable donations shall comply with the relevant provisions on management of state-owned assets, carrying out approval and recording procedures.

Chapter V: Charitable Trusts

Article 44:"Charitable trusts" are public interest trusts, and as used in this Law refers to trustors lawfully entrusting their assets to a trustee for charitable purposes, and the trustee, in accordance with the wishes of the trustors and in the name of the trust, managing and disposing of assets in order to carry out charitable activities.

Article 45:The establishment of a charitable trust and the designation of the trustees and supervisors, shall be done in writing. Within seven days of signing the trust documents, the trustees shall record relevant documents for recording with the civil affairs departments of the people's government at the county level or above for the place where the trustors reside.

Those not following the provisions of the preceding paragraph to record the relevant documents with the civil affairs departments, do not enjoy preferential tax treatment.

Article 46: The trustors of charitable trusts must not designate, or indirectly designate, persons in whom they have an interest, as beneficiaries.

The trustees of charitable trusts shall adhere to the principles of openness, fairness, and justness in determining the beneficiaries, and must not designate or indirectly designate interested parties or their staff members as beneficiaries.

Article 47:Trustors may designate charitable organizations or trust companies that they have confidence in to serve as trustees of charitable trusts.

Article 48: Where the trustees of a charitable trust violate the obligations of the trust or have difficulty performing their duties, the trustor may change the trustee. Within 7 days of the change, the trustees after the change shall report the situation to the civil affairs department for the original recording to make a new record.

Article 49:Trustees of charitable trusts, in managing or handling the assets of the trust, shall perform their duties in accordance with the charity's purposes, with a dedication to duty and integrity in performance and prudent management.

The trustees of charitable trusts shall promptly report to the trustor on the status of the handling of the affairs of the trust, and on the status of the management and use of trust assets, as required by the trust deed and the trustors. Trustees of charitable trusts shall report at least once a year to the civil affairs departments that handled their filings regarding the status of the handling of the affairs of the trust and state of financial affairs, and this shall be made public.

Article 50:Trustees of charitable trusts may identify trust supervisors as needed.

The trust supervisor oversees the actions of the trustee, safeguarding the rights and interests of the trustors and the beneficiaries in accordance with law. Where trust supervisors discover that trustees have violated their obligations under the trust or are having difficulty performing their duties, they shall report it to the trustor and also have the right to bring a lawsuit in their own name in the people's courts.

Article 51:Where matters such as the establishment of charitable trusts, the management of trust assets, trust parties, and the termination and liquidation of trusts are not covered by this Chapter, apply other relevant provisions of this Law; where [these matters] are not covered by this Law, apply the relevant provisions of the Trust Law of the People's Republic of China.

 

Chapter VI: Charitable Assets

Article 52: The assets of charitable organizations include:

(1) Start-up assets donated or funded by founders;

(2) Assets gathered through fundraising;

(3) Other lawful assets.

Article 53: The assets of charitable organizations shall only be used entirely for charitable purposes in accordance with their charter and the donation agreement, and must not be distributed among the founders, donors or members of the charitable organizations.

Charitable assets must not be privately divided, embezzled, withheld, or misappropriated by any organization or individual.

Article 54: Charitable organizations shall create records for registration and conduct strict management of raised assets, and shall earmark funds for specified purposes.

Where physical property donated by a donor is not easily stored or transported, or is difficult to directly use for a charitable purpose, charitable organizations may lawfully auction it or sell it off, and the proceeds, following withholding of the necessary taxes, shall go entirely to the charitable purpose.

Article 55: Charitable organizations shall follow the principles of lawfulness, safety, and effectiveness in acting to preserve property values and appreciate current investments, and the gains obtained through investment shall be used entirely for charitable purposes. Charitable organization's major investment plans shall be agreed upon by two-thirds or more of the members of the decision-making body. Assets from government funding, and assets that a donation agreement provides must not be used as investments, must not be used for investment. The responsible persons and staff of charitable organizations must not have part-time employment with, or receive compensation from, enterprises in which the charitable organization invests.

The civil affairs departments under the State Council will develop implementation methods for the matters provided in the previous paragraph.

