Charity Law of China

· Document Number：Order No. 43 of the President

· Area of Law： Civil Affairs

· Level of Authority： Laws

· Date issued：03-16-2016

· Effective Date：09-01-2016

· Status： Effective

· Issuing Authority： National People's Congress

Order of the President of the People's Republic of China
(No. 43)
Charity Law of China, as adopted at the 4th Session of the Twelfth National People's Congress of the People's Republic of China on March 16, 2016, is hereby issued, and shall come into force on September 1, 2016.
President of the People's Republic of China: Xi Jinping
March 16, 2016
Charity Law of the People's Republic of China
(Adopted at the 4th Session of the Twelfth National People's Congress of the People's Republic of China on March 16, 2016)
Table of Contents
Chapter I General Provisions
Chapter II Charitable Organizations
Chapter III Charitable Fundraising
Chapter IV Charitable Donation
Chapter V Charitable Trust
Chapter VI Charity Property
Chapter VII Charitable Services
Chapter VIII Information Disclosure
Chapter IX Promotional Measures
Chapter X Supervision and Administration
Chapter XI Legal Liability
Chapter XII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is developed for purposes of developing the charitable cause, carrying forward the charity culture, regulating charitable activities, protecting the lawful rights and interests of charitable organizations, donors, volunteers, beneficiaries and other participants of charitable activities, promoting social progress, and sharing development results.
Article 2 This Law shall apply to charitable activities and charity-related activities conducted by natural persons, legal persons and other organizations, except as otherwise specifically provided for by any other law.
Article 3 For the purpose of this Law, “charitable activities” means the following public welfare activities conducted voluntarily by natural persons, legal persons and other organizations in such manner as property donation or provision of services.
(1) Helping the poor and the needy.
(2) Giving relief to the aged, orphans, the sick, the disabled, and giving special care to disabled servicemen, and to family members of revolutionary martyrs and servicemen.
(3) Giving salvage to the damage caused by natural disasters, disastrous accidents, 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.
(6) Other public welfare activities prescribed in this Law.
Article 4 Charitable activities shall be conducted under the principles of legality, voluntariness, good faith and not-for-profit, shall not go against social ethnics, and shall not endanger national security, or damage pubic interest or any other person's lawful rights and interests.
Article 5 The state encourages and provides support for natural persons, legal persons and other organizations to practice the core value of socialism, carry forward the fine traditions of the Chinese nation, and conduct charitable activities in accordance with the law.
Article 6 The civil affairs department of the State Council shall take charge of the charity work nationwide, the civil affairs departments of local people's governments at or above the county level shall take charge of the charity work within their respective administrative regions; and the relevant departments of people's governments at or above the county level shall, in accordance with this Law and other relevant laws and regulations, effectively conduct the relevant work within the scope of their respective functions.
Article 7 September 5 each year shall be the “Chinese Charity Day”.
Chapter II Charitable Organizations
Article 8 For the purpose of this Law, “charitable organizations” means nonprofit organizations that are formed in accordance with the law, comply with the provisions of this Law, and are aiming at conducting charitable activities for the public.
Charitable organizations may adopt the forms of organization such as foundations, social organizations and social service agencies.
Article 9 A charitable organization shall meet the following conditions:
(1) It is aiming at conducting charitable activities.
(2) It conducts activities not for the purpose of making profits.
(3) It has its own name and domicile.
(4) It has its constitution.
(5) It has necessary property.
(6) It has an eligible organizational structure and a person in charge.
(7) It meets other conditions prescribed by laws and administrative regulations.
Article 10 To form a charitable organization, the applicant shall file a registration application with the civil affairs department of the people's government at or above the county level, and the civil affairs department shall make a decision within 30 days as of the date of acceptance of the application. If the application meets the conditions prescribed in this Law, it shall approve the registration and announce to the public; and if the application fails to meet the conditions prescribed in this Law, it shall disapprove the registration and give the reason for disapproval in writing.
A foundation, social organization, social service agency or any other nonprofit organization that has been formed before the issuance of this Law may apply to the civil affairs department registering it for recognizing it as a charitable organization, and the civil affairs department shall make a decision within 20 days as of acceptance of the application. If the applicant meets the conditions for charitable organizations, the civil affairs department shall recognize it and announce to the public; and if it fails to meet the conditions for charitable organizations, the civil affairs department shall not recognize it and shall give the reason in writing.
Where the term for registration or recognition needs to be extended under any particular circumstance, the term may be appropriately extended for not more than 60 days with the approval of the civil affairs department of the State Council.
Article 11 The constitution of a charitable organization shall comply with the provisions of laws and regulations, and specify the following matters:
(1) Name and domicile.
(2) Form of organization.
(3) Aim and scope of activities.
(4) Property sources and composition.
(5) Composition and functions of the decision-making and executive bodies.
(6) Internal supervision mechanism.
