China’s Charity Law is undergoing significant revisions. This move aims to address key issues, including individual donations, online appeals, and emergency relief efforts.
Focus on individual donations
One of the key objectives of the Amended Charity Law is to encourage more individual contributions. Recent data showed that although public expectations for charity growth in China are high, charitable organizations have been slow to mobilize resources.
In 2022, the number of charitable organizations in the country decreased by 1.2 percent, a concerning trend. To counter this, the new law introduces tax incentives for individual donors, encouraging them to contribute to charitable causes. The hope is that this will stimulate more personal giving, aligning with the aspirations of the Chinese public.
Regulating individual appeals and online platforms
With the rise of online fundraising and crowdfunding for significant medical expenses, the revised law seeks to create a regulatory framework for these activities.
It mandates that individuals who seek help due to illness or financial hardship must be responsible for the accuracy of the information they provide.
Meanwhile, online platforms are expected to verify the information and collaborate with relevant authorities to create and enforce policies.
A focus on emergency charity
As China continues to face natural disasters and public health emergencies, there is growing emphasis on effective emergency charity efforts. The revised law introduces a dedicated section to handle these situations.
In cases where previous disasters led to challenges with coordinating donations, the new draft encourages local governments to establish mechanisms for proper coordination, designate specific agencies and personnel, and provide transparent information.
Charitable organizations and volunteers are encouraged to work in cooperation with the local government in these situations, provided they adhere to legal guidelines. This collaboration should lead to the efficient allocation and use of funds raised, promoting transparency during emergency relief and recovery efforts.