Article 56: Charitable activities carried out by charitable organizations shall be in accordance with the provisions of laws, regulations and their charters, and shall follow the fundraising plan or donation agreement in utilizing donated assets. Where charitable organizations truly need to change provisions of their fundraising plan, they shall record it with the civil affairs departments where they originally filed; where they truly need to change the use of donated assets as provided for in a donation agreement, the donors' consent shall be obtained.

Article 57:Charitable organizations shall reasonably design charitable projects, optimize their course of implementation, minimize operational costs, and raise the efficiency of using charitable assets.

Charitable organizations shall establish project management systems, and conduct follow-up supervision of projects' implementation.

Article 58: Where after charitable projects conclude, there are remaining donated assets, it is handled in accordance with the fundraising plan or donation agreement; where there is no stipulation in the fundraising plan or donation agreement, the charitable organization shall use the remaining assets in a charitable project with the same or similar goals, and make this public.

Article 59: Charitable organizations determination of beneficiaries shall adhere to the principles of openness, fairness, and justness; and must not designate or indirectly designate persons in whom the charitable organizations' managers have an interest as beneficiaries.

Article 60:Charitable organizations may sign agreements with beneficiaries as needed, clarifying the rights and obligations of both sides, and stipulating on the use, amount, and methods of use of charitable assets, and other such content.

Beneficiaries shall cherish charitable funds and use them in accordance with agreements. Where beneficiaries do not follow the agreement in using charitable assets, or otherwise seriously violate the agreement, the charitable organization has the right to request they make corrections; where beneficiaries refuse to make corrections, the charitable organization has the right to end the agreement and request that the beneficiaries return assets.

Article 61: Charitable organizations shall actively carry out charitable activities, obey the principle of greatest necessity in administrative costs and fundraising costs, act frugally, and reduce unnecessary expenses, to fully and efficiently utilize charitable assets. Charitable foundations with public fundraising credentials' annual expenditure for carrying out charitable activities must not be less than 70% of its total income for the previous year or 70% of the average income for the last three years; annual management costs must not exceed 10% of that year's total spending, and where there are special circumstances making it difficult for expenditures and management costs to comply with the provisions mentioned here, a report shall be made to the civil affairs departments that handled their registration, and a public explanation of the situation shall be made.

The standards for the annual expenditures that charitable organizations spend on charitable activities, management costs, and fundraising costs are to be formulated by the civil affairs department of the State Council, in consultation with other departments such as for finance and taxation.

Where donation agreements stipulate the charitable activity expenditure and the management costs for individual donated assets, follow these stipulations.

The State Council department for civil affairs, in conjunction with departments such as for finance, taxation, and banking and financial oversight and management, is to draft standards for the expenditures and management costs of charitable trusts.

 

Chapter VII: Charitable Services

Article 62:"Charitable services" as used in this Law refer to uncompensated volunteer services as well as other non-profit services provided to society or to others based on charitable purposes by charitable organizations and other organizations as well as individuals.

Charitable organizations carrying out charitable services may provide them themselves or recruit volunteers to provide them, and may also entrust another organization with service expertise to provide them.

Article 63:The implementation of charitable services shall respect the individual dignity of beneficiaries and of the volunteers and must not encroach on beneficiaries' and the volunteers' privacy.

Article 64:Conduct of charitable services that require specialized skills such as medical treatment and rehabilitation or education and training, shall implement standards and rules formulated by the State or industry organizations.

Where charitable organizations recruit volunteers to participate in charitable services and require specialized skills, they shall conduct relevant training for volunteers.

Article 65: Charitable organizations recruiting volunteers to participate in charitable services shall publicly announce all information related to the charitable service, and give notice of risks that might occur in the course of service.

Charitable organizations may sign agreements with volunteers as needed, clarifying the rights and obligations of both parties, stipulating information such as the content, method, and time of service.

Article 66: Charitable organizations shall make real name registration of volunteers, and record the time, content, and appraisal of volunteers' service. As requested by volunteers, charitable organizations shall issue free and accurate proofs of volunteer service records.

