Charity Law of the People's Republic of China

　　Order of the President of the People's Republic of China No.43

　　March 16, 2016

　　The Charity Law of the People's Republic of China, which was adopted at the fourth Session of China's 12th National People's Congress on March 16, 2016, is hereby promulgated and shall take effect on September 1, 2016.

　　Xi Jinping, President of the People's Republic of China

　　Charity Law of the People's Republic of China

　　(Adopted at the fourth Session of the 12th National People's Congress on March 16, 2016)

　　Table of Contents
　　Chapter I General Provisions
　　Chapter II Charitable Organizations
　　Chapter III Charitable Fundraising
　　Chapter IV Charitable Donations
　　Chapter V Charitable Trusts
　　Chapter VI Charitable Assets
　　Chapter VII Charitable Services
　　Chapter VIII Information Disclosure
　　Chapter IX Promotional Measures
　　Chapter X Supervision and Administration
　　Chapter XI Legal Liability
　　Chapter XII Supplementary Provisions

　　Chapter I General Provisions

　　Article 1 The Charitable organization Law (hereinafter this "Law") is enacted to develop charitable causes, promote a culture of charity, regulate charitable activities, protect the lawful rights and interests of charitable organizations, donors, volunteers and beneficiaries and other participates in charitable activities, and promote social progress and sharing of development benefits.

　　Article 2 This Law shall apply to charitable activities and other related activities carried out by natural persons, legal persons and other organizations. Where there are other special stipulations in other laws, such other stipulations shall apply.

　　Article 3 For the purposes of this Law, charitable activities refer to the following public welfare activities carried out by natural persons, legal persons or other organizations on a voluntary basis through the donation of property, provision of services or other means :
　　1. helping the poor and the needy;
　　2. assisting the elderly, orphans, the ill, and the disabled, and veteran and dependents ;
　　3. alleviating losses caused by natural disasters, accidents, public health incidents and other emergencies;
　　4.promoting the development of education, science, culture, health, sports and other causes;
　　5. preventing and controlling pollution and other public hazards, and protecting and improving the eco-environment; and
　　5.other public welfare activities as stipulated by this Law


　　Article 4 Charitable activities shall be carried out under the principles of legality, voluntariness, integrity, and non-profit, and must not go against social morality or undermine national security or harm public interests or the lawful rights and interests of others.

　　Article 5 The state encourages and supports natural persons, legal persons and other organizations in legally carrying out charitable activities that reflect the core values of socialism and promote traditional Chinese virtues.

　　Article 6 The civil affairs department of the State Council shall be in charge of the charitable work nationwide and the local civil affairs departments of people's governments at the county level or above shall be charge of the charitable work within their respective jurisdiction.
　　The relevant departments of people's governments at the county level or above shall carry out the relevant charitable organization work within their respective responsibilities in accordance with this Law and other relevant laws.

　　Article 7 September 5 of each year henceforth shall be the "Chinese Charity Day".

　　Chapter II Charitable Organizations

　　Article 8 For the purposes of this Law, charitable organizations refer to legally established non-profit organizations that meet the requirements specified in this Law and aim to carry out charitable activities in society.
　　A charitable organization can adopt the forms of a foundation, social group or social service organization.

　　Article 9 A charitable organization shall meet the following requirements:
　　1.aiming to carry out charitable activities;
　　2.not having profit-making as a goal;
　　3.having a name and a domicile;
　　4.having an organizational charter;
　　5. having necessary financial assets;
　　6.having a qualified organizational structure and a qualified person-in charge; and
　　4. meeting other requirements stipulated by relevant laws and administrative regulations.

　　Article 10 To establish a charitable organization, an application for registration shall be made to with the civil affairs departments of a people's government at the county level or above. The civil affairs department shall make a decision within 30 days from receipt of the application. Charitable organizations meeting the requirements stipulated in this Law shall be approved to register and the approval decision shall be publicly announced; and those that do not meet the requirements stipulated by this Law shall not be approved to register and shall be provided with the reasons for the non-approval in writing.
　　Foundations, social groups, social service organizations and other non-profit organizations established prior to the promulgation of this Law may apply to the civil affairs departments that they registered with to be recognized as a charitable organization, and the civil affairs departments shall make a decision within 20 days from receipt of such an application. Those meeting the conditions for a charitable organization shall be recognized as so, and the decision shall be publicly announced; and those that do not meet the conditions shall not be recognized and shall be provided with the reasons for the non-recognition in writing.
　　Where there are special circumstances requiring an extension to the period needed to apply for a registration or recognition, an extension of up to 60 days may be granted with the approval of the civil affairs department of the State Council.

