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Charity Law of the People's Republic of China
(Adopted at the Fourth Session of the 12th National People's Congress on March 16, 2016)
Table of contents
Chapter 1: General Provisions
Chapter 2: Charitable Organizations
Chapter 3: Charitable Donation-raising
Chapter 4: Charitable Donations
Chapter 5: Charitable Trusts
Chapter 6: Charitable Assets
Chapter 7: Charitable Services
Chapter 8: Information Disclosure
Chapter 9: Promotion Measures
Chapter 10: Supervision and Administration
Chapter 11: Legal Liabilities
Chapter 12: Supplementary Provisions
Chapter 1: General Provisions
Article 1 This Law is formulated with a view to developing philanthropic undertakings, carrying forward the philanthropic culture, regulating charitable activities, protecting the legitimate rights and interests of charitable organizations, donors, volunteers, beneficiaries and other participants of charitable activities, advancing social progress, and sharing the fruits of development.
Article 2 This Law shall apply to natural persons, legal persons and other organizations in carrying out charitable activities and charity-related activities. Special provisions, if any, prescribed in other laws shall prevail.
Article 3 For the purpose of this Law, charitable activities shall refer to the following public welfare activities voluntarily carried out by natural persons, legal persons and other organizations by means of donating assets, providing services, etc.:
(1) Alleviating poverty and helping the needy;
(2) Supporting the elderly, helping orphans, providing comfort for persons with serious illnesses, assisting the disabled, and giving special care to disabled servicemen and the family members of martyrs;
(3) Engaging in rescue and relief operations with regard to the damage caused by natural disasters, accidents and disasters, public health incidents and other emergencies;
(4) Promoting the development of education, science, culture, health, sports and other undertakings;
(5) Preventing and controlling pollution and other public hazards, and protecting and improving the ecological environment; and
(6) Engaging in other public welfare activities that are in compliance with this Law.
Article 4 In carrying out charitable activities, it is imperative to follow the principles of legality, voluntariness and integrity, uphold the non-profit nature of such activities, and refrain from violating social ethics and endangering national security or prejudicing public interests and the legitimate rights and interests of others.
Article 5 The State shall encourage and support natural persons, legal persons and other organizations to practice socialist core values, carry forward the traditional virtues of the Chinese nation, and carry out charitable activities pursuant to the law.
Article 6 The civil affairs department of the State Council shall be in charge of charity-related work at the national level, while the civil affairs departments of local people's governments at and above the county level shall be in charge of charity-related work within their respective administrative regions. Relevant departments of the people's governments at and above the county level shall, in accordance with this Law and other relevant laws and regulations, properly perform relevant work within their respective scopes of duties.
Article 7 September 5 of each year shall be designated as the "China Charity Day".
Chapter 2: Charitable Organizations
Article 8 For the purpose of this Law, charitable organizations shall refer to duly-established non-profit organizations that are in compliance with this Law and whose purposes are to carry out charitable activities for the public.
Charitable organizations may be in the organizational form of foundations, social groups, social service agencies, etc.
Article 9 A charitable organization shall satisfy the following conditions:
(1) Its purposes shall be to carry out charitable activities;
(2) It shall uphold its non-profit nature;
(3) It shall have its own name and domicile;
(4) It shall have its own articles of association as an organization;
(5) It shall possess necessary assets;
(6) It shall have in place an organizational set-up and person-in-charge that satisfy relevant conditions; and
(7) It shall satisfy other conditions prescribed by laws and administrative regulations.
Article 10 To establish a charitable organization, an applicant shall apply for registration to the civil affairs department of the relevant people's government at or above the county level, and the said civil affairs department shall make a decision within 30 days upon acceptance of the application. Where the application satisfies the conditions prescribed herein, the said civil affairs department shall approve the registration of the charitable organization, and issue an announcement thereon to the public; and, where the application fails to satisfy the conditions prescribed herein, the said civil affairs department shall not approve the registration and shall give written explanations therefor.
A foundation, social group, social service agency or a non-profit organization of other types that has been established prior to the promulgation of this Law may apply to the civil affairs department that originally handles its registration to be recognized as a charitable organization, and the said civil affairs department shall make a decision thereon within 20 days upon acceptance of the application. Where the applicant satisfies the conditions on charitable organizations, the said civil affairs department shall recognize the applicant as a charitable organization, and issue an announcement thereon to the public; and, where the applicant fails to satisfy the conditions on charitable organizations, the said civil affairs department shall not recognize the applicant as a charitable organization, and shall give written explanations therefor.
Where the period for deciding on registration or recognition needs to be extended under special circumstances, the said period may be appropriately extended after approval by the civil affairs department of the State Council, provided that the extended period shall not exceed 60 days.
Article 11 The articles of association of a charitable organization shall be in compliance with laws and regulations, and shall specify the following matters:
(1) The name and domicile of the charitable organization;
(2) The organizational form of the charitable organization;
(3) The purposes and scope of activities of the charitable organization;
(4) The sources and composition of the assets of the charitable organization;
(5) The composition and duties of the decision-making body and the implementation body of the charitable organization;
(6) The internal supervision mechanisms of the charitable organization;
(7) The asset management and use systems of the charitable organization;
(8) The project management systems of the charitable organization;
(9) The circumstances under which the charitable organization shall be terminated and post- termination liquidation methods; and
(10) Other important matters.