(7) Rules for property management and use.
(8) Project management rules.
(9) Circumstances requiring termination and the methods for liquidation after termination.
(10) Other important matters.
Article 12 A charitable organization shall, according to the provisions of laws, regulations and the constitution, establish and improve the internal governance structure, specify the scope of functions in such aspects as decision-making, implementation and supervision, and conduct charitable activities.
The charitable organization shall implement national uniform accounting rules, conduct accounting in accordance with the law, establish and improve accounting supervision rules, and accept the supervision and administration of the relevant departments of the government.
Article 13 A charitable organization shall, on an annual basis, submit annual work reports and financial accounting reports to the civil affairs department registering it. The reports shall cover the information on fundraising and acceptance of donations in a year, the management and use of charity property, the implementation of charity projects and the salaries and welfare of employees of the charitable organization.
Article 14 The promoter, major donors and managers of a charitable organization shall not use their affiliation relationship to damage the interests of the charitable organization and beneficiaries or public interest.
Where the promoter or any major donor or manager of the charitable organization has any transaction with the charitable organization, it or he shall not participate in the charitable organization's decision-making on the transaction, and the information on the transaction shall be made available to the public.
Article 15 A charitable organization shall not conduct or subsidize the activities endangering national security and public interest, shall not accept any donation under any additional conditions in violation of any law or regulation or against social ethnics, and shall not set on the beneficiary any additional conditions in violation of any law or regulation or against social ethics.
Article 16 Whoever falling under any of the following circumstances shall not serve as the person in charge of a charitable organization:
(1) The person has no civil conduct capacity or has limited civil conduct capacity.
(2) The person has been given a criminal punishment due to intentional crime, and it has not been five years since the date of completion of the sentence.
(3) The person serves as the person in charge of an organization of which the registration certificate is revoked or which is banned, and it has not been five years since the registration certificate of the organization is revoked or the organization is banned.
(4) Any other circumstance prescribed in laws and administrative regulations.
Article 17 A charitable organization that falls under any of the following circumstances shall be terminated:
(1) Any circumstance requiring termination as prescribed in the constitution occurs.
(2) Termination is required for its division or combination.
(3) It fails to conduct charitable activities for two consecutive years.
(4) It is deregistered or its registration certificate is revoked in accordance with the law.
(5) Any other circumstance requiring termination as prescribed by laws and administrative regulations.
Article 18 A charitable organization that terminates shall conduct liquidation.
The decision-making body of a charitable organization shall form a liquidation team to conduct liquidation within 30 days as of the occurrence of the circumstance requiring termination as set forth in Article 17 of this Law, and announce it to the public. If no liquidation team is formed or the liquidation team fails to perform functions, the civil affairs department may apply to the people's court for designating the relevant personnel to form a liquidation team to conduct liquidation.
The remaining property after the liquidation of the charitable organization shall be transferred to the charitable organization with the same or similar aim according to the provisions of the constitution of the charitable organization; and if it is not provided for in the constitution, the civil affairs department shall transfer the property to the charitable organization with the same or similar aim, and announce to the public.
The charitable organization shall, after its liquidation, undergo deregistration formalities at the civil affairs department registering it, and the civil affairs department shall announce to the public.
Article 19 Charitable organizations shall form an industry organization in accordance with the law.
The charity industry organization shall reflect the demands of the industry, promote industry exchange, enhance the credibility of the charity industry, and promote the development of the charitable cause.
Article 20 The specific measures for the form of organization and registration management of charitable organizations shall be developed by the State Council.
Chapter III Charitable Fundraising
Article 21 For the purpose of this Law, “charitable fundraising” means the activities of charitable organizations to raise funds for charitable purposes.
“Charitable fundraising” includes fundraising from the public and fundraising from specific objects.
Article 22 A charitable organization that fundraises from the public shall obtain the qualification for fundraising from the public. A charitable organization that has been legally registered for two years or more may apply to the civil affairs department registering it for the qualification for fundraising from the public. The civil affairs department shall make a decision within 20 days as of the date of acceptance of the application. If the charitable organization complies with the conditions of having a sound internal governance structure and standard operations, the civil affairs department shall issue the qualification certificate for fundraising from the public to it; and if it fails to meet the conditions, the civil affairs department shall not issue the qualification certificate for fundraising from the public to it and shall give the reason in writing.
The civil affairs department shall directly issue the qualification certificate for fundraising from the public to a foundation or social organization that is allowed by any law or administrative regulation to fundraise from the public as of the date of registration.
Article 23 Fundraising from the public may be conducted in the following ways:
(1) Setting collection boxes in public places.
(2) Holding charity performance, matches, bazaars, exhibitions, auctions and parties, among others, for the public.
(3) Releasing fundraising information through broadcasting, television, newspapers and journals, Internet and other media.
(4) Other ways to fundraise from the public.