　　Article 11 The organization charter of a charitable organization shall comply with relevant laws and regulations and specify the following:
　　1.name and domicile;
　　2.organizational structure;
　　3. purpose and scope of activities;
　　4. sources and composition of financial assets;
　　5. structure and duties of decision-making and executing bodies;
　　6.internal supervision mechanism;
　　7.systems for use and management of financial assets;
　　8.project management system;
　　9.conditions for termination and post-termination asset disposal; and
　　10.other important matters.

　　Article 12 A charitable organization shall establish sound internal governance structures, define the responsibility and authority in decision-making, execution and supervision and other areas, and carry out charitable activities in accordance with relevant laws and regulations and its organization charter.
　　Charitable organizations shall implement the unified national accounting system, conduct accounting in accordance with the law, establish a sound accounting supervision system, and accept the supervision and management of relevant government authorities.

　　Article 13 A charitable organization shall submit its annual work report and annual financial statements to the civil affairs department that it registered with every year, and the report and statements shall state its fundraising activities and receipt of donations, management and use of its charitable assets, implementation of its charitable projects, and remunerations of its employers in the year.

　　Article 14 Founders, major donors and management staff of a charitable organization shall not abuse their association to harm the interests of the organization or any donor or societal public interests
　　Where the founders, major donors and management staff of a charitable organization is involved in a business transactions with the organization, they shall not participate in the decision-making of the organization that concerns the said transaction, and the relevant circumstances of the translation must be made public.

　　Article 15 Charitable organizations shall not be engaged in or fund activities that endanger national security or societal public interests, or accept donations with conditions attached which will violate laws, regulations or social morality, or impose additional conditions on donors which will violate laws, regulations or social morality.

　　Article 16 A person in any of the following circumstances shall not serve as the head of a charitable organization:
　　1.having limited or no civil capacity;
　　2.having been subject to a criminal sentence for an intentional crime, and five years have not elapsed since the conclusion of his serving of the criminal sentence;
　　3. having served as the head of an organization which was revoked of its registration license or banned from operation, and five years have not elapsed since the date when the organization's registration certificate was revoked or it was banned from operation; or
　　4.Other circumstances as prescribed in relevant laws and administrative regulations.

　　Article 17 Under any of the following circumstances, a charitable organization shall be terminated:
　　1.where the conditions for termination stated in its organizational charter are met;
　　2.where termination is required due to division or merger;
　　3.where it fails to engage in charitable activities for two consecutive years;
　　4. where it is deregistered or its registration certificate is revoked by law; or
　　5. where it is under any other circumstances for termination stipulated by laws and administrative regulations.

　　Article 18 A charitable organization shall go into liquidation upon its termination.
　　The decision-making body of a charitable organization shall set up a liquidation team to deal with liquidation matters within 30 days when the circumstances for termination stipulated in Article 17 of this Law occur and announce this to the public. In case that a liquidation team is not set up or the liquidation team fails to fulfill its duties, the civil affairs department may apply to the people's court to assign relevant personnel to form a liquidation team to handle liquidation matters.
　　Financial assets remaining after liquidation shall be transferred to charitable organizations with the same or similar purpose in accordance with the organizational charter of the liquidated charitable organization; where there is no such stipulation in the charter, the civil affairs department shall preside over the transfer of such assets to charitable organizations with the same or similar purpose and make a public announcement of the same.
　　After completion of liquidation, the liquidated charitable organization shall deregister itself with the civil affairs department and the civil affairs department shall make a public announcement of the same.

　　Article 19 Charitable organizations may legally form industry associations.
　　Charitable organization industry associations shall represent the needs of the industry, facilitate exchange within the industry, improve the credibility of the charitable organization sector, and promote the development of charitable causes.

　　Article 20 The specific measures regarding the organizational structures and registration of charitable organizations shall be formulated by the State Council.

　　Chapter III Charitable Fundraising

　　Article 21 For the purpose of this Law, charitable fundraising refers to activities in which charitable organizations raise funds for charitable purposes.
　　Charitable fundraising includes public fundraising activities directed at the general public and non-public fundraising activities directed at special groups.

　　Article 22 To engage in public fundraising, charitable organizations shall first obtain the qualification for public fundraising. Charitable organizations that have been legally registered for two years or more may apply for the qualification for public fundraising with the civil affairs departments that they initially registered with. The civil affairs departments shall make a decision within 20 days from the date of receiving such an application, and charitable organizations that meet the requirements of an effective internal organizational structure and regulated operation shall be issued the qualification for public fundraising; and those which do not meet such requirements shall not be issued the qualification and shall be provided with the reason for the non-issuance in writing.
　　Foundations and social groups permitted to engage in public fundraising activities from the date of their registration as stipulated by laws and administrative regulations shall be issued the qualification for public fundraising by the civil affairs departments.