Article 12 A charitable organization shall, in accordance with laws, regulations and its articles of association, establish and improve its internal governance structure, specify the scope of duties and authority in terms of decision-making, implementation, supervision, etc., and carry out charitable activities.
A charitable organization shall adopt the unified national accounting system, conduct accounting in accordance with the law, establish and improve its accounting supervision systems, and subject itself to the supervision and administration by relevant government departments.
Article 13 A charitable organization shall submit its annual work report and financial and accounting report on a yearly basis to the civil affairs department that originally handles its registration. Such a report shall cover the following situations on a yearly basis: donation-raising and acceptance of donations; management and use of charitable assets; implementation of charitable projects; wages and benefits of its staff members; etc.
Article 14 The promoter, major donors and management personnel of a charitable organization may not use their affiliation to prejudice the interests of the charitable organization and beneficiaries, and social and public interests.
Where the promoter, major donors and management personnel of a charitable organization engage in transactions with the charitable organization, they may not participate in the decision-making by the charitable organization with regard to the transactions concerned, and relevant situations on the transactions shall be made public.
Article 15 A charitable organization shall not engage in, or finance, activities endangering national security and public interests, shall not accept donations attached with additional conditions that are in violation of laws and regulations or against social morality, and shall not impose on beneficiaries additional conditions that are in violation of laws and regulations or against social morality.
Article 16 A person who falls under any of the following circumstances shall not serve as the person in charge of a charitable organization:
(1) Where he/she has no civil capacity or has only limited civil capacity;
(2) Where he/she has been sentenced to criminal punishments against intentional crimes, and not more than five years have elapsed upon completion of the execution of the criminal punishments;
(3) Where he/she has served as the person in charge of an organization whose registration certificate has been revoked or that has been banned, and not more than five years have elapsed after the registration certificate of the organization has been revoked or after the organization has been banned; or
(4) Where he/she falls under any other circumstances prescribed by laws and administrative regulations.
Article 17 A charitable organization that falls under any of the following circumstances shall be terminated:
(1) Where any of the circumstances for termination under the articles of association has occurred;
(2) Where the charitable organization needs to be terminated due to division or merger;
(3) Where the charitable organization has not engaged in charitable activities for two consecutive years;
(4) Where the registration of the charitable organization is cancelled pursuant to the law, or where the registration certificate of the charitable organization is revoked pursuant to the law; or
(5) Where there are any other circumstances prescribed by laws and administrative regulations under which the charitable organization shall be terminated.
Article 18 A charitable organization that is terminated shall go through liquidation.
The decision-making body of a charitable organization shall, within 30 days upon the occurrence of any of the circumstances for termination as prescribed in Article 17 herein, set up a liquidation team to conduct liquidation, and issue an announcement thereon to the public. Where no liquidation team is set up or the liquidation team fails to perform duties, the civil affairs department concerned may apply to the competent people's court to designate relevant persons to form a liquidation team to conduct liquidation.
The assets of a charitable organization that remain after its liquidation shall be transferred to other charitable organizations with the same or similar purposes in accordance with the articles of association of the former. In the absence of relevant provisions in the articles of association, the relevant civil affairs department shall preside over the transfer of such assets to other charitable organizations with the same or similar purposes, and issue an announcement thereon to the public.
Upon the completion of liquidation, a charitable organization shall go through deregistration with the civil affairs department that originally handles its registration, and the latter shall issue an announcement thereon to the public.
Article 19 Charitable organizations shall form industry organizations pursuant to the law.
Charity industry organizations shall reflect the demands of the industry, promote industry exchanges, enhance the credibility of the charity industry, and advance the development of philanthropic undertakings.
Article 20 Specific measures for the organizational structures and registration administration of charitable organizations shall be formulated by the State Council.
Chapter 3: Charitable Donation-raising
Article 21 For the purpose of this Law, charitable donation-raising shall refer to the activities whereby charitable organizations raise assets for charitable purposes.
Charitable donation-raising shall include public donation drives for the general public and targeted donation-raising from specific parties.
Article 22 A charitable organization that intends to engage in public donation drives shall obtain the qualifications for public donation-raising. A charitable organization that has been in lawful registration for at least two years may apply for the qualifications for public donation-raising to the civil affairs department that originally handles its registration. The said civil affairs department shall make a decision within 20 days upon acceptance of the application. Where the charitable organization satisfies the conditions of having a robust internal governance structure and engaging in standardized operations, the said civil affairs department shall issue the qualification certificate for public donation-raising to the charitable organization; and, where the charitable organization fails to satisfy relevant conditions, the said civil affairs department shall not issue the qualification certificate for public donation-raising, and shall give written explanations therefor.
Foundations and social groups that are allowed to engage in public donation drives with effect from the date of registration as prescribed by laws and administrative regulations shall have their respective qualification certificate for public donation-raising directly issued by civil affairs departments.
Article 23 A charitable organization may carry out public donation drives by any of the following means:
(1) Setting up donation boxes in public places;
(2) Holding charitable performances, competitions, sales, exhibitions, auctions, galas, etc. for the public;
(3) Releasing information on donation-raising through radio, television, newspapers and periodicals, the Internet and other media; and
(4) Adopting other means of public donation-raising.