Where a charitable organization fundraises from the public in the way prescribed in item (1) or (2) of the preceding paragraph, it shall conduct fundraising within the region under the jurisdiction of the civil affairs department registering it, and if it is indeed necessary to conduct fundraising outside the region under the jurisdiction of the civil affairs department registering it, it shall report to the civil affairs department of the people's government at or above the county level at the place where it conducts the fundraising activity for recordation. The donations made by donors shall not be subject to territorial restrictions.
Where the charitable organization fundraises from the public through the Internet, it shall release the fundraising information on the uniform charity information platform of or the charity information platform designated by the civil affairs department of the State Council, and may at the same time, release the fundraising information on its website.
Article 24 A fundraising plan shall be made for fundraising from the public. The fundraising plan shall cover the fundraising objective, starting and ending time and region, the name of the person in charge of the activity and office address, the ways of receiving donations, bank account, the beneficiary, the use of raised money and other property, the fundraising cost, and the handling of remaining property, among others.
The fundraising plan shall be reported to the civil affairs department that registers the charitable organization for recordation before the fundraising activity is conducted.
Article 25 For fundraising from the public, the name of the fundraising organization, the qualification certificate for fundraising from the public, fundraising plan, contact information and methods for the inquiry of fundraising information, among others, shall be disclosed at the place where the fundraising activity is held or on a conspicuous position of the carrier of the fundraising activity.
Article 26 An organization or an individual without the qualification for fundraising from the public may, for charitable purposes, cooperate with a charitable organization qualified to fundraise from the public, and the charitable organization shall organize the fundraising from the public and manage the raised money and other property.
Article 27 A radio, television, newspaper or journal, an online service provider or a telecommunications operator shall verify the registration certificate and qualification certificate for fundraising from the public of a charitable organization that fundraises from the public through its platform.
Article 28 A charitable organization may fundraise from specific objects as of the date of its registration.
A charitable organization shall conduct donor-specific fundraising within the scope of specific objects such as the promoter, members of the board of governors, and its members, and explain the fundraising objective, the use of raised money and other property, and other matters to the fundraising objects.
Article 29 Fundraising from specific objects shall not be conducted, directly or in disguise, in any way prescribed in Article 23 of this Law.
Article 30 Where any serious natural disaster, disastrous accident, public health incident or any other emergency occurs and immediate rescue is required, the relevant people's government shall establish a coordination mechanism, provide the demand information, and direct fundraising and rescue activities in a timely and orderly manner.
Article 31 In conducting fundraising activities, the lawful rights and interests of fundraising objects shall be respected and maintained, and the fundraising objects' right to know shall be guaranteed. Charitable organizations shall not defraud fundraising objects of donations or induce them to make donations by fabricating facts and other means.
Article 32 In conducting fundraising activities, apportionment or apportionment in disguise is prohibited, and the public order, enterprises' production and business operation, and residents' life shall not be obstructed.
Article 33 No organization or individual may conduct fundraising activities to fraudulently obtain property under the guise of charity or by counterfeiting any charitable organization.
Chapter IV Charitable Donation
Article 34 For the purpose of this Law, “charitable donation” means the voluntary and gratuitous donation of property by natural persons, legal persons and other organizations for charitable purposes.
Article 35 Donors may make donations through charitable organizations, or directly make donations to the beneficiaries.
Article 36 The property donated by a donor shall be legal property which the donor has the right to dispose of. Donated property includes currencies, physical goods, houses, negotiable securities, equities, intellectual property rights and other tangible and intangible property.
The physical goods donated by the donor shall have use value, and comply with the standards in terms of safety, hygiene and environmental protection, among others.
Where the donor donates the products of his or her enterprise, the donor shall assume product quality responsibilities and obligations in accordance with the law.
Article 37 Where a natural person, legal person or any other organization that conducts an exhibition, match, sale, auction or any other business activity promises to use all or partial income for charitable purposes, he or it shall, before holding the activity, enter into a donation agreement with the charitable organization or any other person taking the donation, and after the completion of the activity, perform the donation obligation according to the donation agreement, and release the donation information to the public.
Article 38 A charitable organization that gets donations shall issue the donation receipts of which the production is uniformly supervised (or which are uniformly printed) by the public finance department to the donors. A donation receipt shall indicate the donor, the category and amount of donated property, the name of the charitable organization, the name of the handling person, the date of issuance of the receipt, and other information. If the donor makes donations anonymously or abandons the donation receipt, the charitable organization shall effectively make the relevant records.
Article 39 Where a charitable organization gets a donation, and the donor requests the conclusion of a written donation agreement, the charitable organization shall enter into a written donation agreement with the donor.
The written donation agreement shall cover the names of the donor and the charitable organization, the category, quantity, quality, use, and delivery time of and other information about the donated property.
Article 40 When the donor and the charitable organization agree on the use and the beneficiary of the donated property, they shall not designate any interested party of the donor as the beneficiary.