　　Article 23 Public fundraising activities may adopt the following methods:
　　1.setting up donation boxes in public places;
　　2.organzing charitable performances, competitions, sales, exhibitions, auctions and parties directed at the general public ;
　　3.publizing fundraising information via radio, television, newspaper, the Internet or other media; or
　　4. other public fundraising methods.
　　Where a charitable organization carries out public fundraising activities using the methods specified in Items 1 and 2 of the preceding paragraph, it shall do so within the administrative area of the civil affairs department that it registered with. If it is necessary for it to do so outside the said administrative area, it shall file a notice with the civil affairs department of the people's government at the county level or above governing the place where the proposed public fund-raising activities are to be carried out. Donors are not subject to geographical limitations when making donations.
　　A charitable organization carrying out fundraising activities on the Internet shall publish the relevant fundraising information on the charitable organization information platform unified or designated by the civil affair department of the State Council, and may also publish the same information its own official websites at the same.


　　Article 24 Where public fundraising activities are carried out, a fundraising program shall be formulated. The fundraising program shall include fundraising purposes, starting and ending date, geographical regions, the name and official address of the person in charge of public fundraising activities, methods for receiving donations, bank accounts, beneficiaries, purposes of funds and property raised, fundraising costs and disposal of remaining assets, etc.
　　The fundraising program shall be filed with the civil affairs departments that charitable organizations register with prior to the conducting of fundraising activities.

　　Article 25 The fundraising organizations shall, at the time of carrying out fundraising activities, prominently publish their names, proof of qualification, fundraising programs, contact information and information retrieval methods at the sites of fundraising activities or on media of fundraising activities .

　　Article 26 On account of charitable purposes, organizations or individuals without the qualification for public fundraising may collaborate with charitable organizations with the qualification, and such charitable organizations shall organize to carry out public fundraising activities and manage the funds and property raised.

　　Article 27 Radio, TV, newspaper and internet service providers and telecom operators shall be responsible for verifying the certificates of registration and the qualification for public fundraising of charitable organizations that make use of their platforms to conduct public fundraising.

　　Article 28 Charitable organizations may carry out fundraising activities from the date of registration.
　　Charitable organizations conducting non-public fundraising shall carry out such fundraising activities targeting at special groups such as initiators, council members and members, and explain the purpose of fundraising, the use of funds and property raised, etc. to donors.

　　Article 29 Charitable organizations conducting non-public fundraising shall not adopt or adopt in disguise the methods specified in Article 23 of this Law.

　　Article 30 Where rescue should be taken immediately in case of major natural disasters, accidents, public health incidents, and any other emergencies, the people's governments concerned shall establish a coordination mechanism, provide information on demand, and guide fundraising and rescue activities in a timely and orderly manner.

　　Article 31 When conducting fund-raising activities, charitable organizations shall respect and safeguard the legitimate rights and interests of donors and defend donor's right to know. Charitable organizations may not deceive or induce donors to make a donation by fabricating facts.

　　Article 32 When conducting fundraising activities, any apportionment or apportionment in disguise is prohibited, and it is prohibited to obstruct the public order or the production and operation of enterprises, or the life of residents.

　　Article 33 No organization or individual may use a charitable organization's name or pose as a charitable organization, to carry out fundraising activities or obtain property by fraud.

　　Chapter IV Charitable Donation

　　Article 34 For the purpose of this Law, charitable donation refers to activities in which natural persons, legal persons or other organizations voluntarily donate property for charitable purposes on gratuitous basis.

　　Article 35 Donors may make a donation through charitable organizations and can directly donate to beneficiaries.

　　Article 36 Property donated by donors shall be legitimate property at their disposal, including tangible property and intangible property such as currencies, physical goods, housing, securities, equity and intellectual property rights.
　　Physical goods donated by donors shall have use value, and comply with standards such as for safety, health and environmental protection.
　　Where donors donate their own products, they shall assume the responsibility and obligation of product quality in accordance with the law.

　　Article 37 Where natural persons, legal persons and other organizations conduct business activities such as performances, matches, sales and auctions and undertake to use proceeds in full or in part for charitable purposes, they shall enter into a donation agreement with charitable organizations or other donees before carrying out such business activities, discharge donation obligations under the donation agreement and make a statement on donations available to the society after the completion of such business activities.

　　Article 38 Where charitable organizations receive donations, they shall issue to donors receipts for donations which are unified printed by or under the supervision of the financial departments. A donation receipt should indicate the donor, the type and amount of donated property, the name of the charitable organization, the name of person in charge, and date. In case that donors demand anonymity or waive their rights to obtain receipts, charitable organizations shall keep a formal record.

　　Article 39 Where charitable organizations receive donations and donors request to sign a written donation agreement, charitable organizations shall enter into a written donation agreement with donors.
　　The written donation agreement shall specify the names of donors and charitable organizations, and the type, amount, quality, use and delivery date of the donated property, etc.

　　Article 40 Where donors and charitable organizations agree on the use of donations and beneficiaries , they shall not appoint persons who have an interest in donors as beneficiaries.
　　Organizations and individuals shall not use charitable donation to advertise tobacco products in violation of laws or publicize other products or matters banned by the laws in charitable donation activities by any means.