Where the charitable organization engages in public donation drives by the means prescribed by Item (1) or Item (2) of the preceding Paragraph, the charitable organization shall carry out public donation-raising activities within the jurisdictions of the civil affairs department that originally handles its registration, and where it is genuinely necessary to carry out such activities beyond the jurisdictions of the said civil affairs department, the charitable organization shall go through record-filing with the civil affairs department of the people's government at or above the county level that is located in the place where the donation drives are to be conducted. Donors are not bound by geographical restrictions in making donations.
A charitable organization that intends to engage in public donation drives through the Internet shall release information on donation-raising via the uniform charity information platform of the civil affairs department of the State Council or such a platform designated by the latter, and may, at the same time, publish information on donation-raising via its own website.
Article 24 To carry out a public donation drive, a charitable organization shall formulate a donation-raising plan which shall cover the purposes of donation-raising, the commencement and ending time and the geographical regions of the public donation drive, the name and office address of the person in charge of the public donation drive, the ways to accept donations, bank accounts, beneficiaries, the purposes of the funds and materials raised, the cost of donation-raising, the disposal of surplus assets, etc.
The donation-raising plan of a charitable organization shall be reported to the civil affairs department that originally handles the registration of the charitable organization for record-filing before the donation-raising activities.
Article 25 In carrying out a public donation drive, the name of the donation-raising organization, its qualification certificate for public donation-raising, its donation-raising plan, contact details, methods for inquiring about donation-raising information, etc. shall be announced in eye-catching locations on the donation-raising scene or the carriers of the donation-raising activities.
Article 26 An organization not qualified to raise donations from the public or an individual may, for charitable purposes, cooperate with a charitable organization with qualifications for public donation-raising, and let the latter carry out public donation drives and manage the funds and materials raised.
Article 27 Radio stations, television stations, newspapers and periodicals, Internet service providers and telecommunications business operators shall verify the registration certificates and qualification certificates for public donation-raising held by the charitable organizations that use their platforms to carry out public donation drives.
Article 28 A charitable organization may engage in targeted donation-raising from specific parties with effect from the date of registration.
Where a charitable organization engages in targeted donation-raising from specific parties, it shall raise donations within the scope of specific parties, including its promoter, council members, members, etc., and explain to the donation-raising targets the purposes of donation-raising, the usage of the funds and materials raised and other relevant matters.
Article 29 A charitable organization shall not, overtly or covertly, carry out targeted donation-raising from specific parties by any of the means prescribed in Article 23 herein.
Article 30 Where swift rescue and relief operations are necessary upon the occurrence of a major natural disaster, accident disaster, public health incident or an emergency of other types, the relevant people's government shall establish coordination mechanisms, provide demand information, and guide donation-raising and rescue and relief activities in a timely and orderly manner.
Article 31 In carrying out donation-raising activities, it is imperative to respect and safeguard the legitimate rights and interests of donation-raising targets, protect their right to information, and refrain from deceiving or inducing donation-raising targets into making donations by fabricating facts or other means.
Article 32 In carrying out donation-raising activities, apportioning the donations needed among donation-raising targets either overtly or covertly shall be prohibited, and the public order, the production and operations of enterprises, and the normal life of residents shall not be obstructed.
Article 33 Any organization or individual shall be prohibited from making use of the name of charity or passing itself off as a charitable organization to carry out donation-raising activities to defraud assets.
Chapter 4: Charitable Donations
Article 34 For the purpose of this Law, charitable donation shall refer to the activities whereby natural persons, legal persons and other organizations voluntarily give assets as gifts gratis for charitable purposes.
Article 35 Donors may make donations via charitable organizations, or donate directly to beneficiaries.
Article 36 The assets donated by a donor shall be lawful assets of which the donor is entitled to dispose. Donated assets shall include currencies, physical assets, real estate, marketable securities, equity, intellectual property rights ("IPRs"), and other tangible and intangible assets.
The physical assets donated by a donor shall have use value, and meet the standards in terms of safety, sanitation, environmental protection, etc.
A donor which is an enterprise donating its own products shall bear product quality liabilities and obligations pursuant to the law.
Article 37 A natural person, legal person or organization of other types that carries out for-profit activities such as performances, competitions, sales, auctions, etc., and undertakes to use all or part of the proceeds for charitable purposes shall, before the relevant events are held, conclude donation agreements with the relevant charitable organization or other donation recipients, fulfill donation obligations in accordance with the donation agreements after the completion of the events, and make public information on the donations.
Article 38 A charitable organization that accepts donations shall issue to donors the donation proofs uniformly printed by, or printed under the supervision of, finance departments. Such a donation proof shall specify the donor, the types and quantity of the assets donated, the name of the charitable organization and the names of its handling persons, the date of the proof, etc. Where a donor makes donations anonymously or waives the right to receive donations proofs, the charitable organization shall properly make relevant records.
Article 39 Where a charitable organization accepts donations from a donor, the former shall sign a written donation agreement with the latter if so requested by the latter.
A written donation agreement shall cover the names of the donor and the charitable organization, the types, quantity, quality, usage and delivery time of the assets to be donated, and other relevant contents.
Article 40 When a donor and a charitable organization agree on the purposes and the beneficiaries of the donated assets, the donor's stakeholders may not be designated as the beneficiaries.
