FAQs on preparing annual reports and passing annual inspection for foundations

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Editor’s note

This is an abridged translation of an article written by Yu Junru; you can see the original here. The article introduces useful information that may help NGOs preparing the annual report and passing the annual inspection. The FAQs are composed of three sections including FAQs for social groups, FAQs for private non-enterprise units, and FAQs for foundations. CDB presents each section in different pieces.


Beijing Social Work Development Center (BSDC), which is entrusted by the Beijing Municipal Civil Affairs Bureau, has been providing guidance and consulting services to NGOs regarding annual inspection and annual report. Now the BSDC summarizes FAQs based on years of related experience to facilitate NGOs to file annual reports and pass their annual inspection.


Part I. Annual inspection report

Q1: Is a registration number is the same as a unified code?

A1: A registration number is a 7-digit number, and a unified code is an 18-digit number (after the implementation of “three-in-one license” there is only a unified code on legal person certificate). Please check with the certificate to make sure the accuracy.

Q2: How to fill in the number of staffs and staffs with expertise (专职工作人员)?

A2: The number of staffs with expertise should be no more than the number of staffs.

Q3: Is there any requirement for how many times should the foundation hold the board meeting?

A3: For the foundations founded for one year or more, the board meeting should be held at least twice a year.

Q4: How to fill in the forms of activities situations of the foundation, detailed list of income and expenses, and big payment receivers (大额支付对象) of major charity projects?

A4: The information should conform to the relevant contents in auditing reports of specific projects information. Also, the projects names, the amount of income and expenses should be consistent. The activities situations should include all the items in the detailed list of income and expenses for major charitable projects, and the detailed list of income and expenses for major charitable projects should include all the items in large payments receivers for major charitable projects.

Q5: What are the affiliated parties of the foundation?

A5: The affiliated parties of the foundation include initiators, main donors, the main origins of the foundation’s directors, investees of the foundation’s investment, and other individuals or organizations that have control, joint control, or significant influence on the foundation

Q6: How to fill in the name of a project in payables?

A6: The name of the project should include two factors, the name of the cost and payment receivers(支付对象).

Q7: Is there any requirement for filling in the opinions of supervisors of the board?

A7: The opinions of supervisors of the board should be indicated from several aspects such as the foundation operation, activities and financial condition, etc.


Part II. Annual work report

Q1: If the foundation is qualified to have the tax exemption for non-profit organizations, how to calculate the amount?

A1: As for the foundations in Beijing, the tax-deductible amount is calculated based on one-quarter of the donation income for the year.


Part III. Auditing report

Q1. What should be included in the first draft of the auditing report?

A1. Three parts should be included: financial sheets (including balance sheet, cash flow statement and business activity table), note and appendix of financial reports, and audit reports of special projects information. The three can be put in separate files or included in one file. A stamp is not needed in the first draft. After passing the preliminary review, you may notify the auditing firm to issue the final version with the seal.

Q2. Can the foundation submit the auditing report directly to the annual inspection report system during the preliminary review?

A2. During the preliminary review of the annual inspection, the first draft of the auditing report needs to be submitted to the designated email address.