　　Article 41 Donors shall discharge donation obligations under the donation agreement. Under any of the following circumstances, where donors fail to make a donation within the time limit specified in the donation agreements, charitable organizations or other donees may request them to do so. In case that donors refuse to make a donation, charitable organizations and other donees may file an petition for an order from the people's court or bring a lawsuit to the people's court.
　　1. where donors have publicly promised to make a donation via the media such as radio, TV, newspaper and the Internet;
　　2. where donations are used in charitable activities stipulated in Items 1-3 of Article 3 of this Law and a written donation agreement is entered into.
　　Where the financial situation of donors considerably deteriorates after the donors have publicly promised to donate or have entered into a written donation agreement, so as to materially affect their operation or family life, they shall be released from fulfilling donation obligations after they report to the civil affairs departments in the places where they have promised to make a donation in public or enter into the written donation agreement and make a public announcement to the society.

　　Article 42 Donors shall have the right to have access to and make copies of relevant documents concerning donation management and purposes and charitable organizations shall voluntarily give feedback to donors in a timely manner.
　　Where charitable organizations misuse the donated property for the purposes other than those stipulated in the donation agreement, donors shall have the right to request them to make rectification. In case that they refuse to make rectification, donors may lodge a complaint or report to the civil affairs departments, or institute a lawsuit at the people's court.

　　Article 43 State owned enterprises, when making a charitable donation, shall be subject to the provisions regarding state-owned assets management and follow the procedures for approval and registration.

　　Chapter V Charitable Trusts

　　Article 44 For the purpose of this Law, a charitable trust is classified into public welfare trusts for which trustors lawfully entrust their property to trustees for charitable purposes, and trustees manage and dispose the property according to trustors' will and on behalf of trustors to carry out charitable activities.

　　Article 45 A charitable trust shall be created and a trustee and a trust supervisor shall be appointed in a written form. Trustees shall register relevant documents with the civil affairs departments of the people's government at the county level or above in the places where trustees are located within seven days from the date of signing charitable trust documents.
　　Where trustees fail to register relevant documents with the civil affairs departments as stipulated in the preceding paragraph, they shall not be entitled to tax incentives.

　　Article 46 Trustors may appoint trustworthy charitable organizations or trust companies as their trustees of a charitable trust.

　　Article 47 Where the trustees of a charitable trust breach trust obligations or have difficulty in discharging obligations, trustors may change trustees. And new trustees shall re-register such change with the civil affairs departments that the former trustees register with within seven days from the date of change.

　　Article 48 The trustees of a charitable trust shall manage and dispose property that is held in trust according to the trust purposes, fulfill their duties, safeguard integrity and carry out prudent management.
　　The trustees of a charitable trust shall report to trustors on how to handle trust matters and how to manage and dispose property held in the trust in a timely manner as per the requirements imposed by trust documents and trustors. Additionally, they shall report to the civil affairs departments that they register with on the handling of trust matters and financial status and make a public announcement to the society at least once every year.

　　Article 49 The trustees of a charitable trust may appoint a trust supervisor (if necessary).
　　The trust supervisor shall supervise trustees and safeguard the rights and interests of trustors and beneficiaries. If the trust supervisor finds out that trustees breach trust obligations or have difficulty in discharging obligations, he or she shall report to trustors and have the right to bring a lawsuit to the people's court in his or her own name.

　　Article 50 Where there is no provision on the creation of a charitable trust, management of property held in the trust, the parties concerned and the termination and liquidation of trust stipulated in this Chapter, other provisions of this Law shall apply. Where there is no provision stipulated in this Law, relevant provisions of the Trust Law of the People's Republic of China shall apply.

　　Chapter VI Charitable Assets

　　Article 51 The financial assets of charitable organizations shall include:
　　1. Founding assets donated and financed by founders;
　　2. Donated assets; and
　　3. other legal assets.

　　Article 52 The financial assets of a charitable organization shall be used only for the charitable purpose as stated in the organizational charter and relevant donation agreements and shall not be distributed among founders, donors or members of charitable organization.
　　No group or individual shall privately distribute, misappropriate, withhold or embezzle charitable assets.

　　Article 53 Charitable organizations shall register donations raised for the records, strictly manage them and earmark the funds for specific purposes.
　　Where donated physical items cannot be easily stored, transported or are difficult to directly use for charitable purposes, charitable organizations may legally auction or sell such items and use the proceeds there from remaining after deduction of necessary costs only for charitable purposes.