No organization or individual may take advantage of charitable donations to promote tobacco products in violation of the law, and no organization or individual may take advantage of charitable donations to promote, in any way, any product or matter whose promotion is prohibited by law.
Article 41 A donor shall fulfill donation obligations in accordance with the relevant donation agreement. Under any of the following circumstances, where the donor fails to deliver an asset for donation by the prescribed deadline in breach of the donation agreement, the relevant charitable organization or another donation recipient may require the donor to deliver the asset for donation; and, where the donor refuses to deliver the asset, the charitable organization or another donation recipient may apply to the competent people's court for a payment order or bring a lawsuit pursuant to the law:
(1) Where the donor has made public commitments to donation through radio, television, newspapers and periodicals, the Internet or other media; or
(2) Where the asset for donation is to be used for any of the charitable activities prescribed by Item (1) through to Item (3) of Article 3 herein, and a written donation agreement has been signed.
Where the donor experiences significant deterioration of its financial positions after making public commitments to donation or signing the written donation agreement, seriously affecting its production and operations or family life, the donor may no longer be required to perform donation obligations after reporting to the civil affairs department at the place where the public commitments to donation are made or the written donation agreement is signed, and after explaining the situations to the public.
Article 42 A donor shall be entitled to inquire about and duplicate relevant materials on the management and use of the asset donated thereby, and the charitable organization concerned shall take the initiative to provide the donor with relevant feedback in a timely manner.
Where a charitable organization abuses the assets donated in breach of the purposes agreed upon in the relevant donation agreement, the donor concerned shall be entitled to require the charitable organization to make correction. Where the charitable organization refuses to correct, the donor may lodge a complaint or tip-off to the relevant civil affairs department or file a lawsuit to the competent people's court.
Article 43 To make charitable donations, State-owned enterprises shall comply with the provisions on State-owned asset management, and go through approval and record-filing procedures.
Chapter 5: Charitable Trusts
Article 44 For the purpose of this Law, a charitable trust shall refer to a public welfare trust under which the principal, for charitable purposes, entrusts its assets to the trustee pursuant to the law, and the trustee, according to the wishes of the principal, manages and disposes of such assets in its own name, and carries out charitable activities.
Article 45 The establishment of a charitable trust, and the determination of trustees and supervisors shall be in writing. A trustee shall, within seven days upon the conclusion of the documents on a charitable trust, submit relevant documents to the civil affairs department of the people's government at or above the county level at its domicile for record-filing.
A trustee that fails to submit relevant documents to the civil affairs department concerned for record-filing in accordance with the preceding Paragraph shall not be eligible for preferential taxation policies.
Article 46 The trustee of a charitable trust may be served by the charitable organization or trust company that the principal concerned determines as trustworthy.
Article 47 The principal of a charitable trust may change the trustee thereof if the trustee breaches its fiduciary duties or finds it difficult to perform duties. The new trustee after the change shall, within seven days from the date of change, report the changes to the civil affairs department that originally processes record-filing for record-filing again.
Article 48 The trustee of a charitable trust shall manage and dispose of trust assets according to the purposes of the charitable trust, and shall practice due diligence and perform the obligations of good faith and prudent management.
The trustee of a charitable trust shall, according to the requirements of trust documents and the principal concerned, promptly report to the principal the handling of trust matters and the management and use of trust assets. The trustee of a charitable trust shall, at least once on a yearly basis, report the handling of trust matters and the financial conditions of the trust to the civil affairs department that originally processes its record-filing, and announce the same to the public.
Article 49 The principal of a charitable trust may determine trust supervisors according to actual needs.
Trust supervisors shall supervise the acts of the trustee, and safeguard the rights and interests of the principal and beneficiaries in accordance with the law. Where a trust supervisor finds that the trustee has breached its fiduciary duties or that it is difficult for the trustee to perform duties, the trust supervisor shall report relevant situations to the principal, and shall be entitled to file a lawsuit in its own name to the competent people's court.
Article 50 The establishment of a charitable trust, the management of trust assets, the parties to a trust, the termination and liquidation of a trust, etc. shall be governed by other relevant provisions herein in the absence of relevant provisions in this Chapter, and shall be governed by the Trust Law of the People's Republic of China in the absence of relevant provisions herein.
Chapter 6: Charitable Assets
Article 51 The assets of a charitable organization shall include:
(1) The founding assets donated or financed by its promoter;
(2) The assets raised; and
(3) Other legitimate assets.
Article 52 The assets of a charitable organization shall be used fully for charitable purposes in accordance with its articles of association and donation agreements, and shall not be distributed among the promoter, donors and members of the charitable organization.
No organization or individual may embezzle, misappropriate, withhold or encroach on charitable assets.
Article 53 A charitable organization shall register, and prepare a register for, the assets raised, rigorously manage such assets, and earmark special funds for intended purposes.
Where the donations in-kind made by donors are not easy to store, transport or be directly used for charitable purposes, a charitable organization may auction off or sell such donations pursuant to the law, and the proceeds obtained shall be used fully for charitable purposes after necessary expenses are deducted.
