Regulations of Shanghai Municipality on Donation Soliciting

· Document Number：Announcement No. 49 of the Standing Committee of Shanghai Municipal People’s Congress

· Area of Law： Civil Affairs

· Level of Authority： Provincial Local Regulations

· Date issued：06-07-2012

· Effective Date：09-01-2012

· Status： Effective

· Issuing Authority： Shanghai Municipality People's Congress (incl. Standing Committee)

Announcement of the Standing Committee of Shanghai Municipal People's Congress
(No. 49)
The Regulations of Shanghai Municipality on Donation Soliciting are adopted on June 7, 2012 at the 34th Session of the Standing Committee of the 13th Shanghai Municipal People's Congress, are hereby promulgated and shall come into effect as of September 1, 2012.
The Standing Committee of Shanghai Municipal People's Congress
June 7, 2012
Regulations of Shanghai Municipality on Donation Soliciting
(Adopted on June 7, 2012 at the 34th Session of the Standing Committee of the 13th Shanghai Municipal People's Congress)
Chapter I General Provisions
Article 1 With a view to regulating the donation-soliciting activities, protecting the legitimate rights and interests of the donors, donation-soliciting organizations, and beneficiaries, and promoting the development of public welfare undertakings, these Regulations are formulated in accordance with the provisions of relevant laws and administrative regulations, and in the light of the actual circumstances of this Municipality.
Article 2 These Regulations apply to the donation-soliciting activities conducted within the administrative area of this Municipality, and the relevant management activities thereof.
Article 3 The donation soliciting mentioned in these Regulations refers to the activities of soliciting properties from the public through persuasion for public-welfare purposes.
The public welfare undertakings mentioned in these Regulations refer to those non-profit items as follows:
1. salvation activities for social groups and individuals in difficulties including disaster relief, poverty relief, and disabled support;
2. such undertakings as education, science, culture, public health, sports activities;
3. environmental protection and the construction of public facilities; and
4. other social and public welfare undertakings that may promote social development and progress.
Article 4 The donation-soliciting organizations mentioned in these Regulations refer to the following organizations that can conduct donation-soliciting activities according to law:
1. Red Cross Society;
2. public foundations; and
3. social organizations registered according to law, taking the development of public welfare undertakings as the purpose, and providing services to the general public through such methods as subsidizing or voluntary services.
Where laws or administrative regulations have provisions on donation-soliciting activities of Red Cross Society or public foundations, such provisions shall prevail.
Article 5 The principles of legality and integrity, openness and transparency, and respect for the wishes of donors and beneficiaries shall be followed in the donation-soliciting activities.
Article 6 The municipal and district/county civil affairs departments shall be responsible for the services related to donation-soliciting activities within their respective administrative areas, and the supervision and administration thereof.
Relevant departments of finance, taxation, auditing, and public security shall, according to their respective functions and duties, jointly do well the services related to donation-soliciting activities, and the supervision and administration thereof.
Article 7 The people's governments at all levels shall encourage and assist donation-soliciting organizations to conduct donation-soliciting activities according to law.
Upon the approval of the Municipal People's Government, the vehicles transporting donated materials for rescue and relief work shall be exempted from vehicle tolls, and enjoy traffic convenience.
Article 8 Mass media such as broadcasting stations, television stations, newspapers and periodicals, internet websites shall actively publicize donation-soliciting activities, and provide convenience and preference for the release of donation-soliciting information.
Notarization organs shall offer preferential notarial fees for relevant donation-soliciting items.
Public places including parks, public cultural and sports places and stadiums shall provide convenience for the publicity and conduct of donation-soliciting activities.
Article 9 The municipal and district/county people's governments or relevant competent administrative departments shall commend those donors and donation-soliciting organizations that have made outstanding contributions to public welfare undertakings. The donors' opinions shall be solicited in advance in case of public recognition to donors.
