Charity Law of the People's Republic of China

Chapter One General Principles

 

　　Article OneIn order to develop charitable undertakings, promote charitable culture, standardize charitable activities, protect the legitimate rights and interests of participants in charitable activities such as charitable organizations, donors, volunteers, and beneficiaries, promote social progress, and share development results, this law is formulated.

　　Article TwoNatural persons, legal persons, and other organizations engaging in charitable activities and activities related to charity shall be governed by this law. If other laws have special provisions, those provisions shall apply.

　　Article ThreeThe charitable activities referred to in this law are public welfare activities voluntarily carried out by natural persons, legal persons, and other organizations through means such as donating property or providing services:

(1) Poverty alleviation and assistance to the needy;

(2) Supporting the elderly, rescuing orphans, caring for the sick, assisting the disabled, and providing preferential treatment;

(3) Assisting in the damage caused by natural disasters, accidents, and public health incidents;

(4) Promoting the development of education, science, culture, health, sports, and other undertakings;

(5) Preventing and controlling pollution and other public hazards, protecting and improving the ecological environment;

(6) Other public welfare activities that comply with the provisions of this law.

　　Article FourCharitable activities shall adhere to the principles of legality, voluntariness, integrity, and non-profit, and shall not violate social ethics, endanger national security, or harm social public interests and the legitimate rights and interests of others.

　　Article FiveThe state encourages and supports natural persons, legal persons, and other organizations to practice the core socialist values, promote the traditional virtues of the Chinese nation, and carry out charitable activities in accordance with the law.

　　Article SixThe Ministry of Civil Affairs of the State Council is responsible for the national charitable work, and the civil affairs departments of local people's governments at or above the county level are responsible for charitable work within their administrative regions; relevant departments of the people's governments at or above the county level shall carry out related work within their respective responsibilities in accordance with this law and other relevant laws and regulations.

　　Article SevenSeptember 5 of each year is designated as "Chinese Charity Day."

 

　　Chapter Two Charitable Organizations

 

　　Article Eight The charitable organizations referred to in this law are non-profit organizations established in accordance with the law, aimed at carrying out charitable activities for the public.

Charitable organizations can take the form of foundations, social groups, social service agencies, and other organizational forms.

　　Article Nine Charitable organizations shall meet the following conditions:

(1) Aimed at carrying out charitable activities;

(2) Not for profit;

(3) Have their own name and domicile;

(4) Have organizational bylaws;

(5) Have necessary property;

(6) Have qualified organizational structure and responsible persons;

(7) Other conditions prescribed by laws and administrative regulations.

　　Article Ten　To establish a charitable organization, an application for registration shall be submitted to the civil affairs department of the people's government at or above the county level, which shall make a decision within thirty days from the date of acceptance of the application. If the conditions prescribed by this law are met, registration shall be granted and announced to the public; if the conditions prescribed by this law are not met, registration shall be denied and the reasons shall be explained in writing.

Non-profit organizations such as foundations, social groups, and social service agencies established before the promulgation of this law may apply to the civil affairs department for recognition as charitable organizations. The civil affairs department shall make a decision within twenty days from the date of acceptance of the application. If the conditions for charitable organizations are met, recognition shall be granted and announced to the public; if the conditions for charitable organizations are not met, recognition shall be denied and the reasons shall be explained in writing.

In special circumstances where an extension of the registration or recognition period is needed, it may be appropriately extended with the approval of the civil affairs department of the State Council, but the extension period shall not exceed sixty days.

　　Article Eleven　The bylaws of charitable organizations shall comply with the provisions of laws and regulations and shall specify the following matters:

　(1) Name and domicile;

(2) Organizational form;

(3) Purpose and scope of activities;

(4) Sources and composition of property;

(5) Composition and responsibilities of decision-making and executive bodies;

(6) Internal supervision mechanism;

(7) Property management and usage system;

(8) Project management system;

(9) Termination circumstances and liquidation methods after termination;

(10) Other important matters.

　　Article TwelveCharitable organizations shall establish and improve internal governance structures in accordance with laws, regulations, and the provisions of their bylaws, clarify responsibilities and authorities in decision-making, execution, supervision, and other aspects, and carry out charitable activities.

Charitable organizations shall implement a unified national accounting system, conduct accounting in accordance with the law, establish and improve accounting supervision systems, and accept supervision and management from relevant government departments.

　　Article Thirteen　Charitable organizations shall submit annual work reports and financial accounting reports to the civil affairs department where they are registered each year. The reports shall include information on annual fundraising and donation acceptance, management and use of charitable property, implementation of charitable projects, and salary and welfare conditions of charitable organization staff.