No organization or individual shall, in violation of legal provisions, publicize tobacco products by using charitable donation, and shall not publicize in any form the products and matters prohibited from publicity by laws by using charitable donations.
Article 41 A donor shall perform the donation obligation according to the donation agreement. If the donor, in violation of the donation agreement, fails to deliver the donated property within the prescribed time limit, the charitable organization or any other person accepting the donations may require the delivery under any of the following circumstances; and if the donor refuses to deliver the donations, the charitable organization and the person accepting the donations may, in accordance with the law, apply to the people's court for the payment order or file a lawsuit.
(1) The donor makes a public commitment on the donation through broadcasting, television, newspaper or journal, the Internet or any other media.
(2) The donated property is used in charitable activities prescribed in items (1) to (3) of Article 3 of this Law, and a written donation agreement is entered into.
Where the donor's economic status obviously deteriorates after making a public commitment on donation or entering into a written donation agreement, which seriously affects the donor's production, business operation or family life, the donor is not required to perform the donation obligation after reporting to the civil affairs department at the place where the donor makes a public commitment on donation or enters into the written donation agreement and making an explanation to the public.
Article 42 The donor has the right to consult and duplicate the materials on the management and use of property donated by it, and the charitable organization shall actively notify the relevant information to the donor in a timely manner.
Where the charitable organization abuses donated property in violation of the use agreed upon in the donation agreement, the donor shall have the right to require it to take corrective action; and if it refuses to do so, the donor may file a complaint or report with the civil affairs department, or file a lawsuit with the people's court.
Article 43 A state-owned enterprise shall conduct charity donation in accordance with the provisions on the management of state-owned assets, and undergo approval and recordation procedures.
Chapter V Charitable Trust
Article 44 For the purpose of this Law, “charitable trust” falls under public welfare trust, which means the activities under which the principal authorizes its property to the trustee in accordance with the law for charitable purposes, and the trustee manages and disposes of the property in the name of the trustee according to the principal's wishes, and conducts charitable activities.
Article 45 Written form shall be adopted in the formation of charitable trust and determination of the trustee and the supervisor. The trustee shall, within seven days as of the conclusion of charitable trust documents, submit the relevant documents to the civil affairs department of the people's government at or above the county level at the place where it is located for recordation.
The trustee that fails to submit the relevant documents to the civil affairs department for recordation according to the provisions of the preceding paragraph shall not enjoy tax preferences.
Article 46 The principal may determine the charitable organization or trust company it trusts to serve as the trustee of charitable trust.
Article 47 Where the trustee of charitable trust violates the trust obligation or can hardly perform functions, the principal may change the trustee. The new trustee shall, within seven days as of the date of change, report the information on change to the original civil affairs department granting recordation for recordation anew.
Article 48 The trustee of charitable trust that manages and disposes of trust property shall, according to the trust objective, devote itself to its duties, and perform the obligation of good faith and prudential management.
The trustee of charitable trust shall, according to trust documents and the principal's requirements, report the information on the handling of trust affairs, and the management and use of trust property to the principal in a timely manner. The trustee of charitable trust shall, at least once a year, report the information on the handling of trust affairs and financial status to the civil affairs department granting its recordation, and publicly disclose the aforesaid information.
Article 49 The principal of charitable trust may determine the trust supervisor as required.
The trust supervisor shall conduct supervision over the conduct of the trustee, and protect the rights and interests of the principal and the beneficiary in accordance with the law. If the trust supervisor finds that the trustee violates the trust obligation or can hardly perform its functions, the supervisor shall report to the principal, and has the right to file a lawsuit with the people's court in its own name.
Article 50 Where the formation of charitable trust, the management of trust property, the parties to the trust, the termination and liquidation of trust and other matters are not provided for in this Chapter, other relevant provisions of this Law shall apply; and if the aforesaid matters are not provided for in this Law, the relevant provisions of the Trust Law of the People's Republic of China shall apply.
Chapter VI Charity Property
Article 51 The property of a charitable organization covers:
(1) original property donated and subsidized by the promoter;
(2) raised property; and
(3) other legal property.
Article 52 The property of a charitable organization shall all be used for charitable purposes according to the provisions of the constitution and the donation agreement, and shall not be distributed among the promoter, the donors and members of the charitable organization.
No organization or individual shall secretly share, misappropriate, withhold or encroach upon charity property.
Article 53 A charitable organization shall register and create archives on and strictly manage raised property, and use funds for their specified purposes only.
Where the physical goods donated by donors can hardly be stored, transported or directly used for charitable purposes, the charitable organization may, in accordance with the law, auction or sell off them in accordance with the law, and use all income for charitable purposes after deduction of necessary expenses.