Article 54 A charitable organization that makes investment for the purpose of preserving and increasing the value of assets shall make investment in a lawful, safe and effective manner, and use all the proceeds obtained from investment for charitable purposes. A major investment plan of a charitable organization shall be subject to the consent of at least two-thirds of the members of its decision-making body. Government-subsidized assets and assets that are not allowed to be used for investment as agreed in donation agreements shall not be used for investment. The person in charge of a charitable organization and its staff members shall not concurrently hold positions in, or receive remunerations from, the enterprises invested by the charitable organization.
Specific measures for the matters prescribed in the preceding Paragraph shall be formulated by the civil affairs department of the State Council.
Article 55 Where a charitable organization carries out charitable activities, it shall, in accordance with laws, regulations and its articles of association, use donated assets according to the relevant donation-raising plan or donation agreement. The charitable organization shall report to the civil affairs department concerned for record-filing if it genuinely needs to change the purposes of the donated assets prescribed by the donation-raising plan. The charitable organization shall obtain the consent of the donor concerned if it genuinely needs to change the purposes of the donated assets agreed in the relevant donation agreement.
Article 56 A charitable organization shall design charitable projects in a reasonable manner, optimize the implementation process, lower operating costs, and improve the efficiency of the use of charitable assets.
A charitable organization shall establish project management systems to track and supervise project implementation.
Article 57 Where there are remaining donated assets after the termination of a charitable project, the surplus assets shall be disposed of according to the relevant donation-raising plan or donation agreement. In the absence of relevant provisions in the donation-raising plan or relevant agreements in the donation agreement, the charitable organization concerned shall use the surplus assets for other charitable projects of the same or similar purposes, and announce relevant information to the public.
Article 58 A charitable organization shall determine charity beneficiaries in an open, fair and impartial manner, and shall not designate the stakeholders of its management personnel as beneficiaries.
Article 59 Where necessary, a charitable organization may sign an agreement with a beneficiary to specify the rights and obligations of both parties, the purposes, quantity, methods of use, etc. of the charitable assets, and other relevant contents.
A beneficiary shall cherish charitable assistance, and use charitable assets according to the relevant agreement. If the beneficiary fails to use charitable assets according to the agreement or otherwise commits grave breaches of the agreement, the charitable organization concerned shall be entitled to require the beneficiary to make correction, and shall be entitled to terminate the agreement and require the beneficiary to return the assets if the latter refuses to correct.
Article 60 A charitable organization shall actively carry out charitable activities, make full and efficient use of charitable assets, and follow the principle of incurring management expenses only in the most essential circumstances to practice thriftiness and reduce unnecessary expenses. As regards a foundation with qualifications for public donation-raising, the annual expenditure incurred for carrying out charitable activities shall not be lower than 70% of its total revenue of the preceding year or its average revenue of the past three years, and the annual management expenses incurred shall not exceed 10% of its total expenditure of the given year, provided that under special circumstances, where it is difficult for its annual management expenses to comply with the foregoing provisions, the said foundation shall report relevant situations to the civil affairs department that originally handles its registration, and explain the situations to the public.
The standards for the annual expenditure and management expenses incurred by charitable organizations other than foundations with qualifications for public donation-raising for carrying out charitable activities shall be formulated by the civil affairs department of the State Council in conjunction with the finance department, taxation department and other relevant departments of the State Council in accordance with the principles prescribed in the preceding Paragraph.
The agreements, if any, agreed upon in a donation agreement on the expenditure and management expenses for charitable activities carried out with a single donated asset shall prevail.
Chapter 7: Charitable Services
Article 61 For the purpose of this Law, charitable services shall refer to the volunteer and pro bono services and other non-profit services provided for the public or others by charitable organizations and other organizations and individuals for charitable purposes.
A charitable organization may provide charitable services on its own or by recruiting volunteers, and may also entrust other organizations with expertise in relevant services to provide charitable services.
Article 62 In carrying out charitable services, it is imperative to respect the human dignity of beneficiaries and volunteers, and refrain from infringing upon the privacy of beneficiaries and volunteers.
Article 63 Where medical rehabilitation, education and training and other charitable services that require specialized skills are carried out, the standards and procedures formulated by the State or industry organizations shall be complied with.
Where a charitable organization recruits volunteers to participate in charitable services that require specialized skills, the charitable organization shall provide relevant training for the volunteers.
Article 64 When recruiting volunteers to participate in charitable services, a charitable organization shall disclose all the information related to charitable services, and inform the volunteers of risks that may occur during services.
Where necessary, a charitable organization may sign an agreement with a volunteer to specify the rights and obligations of both parties, the contents, methods and time of services, etc.
Article 65 A charitable organization shall register the real names of volunteers, and record their service hours, contents, evaluation and other information. As requested by volunteers, a charitable organization shall issue proofs of volunteer service records in a truthful manner and free of charge.
Article 66 When assigning volunteers to participate in charitable services, a charitable organization shall ensure the assignments are suitable for the ages, educational levels, skills and health conditions of the volunteers.
Article 67 Volunteers who accept the arrangements by a charitable organization to participate in charitable services shall subject themselves to the management by the latter, and receive necessary training.
Article 68 A charitable organization shall make available necessary conditions for volunteers to participate in charitable services, and protect the legitimate rights and interests of volunteers.
Prior to arranging volunteers to participate in charitable services during which physical danger may occur, a charitable organization shall purchase appropriate personal accident insurance for the volunteers.