　　Article Fourteen　The initiators, major donors, and managers of charitable organizations shall not use their relationships to harm the interests of charitable organizations, beneficiaries, and social public interests.

The initiators, major donors, and managers of charitable organizations shall not participate in decision-making related to transactions with the charitable organization, and the relevant transaction information shall be made public.

　　Article Fifteen　Charitable organizations must not engage in or fund activities that harm national security and social public interests, must not accept donations with conditions that violate laws and regulations or go against social ethics, and must not impose conditions on beneficiaries that violate laws and regulations or go against social ethics.

　　Article 16　Those who have any of the following circumstances shall not serve as the head of a charitable organization:

(1) Those without civil capacity or with limited civil capacity;

(2) Those who have been sentenced to criminal punishment for intentional crimes and have not exceeded five years from the completion of the punishment;

(3) Those who served as heads of organizations whose registration certificates have been revoked or that have been banned, and have not exceeded five years from the date of revocation or ban;

(4) Other circumstances as stipulated by laws and administrative regulations.

　　Article 17　A charitable organization should terminate under any of the following circumstances:

(1) When the circumstances for termination as stipulated in the articles of association occur;

(2) When termination is required due to division or merger;

(3) When it has not engaged in charitable activities for two consecutive years;

(4) When it has been legally revoked or its registration certificate has been canceled;

(5) Other circumstances that should be terminated as stipulated by laws and administrative regulations.

　　Article 18When a charitable organization terminates, it should conduct liquidation.

The decision-making body of the charitable organization should establish a liquidation group within thirty days from the occurrence of the termination circumstances as stipulated in Article 17 of this law to conduct liquidation and announce it to the public. If a liquidation group is not established or does not perform its duties, the civil affairs department may apply to the people's court to designate relevant personnel to form a liquidation group for liquidation.

The remaining property after the liquidation of the charitable organization should be transferred to charitable organizations with the same or similar purposes according to the provisions of the articles of association; if not specified in the articles of association, it should be presided over by the civil affairs department and transferred to charitable organizations with the same or similar purposes, and announced to the public.

After the liquidation of the charitable organization is completed, it should handle the cancellation of registration with the civil affairs department where it is registered, and the civil affairs department should announce it to the public.

　　Article 19Charitable organizations shall establish industry organizations in accordance with the law.

　　Charitable industry organizations should reflect industry demands, promote industry communication, enhance the credibility of the charitable industry, and promote the development of charitable causes.

　　Article 20　The organizational form and specific methods for registration management of charitable organizations shall be formulated by the State Council.

 

Chapter 3 Charitable Fundraising

 

　　Article 21　The charitable fundraising referred to in this law refers to the activities of charitable organizations raising property based on charitable purposes.

　　Charitable fundraising includes public fundraising aimed at the general public and targeted fundraising aimed at specific objects.

　　Article 22　Charitable organizations conducting public fundraising must obtain public fundraising qualifications. Charitable organizations that have been registered for more than two years may apply to the civil affairs department where they are registered for public fundraising qualifications. The civil affairs department shall make a decision within twenty days from the date of accepting the application. If the charitable organization meets the conditions of sound internal governance structure and standardized operation, a public fundraising qualification certificate shall be issued; if it does not meet the conditions, a public fundraising qualification certificate shall not be issued, and the reasons shall be explained in writing.

　Foundations and social groups that are allowed to conduct public fundraising from the date of registration as stipulated by laws and administrative regulations shall be directly issued public fundraising qualification certificates by the civil affairs department.

　　Article 23　Public fundraising can be conducted in the following ways:

(1) Setting up donation boxes in public places;

(2) Organizing charity performances, competitions, sales, exhibitions, auctions, charity galas, etc. aimed at the general public;

(3) Publishing fundraising information through media such as radio, television, newspapers, and the internet;

(4) Other public fundraising methods.

If charitable organizations conduct public fundraising in the manner specified in the first and second items of the preceding paragraph, it should be carried out within the jurisdiction of the civil affairs department where they are registered. If it is necessary to conduct fundraising activities outside the jurisdiction of the civil affairs department where they are registered, it should be filed with the civil affairs department of the people's government at or above the county level where the fundraising activity is conducted. Donors' donation behaviors are not restricted by region.

If charitable organizations conduct public fundraising through the internet, they should publish fundraising information on the unified or designated charitable information platform of the civil affairs department of the State Council, and may also publish fundraising information on their own websites.