Article 67:Charitable organizations will arrange for volunteers to participate in charitable service appropriate to their age, education level, skills, and physical condition.

Article 68:Volunteers accepting charitable organizations' arrangements to participate in charitable services shall abide by management and accept necessary training.

Article 69: Charitable organizations shall provide volunteers with necessary requirements to participate charitable services, and safeguard volunteers' lawful rights and interests.

Before charitable organizations arrange for volunteers to participate in charitable service where personal injury might occur, they shall purchase accidental personal injury insurance for the volunteers.

 

Chapter VIII: Emergency Charity

Article 70: When major emergency incidents require rapid aid, the people's governments performing unified leadership over, or organizing the handling of, the emergency incidents shall establish coordination mechanisms in accordance with law, indicating dedicated institutions and persons, providing information on needs, and promptly and orderly guiding charitable organizations, volunteers, and other social forces’ carrying out of fundraising and aid activities.

Article 71: The State encourages charitable organizations and charitable industry associations to establish emergency response mechanisms, strengthening information sharing, coordination, and cooperation, to increase the efficacy of charitable organizations’ operations and the use of charitable resources.

When major emergency incidents occur, encourage charitable organizations, volunteers, and others to lawfully carry out or participate in charitable activities under the guidance of the relevant people's governments.

Article 72: Where public fundraising is carried out in order to respond to major emergencies, allocated funds and property shall be promptly distributed or used, and disclosures on the acceptance of donations shall be made at least once every five days during the response and aid periods, and the distribution and use of the donations is to be promptly disclosed.

Article 73: Where charitable organizations are unable to file fundraising plans before public fundraising activities for responding to major emergencies, they shall supplement filings within 10 days of starting the activities.

Article 74: People's governments at the county level and above and their relevant departments shall provide conditions to facilitate the delivery and distribution of donations. Township people's governments, neighborhood offices, and villagers’ and residents' committees shall provide assistance as possible in the delivery and distribution of donations, information statistics calculation, and so forth.

 

Chapter IX: Information Disclosures

Article 75: The State is to establish and complete systems for compiling and publishing statistical information on charity.

The State Council is to establish and complete a unified charity information platform, providing free services for the publication of charity information.

Civil affairs departments of people's governments at the county level or above shall promptly disclose charity information to the public on the platform provided for in the preceding paragraph.

Charitable organizations and the trustees of charitable trusts shall publish charity information on the platform provided for in the second paragraph of this article, and take responsibility for the veracity of the information.

Article 76: The civil affairs departments and other relevant departments of the people's governments at or above the county level shall timely disclose the following charity information to the public:

(1) the registration of charitable organizations;

(2) charitable trusts filing matters;

(3) the list of charitable organizations with public fundraising credentials;

(4) A list of charitable organizations to give public interest tax deduction receipts for donations.

(5) Measures for promoting charitable activities such as preferential tax treatment and funding subsidies;

(6) Information on purchasing of services from charitable organizations;

(7) Outcomes of investigations into charitable organizations and charitable trusts;

(8) The outcome of commendations and punishments of charitable organizations, other organizations and individuals;

(9) Other information that laws and regulations provide shall be disclosed.

Article 77: Charitable organizations and trustees of charitable trusts shall carry out information disclosure obligations in accordance with law. Information disclosure shall be truthful, complete and timely.

Article 78: Charitable organizations shall publicly disclose the organization's charter, information on the members of decision-making, implementation, and oversight bodies, as well as other information that the civil affairs department under the State Council requires to be disclosed. Where there are major changes to the information above, charitable organizations shall promptly disclose them to the public.

Each year, charitable organizations shall publicly disclose their annual work reports and financial accounting reports. The financial accounting report of charitable organizations with public fundraising credentials must be audited.

Article 79: Charitable organizations with public fundraising credentials shall periodically make public disclosures on the circumstances of fundraising and of charitable projects' implementation.

Where the period for public fundraising exceeds 6 months, the circumstances of public fundraising should be reported on at least once every 3 months, and after the fundraising activities have concluded, the detailed circumstances of fundraising shall be disclosed within 3 months.

