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People's Republic of China Charity Law (draft)

Table of Contents


Chapter I: General Provisions

Chapter II: Charitable Organizations

Chapter III: Charitable Fund Raising

Chapter IV: Charitable Donations

Chapter V: Management and Use of Charity Property

Chapter VI: Charitable Trusts

Chapter VII: Volunteer Service

Chapter VIII: Information Disclosure

Chapter IX: Promotion Measures

Chapter X: Oversight and Management

Chapter XI: Legal Responsibility

Chapter XII: Supplementary Provisions

People's Republic of China Charity Law (draft)

Chapter I: General Provisions

Article 1: 【Legislative purpose】 This law is formulated in order to develop charitable enterprises, regulate charitable activities and protect the lawful rights and interests of charitable organizations, donors, volunteers, beneficiaries and other relevant entities and to promote social harmony.

Article 2: [Scope of Application] This law applies to activities relating to charity with the borders of the People's Republic of China.

Article 3: 【Definition of Charitable Activity】 "Charitable activity" as used in this law indicates initiation of the following public interest activities on a volunteer basis by natural persons, legal persons or other organizations through means such as donating property or providing volunteer services.

(1) Activities such as supporting the elderly, assisting the disabled, caring for the young, poverty relief, and disaster relief;

(2) Activities promoting areas such as education, science, culture, satellite television, sports, or environmental protection

(3) Other activities protecting the societal public interest.

Article 4: 【Principles for Carrying out Charitable Activities】 Natural persons, legal persons, or other organizations carrying out charitable activities shall follow the principles of voluntariness, non-compensation, integrity, and friendliness, must not violate social morals, and must not harm the societal public interest or the lawful rights and interests of others.

Article 5: 【Encouraging and Supporting the Development of Charitable Endeavors】 The state encourages and supports natural persons, legal persons, or other organizations in carrying out charitable activities.

People's governments at the county level or above shall include developing charitable enterprises in their overall economic and social development plans and relevant special project plans, and establish and improve linkage mechanisms between charity and other social security systems.

Article 6: 【Government Management Systems】 The State Council civil affairs departments are the principle managers of work on charities for the entire nation. civil affairs departments of All levels of people's government at the county level or above have are principle managers of work on charities within their administrative areas.

The finance, tax and other relevant departments of people's governments at the county level or above handle work on charities within the scope of their duties.

People's governments at the county level or above establish and improve work coordination mechanisms for promoting charity.

Article 7: 【China Charity Day】 The second Sunday of April each year is "China Charity Day".

Chapter II: Charitable Organizations

Article 8: 【The Definition of Charitable Organizations】 Charitable organizations as used in this Law refer to public interest organizations whose main purpose is to initiate charitable activities.

Article 9: 【Requirements for Registration of Charitable Organizations】 Charitable organizations meeting the following conditions may apply to the civil affairs departments of people’s governments at the county level or above for direct registration:

(1) carry out charitable activities and do not have a profit motive;

(2) have an organizational charter;

(3) Have their own name and location;

(4) the necessary property or funds;

(5) have qualifying institutional framework and principals.

(6) other requirements provided by laws and administrative regulations.

On the basis of this law, State Council civil affairs departments may specifically provide requirements for registration of charities with local civil administration department of the people's government.

Article 10: 【Registration of Charitable Organizations】 Where charitable organizations apply for registration, civil affairs departments shall issue a decision to authorize registration or not authorize registration, within 30 days of receiving the application. Where the requirements of article 9 of this law are met, allow registration and specify the nature and charitable purpose of the charitable organization in the registration documents; where the requirements are not met registration, registration is not allowed and the reason is explained in writing.

Article 11: 【Internal Governance Structures】 Charitable organizations shall establish and complete internal governance structures and improve systems for policies, enforcement and supervision and rules for the policy-making body.

Article 12: 【有会员组成的慈善组织的权力机构和执行机构】 有会员组成的慈善组织的权力机构是会员大会或者会员代表大会。会员大会或者会员代表大会选举产生的理事会是执行机构。

Article 13: 【没有会员的慈善组织的权力机构】没有会员的慈善组织的权力机构是理事会。慈善组织登记后,理事的产生、辞职或者罢免由理事会进行表决,理事会换届应当重新选举全部理事。

Article 14: [Situations where a person must not be the responsible party of a charitable organization] 有下列情形之一的,不得担任慈善组织的理事长、副理事长和秘书长:





Article 15: [Oversight] 慈善组织可以设监事,由会员大会或者会员代表大会、主要捐赠人选任。理事、理事的近亲属和慈善组织的财务人员、工作人员不得兼任监事。监事三人以上的应当组成监事会。

Article 16: [Asset Management] 慈善组织应当遵守财经纪律,执行国家统一的会计制度,依法进行会计核算,建立健全会计监督制度,并接受政府有关部门依法监督管理。

Article 17: [Articles touching on foreign interests] Foreign NGOs carrying out charitable activities inside China shall do so in cooperation with lawfully registered Chinese domestic charitable organizations, and must not carry out charitable activities on the own volition.