　　Article 24　When conducting public fundraising, a fundraising plan should be formulated. The fundraising plan includes the purpose of fundraising, start and end time and region, name and office address of the person in charge of the activity, methods of accepting donations, bank account, beneficiaries, use of raised funds, fundraising costs, handling of remaining property, etc.

The fundraising plan should be filed with the civil affairs department where the charitable organization is registered before conducting fundraising activities.

　　Article 25　When conducting public fundraising, the name of the fundraising organization, public fundraising qualification certificate, fundraising plan, contact information, and methods for querying fundraising information should be prominently displayed at the fundraising activity site or on the fundraising activity carrier.

　　Article 26　Organizations or individuals that do not have public fundraising qualifications may cooperate with charitable organizations that have public fundraising qualifications for charitable purposes, allowing the charitable organization to conduct public fundraising and manage the raised funds.

　　Article 27　Broadcasting, television, newspapers, and internet service providers, as well as telecommunications operators, should verify the registration certificates and public fundraising qualification certificates of charitable organizations conducting public fundraising using their platforms.

　　Article 28　Charitable organizations may conduct targeted fundraising from the date of their registration.

Charitable organizations conducting targeted fundraising should do so within a specific group of individuals such as initiators, council members, and members, and should explain the purpose of the fundraising and the use of the funds raised to the donors.

　　Article 29　Targeted fundraising must not adopt or indirectly adopt the methods specified in Article 23 of this law.

　　Article 30　In the event of major natural disasters, accidents, and public health emergencies that require rapid assistance, the relevant people's government should establish a coordination mechanism, provide demand information, and timely and orderly guide the fundraising and rescue activities.

　　Article 31　Fundraising activities should respect and protect the legal rights and interests of the donors, ensure the right to know of the donors, and must not deceive or induce donors to make donations through fabricating facts or other means.

　　Article 32　Fundraising activities must not impose or indirectly impose contributions, and must not disrupt public order, business operations, or residents' lives.

　　Article 33　No organization or individual may falsely use the name of charity or impersonate a charitable organization to conduct fundraising activities to defraud property.

 

Chapter 4 Charitable Donations

 

　　Article 34　Charitable donations referred to in this law are activities in which natural persons, legal persons, and other organizations voluntarily and gratuitously donate property for charitable purposes.

　　Article 35　Donors can donate through charitable organizations or directly to beneficiaries.

　　Article 36　The property donated by the donor must be legal property that they have the right to dispose of. Donated property includes cash, physical goods, real estate, securities, equity, intellectual property, and other tangible and intangible assets.

The physical goods donated by the donor should have practical value and meet safety, health, and environmental protection standards.

If the donor donates products from their own enterprise, they must legally assume product quality responsibilities and obligations.

　　Article 37　Natural persons, legal persons, and other organizations conducting performances, competitions, sales, auctions, and other commercial activities, promising to use all or part of the proceeds for charitable purposes, must sign a donation agreement with charitable organizations or other recipients before holding the activity, and fulfill the donation obligations according to the donation agreement after the activity ends, and publicly disclose the donation situation.

　　Article 38　Charitable organizations accepting donations should issue donation receipts uniformly monitored (stamped) by the financial department to the donors. The donation receipt should specify the donor, the type and quantity of donated property, the name of the charitable organization, the name of the handler, the date of the receipt, etc. If the donor wishes to remain anonymous or waives the receipt, the charitable organization should keep relevant records.

　　Article 39　If a donor requests a written donation agreement when making a donation to a charitable organization, the charitable organization should sign a written donation agreement with the donor.

　　The written donation agreement includes the names of the donor and the charitable organization, the type, quantity, quality, purpose, and delivery time of the donated property.

　　Article 40　When the donor and the charitable organization agree on the use of the donated property and the beneficiaries, the donor must not designate their related parties as beneficiaries.

No organization or individual may use charitable donations to promote tobacco products in violation of legal provisions, nor may they use charitable donations to promote products and matters prohibited by law in any way.

　　Article 41　Donors should fulfill their donation obligations according to the donation agreement. If the donor fails to deliver the donated property on time in violation of the donation agreement, and one of the following circumstances occurs, the charitable organization or other recipients may request delivery; if the donor refuses to deliver, the charitable organization and other recipients may apply to the people's court for a payment order or file a lawsuit:

(1) The donor publicly promises to donate through media such as radio, television, newspapers, and the internet;

(2) The donated property is used for charitable activities specified in items 1 to 3 of Article 3 of this law, and a written donation agreement is signed.

