New amendments address issues in cooperative fundraising

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The recently amended Charity Law in China has introduced significant modifications to the provisions regarding cooperative fundraising. The term involves organizations or individuals without public fundraising qualifications collaborating with certified charitable organizations.

The amendment addresses practical challenges that have emerged since the implementation of the Charity Law in 2016. Numerous organizations without public fundraising qualifications conducted fundraising activities through certified charitable organizations, resulting in both successes and a range of problems.

Some charitable organizations lacked strict management of collaborating parties. In certain instances, collaborating organizations or individuals, under the guise of cooperative fundraising, diverted funds into their private accounts, exploiting information gaps and engaging in fraud. The modification directly addresses these issues, providing a clear response to reshape the boundaries of responsibility in cooperative fundraising.

The new changes clarify the responsibilities of charitable organizations in cooperative fundraising, which include assessing the collaborating party, signing a written agreement, incorporating relevant information in the fundraising plan, guiding and supervising the collaborating party’s actions, and managing and accounting for funds and items raised.

In terms of legal responsibilities (Article 111), any violation of Article 26 can result in various penalties, ranging from warnings and orders to cease fundraising activities to the revocation of fundraising qualifications or registration.

While supporting increased responsibilities for charitable organizations in cooperative fundraising, it is crucial to prevent overload, ensuring that these responsibilities do not hinder or discourage organizations from engaging in such activities. The detailed boundaries of responsibilities should be clearly defined by cooperative organizations to prevent potential abuse of the provisions.

In the amended law, the requirement to include relevant information about collaborating parties in fundraising plans ensures transparency. Organization names, unified credit codes, responsible individuals, contact details, and confirmation of assessment should be disclosed.

The responsibility of guiding and supervising the actions of collaborating parties is crucial for maintaining ethical fundraising practices. The amendments emphasised regular training and communication between charitable organizations and collaborating entities.

Utilizing modern information technology, the amendments state that collaborative management systems can be established to address potential challenges and streamline fundraising processes. Building a strong and trustworthy relationship between charitable organizations and collaborating parties is essential for effective collaboration.