Article 18: [Prohibitions] Charitable organizations and their staff must not embezzle, misappropriate, or encroach upon charitable property.

Charitable organizations must not accept donations with conditions attached that violate national laws or regulations, and must also not accept donations with attached conditions that give a return interest to the donor or otherwise do not meet the charitable purpose.

Charitable organizations must not engage or fund activities that endanger national security and the societal public interest;

Article 19: 【The Termination of Charitable Organizations】 Charitable organizations shall be terminated in any of the following circumstances:

(1) Conditions for termination provided for in the charter manifest;

(2) Difficulty in continuing to engage in charitable activities in accordance with the overall purpose of the charter.

(3) where termination is required due to division or merger;

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

(5) other circumstances where they should be terminated.

Where lawfully registered charitable organizations are terminated, they shall apply for cancellation of registration after a liquidation in accordance with law.

Article 20: [Professional Organizations] Charitable organizations may lawfull establish profession organizations to strengthen industry self-regulation, raise the credibility of the charitable professions, and promote the development of charity.

Chapter III: Charitable Fund Raising

Article 21: [The definition of charitable fundraising] The term "charitable fundraising" refers to eligible charitable organizations initiating collection or property donation activities aimed aimed at the public or other persons, on the basis of their charitable purpose.

Article 22: [Open Fundraising] Charitable organizations that have been lawfully registered for two years, have regular operations, a good reputation and have not received any administrative punishments may begin open fundraising from the public after a review and determination by the civil affairs department at the same level as the original registration organ.

Article 23: [Fundraising Plan] A fundraising program/plan should be developed by charitable organizations for all public collections. 募捐方案内容应当包括募捐活动目的、时间和地点、活动负责人姓名和办公地址、接收捐赠方式、银行账户、受益人、所募款物用途、工作经费比例、剩余财产处理方式等。

In public collections, charitable organizations shall comply with the provisions of their fundraising plans.

Article 24: [Fundraising area and forms] In public collections charitable organizations should be consistent with the terms of their registration and fund raise locally or regionally according to the civil affairs department administration where they are registered.

(1) Set up donation boxes in local public places;

(2) Hold local charity events such as charity performances, charity competitions, charity exhibitions, charity auctions, and charity galas;

(C) donation information must be released by local radio, television, newspapers, and other public media;

(D) and other appropriate means may be used to raise money by charities.

Charitable organizations registered with the civil affairs department reporting to the State Council, may carry out public collections across the country via the Internet.

Article 25: [Donation information bulletins] Where charitable organizations conduct public fundraising, they shall post information such as the name of the fundraising organization, the public fundraising qualification certificate, the fundraising plan, contact information, and methods of inquiring about fundraising information at the sites of fundraising activities or on the carriers of fundraising activities.

Article 26: [Cooperative Fundraising] News media, enterprises, and institutions, which do not comply with the conditions of being a public fund-raising organization or an individual shall not conduct their own public fundraising, but such organizations or individuals may enter into written contracts with the charitable organization if they meet the conditions of public collections, and engage in public collections of cooperation with the charity and the which funds may be raised by the charity and shared.

Article 27: [Non-public fund-raising] Charitable organization registered as required by law may raise money for specific purposes.

Article 28: [Limited fundraising within the scope of units or urban and rural communities] Fund-raising activities may be conducted in urban and rural communities and in entities, such as business units.

Article 29: [Fundraising when major emergencies occur] The people's governments should, in the case of major natural disasters, accidents, disasters, public health emergencies, or social security incidents, should establish coordination mechanisms to provide information to guide the orderly conduct of fundraising and charitable organizations involved in relief efforts.

Article 30: [Prohibitions] Charitable organizations fund-raising activities, that have not been assessed or were assessed in disguise, may not be carried out and fundraising may only be carried out without prejudice to public order and people's lives.

Any organization or individual in the name of charity is prohibited from raising money in a fraudulent manner or from counterfeiting the reason for the fund raising.

Chapter IV: Charitable Donations

Article 31: 【Definition of Charitable Donation】 Charitable donations as used in this law refers to voluntary and uncompensated actions conducted by natural persons, legal persons or other organizations in donating money or property to charitable organizations or other donees, for the purpose of realizing a charitable goal.

Article 32: 【Scope of Property Donations】 Property donated by donors shall be lawful property that they have right to dispose of.

Charitable donations of property include funds, physical property, securities, equity, intellectual property and other tangible or intangible property.

Article 33: 【Donations of Non-monetary Assets】 Donations of non-monetary assets shall be valued at the market value when handed over. The Donor shall provide relevant proofs showing the value of the property; and where the recipient objects to the value of the property, they may join with the donor to retain a relevant institution to appraise it.

Where the donor donates a product of its own enterprise, it shall provide a certificate of product approval or product quality inspection certificate.

