Title: Measures for the Designation of Charitable Organizations Promulgating Entities: Ministry of Civil Affairs Reference number: MCA Order No. 58 Promulgation Date: 2016-8-31 Expiration date: Source of text: http://www.mca.gov.cn/article/gk/fg/shzzgl/201608/20160800001645.shtml
MCA Order No. 58
The "Measures for the Designation of Charitable Organizations" were passed on August 29, 2016 by the Ministry Committee of the Ministry of Civil Affairs, and are hereby released to take effect on September 1, 2016.
Minister: Li Liguo
August 31, 2016
Measures for the Designation of Charitable Organizations
Article 1: These Measures are formulated on the basis of the "People's Republic of China Charity Law" (hereinafter "Charity Law") so as to regulate efforts to designate charitable organizations.
Article 2: These Measures apply to applications for designation as a charitable organization, by non-profit organizations such as trusts, social groups, social service organizations, established prior to the promulgation of the "Charity Law".
Article 3: Civil affairs departments of people's governments at the county level or above carry out designation as charitable organizations for foundations, social groups and social service organizations that they register.
Article 4: foundations, social groups and social service organizations that apply for designation as charitable organizations shall meet the following conditions:
(1) possess the conditions for registering as a social organization legal person at the time of the application;
(2) have the implementation of charitable activities as their purpose, and a scope of operations compliant with the provisions of article 3 of the "Charity Law"; and annual expenditures and management fees for charitable activities carried out in the year prior to applying that are compliant with the State Council Ministry of Civil Affairs' provisions on charitable organizations;
(3) Not having a goal of profit-making and using earnings and operating surpluses for the charitable purposes provided in the charter; assets and their proceeds are not distributed among founders, donors or members of that charitable organization in any form; and there are provisions in the charter providing that excess assets are to be transferred to other charitable organizations with the same or similar charitable purposes;
(4) Have complete financial systems and reasonable salary systems;
(5) Other requirements provided for in other laws or administrative regulations.
Article 5: Charitable organizations shall be terminated in any of the following circumstances:
(1) There are circumstances where laws, regulations or national policies provide one must not serve as the responsible party of a charitable organization;
(2) Have received administrative punishments within the two years preceeding the application.
(3) At the time of application are included in the irregularities list by the Ministry of Civil Affairs.
(4) other violations of laws, regulations, or national policies.
Article 6: Applications for designation as a charitable organization shall be passed by vote at an assembly of members (delegates) of social groups, or by the board of directors for foundations and social service organizations; where there is a professional supervisory unit, it shall also be upon the consent of the professional supervisory unit.
Article 7: Foundations applying for designation as charitable organizations shall submit the following materials to the Ministry of Civil Affairs:
(1) the written application;
(2) A written assurance that article 4 of these Measures is complied with, and that they the circumstances provided for in article 5 do not exist.
(3) Meeting notes from meetings convened in accordance with article 6 of these Measures.
In addition to the materials provided for in the preceding paragraph, social groups and social service organizations applying for designation as charitable organizations shall also provide the following materials to the civil affairs departments:
(1) An explanation of circumstances such as the reason for applying, the charitable purpose, the situation of carrying out charitable activities;
(2) A financial audit report for the preceding year issued by a certified accountant, including special audit of the expenses and management fees for charitable activities;
Where they have a professional supervisory unit, they shall also submit the materials demonstrating the consent of the professional supervisory unit.
Article 8: The civil affairs departments shall conduct a review and verification after receiving all effective materials.
Where the circumstances are complicated, the civil affairs departments may solicit relevant departments' opinions or use methods such as holding discussion meetings or hearings to hear opinions, and may also conduct on-site investigations of the organizations as needed.
Article 9: Civil affairs departments shall issue a decision within 20 days of receiving an 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.
Article 10: Foundations, Social Groups and social service organizations designated as charitable organizations are to have registration certificates issued by the civil affairs departments where they registered, indicating their nature as a charitable organization.
Where charitable organizations meet the requirements of the tax laws and regulations, they enjoy preferential tax treatment in accordance with the tax laws.
Article 11: Where foundations, social groups or social service organizations provide false information when applying, the civil affairs departments will revoke the designation as a charitable organization, and enter that organization and the directly responsible persons in the credit records, and announce it to the public.
The civil affairs departments will report certified accounts, and the accounting firms they are in, to the relevant departments, where false audit reports are provided.
Article 12: The Ministry of Civil Affairs is responsible for interpreting these Measures.
Article 13: These Measures take effect on September 1, 2016.