If the donor's economic situation significantly deteriorates after publicly promising to donate or signing a written donation agreement, severely affecting their production and operation or family life, they may no longer fulfill their donation obligations after reporting to the civil affairs department at the place of public commitment or where the written donation agreement was signed and publicly explaining the situation.

　　Article 42　Donors have the right to inquire about and copy relevant materials regarding the management and use of their donated property, and charitable organizations should promptly and proactively provide feedback to donors.

If a charitable organization violates the agreed use of the donation agreement and abuses the donated property, the donor has the right to request correction; if the organization refuses to correct, the donor may complain to or report to the civil affairs department or file a lawsuit in the people's court.

　　Article 43　State-owned enterprises implementing charitable donations must comply with relevant regulations on state-owned asset management and follow approval and filing procedures.

 

Chapter 5 Charitable Trusts

 

　　Article 44　Charitable trusts referred to in this law belong to public welfare trusts, which are acts in which the trustee, based on charitable purposes, legally entrusts their property to the trustee, who manages and disposes of it in accordance with the wishes of the trustee and conducts charitable activities.

　　Article 45　Establishing a charitable trust, determining the trustee and supervisor, should be in written form. The trustee should file the relevant documents with the civil affairs department of the county-level or higher people's government where the trustee is located within seven days from the date of signing the charitable trust document.

If the relevant documents are not filed with the civil affairs department as stipulated in the previous paragraph, tax benefits will not be enjoyed.

　　Article 46　The trustee of a charitable trust may be determined by the trustor to be a charitable organization or trust company that they trust.

　　Article 47　If the trustee of a charitable trust violates trust obligations or is unable to perform their duties, the trustor may change the trustee. The new trustee shall report the change to the original registered civil affairs department for re-registration within seven days from the date of the change.

　　Article 48　The trustee of a charitable trust shall manage and dispose of trust property in accordance with the purpose of the trust, diligently perform their duties, and fulfill the obligations of honesty and prudent management.

The trustee of a charitable trust shall report to the trustor in a timely manner on the handling of trust affairs and the management and use of trust property according to the trust documents and the trustor's requirements. The trustee of a charitable trust shall report the handling of trust affairs and financial status to the civil affairs department where it is registered at least once a year and make it public.

　　Article 49　The trustor of a charitable trust may determine a trust supervisor as needed.

The trust supervisor supervises the actions of the trustee and legally protects the rights and interests of the trustor and beneficiaries. If the trust supervisor finds that the trustee has violated trust obligations or is unable to perform their duties, they shall report to the trustor and have the right to file a lawsuit in their own name in the people's court.

　　Article 50　For matters not specified in this chapter regarding the establishment of charitable trusts, management of trust property, parties to the trust, termination and liquidation of the trust, the relevant provisions of this law shall apply; for matters not specified in this law, the relevant provisions of the "Trust Law of the People's Republic of China" shall apply.

 

Chapter 6 Charitable Property

 

　　Article 51The property of charitable organizations includes:

　　(1) The founding property donated or funded by the initiators;

(2) The property raised;

(3) Other legal property.

　　Article 52　The property of charitable organizations shall be used entirely for charitable purposes according to the provisions of the articles of association and donation agreements, and shall not be distributed among the initiators, donors, or members of the charitable organization.

No organization or individual may privately distribute, misappropriate, withhold, or occupy charitable property.

　　Article 53　Charitable organizations shall register and strictly manage the raised property, using it exclusively for its intended purpose.

If the donated physical items are difficult to store, transport, or directly use for charitable purposes, the charitable organization may auction or sell them according to the law, and the income, after deducting necessary expenses, shall be used entirely for charitable purposes.

　　Article 54　Charitable organizations shall follow the principles of legality, safety, and effectiveness when investing to preserve and increase the value of their property, and all income from investments shall be used entirely for charitable purposes. Major investment plans of charitable organizations shall be approved by more than two-thirds of the members of the decision-making body. Property funded by the government and property that cannot be invested as stipulated in donation agreements shall not be used for investment. The leaders and staff of charitable organizations shall not hold concurrent positions or receive remuneration in enterprises invested in by the charitable organization.

　The specific methods for the matters specified in the preceding paragraph shall be formulated by the civil affairs department of the State Council.