Property donated by donors shall have usable value, and conform with relevant provisions for areas such as safety, sanitation, and environment.

Article 34: 【Donations Based on Business Activities】 Where natural persons, legal persons or other organizations initiating performances, contests, sales, auctions or other business activities, promise to donate all or a portion of proceeds for charitable use, they shall sign a donation agreement with a charitable organization before organizing the activity, and after the activity concludes, they shall carry out the donation in accordance with the donation agreement and publicly announce the final donation.

Article 35: 【Donation Receipts】 Charitable organizations accepting donations shall give a uniform printed receipt to donors. The donation receipt shall specify the name of the donor, the type and amount of property donated, the name of the charitable organization, the name of the contact person, the date of the receipt, and other such information. For anonymous donors or donors waiving receipt of a donation receipt, the charitable organization shall keep a stub and make relevant records.

Article 36: 【Donation Agreements】 Charitable organizations receiving larger amounts of donations or other recipients receiving donations, shall conclude a donation agreement with the donor, except where the donor does not want a donation agreement. Donation agreements include the type, number, quality, use, and time of the donation, and other such content.

Article 37: 【Donation Covenants】 When the donor and recipient agree on the use and recipient of property, it must not be contrary to charitable purposes and must not designate other interested parties as beneficiaries.

Article 38: 【Fulfillment of Donations】 Where donors have not performed on an obligation to donate, the recipient may request it be handed over in any of the following circumstances:

(1) the donor and recipient entered into a written donation agreement;

(2) the donor openly promised to make the donation through means such as radio, television, newspapers, websites or other public media.

(3) the donated property is for supporting the elderly, assisting the disabled, caring for the young , poverty relief, disaster relief or other public interest activities.

Article 39: 【Donors' Rights】 Donors have the right to make inquiries and copies of the recipients' management and use of the donated property, and the the recipient shall promptly respond and facilitate.

Where recipients' conduct is contrary to donors' wishes or abuses the donated property, the donor has the right to request corrections and may also file suit in the people's courts.

Chapter V: Management and Use of Charity Property

Article 40: 【Property Sources for Charitable Organizations】 Property of charitable organizations includes:

(1) Start-up assets;

(2) Donations;

(3)Government funding;

(4)Other lawful income.

Article 41: 【Asset Protection】 Charitable organizations' property is protected by law and must not be infringed upon by any unit or individual.

Article 42: 【Management of Charitable Property】 Charitable organizations shall earmark raised funds for specific purposes; for non-currency assets raised, a registry shall be compiled and they shall be properly managed.

Where non-currency property donated by a donor is not easily stored or transported, or difficult to directly use for a charitable purpose, charitable organizations may lawfully auction it or sell it off, with the proceeds going entirely to the agreed upon goal of the donation.

Article 43: 【Use of Charitable Property】 Charitable organizations shall use donated assets in accordance with laws, regulations and rules, and following the solicitation plan or donation agreement. Where it is truly necessary to modify the matters agreed upon in the donation agreement, the donors' consent shall be obtained.

Article 44: 【Charitable Projects】 Charitable organizations shall scientifically design charitable projects, optimize their implementation processes, minimize operational costs, and increase the efficiency of using charitable property.

Charitable organizations shall establish project management systems, and conduct tracking and oversight of project development.

Article 45: 【Agreements Between Charitable Organizations and Benneficiaries】 Charitable organizations may sign agreements with beneficiaries clarifying content such as the rights and obligations of both parties, agreeing to the means of funding and services, the amount of funding, and also the use of the assets given as funding. Charitable organizations have the right to conduct oversight of property given as funding.

Article 46: 【Commissioning the Implementation of Charitable Projects】 Charitable organizations with superior fundraising, may use the funds they have raised to entrust charitable organizations with service expertise to operate projects. The entrusting and entrusted parties shall sign an agreement, agreeing upon both sides' rights and obligations.

Article 47: 【Related Transactions】 Charitable organizations having related transactions must not harm the interests of that organization or the societal public interest, and shall have a simple majority of the policy-making body constituents review and consent; council members with interests must not participate in the review.

Article 48: 【Conflict of Interests and Recusal】 Charitable organizations policy, implementation, and oversight personnel, and their close relatives, must not conduct transactions with that charitable organization.

When charitable organizations determine charitable projects and target beneficiaries, they must not designate persons with interests in that charitable organization or with its policy, implementation, and oversight personnel, to be beneficiaries.

Article 49: 【Preserving and Increasing the Value of Charitable Organizations' Property】 Charitable organizations shall follow the principles of legality, security and effectiveness to realize the preservation or increase of asset's values.

Government funding and property that a donation agreement holds must not be invested, must not be used for investments.

Article 50: 【Charitable Organization Management Funds】 Charitable organizations carrying out charitable activities shall be diligently frugal, following the relevant provisions and rules of the State Council civil affairs department to distribute necessary management funds. Where donation agreements have other agreements as to distributions of management funds, follow the agreement.

