The Ministry of Civil Affairs recently unveiled the Draft of the Standards for Charitable Organizations’ Annual Expenditures for Charity Activities and Management Fees. The Draft is based on Article 60 of the Charity Law, and it will remain open to public feedback from the 25th to the 31st of August.
The Draft aims to set a bottom line for the annual expenditures for charity activities of different types of charitable organizations. Certified public fundraising foundations’ annual expenditures shall exceed 70% of the total revenue of the previous year, while their management fees shall not exceed 10% of the annual expenditures of the same year. The annual expenditures of social groups and social service organizations with a public fundraising certificate shall be no less than 70% of the total revenue of the previous year, while their management fees shall not exceed 13% of the annual expenditures of the same year.
The Draft also sets a variety of standards for charitable organizations without a public fundraising certificate according to their net assets at the end of the previous year. Charitable organizations must state their annual expenditures for charity activities and management fees in an annual work report and reveal the information to the public according to the law.
Click here for the Draft in Chinese and for submitting your feedback.
Foundations without a public fundraising certificate
| Net assets at the end of the previous year (RMB) | Lowest percentage rate for annual expenditures | Highest percentage rate for annual management fees |
| >60,000,000 | 6% | 12% |
| 8,000,000 – 60,000,000 | 6% | 13% |
| 4,000,000 – 8,000,000 | 7% | 15% |
| <4,000,000 | 8% | 20% |
Social groups and social service organizations without a public fundraising certificate
| Net assets at the end of the previous year (RMB) | Lowest percentage rate for annual expenditures | Highest percentage rate for annual management fees |
| >10,000,000 | 6% | 13% |
| 5,000,000 – 10,000,000 | 7% | 14% |
| 1,000,000 – 5,000,000 | 8% | 15% |
| <1,000,000 | 8% | 20% |
