On December 31th, the Ministry of Civil Affairs released a document entitled “Notice on the Further Reinforcement of the Management of Foundations’ Special Funds”. The Notice questions some foundations’ over-enthusiastic drive to expand the number and scope of their special funds, and a lack of supervision and management of their operations. Many problems have thus emerged: some special funds operate as independent organizations; some neglect transparency; some deviate from their purposes; some disregard the needs of donors and beneficiaries; and some even seek profit for individuals and corporations.
The Notice requires foundations to conduct a strict supervision over their special funds to ensure compliance with their organizational aims and purposes, and to take full responsibility of all the activities of their special funds. Foundations are to establish special funds with extra discretions, standardize their names, enhance overall management, promote transparency, and conduct regular inspections.
