Key points of China’s Amended Charity Law

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During the Seventh Session of the Fourteenth National People’s Congress Standing Committee in China on December 29, 2023, a vote was passed to amend the Charity Law. The revised law is scheduled to enforced on September 5, 2024, with the aim of strengthening the legal framework governing charitable activities in China and fostering their sustainable development.

The revised law introduces measures aimed at boosting the dynamism of charitable organizations, fostering increased public engagement in charitable activities, and streamlining the official recognition procedures for these entities.

To enhance the advancement of charitable efforts, the amended law reinforces the government’s obligations, emphasizing the incorporation of charity into national economic and social development plans.

This encompasses crafting policies to facilitate the expansion of charitable initiatives and providing tax preferential policies for charitable activities.

Additionally, the amendment advocates for community-based charity, encouraging the establishment of community organizations and the utilization of technology within the philanthropic sector.

Acknowledging the significance of international cooperation, the amendment encourages charitable organizations to engage in international exchanges and collaborations. This mirrors a broader trend of China’s active involvement in global philanthropic endeavors.

A primary emphasis of the amendment is to elevate the credibility of the charity sector through regulated operations. Charity organizations are now mandated to disclose “fundraising costs” and provide specifics regarding collaborations with overseas entities. Moreover, the law emphasizes transparent fundraising collaborations, necessitating written agreements and thorough disclosure of fundraising, project execution, and fund utilization. Additionally, the management of substantial charitable donations is also streamlined to prevent fraudulent activities.

The amended law places increased emphasis on Leadership supervision and governance. It reaffirms the Communist Party of China’s role in charitable work and assigns various levels of government the responsibility of coordinating, supervising, encouraging, and inspecting the implementation of charitable initiatives.

In terms of legal standards, the amendment clarifies registration procedures for charity organizations and introduces reporting requirements regarding fundraising qualifications. It institutes legal obligations for organizations that neglect information disclosure or provide false information, strengthening accountability measures.

To create an enabling policy environment, the amendment encompasses fiscal, financial, land, personnel, and information aspects within the charity sector. This involves government financial support, preferential land use policies, intellectual property rights protection, and initiatives to enhance international exchange and collaboration.

In summary, the amended Charity Law underscores China’s dedication to nurturing socialist charity with distinctive Chinese characteristics. By strengthening governance, advocating transparency, and fostering international collaboration, the amended law lays the groundwork for a stronger and more reputable charity sector in China.