Article 51: 【Disposition of Residual Property】 Where charitable purposes have already been realized or after the completion of Charitable Projects there are residual donated assets, it is disposed of in accordance with the terms of the fundraising plan or donation agreement; where the fundraising plan or the donation agreement does not make provisions, charitable organizations shall use the residual assets in similar Charitable Projects and announce this to the public.

Article 52: 【Liquidation of Property】 Charitable organizations that are terminated shall conduct a settling of accounts.

After the civil affairs departments publicly announce that the operational activities of a charitable organization are eneded, the policy making body of the charitable organization shall set up a liquidation team to conduct the liquidation.

Where a liquidation team is not established or does not perform its duties, the civil affairs departments may apply to the people's courts to designate relevant personnel to form a liquidation team and conduct the liquidation.

Chapter VI: Charitable Trusts

Article 53: [Definition Charitable Trusts] A "charitable trust" comes into being when a principal law entrusts his/her property to a trustee, and the trustee, in accordance with the wishes of the principal, in the name of the trust, manages and dispose of assets in order to carry out acts of charity.

Article 54: [Setting up charitable trusts] Setting up a charitable trust shall be in written form, with the trustees named in writing.

After setting up a charitable trust, in the event of unforeseen circumstances arising after the trust is established, the principal and the trustee may negotiate changes in the terms of the trust documents, but not they may not be contrary to the charitable purposes.

Article 55: [The obligations of trustees] Trustee(s) of a charitable trust may be established in accordance with the Trust Deed of the charity, charitable organization, or financial institution may be already set up; natural persons may also be trustees.

Trustees shall manage and dispose of the trust property in accordance with the purposes of the trust, be dedicated, fulfill faithfully, creditably, prudently, and effectively their management obligations.

The trustee shall at least once a year make a report of the trust status and of any property transactions.

Article 56: [Changing trustees] In the case of a trustee breach of fiduciary duties or if the trustee finds it difficult to perform its duties, the principal may change the trustee.

Article 57: [Set-up and Duties of Trust Supervisors] When setting up a charitable trust trust supervisors are necessary.

Trust supervisors are to monitor the actions of the trustee(s), to safeguard the rights and interest of the beneficiaries according to law.

Article 58: [Determination of Beneficiaries] Beneficiaries of charitable trusts are determined in accordance with the charitable trust document, interested persons shall not be specified as beneficiaries, including the trustor, trustee, trust supervisor, etc.

Article 59: [Use of Charitable Trusts' Property] Charitable trust properties and their revenues, must be used for charitable purposes and not for non-charitable purposes.

Article 60: [Charitable Trusts' Capital] Trustees and trust supervisor's remuneration and expenses necessary for the performance of duties in accordance with the provisions of the Trust Deed shall be expenditures from the trust property, and shall be made public to society.

Article 61: [Termination of Charitable Trusts] When a charitable trust terminates, except as otherwise provided in the Trust Deed, the Trustee shall be subject to the termination date of fifteen days from the date of termination and and the subject of the termination reported to the civil affairs departments, and it shall be liquidated in accordance with law.

Article 62: 【Disposition of Residual Property】 If provided for in the trust document charitable trust, the liquidation provisions prevail if there is any remaining property; if the trust document does not specify, it shall be distributed as determined by the principal.

In there case of the principal's death, incapacitation, the remaining property should be donated to the same or similar purposes charitable organizations or other charitable trusts and this should be approved by the civil affairs departments.

Chapter VII: Volunteer Services

Article 63: [Organization and Recruited Volunteers Participation in Charitable Activities] Charitable organizations can organize volunteers to participate in charitable activities through volunteer service.

Charitable organizations should sign an agreement with volunteers,spelling out the content of the volunteer service agreement content and other rights and obligations.

Article 64: [Definition of Volunteer] Volunteer as used in this law refers to natural persons who, for purposes other than obtaining material compensation, voluntarily carry out charitable activities using their own time, knowledge, skills and physical labor.

Article 65: [Volunteer Registration System and Volunteer Records System] Charitable organizations should establish a volunteer registration and volunteer service record-keeping system, the implementation of real-name registration of volunteers, record volunteer service hours, services provided, service evaluation, and other information.

Charitable organizations should keep personal information about volunteers and volunteer service records confidential.

Article 66: [Volunteer s Participation in Volunteer Services] For charitable organization that accept volunteer services, the volunteers should be subject to charitable organization management and receive the necessary training.

Volunteers should provide voluntary services as agreed.

Article 67: [Charitable Organizations Reasonable Arrangement of Volunteer Services] Charitable organizations should arrange for engaging volunteers taking into account their age, educational level, skills, and physical condition and give them appropriate volunteer activities and carry out related training as needed.

Article 68: [Charitable Organizations Duty to Safeguard] Charitable organizations should provide the necessary conditions for the volunteers to volunteer services and protect the legitimate rights and interests of volunteers.

