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Highlighting China's First Charity Law

Editor: Li Kun 丨CCTV.com

03-10-2016 18:25 BJT

By Xu Yongguang, Director, Narada Foundation; Vice-chairman, Chinese Charity Association; Contract Research Fellow, State Council Advisory Office

In the afternoon of March 9, Li Jianguo, vice chairman of the standing committee of the National People's Congress (NPC), explained the draft of the Charity Law of People's Republic of China (PRC) at the second meeting of the fourth plenary session of the 12th National People's Congress , China's top legislature.

After conducting 10 years of research, the draft of the Charity Law had already been referred twice to the standing committee of the 12th NPC last October and December. The draft will be discussed in the 4th plenary session of the 12th National People's Congress on March 13.

As the first comprehensive law on China's Charity construction, it is a landmark legislation to promote philanthropy in the country and development of China's charity cases.

The second review of the Charity Law has explicitly put forward guidelines on establishing a charitable organization that would apply to the civil affairs department of People's Governments above the county level for registration.

The civil affairs departments shall make a decision within 30 days on acceptance from the date of application. Applications that meet necessary criteria should be register and make an announce to the public.

Applications that do not meet such conditions should not be registered and have to explain reason(s) in written form. The draft clarifies a direct registration system for charity organizations, and simplifies registration procedures.

The supplementary article of the Charity Law provides that urban and rural community organizations can develop mass activities to support each other within units and communities.

Other organizations outside the charity organization can carry out charity events. This is an open clause, offering legal support to individuals who devote themselves to charity. This would greatly enhance the vitality of folk public welfare.

According to the draft, "charity organizations legally registered for two years and well-operated can apply to the registered civil affairs department for a public subscription certificate."

It's open to public subscription rights. The provision permits charitable organizations to act in a healthy competition environment, and to promote rational distribution of resources.

Article 40th of the second review states that the charitable trust of this Law is the public trust. Article 41st states that the establishment of charitable trusts and the identification of trustees and supervisors should be provided in written form.

The trustees should file trust document records to the civil affairs department above the county level of people's government within 7 days from the date of the trust document subscription.

Filing requirements for civil affairs would be streamlined to resolve long puzzling regulatory approval issues of public trust. The break-up of the system will promote better expectations of public trust.In the third chapter, Charity donations, according to the draft, specify that fund-raising activities shall not be assessed or assessed in a disguised form, nor shall it obstruct the public order, enterprise productions and people's livelihoods.

The variation from the existing Law on Donations for Public Welfare, "the donations acceptance" to the Charity Law draft "giving guide to fundraising and relief efforts" have disclosed changes in the roles and responsibilities of government, which would curb some practices by local government to enforce mandated contributions.

The 47th article is added to the sixth chapter of the Charity Law, the second review, which solely provides to property management for charitable organizations, indicating that charity property is highly-valued within public and philanthropic circles.

The biggest highlight of information disclosure in the Charity Law draft is to define that the charity organization should open public information annually, meanwhile it also clarifies that "the people's government above the county level of Civil Affairs and other relevant departments should timely open information to the public."

The 76th article of the Charity Law, the second review, adds preferential taxation policies to enterprises that give charity donations: "Enterprises that expend on charity donations beyond law are allowed deductions in calculating the taxable part of the income tax of enterprises, and allowed to carry over the next three years in the calculation of taxable income."

The policy is equivalent to increasing the donation limit and providing greater encouragement to donors.

 

Xu Yongguang, Director, Narada Foundation; Vice-chairman, Chinese Charity Association; Contract Research Fellow, State Council Advisory Office

( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )

 

 

Panview offers a new window of understanding the world as well as China through the views, opinions, and analysis of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.

Panview offers an alternative angle on China and the rest of the world through the analyses and opinions of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.

 

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