　　Article 54 Where charitable organizations make investments to maintain or increase the value of their financial assets, they shall abide by the principles of lawfulness, safety and effectiveness and the proceeds derived from the investments shall be used only for charitable purposes. Major investment plans shall be approved by 2/3 or more members of the decision-making body. Government aid money and assets received under a donation agreement forbidding investments shall not be used for investments. The person-in-charge and employees of a charitable organization shall not concurrently serve in a position in or receive remunerations from an enterprise invested in by the organization.
　　The specific measures for the matters stipulated in the preceding paragraph shall be formulated by the civil affairs department of the State Council.

　　Article 55 When carrying out charitable activities, charitable organizations shall use donated property in accordance the laws, regulations and organization charter and in accordance with the fund-raising proposal or donation agreement. In case that it is necessary to change the purpose of the donated assets stated in the fund-raising proposal, a record shall be filed with the civil affairs departments; and in case that it is necessary to change the purpose of the donated assets specified in the donation agreement, the donors' consent shall be obtained.

　　Article 56 Charitable organizations shall reasonably design charitable projects, optimize operational procedures, reduce operating costs, and improve the efficiency in the use of charitable assets.
　　Charitable organizations shall establish a project management system and conduct follow-up supervision of project implementation.

　　Article 57 Any remaining donated assets after the termination of a charitable project shall be disposed of in accordance with the fund-raising proposal or donation agreement. If there is no relevant provision stipulated in the fund-raising proposal or donation agreement, charitable organizations shall use the remaining assets in other charitable projects with the same or similar purposes and make public the information.

　　Article 58 Charitable organizations shall determine beneficiaries under the principles of openness, fairness, and impartiality, and shall not select interested parties associated with the management staff of the charitable organizations as beneficiaries.

　　Article 59 If needed, charitable organizations may enter into an agreement with beneficiaries to define the rights and obligations of both parties and to agree on the purpose, amount and way of use of donations and other contents.
　　Beneficiaries shall value donations and use them according to the donation agreement. If beneficiaries fail to use donations in accordance with the donation agreement or severely violate the agreement, charitable organizations have the right to request them to make correction. If beneficiaries refuse to make correction, charitable organizations shall have the right to termination the donation agreement or demand the beneficiaries to return the donations.

　　Article 60 Charitable organizations shall actively carry out charitable activities, make full and efficient use of charitable assets, and follow the "overhead most necessary" principle to practice economy and cut unnecessary expenses. Among charitable organizations, the annual expenditure on charitable activities by foundations with the qualification for public fundraising shall be not less than 70% of their total revenue of the previous year or the average revenue over the past three year; the annual overhead shall not exceed 10% of the aggregate expenditure of the current year; if in special circumstances it's difficult for the annual overhead to comply with the aforesaid standards, they shall report the case to the civil affairs departments that they registered with and make public the information.
　　The standards for annual expenditure and overhead on charitable activities carried out by charitable organizations other than foundations with the qualification for public fundraising shall be formulated by the civil affairs department of the State Council along with the fiscal and taxation departments of the State Council in line with the principle stipulated in the preceding paragraph.
　　Where a donation agreement includes provisions on the expenditure and overhead relating to an individual item of donated asset used in charitable activities, such provisions shall apply.


　　Chapter VII Charitable Services

　　Article 61 For the purpose of this Law, charitable services refer to voluntary services on gratuitous basis or other kinds of non-profit services offered by charitable organizations, other organizations and individuals to the society or to others for charitable purposes.
　　Charitable organizations may offer charitable services by themselves, or recruit volunteers to offer charitable services or entrust other organizations with service expertise to offer charitable services.

　　Article 62 The charitable services shall be offered in a manner that respect the human dignity of beneficiaries and volunteers and any violation of their privacy shall be strictly prohibited.

　　Article 63 Charitable services such as medical rehabilitation, education and training requiring expertise shall enforce the standards and regulations laid down by the State or industry associations.
　　Where charitable organizations recruit volunteers offer charitable services that require specialized skills, they shall provide relevant professional training for the volunteers.

　　Article 64 Where charitable organizations recruit volunteers to participate in charitable services, they shall publicly disclose all information related to charitable services and notify them of risks that might occur in the course of the service.
　　Charitable organizations may enter into an agreement with volunteers as needs, defining the rights and obligations of both parties and specifying the content, method and time of services.

　　Article 65 Charitable organizations shall register the real name of volunteers, and keep a formal record of the information such as the time, content and evaluation of volunteers' services. Additionally, they shall furnish voluntary service records on gratuitous basis at the request of volunteers.

　　Article 66 Charitable organizations shall organize and arrange for volunteers to participate in charitable services appropriate to their age, education background, expertise and health.

　　Article 67 Volunteers accepting charitable organizations' arrangements to participate in charitable services shall be subject to administration and receive necessary training.

　　Article 68 Charitable organizations shall provide necessary conditions for volunteer's participation in charitable services and safeguard the legitimate rights and interests of volunteers.
　　Before charitable organizations arrange for volunteers to participate in charitable services where personal injury might occur, they shall purchase accidental personal injury insurance for them.

