Measures on the Administration of Public Fundraising by Charitable Organizations

Title: Measures on the Administration of Public Fundraising by Charitable Organizations
Promulgating Entities: Ministry of Civil Affairs
Reference number: Ministry of Civil Affairs Order No. 59
Promulgation Date: 2016-8-31
Expiration date: 
Source of text: http://www.mca.gov.cn/article/gk/fg/shzzgl/201608/20160800001646.shtml

Measures on the Administration of Public Fundraising by Charitable Organizations

Ministry of Civil Affairs Order No. 59

The "Measures on the Administration of Public Fundraising by 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 on the Administration of Public Fundraising by Charitable Organizations

Article 1: These Measures are formulated on the basis of the "Charity Law of the People's Republic of China" , (hereinafter "Charity Law") so as to standardize charitable organizations' carrying out of public fundraising.

Article 2: These measures apply to the management of charitable organizations' public fundraising credentials and public fundraising activities.

Article 3: Charitable organizations that have obtained public fundraising credentials in accordance with law may fund-raise from the general public. Organizations and individuals that do not have public fundraising credentials must not carry out public fundraising.

Article 4: The civil affairs departments departments of people's governments at the county level or above conduct oversight and management of public fundraising credentials for charitable organizations they register and their public fundraising activities, and conduct oversight and management of related activities in that administrative region that involve public fundraising.

Article 5: Social organizations that have been registered or designated as a charitable organization for two years and apply for public fundraising credentials shall meet the following requirements:

(1) Establish standardized internal governance structures on the basis of laws, regulations and the organization's charter, so that the board of directors can effectively make decisions and responsible parties' duties comply with relevant provisions, and board members and responsible parties are diligent and honest.

(2) Not more than 1/3 of the members of the board of directors are from organizations that are affiliated with each other, and persons with close familial relationships must not concurrently serve on the board of directors.

(3) Not more the 1/3 of the members of the board of directors are non-mainland residents, and mainland residents serve as the legally-designated representatives;

(4) the Secretary-General is full-time, and the Chairman of the Board and Secretary-General positions must not be concurrently filled by the same person, and there is appropriate full-time staff corresponding to the activities carried out by the charitable organizations;

(5) Charitable organizations registered with the civil administration department of the people's government at the provincial level or above have a board of supervisors with at least three supervisors;

(6) Register for taxes and fulfill tax obligations in accordance with law;

(7) follow provisions to participate in social organization assessment and have a 3A assessment result;

(8) Not be entered on the irregularities list at the time of application;

(9) Not have had public fundraising credentials revoked, not have received an administrative punishment for violations of law or regulations relating to social organizations, and not having other conduct in violation of laws, regulations and national policy, in the 2 years preceding the application,

Non-public foundations and social groups with public interest tax deduction credentials that were established before the the "Charity Law", may apply for public fundraising credentials after being registered for two years and upon designation as a charitable organization.

Article 6: Charitable organizations applying for public fundraising credentials shall submit the following materials to the civil affairs department where they are registered:

(1) the written application, including specific explanations and written assurances of the organization's compliance with the requirements of article 5.

(2) A financial audit report for the two years preceding the application, issued by a certified accountant, including special audit of the annual expenses and management fees for charitable activities;

(3) The board of directors' meeting minutes regarding the application for public fundraising credentials.

Charitable organizations that have a professional supervisory unit, they shall also submit the materials demonstrating the consent of the professional supervisory unit.

Charitable organizations with an assessment level of 4A or higher are excused from submitting the materials provided for in items 1,2,and 3.

Article 7: 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 8: Civil affairs departments shall make a decision within 20 days from the date of acceptance. A public fundraising credential certificate is to be issued to charitable organizations meeting the requirements; public fundraising credentials certificate is not issued, and the reasons are to be explained in writing, where the requirements are not met.

Article 9: Public foundations registered and set up before the "Charity Law" was published, can use registration certificates clearly indicating their status as charitable organizations to claim public fundraising credential certificates from the civil affairs departments.

Article 10: The carrying out of fundraising activities shall formulate a fundraising plan. 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 the disposition of residual assets.

Article 11: Charitable organizations shall file their fundraising plan with the civil affairs departments where they are registered at least ten days before carrying out public fundraising activities. Where the materials are complete, civil affairs departments shall accept the forthwith, and publicly announce them as filed; where the contents of fundraising plans are not complete, the charitable organization shall be informed forthwith, and the charitable organizations shall supplement and correct it for the civil affairs department of its registration within ten days.

Public fundraising activities in furtherance of the same fundraising goal may be jointly filed. Where there is a change in matters relevant to the fundraising plan while public fundraising is being conducted, the charitable organization shall supplement and correct it for the civil affairs department of its registration and explain the reasons, within 10 days of the change.