Article 54 Where a charitable organization makes investment for the purpose of realizing property maintenance and appreciation, it shall observe the principles of legality, safety and efficiency, and use all income obtained from investment for charitable purposes. A major investment plan of a charitable organization shall be subject to the approval of two thirds or more of members of the decision-making body. The property subsidized by the government and the property that shall not be invested as agreed upon in a donation agreement shall not be used for investment. The person in charge and employees of a charitable organization shall not hold part-time positions or receive remuneration from an enterprise invested in by the charitable organization.
The specific measures for the matters prescribed in the preceding paragraph shall be developed by the civil affairs department of the State Council.
Article 55 A charitable organization that conducts charitable activities shall, in accordance with the provisions of laws and regulations, and its constitution, use donated property according to the fundraising plan or donation agreement. If the charitable organization really needs to change the use of donated property as specified in the donation plan, it shall report to the civil affairs department for recordation; and if it really needs to change the use of donated property as agreed upon in the donation agreement, it shall obtain the donor's approval.
Article 56 A charitable organization shall rationally design charity projects, optimize the implementation process, reduce operation cost, and enhance the charity property use efficiency.
The charitable organization shall establish project management rules, and track and supervise project implementation.
Article 57 Where there is any remaining donated property after the termination of a charity project, the property shall be disposed of according to the fundraising plan or donation agreement; and if the matter is not prescribed in the fundraising plan or agreed upon in the donation agreement, the charitable organization shall use the remaining property in any other charitable project with the same or similar objectives, and publicly disclose it.
Article 58 A charitable organization shall determine the beneficiary under the principles of openness, fairness and impartiality, and shall not designate any interested party of managers of the charitable organization as the beneficiary.
Article 59 A charitable organization may, as required, enter into an agreement with the beneficiary, specifying both parties' rights and obligations, and agreeing on the use and amount of charity property, and use methods, among others.
The beneficiary shall cherish the charitable donation, and use charity property according to the agreement. If the beneficiary fails to use the charity property according to the agreement or otherwise seriously violates the agreement, the charitable organization shall have the right to order the beneficiary to take corrective action; and if the beneficiary refuses to do so, the charitable organization shall have the right to terminate the agreement and require the beneficiary to return the property.
Article 60 A charitable organization shall actively conduct charitable activities, use charity property in a sufficient and efficient manner, observe the principle of most essential management expenses, practice strict economy, and reduce unnecessary cost. The annual expenditure of a foundation qualified to fundraise from the public among charitable organizations for conducting charitable activities shall not be lower than 70% of its total income in the last year or 70% of the average income in the last three years; the annual management expenses shall not exceed 10% of its total expenditure in the current year, and if annual management expenses hardly meet the aforesaid provisions under particular circumstances, the charitable organization shall report to the civil affairs department registering it and make an explanation to the public.
The standards for annual expenditure and management expenses for conducting charitable activities of a charitable organization other than foundations qualified to fundraise from the public shall be determined by the civil affairs department of the State Council jointly with the public finance, taxation and other departments of the State Council under the principle prescribed in the preceding paragraph.
Where the expenditures and management expenses for charitable activities in relation to a single donated asset are agreed upon in a donation agreement, the agreement shall apply.
Chapter VII Charitable Services
Article 61 For the purpose of this Law, “charitable services” means voluntary free services and other non-profit services provided by charitable organizations and other organizations and individuals to the public or other persons for charitable purposes.
A charitable organization may provide charitable services by itself or recruit volunteers to do so, or may authorize any other organization with service expertise to provide charitable services.
Article 62 Charitable services shall be provided by respecting the personal dignity of the beneficiary and volunteers, and the privacy of the beneficiary and volunteers shall not be infringed upon.
Article 63 Where professional skills are required for the provision of such charitable services as medical rehabilitation, education and training, the standards and procedures developed by the state or industry organization shall be implemented.
Where a charitable organization recruits volunteers to participate in the provision of charitable services which require special skills, it shall provide relevant training to volunteers.
Article 64 A charitable organization that recruits volunteers to participate in the provision of charitable services shall publish all information relating to charitable services, and inform all possible risks in the service process.
The charitable organization may, as required, enter into an agreement with a volunteer, specifying the rights and obligations of both parties, and agreeing on the service content, methods, and time, among others.
Article 65 A charitable organization shall conduct real-name registration of volunteers, and record the service time, content, evaluation and other information on volunteers. The charitable organization shall faithfully issue the certificate on voluntary service records free of charge at the request of volunteers.
Article 66 The charitable services that a charitable organization assigns a volunteer to provide shall be commensurate with the volunteer's age, educational background, skills and physical status.
Article 67 Volunteers that accept a charitable organization's arrangements to participate in the provision of charitable services shall obey management and receive necessary training.
Article 68 A charitable organization shall provide necessary conditions for volunteers' participation in the provision of charitable services, and guarantee volunteers' lawful rights and interests.
The charitable organization shall, before arranging volunteers' participation in the provision of charitable services with potential life risk, purchase corresponding personal accident insurance for volunteers.