For a charitable organization where potential personal risks to volunteers are involved in their volunteer service, the organization must purchase the appropriate personal accident insurance.

Chapter VIII: Information Disclosure

Article 69: 【The Basic Requirements of Information Disclosure】 Charity information disclosure should be true, accurate, complete, timely, without any false or misleading statements.

Article 70: 【Information Platforms】 There should be establishment and improvement by the people's governments above the county level of statistics and the release system for charity information.

The civil affairs department reporting to the State Council shall establish a unified public charity information system, civil affairs departments above the county level shall establish or designate a charitable information platform, and timely information shall be provided to the public and society by charitable organizations; charitable organizations are to provide free information dissemination of their charitable services.

Trustees of charities and charitable trusts should publish a legally registered charity information platform, as referred to in the preceding paragraph, and be responsible for the authenticity of information.

Article 71: 【The Content of Government Information Disclosure】 Civil affairs departments of people's governments above the county level should provide the following information to the public duties regarding the following information:

(A) registered items of charitable organizations;

(B) a list of charities having charitable donation tax deduction eligibility;

(C) tax incentives for philanthropy development, financing incentives, and subsidies and other support measures;

(D) information on the purchase of charity services;

(E) review of assessment results for charitable organizations;

(F) recognition, reward, punishment results;

(G) and the development of annual statistics in the area of ​​philanthropy.

Article 72: 【Ordinary Information Disclosure by Charitable Organizations】 Legally registered charities should disclose the following information to the community:

(A) the articles of association, the organization code, the registration certificate number, and other registration information;

(2) Information on the members of their decision-making, implementation, and supervision bodies;

(C) the annual report and audited financial reports;

(D) annual fundraising results and the overall situation of donations;

(E) reports on the annual charity projects overall.

The tax deduction for donations to qualified charitable organizations should also increase the value of public assets, as well as assist the decision-making, implementation, and monitoring, and make available other information.

When charity events occur, they shall be promptly disclosed to the public.

Article 73: 【Fundraising Information Disclosure】 Charitable organizations engaging in in public collections shall promptly report to the public the charitable donations received, the circumstances of the collections and the project operations.

For a fundraising period greater than six months, it should be be open once every three months, raising the case of the fundraising each time; there should be full disclosure of the amounts raised within three months after the end of the fundraising by the fundraiser

If a charity plans to operate a project for a period greater than six months, the public should be made aware of it once the operation of the project commences, after the completion of records of the project should be fully open within three months after the operation of the project and should show funds raised and materials used per month.

Article 74: [Information Disclosure to Stakeholders] Donors have the right to request a query and copy it in regard to donated property; when donated property has a large value, charitable organizations should take the initiative in a timely manner to provide the donor feedback on the situation.

Charitable organizations should disclose their funding criteria to the beneficiaries, workflow and job specifications, and other information.

Article 75: [Information Disclosure on Solicitation of Specific Persons] When charity donations are made for a specific purpose, the charity shall promptly inform the donors in the fundraising about the management and use of raised funds and materials.

Article 76: [Information Disclosure of Units or Communities] When raising funds and materials inside urban and rural communities or in a unit to carry out charitable activities, funds should be raised in this limited community and used inside the community and timely use made of public funds and materials.

Article 77: [Information Disclosure for Charitable Trusts] Trustee of a charitable trust should follow the trust documents and wishes of the principals, the requirement of supervisors, make timely reporting of trust transactions, and of the management and use of the trust property.

Article 78: [Confidential Information] Any information involving national security, privacy, and information that may not be disclosed under legal and administrative regulations on trade secrets shall not be disclosed.

Charitable organizations should be keep confidential the names of donors and beneficiary information, name, address, etc., unless the donors and the beneficiaries agree to make the information public.

Chapter IX: Promotion Measures

Article 79: 【Government Duties】 People's governments above the county level shall act in accordance with this law and develop policies and measures for local economic and social development and for promoting philanthropy in their development planning.

And the relevant departments under the people's governments above the county level shall, within their respective mandates,provide guidance and help for charities. with respect to items donated to charitable organizations, and provide information to donors on demand.

Article 80: [System for Sharing Charitable Information Resources] Civil affairs departments at or above the county level should establish other charity information-sharing mechanisms between the departments, establish and perfect links with charitable organizations, and set up a connection mechanism between social service agencies.

Article 81: [Preferential Tax Treatment for Charitable Organizations] Charitable organizations shall enjoy tax incentives.

A charity's operating income, returns on investments, when used in accordance with the purposes for the expenditures on charitable activities and in compliance with the relevant standards shall enjoy tax incentives.

Article 82: 【Preferential Tax Treatment for Donors】 Natural persons, legal persons or other organizations, when setting up charitable trusts for charitable donations, are legally entitled to tax deductions.