Chapter II Donation-soliciting Activities
Article 10 Donation-soliciting organizations shall establish and perfect the internal management system, strengthen self-regulation, and conduct, according to law, those donation-soliciting activities in compliance with the purposes and business scope provided in their Articles of association.
Article 11 To conduct donation-soliciting activities, the donation-soliciting organization shall draw up donation-soliciting scheme, and complete the filing formalities with the district/county civil affairs department at the locality of donation-soliciting activities 10 work days before the start of the said activities. For those trans-district/county donation-soliciting activities, the filing formalities shall be completed with the municipal civil affairs department. The donation-soliciting scheme shall comply with the provisions of laws and regulations, and include the following contents:
1. name, purposes, time, duration, and geographic scope of the donation-soliciting activity;
2. amount of properties scheduled to collect;
3. collecting mode and mode of accepting donations; the locations and number of collection boxes to be installed shall be set out in case of using collection boxes to solicit donations;
4. plan for the use of properties collected; and
5. disbursement plan for operating cost.Where the donation-soliciting scheme fails to meet the provisions of the preceding clause, the municipal or district/county civil affairs departments shall, within 5 work days from the date of receiving the filing materials, put forward opinions and urge the donation-soliciting organization to make amendments and improvements.
The duration of donation-soliciting activity is generally not more than one year. Where the donation-soliciting activity needs to be continued after the expiry date, re-filing formalities shall be completed 5 work days before the expiry date.
Donation-soliciting organizations shall conduct donation-soliciting activities according to the donation-soliciting scheme filed. Where changes occur in the time, duration, geographic scope or mode defined in the donation-soliciting scheme, the donation-soliciting organization shall inform the municipal or district/county civil affairs department of the change in a timely manner.
Article 12 Where the filing formalities for emergency donation-soliciting activities in response to sudden natural disasters or accidents can not be completed before the start of such activities, the donation-soliciting organizations shall complete the filing formalities within 5 work days from the starting date of such donation-soliciting activities.
Article 13 Where donation-soliciting organizations jointly carry out donation-soliciting activities, a special account shall be opened, the money raised shall be earmarked for specified purposes only, and representatives assigned respectively by donation-soliciting organizations shall conduct the management jointly.
Where units or individuals other than donation-soliciting organizations need to conduct donation-soliciting activities for public-welfare purposes, they shall consult a donation-soliciting organization for agreement, and their donation-soliciting activities shall be organized by the donation-soliciting organization upon agreement according to the provisions of these Regulations.
Article 14 Donation-soliciting organizations may solicit donations through the following methods:
1. releasing donation-soliciting information on mass media including broadcasting stations, television stations, newspapers and periodicals, internet websites;
2. hosting charity performance, charity match, charity auction, or charity sale;
3. installing collection box; or
4. other methods provided by laws and regulations.
Where donation is solicited by means of installing collection boxes, donation-soliciting organizations shall formulate management system for collection boxes in advance, and define the procedures and behavioral requirements for opening collection boxes, counting money, paying money, and accounting.
Article 15 Donation-soliciting organizations may sign an agreement with their donors on the type, amount, and use of the donated properties, and may have such agreement notarized if necessary.
Where the donation-soliciting organization has signed an agreement with the donor, and the donor fails to perform or fully perform the agreement within the prescribed time limit, the donation-soliciting organization may demand for the performance; where the donor refuses to perform without justified reasons upon demand, the donation-soliciting organization may make public the relevant information, or may file a lawsuit to the people's court according to law.
The civil affairs department shall draw up model text of the agreement for the donation-soliciting organizations and donors to take reference.
Article 16 The donation-soliciting organizations that accept the donated properties shall, according to relevant provisions, issue to the donors the public welfare donation receipts uniformly printed by the finance department.
Where the donor waives the right to accept the receipt, the donation-soliciting organization shall make the record, and has the issued donation receipt archived for future reference.
Article 17 Donation-soliciting organizations shall not apportion or apportion in a disguised form to any units or individuals.
Donation-soliciting organizations shall not engage in profitable business operations.