　　Article 55　Charitable organizations shall carry out charitable activities in accordance with laws, regulations, and the provisions of their articles of association, using donated property according to the fundraising plan or donation agreement. If a charitable organization needs to change the use of donated property specified in the fundraising plan, it shall report to the civil affairs department for record; if it needs to change the use of donated property specified in the donation agreement, it shall obtain the consent of the donor.

　　Article 56　Charitable organizations shall reasonably design charitable projects, optimize implementation processes, reduce operating costs, and improve the efficiency of charitable property use.

Charitable organizations shall establish project management systems to track and supervise the implementation of projects.

　　Article 57　If there are remaining donated properties after the termination of charitable projects, they shall be handled according to the fundraising plan or donation agreement; if not specified in the fundraising plan or donation agreement, the charitable organization shall use the remaining property for other charitable projects with the same or similar purposes and make it public.

　　Article 58　When determining charitable beneficiaries, charitable organizations shall adhere to the principles of openness, fairness, and justice, and shall not designate individuals with interests related to the management personnel of the charitable organization as beneficiaries.

　　Article 59　Charitable organizations may sign agreements with beneficiaries as needed to clarify the rights and obligations of both parties, specifying the use, amount, and method of using charitable property.

Beneficiaries shall cherish charitable assistance and use charitable property according to the agreement. If beneficiaries do not use charitable property according to the agreement or have other serious violations of the agreement, the charitable organization has the right to request correction; if the beneficiaries refuse to correct, the charitable organization has the right to terminate the agreement and demand the return of the property.

　　Article 60　Charitable organizations shall actively carry out charitable activities, fully and efficiently utilize charitable property, and adhere to the principle of minimizing management costs, practicing thrift, and reducing unnecessary expenditures. The annual expenditure of foundations with public fundraising qualifications for charitable activities shall not be less than seventy percent of the total income of the previous year or seventy percent of the average amount of income for the previous three years; annual management costs shall not exceed ten percent of the total expenditure for that year. In special circumstances, if annual management costs cannot meet the aforementioned requirements, they shall report to the civil affairs department where they are registered and publicly explain the situation.

The standards for annual expenditures and management costs of charitable organizations other than foundations with public fundraising qualifications shall be formulated by the civil affairs department of the State Council in conjunction with the Ministry of Finance, the State Administration of Taxation, and other departments according to the principles specified in the preceding paragraph.

If the donation agreement specifies expenditures and management costs for individual donated property charitable activities, they shall be followed according to the agreement.

 

Chapter 7 Charitable Services

 

　　Article 61　The charitable services referred to in this law are voluntary and unpaid services provided by charitable organizations, other organizations, and individuals based on charitable purposes to society or others, as well as other non-profit services.

Charitable organizations can provide charitable services themselves, recruit volunteers to provide them, or entrust other organizations with service expertise to provide them.

　　Article 62　In carrying out charitable services, the dignity of the beneficiaries and volunteers must be respected, and the privacy of the beneficiaries and volunteers must not be infringed.

　　Article 63　For charitable services such as medical rehabilitation and education training that require specialized skills, national or industry organization standards and procedures must be followed.

When charitable organizations recruit volunteers to participate in charitable services that require specialized skills, they should provide relevant training to the volunteers.

　　Article 64　Charitable organizations recruiting volunteers to participate in charitable services must disclose all information related to the charitable services and inform of the risks that may occur during the service.

Charitable organizations may sign agreements with volunteers as needed to clarify the rights and obligations of both parties, and to specify the content, method, and time of the service.

　　Article 65　Charitable organizations should register volunteers in real names, recording information such as the service time, content, and evaluation of the volunteers. According to the volunteers' requests, charitable organizations should issue proof of volunteer service records free of charge and truthfully.

　　Article 66　When arranging volunteers to participate in charitable services, charitable organizations should ensure that the arrangements are appropriate to the volunteers' age, education level, skills, and physical condition.

　　Article 67　Volunteers participating in charitable services arranged by charitable organizations should comply with management and accept necessary training.

　　Article 68　Charitable organizations should provide necessary conditions for volunteers participating in charitable services and protect the legal rights and interests of volunteers.

Before arranging volunteers to participate in charitable services that may pose personal danger, charitable organizations should purchase corresponding personal accident insurance for the volunteers.

 

Chapter 8 Information Disclosure

 

　　Article 69　People's governments at or above the county level should establish and improve the statistical and publication system for charitable information.

The civil affairs departments of people's governments at or above the county level should promptly disclose charitable information to the public on a unified information platform and provide charitable information publication services free of charge.

Charitable organizations and trustees of charitable trusts should publish charitable information on the platform specified in the previous paragraph and be responsible for the authenticity of the information.