Chapter VIII Information Disclosure
Article 69 The people's government at or above the county level shall establish and improve rules for the statistics and release of charity information.
The civil affairs department of the people's government at or above the county level shall, in a timely manner, make available to the public the charity information through the uniform information platform, and provide charity information release services free of charge.
The charitable organization and trustee of charitable trust shall release charity information on the platform prescribed in the preceding paragraph, and be responsible for the authenticity of the information.
Article 70 The civil affairs department of the people's government at or above the county level and other relevant departments shall, in a timely manner, make available to the public the following charity information:
(1) Registration matters of charitable organizations.
(2) Recordation matters of charitable trust.
(3) List of charitable organizations qualified to fundraise from the public.
(4) List of charitable organizations qualified to issue receipts on the pre-tax deduction of public welfare donations.
(5) Tax preferences and subsidies and other promotional measures for charitable activities.
(6) Information on the procurement of services from charitable organizations.
(7) Results of inspection and assessment of charitable organizations and charitable trust.
(8) Results of rewards to and punishments on charitable organizations and other organizations and individuals.
(9) Other information that shall be disclosed in accordance with laws and regulations.
Article 71 A charitable organization and the trustee of charitable trust shall perform the information disclosure obligation in accordance with the law. Information shall be disclosed in a true, complete and timely manner.
Article 72 A charitable organization shall publicly disclose its constitution, the information on the members of the decision-making, executive and supervision bodies and other information to be disclosed as required by the civil affairs department of the State Council. In the case of any major change in the aforesaid information, the charitable organization shall publicly disclose it in a timely manner.
The charitable organization shall, on an annual basis, publicly disclose its annual work reports and financial accounting reports. The financial accounting reports of charitable organizations qualified to fundraise from the public must be audited.
Article 73 A charitable organization qualified to fundraise from the public shall, on a periodical basis, publicly disclose the information on fundraising and the implementation of charity projects.
Where the term of an activity of fundraising from the public exceeds six months, the charitable organization shall disclose the fundraising information at least once every three months, and fully disclose the fundraising information within three months as of the completion of the fundraising activity.
Where a charity project has been implemented for six months or more, the charitable organization shall disclose the project implementation information at least once every three months, and fully disclose project implementation information and the use of raised money and other property within three months as of the completion of the project.
Article 74 A charitable organization that fundraises from specific objects shall, in a timely manner, inform the donors of the information on fundraising, and the management and use of raised money and other property.
Article 75 A charitable organization and the trustee of charitable trust shall inform the beneficiary of the subsidy standards, work flow, work standards, and other information.
Article 76 Such information as the information involving any state secret, trade secret or personal privacy, and the name, domicile and contact information which the donor or the principal of charitable trust is unwilling to disclose shall not be disclosed.
Chapter IX Promotional Measures
Article 77 The people's government at or above the county level shall, in light of economic and social development, develop the policies and measures for promoting the development of the charity cause.
The relevant departments of the people's government at or above the county level shall, within the scope of their respective functions, provide charity demand information to charitable organizations and the trustees of charitable trust, among others, and provide guidance and assistance for charitable activities.
Article 78 The civil affairs department of the people's government at or above the county level shall establish a mechanism for sharing charity information with other departments.
Article 79 Charitable organizations and the income they obtain shall enjoy tax preferences in accordance with the law.
Article 80 A natural person, legal person or any other organization that donates property for charitable activities shall enjoy tax preferences in accordance with the law. The excess of an enterprise's charity donation expenditures over the amount that is allowed by law to be deducted in the year in the calculation of the taxable income of enterprise income tax is allowed to be deducted within three years after carry-over when the taxable income is calculated.
The import tariff and import value-added tax on materials that are donated from overseas for charitable activities shall be reduced or waived in accordance with the law.
Article 81 The beneficiary that gets charity donations shall enjoy tax preferences in accordance with the law.
Article 82 Where any charitable organization, donor, or beneficiary enjoys tax preferences in accordance with the law, the relevant department shall handle the relevant formalities in a timely manner.
Article 83 Where a donor donates physical goods, negotiable securities, equities, or intellectual property rights to any charitable organization, the donor shall be exempted from the administrative expenses relating to the transfer of rights in accordance with the law.
Article 84 The state shall implement special preferential policies for charitable activities conducted for helping the poor and the needy.
Article 85 Where a charitable organization needs the land for charitable service facilities for the purpose of conducting charitable activities prescribed in item (1) or (2) of Article 3 of this Law, it may, in accordance with the law, apply for the use of state-owned allocated land or rural collectively-owned construction land. The use of the land for charitable service facilities shall not be changed without statutory procedures.
Article 86 The state shall provide financial policy support for the charity cause, and encourage financial institutions to provide financing, settlement and other financial services for charitable organizations and charitable trust.