The units and individuals other than the donation-soliciting organizations shall not independently conduct the donation-soliciting activities.
Chapter III Management and Use of Properties Collected
Article18 Donation-soliciting organizations shall set up special account for the money raised and such money shall be earmarked for specified purposes only; the non-monetary properties collected shall be recorded on a registration book and managed properly.
Donation-soliciting organizations shall use the properties collected according to the use plan defined in the donation-soliciting scheme.
Where the donation-soliciting organization reaches an agreement with the donor on the use of properties collected, such agreement shall be observed, and the use scope of properties collected shall not be arbitrarily changed; where it is necessary to change the use scope, the approval of the donor shall be obtained.
Article 19 The properties collected by donation-soliciting organizations and the corresponding value added are public properties belonging to the society under the protection of law, and shall not be distributed illegally, misappropriated, encroached upon or embezzled by any unit or individual.
Donation-soliciting organizations enjoy tax preference according to relevant provisions of the State.
Article 20 Donation-soliciting organizations shall, in full compliance with relevant provisions of the State, maintain and increase the value of the properties collected in accordance with the principles of legality, safety, and efficiency.
Article 21 Where the non-monetary properties collected including goods and materials, securities, and intellectual property rights need to be evaluated, the donation-soliciting organization and the donor shall, after consultation, entrust a professional assessment agency to conduct the evaluation; upon the approval of the donor, the donation-soliciting organization may, according to law, liquid the non-monetary properties collected through auction, transfer or other methods.
The expenses incurred in evaluation, auction or transfer may be charged as the operating cost; the donator may pay such expenses upon his/her own will.
Article 22 Expenditures used by the Red Cross Society or the public foundations for public welfare undertakings every year shall conform to relevant provisions of the State; the expenditures used by other donation-soliciting organizations for public welfare undertakings every year shall be not less than 70% of last year's revenue from donation.
Article 23 The necessary operating costs including wages and salaries, office expenses incurred in donation-soliciting activities or public welfare activities can be charged to the properties collected by the donation-soliciting organizations within the limit as provided by the regulations of the State; where the State has no relevant provisions, it shall be restricted within the items and standards of the chargeable operating costs defined by the released donation-soliciting scheme; those operating costs already charged to the financial allocation shall not be charged to the properties collected.
Donation-soliciting organizations shall practice austerity, and shall use all the properties collected and the corresponding value added for public welfare undertakings except for necessary operating costs.
Article 24 Donation-soliciting organizations shall inform the beneficiary of the source and use requirements of relevant properties when subsidizing the beneficiary with the properties collected, and shall supervise the use of such properties.
Where the beneficiary fails to use the properties collected in accordance with the use requirements, the donation-soliciting organization shall demand corrections; where the beneficiary refuses to make corrections, the donation-soliciting organization may terminate the subsidy, and require the beneficiary to return the properties collected.
Where the purpose of subsidy is realized or is impossible to be realized due to special circumstances, the donation-soliciting organization shall terminate the subsidy; where residual properties remain, the beneficiary or corresponding guardian shall return the residual properties to the donation-soliciting organization in a timely manner.
Article 25 Where residual properties remain after the properties collected are used in accordance with the plan or for agreed purposes, the donation-soliciting organizations shall, on the basis of respecting the wishes of the donor, use the residual properties for corresponding public welfare undertakings.
Article 26 Where the donation-soliciting organizations use the properties collected in response to major natural disasters or accidents, the properties collected shall be rationally used on the basis of respecting the wishes of the donor, and according to the information of disaster relief requirements released by relevant government departments, and the repeated input and waste of properties collected shall be avoided.
Article 27 Donation-soliciting organizations shall entrust, every year, a professional agency to conduct financial audit on the management and use of properties collected, and accept, according to law, the supervision from the administrative departments of civil affairs, and auditing.
Chapter IV Information Disclosure
Article 28 The municipal civil affairs department shall establish a unified online service platform for donation-soliciting information (hereinafter referred to as the Information Service Platform) to provide free donation-soliciting information service to the general public, accept inquiries, complaint, and tip-offs, and serve as the platform for the information disclosure of donation-soliciting organizations.