Chapter 8: Information Disclosure
Article 69 The people's governments at and above the county level shall establish and improve their respective philanthropic information statistics compilation and publication system.
The civil affairs departments of the people's governments at and above the county level shall promptly disclose philanthropic information to the public via a unified information platform, and provide services for releasing philanthropic information free of charge.
Charitable organizations and the trustees of charitable trusts shall publish philanthropic information on the platform prescribed in the preceding Paragraph, and be responsible for the truthfulness of such information.
Article 70 The civil affairs departments of the people's governments at and above the county level and other departments concerned shall promptly make public the following philanthropic information:
(1) Registration matters of charitable organizations;
(2) Record-filing matters of charitable trusts;
(3) The list of charitable organizations with qualifications for public donation-raising;
(4) The list of charitable organizations qualified to issue pre-tax deduction proofs for public welfare donations;
(5) Measures promoting charitable activities, such as preferential taxation policies, subsidies and allowances, etc.;
(6) Information on the purchase of services from charitable organizations;
(7) Results of the inspection and evaluation of charitable organizations and charitable trusts;
(8) Results of the commendation and punishment of charitable organizations and other organizations, as well as individuals; and
(9) Other information that shall be made public pursuant to laws and regulations.
Article 71 Charitable organizations and the trustees of charitable trusts shall perform information disclosure obligations in accordance with the law. Information shall be disclosed in a truthful, complete and timely manner.
Article 72 A charitable organization shall make public its articles of association, information on the members of its decision-making body, implementation body and supervisory body, and other information required to be disclosed by the civil affairs department of the State Council. The material changes, if any, of the foregoing information shall be promptly made public by the charitable organization.
A charitable organization shall make public its annual work report and financial and accounting report on a yearly basis. The financial and accounting reports of a charitable organization with qualifications for public donation-raising shall be audited.
Article 73 A charitable organization with qualifications for public donation-raising shall, on a regular basis, make public the situations of donation raising and the implementation of charitable projects.
Where a public donation drive lasts for more than six months, the situations on donation raising shall be announced at least once every three months, and the situations on donation raising shall be fully announced within three months following the completion of the public donation drive.
Where the implementation of a charitable project lasts for more than six months, the situations on project implementation shall be announced at least once every three months, and the situations on project implementation and the use of the funds and materials raised shall be fully announced within three months following the completion of the charitable project.
Article 74 A charitable organization that engages in targeted donation-raising from specific parties shall promptly inform the donors of the situations on donation raising, and the management and use of the funds and materials raised.
Article 75 Charitable organizations and the trustees of charitable trusts shall inform beneficiaries of their respective criteria for granting subsidies, work processes, work standards and other information.
Article 76 Information involving State secrets, commercial secrets and personal privacy, and information on names, domiciles, contact details, etc. whose public disclosure is objected to by donors and the principals of charitable trusts shall not be made public.
Chapter 9: Promotion Measures
Article 77 The people's governments at and above the county level shall, based on economic and social development situations, formulate policies and measures that promote the development of philanthropic undertakings.
Relevant departments of the people's governments at and above the county level shall, within their respective scope of duties, provide information on charity needs for charitable organizations, the trustees of charitable trusts, etc., and offer guidance and assistance to charitable activities.
Article 78 The civil affairs departments of the people's governments at and above the county level shall establish a philanthropic information sharing mechanism with other departments concerned.
Article 79 Charitable organizations and their incomes shall be eligible for preferential taxation policies in accordance with the law.
Article 80 Natural persons, legal persons and other organizations shall enjoy preferential taxation policies pursuant to the law if they donate assets for use in charitable activities. The portion of the charitable donations by an enterprise that exceeds the amount deductible as prescribed by law in the given year for the purpose of calculating the amount of incomes subject to enterprise income tax shall be allowed for deduction during the calculation of taxable income within three years after being carried forward.
The materials donated by overseas parties for use in charitable activities shall be eligible for the reduction or exemption of import tariffs and import value-added tax in accordance with the law.
Article 81 Beneficiaries who accept charitable donations shall be eligible for preferential taxation policies pursuant to the law.
Article 82 Where charitable organizations, donors and beneficiaries shall be entitled to preferential taxation policies pursuant to the law, the departments concerned shall handle relevant procedures in a timely manner.
Article 83 Donors who donate physical assets, marketable securities, equities and IPRs to charitable organizations shall be exempted from relevant administrative and institutional fees for the transfer of rights pursuant to the law.
Article 84 The State shall apply special preferential policies to charitable activities carried out for alleviating poverty and helping the needy.
Article 85 A charitable organization that needs land parcels for charitable services and facilities for the purpose of carrying out charitable activities prescribed by Item (1) or Item (2) of Article 3 herein may apply for using allocated State-owned land or rural collectively-owned construction land pursuant to the law. The purposes of land parcels for charitable services and facilities may not be changed without going through statutory procedures.
Article 86 The State shall provide financial policy support for philanthropic undertakings, and encourage financial institutions to provide financing, settlement and other financial services for charitable organizations and charitable trusts.
Article 87 The people's governments at all levels and relevant departments thereof may support qualified charitable organizations to provide services for the public by purchase of services and other means in accordance with the law, and shall make public relevant information in accordance with the laws and regulations on government procurement.