　　Article 70　The civil affairs departments of people's governments at or above the county level and other relevant departments should promptly disclose the following charitable information to the public:

(1) Registration matters of charitable organizations;

　　(2) Filing matters of charitable trusts;

(3) List of charitable organizations qualified for public fundraising;

(4) List of charitable organizations qualified to issue tax deduction receipts for public donations;

(5) Tax incentives, funding subsidies, and other promotional measures for charitable activities;

(6) Information on purchasing services from charitable organizations;

(7) Results of inspections and evaluations of charitable organizations and charitable trusts;

(8) Recognition and punishment results for charitable organizations, other organizations, and individuals;

(9) Other information that should be disclosed according to laws and regulations.

　　Article 71　Charitable organizations and trustees of charitable trusts should fulfill their obligations of information disclosure in accordance with the law. Information disclosure should be truthful, complete, and timely.

　　Article 72　Charitable organizations should publicly disclose their organizational bylaws and information about decision-making, execution, and supervisory members, as well as other information required to be disclosed by the civil affairs department of the State Council. If there are significant changes to the above information, charitable organizations should promptly disclose it to the public.

Charitable organizations should publicly disclose their annual work reports and financial accounting reports every year. The financial accounting reports of charitable organizations qualified for public fundraising must be audited.

　　Article 73　Charitable organizations qualified for public fundraising should regularly disclose their fundraising situation and the implementation status of charitable projects to the public.

For public fundraising periods exceeding six months, the fundraising situation should be disclosed at least once every three months, and a comprehensive disclosure of the fundraising situation should be made within three months after the fundraising activity ends.

For charitable projects with implementation periods exceeding six months, the implementation status of the project should be disclosed at least once every three months, and a comprehensive disclosure of the project implementation status and the use of funds raised should be made within three months after the project ends.

　　Article 74　When charitable organizations carry out targeted fundraising, they should promptly inform donors of the fundraising situation and the management and use of the funds raised.

　　Article 75　Charitable organizations and trustees of charitable trusts should inform beneficiaries of their funding standards, work processes, and work specifications.

　　Article 76　Information involving state secrets, commercial secrets, personal privacy, and information such as the names, titles, addresses, and contact methods of donors and the entrustors of charitable trusts that the donors do not agree to disclose must not be made public.

 

Chapter 9 Promotion Measures

 

　　Article 77　People's governments at or above the county level should formulate policies and measures to promote the development of charitable undertakings based on the economic and social development situation.

Relevant departments of people's governments at or above the county level should provide charitable demand information to charitable organizations, trustees of charitable trusts, etc., within their respective responsibilities, to guide and assist charitable activities.

　　Article 78　The civil affairs departments of people's governments at or above the county level should establish a charitable information sharing mechanism with other departments.

　　Article 79　Charitable organizations and their income shall enjoy tax benefits in accordance with the law.

　　Article 80　Individuals, legal persons, and other organizations that donate property for charitable activities shall enjoy tax benefits in accordance with the law. If corporate charitable donations exceed the amount allowed to be deducted from taxable income for corporate income tax in the current year, the excess may be carried forward and deducted from taxable income within the next three years.

Imported materials donated from abroad for charitable activities shall be subject to reduced or exempted import duties and value-added tax.

　　Article 81　Beneficiaries receiving charitable donations shall enjoy tax benefits in accordance with the law.

　　Article 82　Charitable organizations, donors, and beneficiaries that enjoy tax benefits in accordance with the law shall have relevant departments handle related procedures in a timely manner.

　　Article 83　Donors who donate physical goods, securities, equity, and intellectual property to charitable organizations shall be exempt from relevant administrative fees for rights transfer in accordance with the law.

　　Article 84　The state implements special preferential policies for charitable activities aimed at poverty alleviation.

　　Article 85　Charitable organizations that conduct charitable activities as specified in items 1 and 2 of Article 3 of this law and require land for charitable service facilities may apply to use state-owned allocated land or rural collective construction land in accordance with the law. The use of land for charitable service facilities shall not be changed without legal procedures.

　　Article 86　The state provides financial policy support for charitable causes, encouraging financial institutions to provide financing and settlement services for charitable organizations and charitable trusts.

　　Article 87　People's governments at all levels and their relevant departments may support eligible charitable organizations in providing services to society through means such as purchasing services, and shall publicly disclose relevant information in accordance with the laws and regulations on government procurement.

　　Article 88The state takes measures to promote charitable culture and cultivate citizens' awareness of charity.