Where charitable projects' implementation period exceeds 6 months, the situation of the implementation of the projects should be reported on at least once every 3 months, and after the projects have concluded, the detailed circumstances of implementation and use of collected funds and property shall be disclosed within 3 months.

Article 80: Charitable organizations and trustees of charitable trusts shall inform beneficiaries of information such their funding standards, work processes and work regulations.

Article 81: Charitable organizations and trustees of charitable trusts shall inform beneficiaries of information such as their funding standards, work processes, and work regulations.

Article 82: Information related to state secrets, commercial secrets, or personal privacy, as well as information such as the names, titles, addresses, and contact methods of donors or charitable trust trustees who do not consent to it being disclosed, must not be made public.

 

Chapter X: Promotion Measures

Article 83: People's governments at the county level or above shall include charity affairs in the economic and social development plans, and draft policies and measures for the promotion of charity affairs.

The relevant departments of people's government at or above the county level shall, within their own duties, provide charity demand information to charitable organizations or the trustees of charitable trusts, and provide guidance and help to charitable activities.

Article 84: The civil affairs departments of the people's governments at the county level or above shall establish mechanisms of sharing charity information with other departments.

Article 85: The State is to encourage, guide, and support willing and able natural persons, legal persons, and unincorporated organizations’ active participation in charitable endeavors.

The State is to implement tax incentive policies for charity industry, with the specific methods to be provided by th State Council finance and tax departments, in collaboration with the civil affairs departmnet, and in accordance with the tax laws and administrative regulations. .

Article 86: Charitable organizations and the income thereof enjoy tax benefits according to law.

Article 87:Where natural persons, legal persons, and unincorporated organizations donate assets for use in charitable activities, they receive tax benefits in accordance with law. The amount of charitable donations beyond the amount deductible from income tax for that year is allowed to be carried over into the calculation of taxable income over the next three years.

Overseas donations to be used for charitable activities are lawfully entitled to a reduction or exemption from import duties and also from import VAT.

Article 88:Where natural persons, legal persons, and unincorporated organizations establish charitable trusts to carry out charitable activities, they are to enjoy tax benefits in accordance with law.

Article 89: Where beneficiaries accept charitable donations, they are lawfully entitled to tax benefits.

Article 90: Where charitable organizations, donors, or beneficiaries enjoy tax benefits in accordance with law, relevant departments shall promptly handle the relevant procedures.

Article 91: Where donors donate physical objects, securities, equity, and intellectual property right to charitable organizations, administrative fees related to transferring rights are waived in accordance with law.

Article 92: The state is to implement special benefit policies for charitable activities for poverty alleviation, participation in major emergency response, and participation in major state strategy plans.

Article 93: Where charitable organizations carrying out the charitable activities provided by Items 1 and 2 of Article 3 of this Law require land for charitable service facilities, they may apply to use state-owned allocated land or rural collective construction land in accordance with law. The use of land for charitable services must not be altered except through legally prescribed procedures.

Article 94: The State provides financial policy support for charitable endeavors, encouraging financial establishments to provide financial services such as financing and bill keeping to charitable organizations and charitable trusts.

Article 95:All levels of people's government and their relevant departments may lawfully use methods such as the purchase of services to support charitable organizations in providing services to the public, and follow the relevant laws and regulations on government procurement to report relevant circumstances to the public.

The state is to encourage the use of modern information technology in the charity sector, and encourage social forces to provide financial support and capacity building services for charitable organizations through means such as public interest venture capital, incubation, personnel training, and project guidance.

Article 96: The state is to encourage areas that have the capacity in establishing community charitiy organizations, strengthening the establishment of a community team of volunteers, and developing the charity industry.

Article 97: The State is to employ measures to promote a culture of charity and to foster citizens' awareness of charity.

Schools and other educational institutions shall include philanthropic culture in education and teaching content. The State encourages institutions of higher learning to cultivate talent in charitable specialties, and supports institutions of higher learning and research institutions to carry out theoretical research on charities.

Media such as radio, television, press, and the internet shall actively conduct charity and public interest publicity activities, popularize charity knowledge, and spread philanthropic culture.

