The Ministry of Civil Affairs today issued “Selected Regulations Standardizing the Behavior of Foundations (Trial)” (hereafter “Selected Regulations”) to standardize the behavior of foundations in the following areas: receiving and using donations; transactions, cooperation and increasing the value of foundation assets; and public disclosure of information.
The Selected Regulations contain revisions based on public comments solicited from an earlier draft. One clause that attracted comments was the one that stated that “foundations should not fund for-profit organizations.” Since many of the more grassroots NGOs are registered as businesses, some observers felt that clause would prohibit foundations from funding these “business-registered” NGOs. In response to this concern, that clause was changed to read “foundations must not fund activities with a for-profit goal.”