　　Chapter VIII Information Disclosure

　　Article 69 The people's governments at the county level or above shall establish a sound charitable information collection and disclosure system.
　　The civil affairs departments of people's governments at the county level or above shall disclose charitable information to the public timely on a unified or designated information platform and provide charitable information release services for free.
　　Charitable organizations and trustees of charitable trusts shall disclose information on the platform prescribed in the preceding paragraph and assume responsibility for the truthfulness of the information.

　　Article 70 The civil affairs departments and other relevant departments of people's governments at the county level or above shall timely disclose the following charitable information to the public:
　　1. registration information of charitable organizations;
　　2. filing records of charitable trusts;
　　3. the list of charitable organizations with the qualification for public fundraising;
　　4. the list of charitable organizations qualified to issue pre-tax deduction receipts for charitable donations;
　　5. measures for promoting charitable causes such as tax incentives and subsidies for charitable activities;
　　6.information on purchasing services from charitable organizations;
　　7.results of inspections and evaluations of charitable organizations and charitable trusts;
　　8. results of any commendations or penalties on charitable organizations or other organizations and individuals; and
　　9. other information required to be disclosed by laws and regulations.

　　Article 71 Charitable organizations and trustees of charitable trusts shall perform their obligation of information disclosure in accordance with the law. Information subject to disclosure shall be truthfully, fully and timely disclosed.

　　Article 72 Charitable organizations shall disclose the organizational charter, members of the decision-making, execution and supervisory bodies as well as other information required to be disclosed to the public by the civil affairs department of the State Council. Charitable organizations shall ensure timely disclosure of any major changes to the aforesaid information.
　　Charitable organizations shall disclose to the public an annual work report and annual financial statements every year. The financial statements of a charitable organization with the qualification for public fundraising shall be audited.

　　Article 73 Charitable organizations with the qualification for public fundraising shall disclose the information on their fundraising and the operation of their charitable projects to the public on a regular basis.
　　Where the period of public fundraising exceeds six months, the details of the fundraising shall be disclosed at least once every three months; and full details of the fundraising shall be disclosed to the public within three months after the conclusion of the fundraising activity.
　　Where the period of operation of a charitable project exceeds six months, the details of the operation of the charitable project shall be disclosed at least once every three months. And the full details of the operation of the charitable project and the use of funds and property raised shall be disclosed to the public within three months after the conclusion of the project.

　　Article 74 Where charitable organizations carry out non-public fundraising activities directed at special groups, they shall timely inform donors of the information on the fundraising as well as the management and use of the funds and property raised.

　　Article 75 Charitable organizations and trustees of charitable trusts shall inform beneficiaries of their funding standards, work processes, work rules and other information.

　　Article 76 Information concerning state secrets, trade secrets or personal privacy, as well as the names, titles, addresses, contact information or other information of donors and trustors of charitable trusts which they do not consent to disclose shall not be disclosed.

　　Chapter IX Promotional Measures

　　Article 77 The people's governments at the county level or above shall develop policies and measures for promoting charitable causes in light of social and economic development situations.
　　The people's governments at the county level or above and the relevant departments thereof shall, within the scope of their respective responsibilities, provide charitable organizations and trustees of charitable trusts with information on needs for charitable assistance, and provide guidance and assistance for charitable activities.

　　Article 78 The civil affairs departments of people' governments at the county level or above shall establish a mechanism to share charitable information with other departments.

　　Article 79 Charitable organizations and their income are eligible for tax benefits in accordance with the law.

　　Article 80 Natural persons, legal persons and other organizations that donate property for charitable activities are eligible for tax benefits in accordance with the law. The amount of charitable donations of an enterprise in excess of the amount deductible from taxable income for enterprise income tax of the current year according to law can be deducted from taxable income over the following three years.
　　Overseas donations in kind towards charitable activities are eligible for a reduction or exemption from import duties and import VAT in accordance with the law.

　　Article 81 Beneficiaries receiving charitable donations are eligible for tax benefits in accordance with the laws.

　　Article 82 Where charitable organizations, donors, and beneficiaries are eligible for tax benefits according to law, the relevant departments shall handle the relevant procedures in a timely manner.

　　Article 83 Donors that make donations in kind, or donate securities, equity, or intellectual property to charitable organizations are exempted from the payment of relevant administrative fees related to rights transfer in accordance with the law.

　　Article 84 The state provides special preferential policies to charitable activities that alleviate poverty.

　　Article 85 Where charitable activities carried out by charitable organizations stipulated in Items 1 and 2 of Article 3 of this Law require the use of land for charitable service facilities, charitable organizations may apply for using allocated state-owned land or rural collectives' construction land in accordance with the law. The use of land for charitable service facilities shall not be altered except through legally prescribed procedures.

　　Article 86 The state provides financial policy support for charitable causes and encourages financial institutions to provide financial services such as financing and account settlement for charitable organizations and charitable trusts.