Article 98: The State encourages enterprises, public institutions, and other organizations to provide venues and other facilitation of charitable activities.

Article 99: With the consent of the beneficiaries, donors may put a commemorative name on charitable projects to which they have donated, but where provisions of law or regulations require approvals, follow those provisions.

Article 100: The State establishes a commendation system for charities, where the people's governments at the county level or above or relevant departments give commendations to natural persons, legal persons and unincorporated organizations that make outstanding contributions in charitable endeavors.

Article 101: The civil affairs departments and other relevant departments of people’s governments at the county level or above are to include information such as on charitable donations and volunteer services in the relevant entities’ credit records, and complete systems for credit incentives.

Article 102: The state is to encourage international exchanges and cooperation on charity.

Where charitable organizations receive foreign [境外] donations or cooperatively carry out charitable activities with foreign organizations, approval or filing procedures are to be performed based on relevant state provisions.

 

Chapter XI: Oversight and Management

Article 103: The civil affairs departments of people's governments at the county level or above shall perform their duties according to law, conduct oversight and inspections of charitable activities, and give guidance to charity industry organizations.

Article 104: The civil affairs departments of people's governments at the county level or above have the authority to employ the following measures towards charitable organizations and trustees of charitable trusts that are suspected of violating this law:

(1) carry out on-site inspections of the charitable organization’s or charitable trust trustees’ offices and the place where charitable activities occur;

(2) Request that the charitable organizations or trustees of charitable trusts make explanations, and read or reproduce relevant materials;

(3) Conduct investigations with relevant work units and individuals related to charitable activities regarding situations related to supervision and management;

(4) Inquire into charitable organizations' financial accounts, with the approval of the people's governments at the same level;

(5) Other measures provided for by laws and administrative regulations.

Where charitable organizations or the trustees of charitable trusts are suspected of violating this law, the civil affairs departments of people's governments at the county level or above may conduct a meeting on responsibility with the relevant persons responsible, and request that they give explanations and take corrective measures.

Where other participants in charitable activities are suspected of violating this law, the civil affairs departments of people's governments at the county level or above may collaborate with relevant departments to investigate and address it.

Article 105: Where civil affairs department of people's governments at the county level or above conduct inspections or investigations of charitable organizations, relevant work units or individuals, there shall be no fewer than two inspectors or investigators, and they shall present legitimate documents and inspection or investigation notices.

Article 106: The civil affairs departments of people's governments at the county level and above shall establish credit record systems for charitable organizations and their responsible persons, and the trustees of charitable trusts, and shall make these public.

The civil affairs departments of people's governments at the county level or above shall establish assessment systems for charitable organizations, encourage and support third-party organizations to conduct assessments of charitable organizations' internal governance, financial status, and program implementation as well as their information disclosures and other areas, and publicly release the assessment results.

Article 107: Charity industry organizations shall establish and perfect industry standards and strengthen industry self-regulation.

Article 108: Any unit and individual who discovers that a charitable organization or a charitable trust has violated the law may make a complaint or report to the civil affairs department of a people's government at the county level or above, other relevant department or the charity industry organization. Civil affairs departments, other relevant departments or charitable industry organizations shall, upon receipt of a complaint or report, promptly investigate and handle it.

The State encourages the public and the media to exercise supervision over charitable activities, and to expose any obtaining of assets by deception in the name of a charity or by posing as a charitable organization; as well as any violations of the laws and regulations by charitable organizations and trusts; giving full play to public opinion and social supervision.

