The vice chairman of the NPC Standing Committee, Li Jianguo, has provided some clarifications regarding the Third Draft of China’s long-awaited Charity Law. Compared to the second draft, changes have been made in articles related to charitable fund-raising (慈善募捐), charitable trusts（慈善信托）, and charitable assets（慈善财产）.
The Third Draft lowers the standard for organizations to be able to raise funds on the internet. The requirement contained in the Second Draft, according to which only organizations registered with a civil affairs department at the provincial level or above are allowed to use their websites to publish fund-raising information, has been erased. The term “non-public fund-raising” has also been changed to “targeted fund-raising”, which cannot however be conducted publicly on the internet. The Third Draft adds that charitable organizations should report and put forward their fund-raising proposals for record-keeping to the departments of civil affairs. Concerning the recent fund-raising frauds, the Third Draft emphasizes the protection of the targets’ right to know the truth on fund-raising activities, and that it is not allowed to induce people into making donations through the use of fictional facts.
The Third Draft also widens the qualifications for being the trustee of a charitable trust: apart from the charitable organizations mentioned in the Second Draft, trust companies are also eligible. The regulations concerning the expenditures of charitable foundations are further specified and an article has been added stating the effective use of charitable assets.