　　Article 87 The people's governments at all levels and their relevant departments may support qualified charitable organizations in providing social services through legally purchasing their services, and shall make public the relevant information in accordance with the relevant laws and regulations on governmental procurement.

　　Article 88 The state adopts measures to promote a charitable culture and cultivate citizens' awareness of charity.
　　Schools and educational institutions shall incorporate notions of charitable culture in their syllabuses, and the state encourages higher education institutions to cultivate professional talents for charitable causes and supports higher education and research institutions to carry out theoretical research on charity.
　　Radio or television stations, newspaper, websites and other media shall actively promote charitable activities, spread knowledge of charity, and promote a charitable culture.

　　Article 89 The state encourages enterprises, public institutions and other organizations to provide venues and other favorable conditions for charitable activities.

　　Article 90 Donors may put names for commemoration purposes on charitable projects donated by them with the consent of the beneficiaries, unless an approval is required by relevant laws and regulations, in which such laws and regulations shall apply.

　　Article 91 The state establishes a charity commendation system to commend natural persons, legal persons or other organizations that have made outstanding contributions to the development of charitable causes, which shall be performed by the people's governments at the county level or above or relevant departments.

　　Chapter X Supervision and Administration

　　Article 92 The civil affairs departments of the people's governments at the county level or above shall perform their duties in accordance with the law, conduct supervision and inspection of charitable activities, and provide guidance to charitable organization industry associations.

　　Article 93 The civil affairs departments of the people's governments at the county level or above have the authority to take the following measures against charitable organizations suspect of violating this Law:
　　1. conducting on-site inspection of the premises of charitable organizations or the venues where charitable activities take place;
　　2. requesting charitable organizations to offer explanations and access to or photocopying relevant documents;
　　3.investigating entities or individuals related to charitable activities regarding the supervision and administration;
　　4. checking the bank accounts of charitable organizations with the approval of the people's government at the same level; and
　　5.other measures stipulated by laws and administrative regulations.

　　Article 94 Where the civil affairs departments of the people's governments at the county level or above conduct an inspection or investigation into charitable organizations, relevant entities or individuals, there shall be at least two inspectors or investigators and they shall produce valid certificates or notifications of inspection and investigation.

　　Article 95 The civil affairs departments of the people's governments at the county level or above shall establish a credit record system for charitable organizations and their responsible persons and make a public announcement to the society.
　　The civil affairs departments shall establish a charitable organization assessment system, and encourage and support third parties to assess charitable organizations and make a public announcement of the assessment results to the society.

　　Article 96 Charitable organization industry associations shall establish and improve the industrial standards and strengthen industry self-regulation.

　　Article 97 Where entities or individuals find out that charitable organizations or charitable trusts violate laws, they may lodge a complaint or report such violations to the civil affairs departments, other relevant departments and industry associations. Upon receipt of such complaints and reports, the civil affairs departments, other relevant departments and industry associations shall investigate and handle the same in a timely manner.
　　The State encourages the public and the media to supervise charitable activities and to expose the obtaining of property by deception in the name of charitable organization or by posing as a charitable organization and the violations of charitable organizations and charitable trusts and gives a full play to the supervision role of public opinions and the society.

　　Chapter XI Legal Liability

　　Article 98 Where charitable organizations fall within any of the following circumstances, the civil affairs departments shall order them to make rectifications within a time limit, in case of failure to do so, revoke their certificates of registration and make a public announcement:
　　1.failing to carry out activities for charitable purposes;
　　2. allotting without permission, appropriating, withholding or embezzling charitable assets; or
　　3.receiving donations with additional conditions that violate laws and regulations or social ethical codes or imposing additional conditions that violate laws and regulations or social ethical codes on beneficiaries.

　　Article 99 Where charitable organizations fall within any of the following circumstances, the civil affairs departments shall issue a warning and order them to make corrections within a time limit, in case of failure to do so, order them to suspend activities and make rectifications within a time limit:
　　1. violating Article 14 of this Law and causing losses to charitable assets;
　　2.using property that must not be used in investment for investment;
　　3. alter the use of donated property without authorization;
　　4.annual expenditure or overhead standards for charitable activities violating Article 60 of this Law;
　　5.failing to discharge the obligation of information publication in accordance with the law;
　　6. failing to submit annual work reports, financial reports or fund-raising programs; or
　　7.divulging information on the personal privacy of donors, volunteers and beneficiaries or information on the name, title, address and contact number that
　　donors or the trustees of charitable trusts do not consent to disclose .
　　Charitable organizations divulging state secrets or trade secrets in violation of this Law shall be imposed penalties pursuant to the provisions stipulated by relevant laws.
　　Where charitable organizations falls within the circumstances specified in the preceding two paragraphs, and repeat violations within one year after being imposed penalties by law or commit other sorts of serious violations, the civil affairs departments shall revoke their certificates of registration and make a public announcement.