Article 88 The State shall take measures to carry forward the culture of philanthropy, and nurture the philanthropic awareness of citizens.
Schools and other educational institutions shall include the culture of philanthropy into their education and teaching contents. The State shall encourage institutions of higher learning to nurture professionals for philanthropic undertakings, and support institutions of higher learning and research institutes to carry out theoretical research on philanthropy.
Radio stations, television stations, newspapers and periodicals, the Internet and other media shall actively carry out promotional campaigns for charitable and public welfare activities, popularize the knowledge of philanthropy, and disseminate the culture of philanthropy.
Article 89 The State shall encourage enterprises, public institutions and other organizations to make available premises and other convenience for carrying out charitable activities.
Article 90 Upon consent by a beneficiary, a donor may name the charitable project to which its donations are made as commemoration, provided that approval shall be obtained if so required by laws and regulations.
Article 91 The State shall establish a philanthropy commendation system under which natural persons, legal persons and other organizations that have made outstanding contributions to the development of philanthropic undertakings shall be commended by the people's governments at and above the county level or relevant departments.
Chapter 10: Supervision and Administration
Article 92 The civil affairs departments of the people's governments at and above the county level shall perform duties pursuant to the law, conduct supervision and inspection of charitable activities, and provide guidance for charity industry organizations.
Article 93 The civil affairs departments of the people's governments at and above the county level shall be entitled to take any of the following measures against charitable organizations that are suspected of violating this Law:
(1) To conduct on-site inspection of the domiciles of the charitable organizations and the places where charitable activities are carried out;
(2) To require the charitable organizations to give explanations, and to inspect and duplicate relevant materials;
(3) To investigate the entities and individuals related to charitable activities with regard to situations concerning supervision and administration;
(4) To make inquiries of the financial accounts of the charitable organizations upon approval by the people's governments at the corresponding level; or
(5) To take other measures prescribed by laws and administrative regulations.
Article 94 When the civil affairs departments of the people's governments at and above the county level inspect or investigate charitable organizations, relevant entities and individuals, there shall be at least two inspectors or investigators who shall produce their lawful credentials and inspection or investigation notices.
Article 95 The civil affairs departments of the people's governments at and above the county level shall establish a credit record system for charitable organizations and their persons-in-charge, and announce their credit standings to the public.
Civil affairs departments shall establish a charitable organization evaluation system, encourage and support third-party institutions to evaluate charitable organizations, and make public the evaluation results.
Article 96 Charity industry organizations shall formulate and improve industry standards, and strengthen industry self-discipline.
Article 97 Any entity or individual that finds a charitable organization or charitable trust has committed violations of the law may lodge a complaint or tip-off to the relevant civil affairs department, other departments concerned or the relevant charity industry organization. The civil affairs department, other departments concerned or the charity industry organization shall promptly investigate and handle the complaint or tip-off upon the receipt thereof.
The State shall encourage the public and the media to oversee charitable activities, and expose the violations of laws and regulations committed by charitable organizations and charitable trusts, and the acts of defrauding assets by fraudulently using the name of charity or the identity of charitable organizations, so as to play the role of supervision by public opinions and public oversight.
Chapter 11: Legal Liabilities
Article 98 A charitable organization that falls under any of the following circumstances shall be ordered by the relevant civil affairs department to make correction within the prescribed time period, and shall have its registration certificate revoked, and the revocation made public, if it fails to correct by the prescribed deadline:
(1) Where the charitable organization fails to carry out activities for charitable purposes;
(2) Where the charitable organization embezzles, misappropriates, withholds or encroaches on charitable assets; or
(3) Where the charitable organization accepts donations attached with additional conditions that are in violation of laws and regulations or against social morality, or imposes on beneficiaries additional conditions that are in violation of laws and regulations or against social morality.
Article 99 A charitable organization that falls under any of the following circumstances shall be given a warning, and be ordered by the relevant civil affairs department to make correction within the prescribed time period, and shall be ordered to cease activities within the prescribed time period for rectification if it fails to correct by the prescribed deadline:
(1) Where the charitable organization violates Article 14 herein, and causes losses to charitable assets;
(2) Where the charitable organization uses assets that may not be used for investment for investment;
(3) Where the charitable organization changes the purposes of donated assets without authorization;
(4) Where the standards of the charitable organization on annual expenditure or management expenses for carrying out charitable activities are in violation of Article 60 herein;
(5) Where the charitable organization fails to fulfill information disclosure obligations pursuant to the law;
(6) Where the charitable organization fails to submit annual work reports or financial and accounting reports, or submit donation-raising plans for record-filing in accordance with the law; or
(7) Where the charitable organization divulges the personal privacy of donors, volunteers and beneficiaries, or the information on names, domiciles, contact details, etc. whose disclosure is objected to by donors or the principals of charitable trusts.
A charitable organization that violates this Law and divulges State secrets or commercial secrets shall be punished in accordance with relevant laws.
A charitable organization that falls under any of the circumstances prescribed in the preceding two paragraphs shall have its registration certificate revoked, and the revocation announced, by the relevant civil affairs department, if the charitable organization falls under any of the circumstances prescribed in the preceding Paragraph again within one year after being dealt with pursuant to the law, or if the charitable organization falls under any other grave circumstances.