 

Chapter XVII: Legal Responsibility

Article 109: Where charitable organizations have any of the following situations, the civil affairs departments of people's governments at the county level or above are to order that corrections be made within a set time, give warnings, or order a suspension of activities and confiscate unlawful gains; where the circumstances are serious, revoke registration certificates and give public notice;

(1) Did not follow the charitable purpose in carrying out charitable activities;

(2) privately divided, embezzled, withheld, or misappropriated charitable assets;

(3) Accepted donations with conditions that violate laws and regulations or are contrary to social morals, or attached conditions for beneficiaries that violate laws and regulations or are contrary to social morals;

Article 110: Where charitable organizations have any of the following situations, the civil affairs departments of people’s governments at the county level or above are to order that corrections be made within a stated time, give warnings, and confiscate unlawful gains; where corrections are not made within the stated time, order activities suspended and make corrections;

(1) Violating Article 14 of this law, causing losses of charitable assets;

(2) Designating or indirectly designating persons of interest to donors or charitable organization managers as beneficiaries;

(3) Using assets that must not be used for investment for investments;

(4) Changing the use of donated assets of one's own accord;

(5) Causing major losses to charitable assets through inadequate management;

(6) having annual expenditures for conducting charitable activities,r management costs, or fundraising costs that violate provisions;

(7) failing to perform information disclosure obligations in accordance with law;

(8) failing to submit an annual work report or financial accounting report, or fundraising plan;

(9) Revealing private personal information of donors, volunteers, or beneficiaries, as well as information such as the names, titles, addresses, and contact methods of donors or charitable trust trustees who do not consent to it being disclosed, must not be made public.

Where charitable organizations violate the provisions of this law by revealing State secrets or commercial secrets, punishment is given in accordance with the relevant laws.

Where charitable organizations have situations provided for in the preceding two paragraphs, and within one year of a disposition a situation provided for in the preceding paragraph occurs again, or where there are other serious situations, the civil affairs departments of people’s governments at the county level or above are to revoke registration certificates and make a public announcement.

Article 111: Where fundraising activities carried out by charitable organizations have any of the following circumstances, the civil affairs departments of people’s governments at the county level or above are to give a warning and order suspension of fundraising activities; unlawfully solicited assets are to be ordered returned, and where they cannot be returned, the civil affairs departments are to collect them and transfer them to other charitable organizations to be used for charitable purposes; where the circumstances are serious, public fundraising credentials or registrations are to be canceled, and a this is to be publicly announced, where public fundraising credentials are canceled, they must not be reapplied for 5 years.

(1) false information or other means were used to trick or induce fundraising targets into making donations;

(2) Putting quotas or indirect quotas on units or individuals;

(3) Obstructing the public order, business and production, or residents' lives;

(4) Cooperating with organizations or individuals that do not have public fundraising credentials, in violation of article 26 of this Law;

(5) Carrying out public fundraising through the internet in violation of article 27 of this law;

(6) Carrying out public fundraising for major emergency incidents and not promptly distributing or using donated funds and items;

Article 112:Where charitable organizations with the circumstances provided for in articles 109, 110, of 111 of this law, the civil affairs departments of people's governments at the county level or above are to fine the directly responsible managers and other directly responsible personnel between 20,000 and 200,000 RMB, and confiscated the unlawful gains; and where the cirucmstances are serious, they are to prohibit them from serving as the managers of charitable organizations for between 1 and 5 years.

Article 113: Where organizations or individuals that do not possess public fundraising credentials carry out public fundraising, the civil affairs departments of people’s governments at the county level or above are to give warnings and order that fundraising activities be stopped; order that illegally fundraised assets be returned and where they cannot be returned the civil affairs departments are to collect them and transfer them to charitable organizations to be used for charitable purposes; and where the circumstances are serious, fine the organization or individual between 20,000 and 200,000 RMB.

Where natural persons, legal persons or unincorporated organizations defraud assets falsely in the name of charity or pretending to be charitable organizations, the public security organs investigate and make a disposition in accordance with law;

Article 114:Where internet public fundraising platforms violate article 27 of this law, the civil affairs departments at the provincial level or above are to order that corrections be made in a set period of time; where corrections are not made in time, the State Council department for civil affairs is to cancel the designation.

Where internet information service providers provide internet public fundraising services without authorization, the civil affairs departments for people's governments at the county level or above are to order that corrections be made in a set period of time; where corrections are not made in the time provided, the civil affairs departments of people’s governments at the county level or above are to handle it in accordance with law in conjunction with the internet information and industry and information departments.