Educational institutions such as schools shall incorporate charitable culture into their educational content. The state encourages higher education institutions to cultivate professionals in charity and supports higher education institutions and research institutions in conducting theoretical research on charity.

Media such as radio, television, newspapers, and the internet shall actively carry out charitable public welfare publicity activities, popularize charitable knowledge, and spread charitable culture.

　　Article 89　The state encourages enterprises, public institutions, and other organizations to provide venues and other conveniences for charitable activities.

　　Article 90　With the consent of the beneficiary, the donor may name the charitable project they donated to for commemoration; if approval is required by laws and regulations, such provisions shall be followed.

　　Article 91The state establishes a charitable recognition system to commend individuals, legal persons, and other organizations that have made outstanding contributions to the development of charitable causes, which shall be recognized by people's governments at the county level or above or relevant departments.

 

Chapter 10 Supervision and Management

 

　　Article 92　The civil affairs departments of people's governments at or above the county level shall perform their duties in accordance with the law, supervise and inspect charitable activities, and guide charitable industry organizations.

　　Article 93　The civil affairs departments of people's governments at or above the county level have the right to take the following measures against charitable organizations suspected of violating the provisions of this law:

(1) Conduct on-site inspections of the residence of the charitable organization and the location of charitable activities;

　　(2) Require the charitable organization to provide explanations and review or copy relevant materials;

(3) Investigate and supervise the situation related to charitable activities with relevant units and individuals;

(4) With the approval of the people's government at the same level, access the financial accounts of the charitable organization;

(5) Other measures prescribed by laws and administrative regulations.

　　Article 94　When the civil affairs departments of people's governments at or above the county level conduct inspections or investigations of charitable organizations, relevant units, and individuals, the inspectors or investigators shall not be less than two persons and shall present legal credentials and inspection or investigation notices.

　　Article 95　The civil affairs departments of people's governments at or above the county level shall establish a credit record system for charitable organizations and their responsible persons and make it public.

The civil affairs departments shall establish an evaluation system for charitable organizations, encourage and support third-party organizations to evaluate charitable organizations, and publicly disclose the evaluation results.

　　Article 96　Charitable industry organizations shall establish and improve industry norms and strengthen industry self-discipline.

　　Article 97　Any unit or individual that discovers illegal activities by charitable organizations or charitable trusts may file complaints or reports to civil affairs departments, other relevant departments, or charitable industry organizations. Civil affairs departments, other relevant departments, or charitable industry organizations shall promptly investigate and handle complaints or reports received.

The state encourages the public and media to supervise charitable activities, expose fraudulent activities that misappropriate charitable names or impersonate charitable organizations to obtain property, as well as illegal and irregular behaviors of charitable organizations and charitable trusts, and play a role in public opinion and social supervision.

 

Chapter 11 Legal Responsibilities

 

　　Article 98　If a charitable organization has any of the following circumstances, the civil affairs department shall order it to make corrections within a specified time; if it fails to make corrections within the time limit, its registration certificate shall be revoked and announced:

(1) Failing to carry out activities in accordance with charitable purposes;

(2) Diverting, misappropriating, withholding, or occupying charitable property;

(3) Accepting donations with additional conditions that violate laws and regulations or social ethics, or imposing additional conditions that violate laws and regulations or social ethics on beneficiaries.

　　Article 99　If a charitable organization has any of the following circumstances, the civil affairs department shall issue a warning and order it to make corrections within a specified time; if it fails to make corrections within the time limit, it shall be ordered to suspend activities and rectify:

(1) Causing losses to charitable property in violation of the provisions of Article 14 of this law;

(2) Using property that is not allowed to be invested for investment;

(3) Unilaterally changing the purpose of donated property;

(4) The annual expenditure or management cost standards for charitable activities violate the provisions of Article 60 of this law;

(5) Failing to fulfill the obligation of information disclosure in accordance with the law;

(6) Failing to submit annual work reports, financial accounting reports, or file fundraising plans as required by law;

(7) Disclosing the personal privacy of donors, volunteers, beneficiaries, and the names, titles, addresses, contact methods, etc. of donors and trustees of charitable trusts that the donors and trustees do not agree to disclose.

If a charitable organization violates the provisions of this law and discloses state secrets or commercial secrets, it shall be punished in accordance with relevant laws.

If a charitable organization has the circumstances specified in the previous two paragraphs and reappears within one year after being legally dealt with, or has other serious circumstances, the civil affairs department shall revoke its registration certificate and announce it.