Article 29 Donation-soliciting organizations shall disclose their following basic information on the Information Service Platform:
1. name, address, and contact information;
2. purposes, and business scope; and
3. basic information of the institutional framework and the legal representative.
Article 30 Before the start of donation-soliciting activities, the donation-soliciting organizations shall make public the donation-soliciting scheme filed at the civil affairs department on the Information Service Platform.
The donation-soliciting organizations that conduct on-spot donation-soliciting activities shall also publicize the main contents of the donation-soliciting scheme at the site of activity; the donation-soliciting organizations that conduct donation-soliciting activities in other modes shall publicize the main contents of the donation-soliciting scheme on the carrier for releasing their donation-soliciting information.
Article 31 After the donation-soliciting activity, the donation-soliciting organization shall make public the donation-soliciting situation on the Information Service Platform in a timely manner, and the time limit for such publicity is 15 work days after the expiry date of the donation-soliciting activity defined in the donation-soliciting scheme.
The donation-soliciting situation shall include the following contents:
1. actual start and end time of the donation-soliciting activity;
2. type and amount of the properties collected;
3. name of the donors or donating units;
4. actual operating costs; and
5. other contents provided by laws and regulations.
Where it is impossible to itemize all the contents provided in Item 3 of the preceding clause or the donors request not to be disclosed, the reasons for such undisclosed act shall be stated.
Article 32 Donation-soliciting organizations shall make public the use information of properties collected on the Information Service Platform; in general, the use information of properties collected shall be disclosed not less than twice a year.
The use information of properties collected shall include the following contents:
1. total amount of the properties collected, and the information of the maintenance and appreciation of their value;
2. total use amount of properties collected, and the corresponding details;
3. amount of residual properties, and the corresponding use plan;
4. details of the operating cost charged; and
5. other contents provided by laws and regulations.
Article 33 Donation-soliciting organizations shall make public their own financial audit results of the previous year on the Information Service Platform before each June 30 every year.
Article 34 The donor is entitled to inquire the donation-soliciting organization for relevant information on the use of its donated properties, and the donation-soliciting organization shall make a reply within 10 work days; where the donor disagrees to the reply, he/she may ask the donation-soliciting organization to make verification; where the verification result is still controversial, the donor may apply to the civil affairs department to make verification according to law.
Article 35 The municipal and district/county civil affairs departments shall regularly make public the information including the development of donation-soliciting organizations, the supervision and administration over the donation-soliciting activities within their respective jurisdictions.
Article 36 Where the donor requires for not disclosing relevant information including its donation activity and the properties donated, the donation-soliciting organization shall respect the donor's wishes.
Donation-soliciting organizations shall respect the beneficiary's human dignity at the time of subsidization; those information concerning the beneficiary's privacy shall not be disclosed to the public without the beneficiary's consent.
Chapter V Supervision and Administration
Article 37 The civil affairs department shall strengthen supervision and inspection of the donation-soliciting activities conducted by donation-soliciting organizations; the illegal acts shall be investigated in a timely manner upon finding, and the handling shall be made public.
When conducting annual inspection on relevant donation-soliciting organizations, the civil affairs department shall focus on donation-soliciting organizations' donation-soliciting activities conducted according to law, management and use of the properties collected, and performance of the information disclosure obligation.
Article 38 The civil affairs department shall select a certain number of donation-soliciting organizations every year, entrust professional agencies to audit their management and use of the properties collected, and make public the audit results thereof.
Article 39 The auditing departments shall, according to relevant provisions of the State, audit the donation-soliciting organization's management and use of the properties solicited, and make public the audit results according to law.
The finance departments shall conduct supervision over and administration of the donation-soliciting organization's financial accounting and the use of public welfare donation notes.
Article 40 The general public and mass media are encouraged to conduct social supervision over the donation-soliciting activities.