Article 83: [Carryover of Pre-tax Donation Deductions] Corporate philanthropy beyond the amount of the total annual profits, may be carried forward to the next year and allowed as deductions; individuals donating part of expenses exceeding the taxable income guideline, are allowed to have the deduction carried forward to the next year.

Maximum carry forwards allowed to the next year shall be determined by the Treasury and tax department in conjunction with the Civil Affairs Department reporting to the State Council.

Article 84: 【Preferential Tax Treatment for Benneficiaries】 Donations or services by charities are legally entitled to income tax, VAT, and other tax incentives.

Article 85: 【Preferential Tax Treatment for Foreign Donations】 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 86: 【Encouraging the Development of Charitable Trusts】 The State encourages the development of a charitable trust. Charitable trusts shall enjoy tax incentives.

Article 87: [Exemption from relevant administrative expenses] Donors to charity who make donations in kind of securities, stock, or intellectual property rights, are exempt from transfer of rights-related administrative costs.

Article 88: [Formalities for Preferential Tax Treatment] The financial and taxation departments reporting to the State Council, in conjunction with the Civil Affairs Department reporting to the State Council, shall notify charitable organizations, donors, and beneficiaries of the tax preferences available, and identify the eligibility of public welfare donations tax deductions as well as the criteria and procedures.

Charitable organizations, donors, and beneficiaries shall enjoy preferential tax treatment and the finance and taxation departments should timely provide applications for the corresponding tax procedures. If they meet the financial criteria, reputable charitable organizations can be exempted from verification by the financial and tax departments and immediately fulfill the corresponding tax formalities.

Article 89: 【Land Benefits】 Charitable organizations helping the poor, poor, disabled, elderly and providing other services including required services for the construction of facilities for those groups may use State-owned land or rural collective construction land [free of charge.] Charity services sites use shall not be changed without going through statutory procedures.

Article 90: 【Financial Support】 The state provides financial support for charity. Financial institutions should provide credit and settlement support for charitable organizations.

Article 91: 【Government Procurement of Services】 Above the county level governments and relevant departments are to support charitable organizations through the purchase of services, especially the provision of services to the community.

In the government procurement of services and items, the government should give priority to reputable charities, and issue a purchased services directory, including service standards, capital budgeting, and other information to the public.

Article 92: 【Charitable Culture Education】 The state shall take measures to promote charities and a philanthropic spirit, cultivating national charitable and social responsibility.

Schools and other educational institutions shall incorporate charitable cultural content in their civic education courses; the State encourages institutions of higher learning to set up charity-related professional disciplines, and supports universities and research institutions to carry out charitable research.

Broadcasting, film, television, newspapers, web sites and other public media should actively carry out charitable campaigns, encourage the popularity of charitable support, and spread philanthropic culture.

Article 93: 【Support of Enterprises and Public Enterprises】 The State encourages enterprises and institutions to carry out charitable activities providing venues and other facilities.

Article 94: [Donor Memorial Dedications] Donations to charitable organizations in memory of persons are encouraged, and laws and regulations making provision for this need to be approved.

Article 95: [Preferential Treatment for Volunteers] Counties are to establish volunteer registration, volunteering, recording, and evaluation systems and organs, enterprises, institutions, and other organizations are encouraged to have a good service record registration for volunteer recruitment, providing careers and giving them preferential treatment.

Article 96: [Relevant Safeguards for Volunteers] The State encourages charitable organizations to purchase insurance for volunteers and encourages insurance companies got provide it.

A National Fund shall be established for encouraging volunteer help and for allowing volunteer activities by volunteers encountering special difficulties.

Article 97: [Priority Service for Charity] Natural persons making a significant contribution for the development of philanthropy in their interests, when difficulties are encountered in their family life or when help is needed in the future, are given priority for charitable assistance.

Article 98: 【Religious Charities】 The state encourages religious groups and charitable activities carried out by religious groups according to the law; but they may not use their charitable activities to proselytize.

Article 99: [Recognition and awards] A national charity recognition system shall be established, and it shall give recognition of philanthropy undertaken by those who have made outstanding contributions to its development, whether they be natural persons, legal persons, or other organizations.

Chapter X: Supervision and Management

Article 100: 【Duties of the Ministry of Civil Affairs】 Civil affairs departments above the county level shall perform the following duties according to law:

(A) the development of regulations and rules relating to the supervision and management of charity organizations;

(B) supervision and management of the activities of charitable organizations;

(C) supervision and management of fund-raising activities of charitable organizations, management and use of their property, whether they fulfill information disclosure responsibilities, the implementation of charitable projects, and conducting special inspections;

(D) trade organization for charitable guidance and supervision;

(E) to oversee charitable trust management;

(F) if charity organizations and their staff act in violation of laws, administrative rules, and regulations to investigate them; and

(G) other duties stipulated by laws and administrative regulations.

In order to assist civil affairs departments to perform their duties, relevant units, and individuals shall provide cooperation.