　　Article 100　If a charitable organization has the circumstances specified in Articles 98 and 99 of this law and has illegal income, the civil affairs department shall confiscate it; a fine of more than 20,000 yuan and less than 200,000 yuan shall be imposed on the directly responsible persons in charge and other directly responsible personnel.

　　Article 101　If any of the following circumstances occur during fundraising activities, the civil affairs department shall issue a warning and order the cessation of fundraising activities; for illegally raised property, it shall be ordered to be returned to the donor; if it is difficult to return, it shall be confiscated by the civil affairs department and transferred to other charitable organizations for charitable purposes; a fine of more than 20,000 yuan and less than 200,000 yuan shall be imposed on the relevant organizations or individuals:

(1) Organizations or individuals that do not have the qualification for public fundraising conduct public fundraising;

(2) Deceiving or inducing donors through fabricated facts or other means;

(3) Allocating or disguised allocating donations to units or individuals;

(4) Disturbing public order, enterprise production and operation, or residents' lives.

If broadcasting, television, newspapers, and network service providers, and telecommunications operators fail to fulfill the verification obligations stipulated in Article 27 of this law, their competent departments shall issue a warning and order corrections within a specified time; if they fail to make corrections within the time limit, they shall be criticized in a public notice.

　　Article 102　If a charitable organization fails to issue donation receipts to donors in accordance with the law, fails to issue volunteer service records to volunteers, or fails to timely and proactively feedback relevant information to donors, the civil affairs department shall issue a warning and order corrections within a specified time; if it fails to make corrections within the time limit, it shall be ordered to suspend activities.

　　Article 103　If a charitable organization engages in fraud to obtain tax benefits, it shall be investigated and dealt with by the tax authorities in accordance with the law; if the circumstances are serious, the civil affairs department shall revoke its registration certificate and announce it.

　　Article 104　If a charitable organization engages in or funds activities that endanger national security or social public interests, it shall be investigated and dealt with by the relevant authorities in accordance with the law, and the civil affairs department shall revoke its registration certificate and announce it.

　　Article 105　If a trustee of a charitable trust has any of the following circumstances, the civil affairs department shall issue a warning and order corrections within a specified time; if there is illegal income, it shall be confiscated by the civil affairs department; a fine of more than 20,000 yuan and less than 200,000 yuan shall be imposed on the directly responsible persons in charge and other directly responsible personnel:

(1) Using trust property and its income for non-charitable purposes;

(2) Failing to report the handling of trust affairs and financial status to the civil affairs department or disclose it to the public as required.

Article 106In the process of charitable services, if the charitable organization or volunteers cause damage to beneficiaries or third parties due to negligence, the charitable organization shall bear the liability for compensation according to law; if the damage is caused by the intentional or gross negligence of the volunteers, the charitable organization may seek compensation from them.

If volunteers suffer damage due to the negligence of the charitable organization during the process of participating in charitable services, the charitable organization shall bear the liability for compensation according to law; if the damage is caused by force majeure, the charitable organization shall provide appropriate compensation.

　　Article 107　If individuals, legal persons, or other organizations fraudulently obtain property under the guise of charity or impersonate charitable organizations, they shall be investigated and dealt with by the public security organs in accordance with the law.

　　Article 108　If the civil affairs department and other relevant departments and their staff at the county level or above have any of the following circumstances, they shall be ordered to make corrections by the superior authority or supervisory authority; if they should be punished according to law, the appointing or dismissing authority or supervisory authority shall impose penalties on the directly responsible persons in charge and other directly responsible personnel:

(1) Failing to fulfill the obligation of information disclosure in accordance with the law;

(2) Allocating or disguised allocating donation tasks, forcibly designating volunteers or charitable organizations to provide services;

(3) Failing to fulfill supervisory responsibilities in accordance with the law;

(4) Illegally implementing administrative coercive measures and administrative penalties;

(5) Misappropriating, diverting, intercepting, or occupying charitable property;

(6) Other abuses of power, neglect of duty, or malpractices.

　　Article 109　Violating the provisions of this law and constituting a violation of public security management shall be punished by the public security organs in accordance with the law; if it constitutes a crime, criminal responsibility shall be pursued according to law.

 

Chapter 12 Supplementary Provisions

 

　　Article 110　Urban and rural community organizations and units may carry out mass mutual assistance activities within their communities and units.

　　Article 111　Other organizations outside of charitable organizations can carry out charitable activities within their capabilities.

　　Article 112　This law shall come into effect on September 1, 2016.