Where radio, television, press and network service providers or telecom operators do not perform their verification duties in accordance with law, the competent departments are to order that corrections be made in a set period of time and give warnings; where corrections are not made in that time, a notice of criticism is to be circulated.

Article 115: Where charitable organizations fail to issue donors with a public welfare donation receipt in accordance with law, fail to issue volunteers a record showing volunteer service in accordance with law or do not promptly and actively give feedback to donors, the civil affairs departments for people's governments at the county level or above are to give a warning and order corrections within a stated time; and where corrections are not made within the stated time, order activities temporarily suspended.

Article 116: Where charitable organizations practice fraud to obtain tax benefits, the taxation organs investigate and make a disposition in accordance with law; where the circumstances are serious, the civil affairs departments for people’s governments at the county level or above are to revoke registration certificates and make a public announcement.

Article 117: Where charitable organizations engage in or fund activities that endanger national security or the public interest, the relevant organs investigate and reach a disposition in accordance with law, and the civil affairs departments for people's governments at the county level or above are to revoke registration certificates and make a public announcement.

Article 118: Where the trustors or trustees of charitable trusts have any of the following situations, the civil affairs departments for people's governments at the county level or above are to order corrections within a stated time, give a warning, and confiscate unlawful gains; the persons who are directly in charge and other directly responsible personnel are fined between 20,000 and 200,000 yuan:

(1) Using the trust assets and proceeds for non-charitable purposes;

(2) designating or indirectly designating persons in whom the trustors or trustees and their staffs have an interest as beneficiaries;

(3) failuring to report on the handling of trust affairs and asset situations to the civil affairs departments;

(4) Violating the standards for charitable trusts’ annual expenses or management fees;

(5) Failure to perform information disclosure obligations in accordance with law.

Article 119: Where in the course of charitable service beneficiaries or third parties suffer harms caused by the negligence of charitable organizations or volunteers, the charitable organizations bear responsibility for compensation in accordance with law; and where the harm is intentionally caused by a volunteer or their gross negligence, the charitable organizations may seek compensation from them.

Where in the course of participating in charitable service volunteers suffer harms caused by the negligence of charitable organizations, the charitable organizations bear responsibility for compensation in accordance with law; and where the harm is caused by force majeure, the charitable organizations shall give appropriate subsidies.

Article 120: Where civil administration departments and other relevant departments of people's governments at the county level or above, or their staffs, have any of the following situations, the relevant departments at the level above or the supervisory organ will order corrections; where a punishment shall be given in accordance with law, the organ for hiring and terminations, or the supervisory organ, gives sanctions to the persons who are directly in charge and other directly responsible personnel;:

(1) failure to perform information disclosure obligations in accordance with law;

(2) Giving quotas or indirect quotas for fundraising tasks, forcibly appointing volunteers or charitable organizations to provide sources;

(3) failure to perform oversight and management duties in accordance with law;

(4) Unlawfully implementing administrative compulsory measures or administrative punishments;

(5) privately divided, embezzled, withheld, or misappropriated charitable assets;

(6) Other conduct abusing professional powers, dereliction of duties, or improper conduct for personal gain.

Article 121: Where violations of provisions of this Law constitute a violation of public security administration, the public security organs will give public security administrative sanctions in accordance with law; where a crime is constituted, criminal responsibility is pursued in accordance with law.

 

Chapter XIII: Supplementary Provisions

Article 122: Urban and rural community organizations and units can conduct mass mutual assistance and aid activities within their own organizations and units.

Article 123: Organizations other than charitable organizations may carry out charitable activities within their own power.

Article 124: Where, as a result of financial hardship to their family caused by illness or other reasons, individuals publish information requesting aid from the public, both the persons seeking aid and the persons publishing information shall be responsible for the truthfulness of the information, and must not fraudulently take aid through means such as faking or concealing facts.

Platforms providing online services for individuals to request aid shall be designated by the State Council department for civil affairs, and conduct a review of the information requesting aid that they publish, and promptly and full disclose the relevant information to the public. The specific management measures are to be separately formulated by the State Council's departments for civil affairs, industry and information technology, and other departments.

Article 125: This Law is to take effect on September 1 2016.

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