Article 101: [Coercive Measures that may be Adopted by Civil Affairs Departments] Civil affairs departments at or above the county level shall perform their duties, and have the right to take the following measures:

(A) to carry out on-site inspections at the site of the charity's operations;

(B) to use recordings, copies, audio, video, photography, and other means to obtain evidence relevant to carrying out their duties;

(C) to conduct surveys, asking for relevant information to the relevant mainland authorities and individuals;

(D) require the charity to make notes, read and copy relevant documents, certificates, books, electronic data, and other information on sealed assets and related information as needed for temporary storage, on suspicion of illegal activities and sealing up premises, etc.;

(E) to conduct a financial review of charities, query the charity's bank account, and if there is evidence that the charity and its staff may transfer or conceal illicit funds, accounts can be frozen; and

(6) other measures provided for by laws and administrative regulations.

Inquiries about and freezing bank accounts shall be approved by the head of the civil affairs departments at or above the provincial level.

Article 102: [Confidentiality Obligations of Civil Affairs Departments] In performing any inspection or investigation duties of charitable organizations, donors, and beneficiaries, civil affairs departments should treat the relevant information as confidential.

Article 103: [Duties of Financial and Tax Departments] Treasury and tax departments at or above the county level shall in a unified manner supervise and manage notes, etc. with regard to financial accounting, tax incentives, and the use of donations for public welfare by charitable organization and charitable trusts in accordance with the charity law.

Article 104: [Responsibilities of Audit Departments] Audit departments at or above the county level in accordance with the charity law in the audit the use and management of government-funded property.

Article 105: [Responsibilities of other Operational Competent Departments] Agencies of people's governments above the county level in education, science, culture, health, sports, environmental protection, and other sectors will supervise charities within the scope of their respective duties.

Article 106: [Annual Reporting System] Legally registered charitable organizations must submit the previous year's annual report to the civil affairs departments before March 31 of each year, including audited financial reports, reports on annual fundraising, charitable projects, donations in general, as well as other materials required by the civil affairs departments.

Article 107: [Credit Records and Evaluations] Civil affairs departments at or above the county level shall announce to the public when set up a charitable organization is set up as well as the head of it responsible for credit filings.

Article 108: [Review and Assessment System] Home departments shall themselves establish a charitable organization review process, evaluation system, or entrust this to a third party to review and assess the charity.

Article 109: [Industry Supervision] Charitable organizations should establish and improve industry standards and disciplinary rules of the industry, in accordance with the provisions of how the charities can be monitored.

Article 110: [Supervision by Donors and Beneficiaries] fDonors to or beneficiaries on the services provided shall also supervise charities, including their use of donations; if they have any objections, they can check with the charity organizations and other recipients of funds; if the used is verified and there are still objections, donors or beneficiaries can reflect these to the relevant departments and may also bring a lawsuit.

Article 111: [Duties of Public Media] Radio, television, newspaper, and Internet information service providers, and telecommunications operators, should use their platforms to verify the legitimacy of the charitable activities carried out by charities.

Article 112: [Societal Oversight] Any units or individuals that found breaches by charity organizations or other organizations, raising money for purposes, can contribute to the charitable organization or civil affairs and other relevant departments complaints or reports about such conduct. Philanthropy organizations or civil affairs and other departments concerned shall promptly investigate and deal with such complaints upon receiving complaints and reports.

The state encourages the public and media to oversee charitable activities, exposing fraud and fake charity or charitable organizations or illegal behavior; public opinion and social supervisory role should be carried out.

Chapter XI: Legal Responsibility

Article 113: [Liability of Charitable Organizations and Charitable Trusts] If charitable organizations and charitable trusts may be warned by the civil affairs departments and ordered to stop illegal activities or ordered to cease their activities altogether in the following circumstances; and in serious cases, there may be a revocation of the registration certificate. Where there are unlawful gains, confiscate the unlawful gains, and the persons who are directly in charge and other directly responsible personnel may be fined between one to five times the value of the unlawful gains. Where there is a violation of the Public Security Administration Punishment Law, it is given a public security administrative sanction and where the violation constitutes a crime, those responsible shall be pursue criminal responsibility in accordance with law:

(A) engaged in acts, aided acts, or otherwise endangered national security and the public interest;

(B) having accepted additional conditions in return for a gift and not fulfilling them, or in violation of state laws and regulations not meeting the charitable purpose for the gift;

(C) contrary to the charitable purpose of the organization financing activities for commercial purposes;

(D) obtaining fraudulent tax incentives;

(E) Violating conflict of interest provisions;

(F) staff embezzling, misappropriating, or encroaching upon charitable property;

(G) the liquidation group members used their powers to invade charitable property;

(H) divulging state secrets or commercial secrets;

(I) without consent, disclosing the names of donors, volunteers, or beneficiaries, and violating their privacy, resulting in serious consequences to them; and (J) other violations of laws and administrative regulations.