　　Article 100 Where charitable organizations commit violations specified in Articles 98 and 99 of this Law and earn illicit proceeds, the civil affairs departments shall confiscate such illicit proceeds and impose a fine of CNY 20,000 up to CNY200,000 on managers directly in charge and other persons directly responsible.

　　Article 101 Where the initiation of fundraising activities fall within any of the following circumstances, the civil affairs departments shall issue a warning and order suspension of fund-raising activities. The property unlawfully raised shall be ordered to be returned to donors. If it is difficult to return, the civil affairs departments shall seize such property and transfer it to other charitable organizations for using it for charitable purposes. Relevant organizations or individuals shall be imposed a fine of CNY20,000 up to CNY200,000:
　　1.organizations or individuals without the qualification for public fundraising carrying out public fundraising activities;
　　2. any deceiving and inducing donors to make a donation by fabricating facts;
　　3. any apportionment or apportionment in disguise among entities or individuals; or
　　4. disrupting the public order or disturbing the production and operation of enterprises or the lives of residents;
　　Where the radio, TV, newspaper and internet service providers and telecom operators fail to discharge the obligations of verification stipulated in Article 27 of this Law, the competent authorities shall issue a warning and order them to make rectification within a time limit. If they refuse to make rectification within the time limit, they shall be given a notice of criticism.

　　Article 102 Where charitable organizations fail to issue the receipts for donations to donors in accordance with the law, fail to issue volunteer service records to volunteers in accordance with the law or fail to give feedback to donors in a timely manner, the civil affairs departments shall issue a warning and order them to make rectification. If they refuse to make rectification as required, they shall order them to terminate activities within a time limit.

　　Article 103 Where charitable organizations obtain preferential tax treatment by fraud, the tax authorities shall conduct an investigation and impose penalties in accordance with the law. In serious cases, the civil affairs departments shall revoke their certificate of registration and make a public announcement.

　　Article 104 Where charitable organizations engage in or finance activities that endanger national security or the public interest, relevant departments shall conduct an investigation and impose penalties in accordance with the law and the civil affairs departments shall revoke their certificates of registration and make a public announcement.

　　Article 105 Where trustees of a charitable trust fall within any of the following circumstances, the civil affairs departments shall issue a warning and order them to make rectification. Illicit proceeds, if any, shall be confiscated by the civil affairs departments and managers directly in charge or other persons directly responsible shall be imposed a fine of CNY 20,000 up to CNY200,000:
　　1.failing to use property held in trust and proceeds for charitable purposes; or
　　2.failing to report the handling of trust affairs and financial status to the civil affairs departments or failing to disclose such to the society in accordance with the law.

　　Article 106 Where in the process of providing charitable services beneficiaries or third parties suffer harm caused by the faults of charitable organizations or volunteers, charitable organizations shall be liable to pay compensation in accordance with the law In case of the harm is caused due to volunteers' intentional or gross negligence, charitable organizations may have the right of recourse against volunteers.
　　Where volunteers suffer harm caused by the faults of charitable organizations in the process of participating in charitable services, charitable organizations shall be liable to pay compensation in accordance with the law. In case the harm is caused due to force majeure, charitable organizations shall pay appropriate compensation.

　　Article 107 Where natural persons, legal persons and other organizations defraud property in the name of charitable activities or by posing as a charitable organization, the public security organs shall investigate and impose penalties in accordance with the law.

　　Article 108 Where the civil affairs departments and relevant departments of the people's governments at the county level or above and their functionaries fall within any of the following circumstances, their superior authorities or the supervisory organs shall order them to make rectification. In case that disciplinary actions shall be taken in accordance with the law, the appointment and removal organs or the supervisory organs shall take disciplinary actions against managers directly in charge or other persons directly responsible:
　　1. failing to discharge the obligations of information publication in accordance with the law;
　　2.apportioning donations and apportionment in disguise, or forcibly appointing volunteers or charitable organizations to provide services;
　　3.failing to discharge the obligations of supervision and administration in accordance with the law;
　　4.unlawfully enforcing compulsory administrative measures or administrative penalties;
　　5.alloting without permission, appropriating, withholding or embezzling charitable property; or
　　5. committing other acts such as abusing authority, neglecting duties and playing favoritism and committing irregularities.

　　Article 109 Where violations against this Law constitute a breach of the Regulations of the Administrative Penalties for Public Security, the public security organs shall impose administrative penalties for public security in accordance with the law. In case that those violations constitute a crime, criminal liability shall be pursued in accordance with the law.

　　Chapter XII Supplementary Provisions

　　Article 110 Urban and rural community organizations and entities may carry out internal activities of mutual aids.

　　Article 111 Other organizations other than charitable organizations may carry out charitable activities within their capacity.

　　Article 112 This Law shall come into force on September 1, 2016.