Charitable organizations with professional supervisory unit, shall also submit the public fundraising plan to the professional supervisory unit.

Where carrying out a public fundraising activity involves public safety, public order, fire control, or other such matters, approval procedures shall also be performed in accordance with relevant provisions.

Article 12: Where charitable organizations carrying out public fundraising activities for responses to emergencies such as major natural disasters, accidental disasters, and public health incidents, are unable to file the public fundraising plan before carrying out public fundraising activities, the foundation shall complete the filing formalities within 10 days after the public fundraising activities begin.

Article 13: charitable organizations carrying out public fundraising activities in areas other than the region of the civil affairs departments where they registered, in accordance with items (1) and (2) of paragraph 1 of article 23 of the "Charity Law", are not only to file with the civil affairs departments of their registration, but shall also, at least 10 days before carrying out the public fundraising activities, file with the civil affairs departments for people's governments at the county level or above for the sites of the fundraising activities, and submit the fundraising plan, a copy of the public fundraising credentials certificates, and an explanation of the need to carry out public fundraising activities at that locale.

Article 14: Charitable organizations carrying out public fundraising activities shall follow the charitable purpose and scope of operations indicated in the organization's charter, to set clear fundraising goals and plans for the use of donated assets, shall perform necessary internal decision-making procedures, shall use that organization's accounts and must not use individuals' or other organizations' accounts, and shall establish a public fundraising information archive, that is properly preserved and convenient to read through.

Article 15: Charitable organizations carrying out public fundraising shall prominently display the name of the organization, the public fundraising credential certificate, the fundraising plan, contact information, and methods of inquiring about fundraising information, and so forth, at the sites of the fundraising activities or on fundraising media.

Article 16: Charitable organizations conducting public fundraisising activities through the internet shall disclose fundraising information on the Ministry of Civil Affairs's unified or designated charitable information platform; and may simultaneously publish public fundraising information on web portals, official Weibo account, official WeChat account, mobile terminals and other network platforms opened in the name of that charitable organization.

Article 17: Charitable organizations with public fundraising credentials carrying out cooperative public fundraising activities with individuals or organizations that do not have public fundraising credentials shall lawfully sign a written agreement and use the name of the charitable organization with public fundraising credentials to carry out public fundraising activities; all income from the fundraising activities shall be put into the charitable organization's account, with that charitable organization uniformly carrying out accounting and management, and bearing legal responsibility.

Article 18: Charitable organizations setting up charitable projects to aid groups for emergency responses, shall adhere to the principles of openness, fairness and justice when carrying out public fundraising activities, to reasonably set standards for assistance and supervise the beneficiaries' valuing of the charitable funding, and follow the provisions of the donation plan to reasonable use donated assets.

Article 19: Charitable organizations shall strengthen management of assets donated through fundraising, using donated assets on the basis of laws, regulations, their charter and fundraising plan. Where it is truly necessary to modify the usage of donated assets provided for in the fundraising plan, the board of directors shall be convened to deliberate, report to the civil affairs departments of their registration to be filed for the record, and announced to the public.

Article 20: Charitable organizations shall follow the relevant provisions to periodically disclose information on public fundraising and charitable projects to the public.

Article 21: Where charitable organizations with public fundraising credentials have any of the following situations, the civil affairs department where they are registered is to enter them into a list of irregular activities, and announce this to the public.

(1) Where they do not meet the requirements of article 5 of these measures;

(2) Where the do not carry out public fundraising activities for 6 consecutive months.

Article 22: Where charitable organizations have their public fundraising credentials revoked in accordance with law, they shall immediately stop public fundraising activities and disclose the relevant circumstances to the public.

Where the circumstances of the preceding paragraph appear, the Ministry of Civil Affairs shall promptly announce it to the public.

Article 23: in any of the following circumstances, civil affairs departments may give warnings to charitable organizations or order that corrections be made in a given period of time:

(1) Forged, altered, leased, or lent public fundraising credentials certificates;

(2) Failed to carryout filings in accordance with these Measures.

(3) Not carrying out fundraising in accordance with the time, period, and regional scope, or methods set in the fundraising plan;

(4) Carrying out public fundraising without announcing public fundraising information in a conspicuous location at public fundraising sites or on public fundraising activity media.

(5) Not including donated assets obtained through public fundraising in integrated accounting and account management;

(6) Other situations in violation of these Measures.

Article 24: Form documents such as public fundraising credential certificates and model public fundraising plans, are to be uniformly formulated by the Ministry of Civil Affairs.

Article 25: The Ministry of Civil Affairs is responsible for interpreting these Measures.

Article 26: These Measures take effect on September 1, 2016.