Article 87 The people's governments at all levels and their relevant departments may, in accordance with the law, support qualified charitable organizations in providing services to the public by service procurement and other methods, and make available to the public the relevant information according to the laws and regulations on government procurement.
Article 88 The state shall take measures to carry forward the charity culture, and cultivate citizens' charity awareness.
Schools and other educational institutions shall include charity culture in the education and teaching content. The state encourages institutions of higher learning to cultivate charity professionals and supports institutions of higher learning and scientific research institutions in conducting charity theoretical research.
Broadcasting, television, newspaper and journal, Internet and other media entities shall actively conduct charitable public welfare publicity activities, popularize charity knowledge, and spread the charity culture.
Article 89 The state encourages enterprises, public institutions and other organizations to provide places and other conveniences for conducting charitable activities.
Article 90 With the beneficiary's consent, the donor may name the charity project donated by it or him for commemoration, and if approval is required by any law or regulation, the provisions shall apply.
Article 91 The state shall establish charity commendation rules, and natural persons, legal persons and other organizations that have made prominent contributions in the development of the charity cause shall be commended by people's governments at or above the county level or the relevant departments.
Chapter X Supervision and Administration
Article 92 The civil affairs department of the people's government at or above the county level shall perform functions in accordance with the law, conduct supervision and inspection of charitable activities, and provide guidance for charity industry organizations.
Article 93 The civil affairs department of the people's government at or above the county level shall have the right to take the following measures against any charitable organization which is suspected of violating the provisions of this Law:
(1) Conducting on-site inspection of the domicile of the charitable organization and the place of occurrence of charitable activities.
(2) Requiring the charitable organization to give an explanation, and consulting and duplicating the relevant materials.
(3) Investigating the information relating to supervision and administration from the entities and individuals relating to charitable activities.
(4) Inquiring about the charitable organization's financial accounts with the approval of the people's government at the same level.
(5) Other measures prescribed by laws and administrative regulations.
Article 94 When the civil affairs department of the people's government at or above the county level inspects or investigates any charitable organization, or the relevant entity or individual, there shall be at least two inspectors or investigators, who shall produce their legal certificates and the inspection or investigation notice.
Article 95 The civil affairs department of the people's government at or above the county level shall establish credit record rules for charitable organizations and their persons in charge, and announce them to the public.
The civil affairs department shall establish rules for the assessment of charitable organizations, encourage and support third-party agencies' assessment of charitable organizations, and announce the assessment results to the public.
Article 96 Charity industry organizations shall establish and improve industry standards, and strengthen industry self-discipline.
Article 97 Any entity or individual that finds any violation of law of any charitable organization or charitable trust may file a complaint or report with the civil affairs department, any other relevant department or charity industry organization. The civil affairs department, any other relevant department or charity industry organization shall, after receiving the complaint or report, investigate and handle it in a timely manner.
The state encourages the public and the media to supervise charitable activities, expose the fraudulent obtainment of property under the guise of charity or by counterfeiting any charitable organization and the violations of laws and regulations of charitable organizations and charitable trust, and play the role of public opinion and social supervision.
Chapter XI Legal Liability
Article 98 Where a charitable organization falls under any of the following circumstances, the civil affairs department shall order it to take corrective action within a prescribed time limit; and if it fails to do so, revoke its registration certificate and make an announcement thereon:
(1) Failing to conduct activities according to the charitable purposes.
(2) Secretly sharing, misappropriating, withholding or encroaching upon charity property.
(3) Accepting any donation under any additional conditions in violation of any law or regulation or against social ethnics; or setting on any beneficiary any additional conditions in violation of any law or regulation or against social ethnics.
Article 99 Where a charitable organization falls under any of the following circumstances, the civil affairs department shall give it a warning, and order it to take corrective action within a prescribed time limit; and if it fails to do so, order it to cease activities within a prescribed time limit and make rectification:
(1) Causing any loss of charity property in violation of the provision of Article 14 of this Law.
(2) Using any property prohibited from being invested for investment.
(3) Changing the use of donated property without approval.
(4) Violating the provision of Article 60 of this Law in terms of the standards for annual expenditures or management expenses for conducting charitable activities.
(5) Failing to perform the information disclosure obligation in accordance with the law.
(6) Failing to submit the annual work report or financial accounting report or report the fundraising plan for recordation in accordance with the law.
(7) Disclosing the personal privacy of any donor, volunteer or beneficiary, or the name, domicile, contact information or any other information which the donor or the principal of charitable trust is unwilling to disclose.
A charitable organization that divulges any state secret or trade secret in violation of the provision of this Law shall be punished in accordance with the provisions of relevant laws.
Where a charitable organization which has previously been punished for any circumstance prescribed in the preceding two paragraphs falls under any of the said circumstances within one year after it is punished in accordance with the law, or falls under any other serious circumstance, the civil affairs department shall revoke its registration certificate and make an announcement thereon.