Upon finding a donation-soliciting organization's illegal acts in donation-soliciting activities, or illegal donation-soliciting activities conducted by units or individuals other than donation-soliciting organizations, any unit or individual may complain or report to the civil affairs department or other relevant departments. The municipal civil affairs department shall set up a unified informant's hotline, and make public the telephone number.
Upon receiving the complaints or tip-offs, the civil affairs department and other relevant departments shall make verification and handle the case in a timely manner, and inform the complainant or informant of the result of handling.
Chapter VI Legal Liability
Article 41 Where laws or administrative regulations have penalty provisions on the acts violating the provisions of these Regulations, such provisions shall prevail.
Article 42 Where a donation-soliciting organization violates the provisions of these Regulations, and has one of the following acts, the civil affairs department shall give a warning, order the wrongdoer to make corrections, and may order the wrongdoer to suspend the activity within a prescribed time limit; where the case is serious, the registration shall be cancelled according to law:
1. failing to complete filing formalities in accordance with the requirements;
2. failing to conduct donation-soliciting activities in accordance with the time, duration, geographic scope, and modes defined in the donation-soliciting scheme;
3. conducting donation-soliciting activities not in compliance with the purposes and business scope provided in its Article of Association;
4. apportion or apportion in disguised form to units or individuals;
5. failing to perform the obligation of information disclosure or releasing false information;
6. annual expenditures for public welfare undertakings is lower than the required proportion; or
7. failing to reply to the donor's requirements for the information of the use of his/her donated properties within the prescribed time limit.
Where the acts mentioned in the preceding clause involve the properties illegally collected, the civil affairs department shall order the wrongdoer to return the properties to the donor.
Article 43 Where the units and individuals other than donation-soliciting organizations violate the provisions of Clause 3 of Article 17 of these Regulations, and conduct independently the donation-soliciting activities in public, the civil affairs department shall give a warning, order the wrongdoer to stop the activities and return the properties illegally collected to the donors, and may impose a fine of not more than one time of the amount of properties illegally collected.
Article 44 In case of violating the provisions of Clause 1 of Article 19 of these Regulations, distributing illegally, misappropriating, encroaching upon or embezzling the properties collected and the corresponding value added, the civil affairs department shall order the wrongdoer to return the properties, and impose a fine of not less than 10,000 yuan but not more than 30,000 yuan; those persons directly in charge and other directly liable persons shall be punished according to law; where the act constitutes a crime, the criminal liability shall be prosecuted according to law.
Article 45 Where the civil affairs department finds that it is impossible to return the involved properties illegally collected to the donors when handling relevant illegal acts in accordance with the provisions of these Regulations, it shall order the donation-soliciting organization provided in these Regulations to manage and use such properties.
Article 46 Where the civil affairs department and other relevant departments violate the provisions of these Regulations, and have one of the following acts, administrative sanctions shall be given to the persons directly in charge and the directly liable persons; where the act constitutes a crime, the criminal liability shall be prosecuted according to law:
1. failing to perform the duties of supervision and administration according to the provisions of these Regulations;
2. failing to make public the information of supervision and administration of relevant donation-soliciting activities according to the provisions of these Regulations;
3. failing to investigate in a timely manner, or shield or connive at the illegal acts upon finding;
4. failing to make verification of or handling the complaints or tip-offs received in a timely manner, or failing to inform the complainants or informants of the results of handling; or
5. other acts including abusing power, neglecting duties, or playing favoritism and committing irregularities.
Chapter VII Supplementary Provisions
Article 47 Where the units and the community grassroots autonomous organizations, under the entrustment of donation-soliciting organizations provided in these Regulations, solicit properties among the employees or community residents, they shall respect the will of the employees and residents, and observe the following provisions:
1. issue valid certificate to the donors;
2. make public the donation-soliciting scheme, donation-soliciting situation, and the management and use of the properties solicited within the unit or the community, and accept the supervision from the employees or residents; and
3. other requirements provided by laws and regulations.
Article 48 These Regulations shall be effective as of September 1, 2012.