Article 100 Where a charitable organization falls under any of the circumstances prescribed by Article 98 or Article 99 herein, its illegal gains, if any, shall be confiscated by the civil affairs department concerned, and its person directly in charge and other personnel subject to direct liabilities shall be given a fine of not less than RMB 20,000 but not more than RMB 200,000.
Article 101 Where a perpetrator falls under any of the following circumstances in carrying out donation-raising activities, the perpetrator shall be warned and ordered to stop donation-raising activities by the civil affairs department concerned, and be ordered to return the assets illegally raised to donors; if such assets are difficult to return, they shall be confiscated by the civil affairs department, and be transferred to other charitable organizations for charitable purposes; and, the relevant organization or individual shall be given a fine of not less than RMB 20,000 but not more than RMB 200,000:
(1) Where the perpetrator engages in public donation drives although it is an organization or individual not qualified for public donation-raising;
(2) Where the perpetrator deceives or induces donation-raising targets into making donations by fabricating facts or other means;
(3) Where the perpetrator, overtly or covertly, apportions the amount of donations needed among entities or individuals; or
(4) Where the perpetrator obstructs the public order, the production and operations of enterprises or the normal life of residents.
Radio stations, television stations, newspapers and periodicals, Internet service providers and telecommunications business operators that fail to perform the obligations of verification prescribed by Article 27 herein shall be given a warning and be ordered to make corrections within the prescribed time period by their respective competent department, and shall be circulated against notices of criticism if they fail to correct by the prescribed deadline.
Article 102 A charitable organization that fails to issue donation proofs to donors pursuant to the law, fails to issue proofs of volunteer service records to volunteers pursuant to the law or fails to promptly and proactively provide feedback on relevant situations for donors shall be given a warning and be ordered to make correction within the prescribed time period by the relevant civil affairs department, and shall be ordered to cease activities within the prescribed time period if it fails to correct by the prescribed deadline.
Article 103 A charitable organization that practices fraud to defraud preferential tax treatment shall be investigated and punished by the relevant tax authority in accordance with the law; and, under grave circumstances, the civil affairs department concerned shall revoke the registration certificate of the charitable organization and make an announcement thereon.
Article 104 A charitable organization that engages in or funds activities endangering national security or public interests shall be investigated and punished by relevant organs pursuant to the law, and the civil affairs department concerned shall revoke the registration certificate of the charitable organization and make an announcement thereon.
Article 105 Where the trustee of a charitable trust falls under any of the following circumstances, the trustee shall be warned by the civil affairs department concerned, and be ordered to make correction within the prescribed time period; its illegal gains, if any, shall be confiscated by the civil affairs department; and, its person directly in charge and other personnel subject to direct liabilities shall be given a fine of not less than RMB 20,000 but not more than RMB 200,000:
(1) Where the trustee uses trust assets and the proceeds thereof for non-charitable purposes; or
(2) Where the trustee fails to report information on the handling of trust matters and financial positions to the relevant civil affairs department or make public such information pursuant to relevant provisions.
Article 106 During charitable services, if damage is caused to beneficiaries or third parties due to faults attributable to a charitable organization or its volunteers, the charitable organization shall be liable for compensation pursuant to the law; and, if such damage is caused by the willful misconduct or gross negligence of volunteers, the charitable organization may exercise recourse against the volunteers.
Where a volunteer suffers damage due to faults attributable to a charitable organization in participating in charitable services, the charitable organization shall be liable for compensation pursuant to the law; and, if the damage is caused by force majeure events, the charitable organization shall give appropriate compensation.
Article 107 Natural persons, legal persons or other organizations that defraud assets by fraudulently using the name of charity or passing themselves off as charitable organizations shall be investigated and punished by public security organs pursuant to the law.
Article 108 Where the civil affairs department and other relevant departments of a people's government at or above the county level and their staff members fall under any of the following circumstances, their superior organ or the relevant supervisory organ shall order correction to be made; and, where disciplinary sanctions shall be meted out pursuant to the law, the relevant personnel appointment and removal organ or supervisory organ shall impose disciplinary sanctions on the persons directly in charge and other personnel subject to direct liabilities:
(1) Where they fail to fulfill information disclosure obligations pursuant to the law;
(2) Where they, overtly or covertly, apportion the tasks to raise donations, or compulsorily designate volunteers or charitable organizations to provide services;
(3) Where they fail to perform the duties of supervision and administration in accordance with the law;
(4) Where they take administrative enforcement measures and mete out administrative punishments in violation of the law;
(5) Where they embezzle, misappropriate, withhold or encroach on charitable assets; or
(6) Where they commit other acts of abusing power, neglecting duty or practicing favoritism for personal gains.
Article 109 Where the violations of this Law constitute acts in violation of public security administration, public security organs shall mete out public security administrative punishments pursuant to the law. Where the violations of this Law constitute criminal offenses, criminal liabilities shall be investigated for pursuant to the law.
Chapter 12: Supplementary Provisions
Article 110 Urban and rural community organizations or entities may carry out grass-roots activities of mutual assistance and help within their respective communities or entities.
Article 111 Organizations other than charitable organizations may carry out charitable activities to the best of their abilities.
Article 112 This Law shall come into effect on September 1, 2016.