Article 100 Where a charitable organization falls under any circumstance prescribed in Article 98 or 99 of this Law and has illegal income, the civil affairs department shall confiscate the income; and impose a fine of not less than 20,000 yuan but not more than 200,000 yuan on the directly responsible person in charge and other directly liable persons.
Article 101 Where anyone falls under any of the following circumstances in conducting any fundraising activity, the civil affairs department shall give a warning to the violator, order the violator to cease the fundraising activity, and order the violator to return the illegally raised property to the donor; and if the property can hardly be returned, the civil affairs department shall confiscate the property and transfer the property to any other charitable organization for charitable purposes, and impose a fine of not less than 20,000 yuan but not more than 200,000 yuan on the relevant organization or individual:
(1) Any organization or individual without the qualification for fundraising from the public fundraises from the public.
(2) Defrauding fundraising objects of donations or inducing them to make donations by fabricating facts or any other means.
(3) Apportioning or apportioning in disguise to any entity or individual.
(4) Obstructing the public order, enterprise's production and business operation, or residents' life.
Where any broadcasting, television, newspaper or journal, Internet service provider, or telecommunication operator fails to perform the verification obligation prescribed in Article 27 of this Law, the competent department shall give it a warning, and order it to take corrective action within a prescribed time limit; and if it fails to do so, circulate a notice of criticism on it.
Article 102 Where a charitable organization fails to issue donation receipts to the donors in accordance with the law, fails to issue the voluntary service record certificate to volunteers in accordance with the law, or fails to actively notify the relevant information to the donors in a timely manner, the civil affairs department shall give it a warning, and order it to take corrective action within a prescribed time limit; and if it fails to do so, order it to cease activities within a prescribed time limit.
Article 103 Where a charitable organization practices fraud to obtain tax preferences, the tax authority shall investigate and handle it in accordance with the law; and if the circumstances are serious, the civil affairs department shall revoke the organization's registration certificate and make an announcement thereon.
Article 104 Where a charitable organization conducts or subsidizes any activity that endangers national security or public interest, the relevant authority shall investigate and handle it in accordance with the law; and the civil affairs department shall revoke the organization's registration certificate and make an announcement thereon.
Article 105 Where the trustee of charitable trust falls under any of the following circumstances, the civil affairs department shall give it a warning, and order it to take corrective action within a prescribed time limit; if the trustee has any illegal income, the civil affairs department shall confiscate the income; and impose a fine of not less than 20,000 yuan but not more than 200,000 yuan on the directly responsible person in charge and other directly liable persons.
(1) Using the trust property and its proceeds for non-charitable purposes.
(2) Failing to report to the civil affairs department or disclose to the public the information on the handling of trust affairs and financial status as required.
Article 106 Where any damage is caused to the beneficiary or the third party due to the fault of any charitable organization or volunteer in the course of charitable services, the charitable organization shall assume the compensation liability in accordance with the law; and if the damage is caused by any volunteer due to his or her intentional misconduct or gross negligence, the charitable organization may claim compensation from the volunteer.
Where any volunteer suffers damage during the participation in the provision of charitable services due to the fault of any charitable organization, the charitable organization shall assume the compensation liability in accordance with the law; and if the damage is caused by force majeure, the charitable organization shall make appropriate compensation to the volunteer.
Article 107 Where any natural person, legal person or any other organization fraudulently obtains property under the guise of charity or by counterfeiting any charitable organization, the public security authority shall investigate and handle it in accordance with the law.
Article 108 Where the civil affairs department or any other relevant department of the people's government at or above the county level or any of its staff members falls under any of the following circumstances, the authority at the higher level or the supervisory authority shall order the violator to take corrective action; and if the violator should be given disciplinary action in accordance with the law, the appointment or removal authority or the supervisory authority shall take disciplinary actions against the directly responsible person in charge and other directly liable persons.
(1) Failing to perform the information disclosure obligation in accordance with the law.
(2) Apportioning any donation task or doing so in disguise, or forcibly designating any volunteer or charitable organization to provide services.
(3) Failing to perform supervision and administration functions in accordance with the law.
(4) Implementing compulsory administrative measures or imposing any administrative penalty in violation of any law.
(5) Secretly sharing, misappropriating, withholding or encroaching upon charity property.
(6) Any other conduct of abusing power, neglecting duty, practicing favoritism, or making falsification.
Article 109 Where anyone violates the provisions of this Law, which constitutes any violation of public security administration, the public security authority shall impose a public security administration punishment on the violator in accordance with the law; and if a crime is constituted, the offender shall be subject to criminal liability in accordance with the law.
Chapter XII Supplementary Provisions
Article 110 Urban and rural community organizations and entities may conduct mass mutual aid and relief activities within their communities and entities.
Article 111 The organizations other than charitable organizations may organize charitable activities to the best of their capabilities.
Article 112 This Law shall come into force on September 1, 2016.