Article 114: [Liability of Charitable Organizations and Charitable Trusts 2] Charitable organizations or charitable trusts, in one of the following circumstances, may be warned by the Civil Affairs and other relevant departments, and ordered to stop violations committed, or ordered to stop activities; if income has been has illegally obtained, permit the confiscation of the illegal income; and those that are directly responsible and other persons directly responsible for the illegal income can be charged a fine of twice the amount of the income; and in serious cases, revocation of the registration certificate:

(A) the activities are is not in accordance with the purpose and business scope of the charitable activity;

(B) the charity fails to comply with disclosure obligations or publishes false information;

(C)the charity fails to conduct an annual report, and/or to receive auditing supervision and management;

(D) the charity exists for two consecutive years without carrying out charitable activities;

(E) there is an unauthorized change of use of property donated;

(F) use for investment of charity property that is not investment property;

(G) if the charity is engaged in related party transactions, or in investment activities in violation of regulations;

(H) if the charity has not legally issued to donors donation instruments;

(I) if the charity has failed to issue a record of voluntary service;

(J) if the charity has failed to respond to donors about the information requirements for the use of their donations; and

(K) other acts in violation of laws, administrative rules and regulations.

Article 115: [Liability for Violations of Fundraising Provisions] If fundraising activities are carried out in one of the following circumstances, a warning may be issued by the Civil Affairs or other relevant departments, the charity may be ordered to stopping fundraising; if it refuses, it may be ordered to cease activities; and in serious cases, a revocation of registration certificate may be issued; those directly responsible and other persons directly responsible maybe assessed a fine of 200,000 yuan. Violations of the law that constitute public security administration punishments may be punished according to law on public security administration punishments:

(A) donations of charitable organizations eligible for public subscription are not submitted as donations to the organization, they are beyond the geographical scope of the program, or they violate public order, interfere with production, or with the lives of other people;

(B) the organization does not meet the conditions for a public subscription and organizations or individuals engage without authorization in a public subscription; and

(C) charitable organizations covertly assessed on entities or individuals.

In urban and rural communities, organizations in the community carrying out fundraising activities outside the community should be given a warning to stop fund-raising activities by the civil affairs bureau and then should be ordered to do so. Violations of the law on public security administration punishments, should be punished according to the administrative penalties for public security.

If charitable organizations, in urban and rural communities, are raising property from donors unlawfully, the civil affairs departments shall order that it be refunded to the donors; if it is difficult to return, the civil administration shall require that it be handed over to other charitable organizations for charity.

Article 116: [Responsibility for Delivery of Improper Benefits] If charitable organizations are giving to other units or individuals undue interest, resulting in loss by those charitable organizations, the ministry of civil affairs departments in charge shall assess those directly responsible and other persons directly responsible as well as units or individuals receiving the improper benefits, the amount of the improper benefits delivery a 1 time penalty equal to the amount of the improper benefit; or, if it continues, a penalty of more than three times the amount.

Article 117: [Responsibility of Government Departments and their Staff] Assumption of supervisory and management responsibility for the charities by the people's government departments and their staff, in one of the following circumstances,corrections may be ordered by superior authorities or supervisory organs and those directly responsible and other persons directly responsible maybe ordered to correct their actions and they shall be given sanctions, and if their activities constitutes a crime, criminal responsibility shall be investigated according to law;

(A) if a person fails to perform supervisory duties on charitable activities causing serious consequences;

(B) if there is a violation of information disclosure obligations;

(C if there are assessed donations or disguised donations, forcible assignments of volunteers by charitable organizations providing services; (D) if there is a breach of administrative compulsory measures and there are administrative penalties;

(E) if there is private use, misappropriation, or embezzlement of charitable property; and

(F) any other acts of abuse of power, negligence, or malpractice.

Article 118: [Liability for Fraudulently Gaining Property in the Name of a False Charity] (F) If a charity obtains property under false pretenses the public security departments shall investigate, and it shall be dealt with according to law. If it constitutes a crime, criminal responsibility shall be investigated according to law.

Article 119: [Donors' Liability for Breach] If a donor fails to fulfill an obligation to donate, resulting in damage to the donee, the donor shall bear civil liability.

Article 120: [Beneficiaries Liability for Breach] If the agreement with the beneficiary provides terms with regard to using property or financing of property and there are violations of the terms or other serious violation of the agreements, charitable organizations have the right to require corrections; if the beneficiary refuses, the charitable organization entitled to rescind the agreement and it may also bring a lawsuit.

Article 121: [Responsibility Related to Charitable Volunteer Services] if damage is caused by volunteers participating in the activities of the charitable organization, beneficiaries, to third parties' person or personal property by the charitable organization, it shall shall be liable; volunteers guilty of willful misconduct or gross negligence shall contribute to the recovery of damages paid by the charitable organization.

Chapter XII: Supplementary Provisions

Article 122: 【Effective Date】 This law will take effect on ____, 20__ .

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