Charity Law of the People’s Republic of China
(Adopted at the 4th Session of the Twelfth National People's Congress of the People's Republic of China on March 16, 2016, and amended in accordance with the Decision on Amending the Charity Law of the People's Republic of China adopted at the 7th Meeting of the Standing Committee of the Fourteenth National People's Congress on December 29, 2023)
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 Charity in Emergency Response
Chapter IX Information Disclosure
Chapter X Promotional Measures
Chapter XI Oversight and Management
Chapter XII Legal Liability
Chapter XIII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted to develop the charitable cause, promote charity culture, regulate charitable activities, and protect the legal rights and interests of charitable organizations, donors, volunteers, beneficiaries and others involved in charitable activities, thereby promoting social progress and allowing more people to benefit from development.
Article 2 This Law shall apply to charitable activities and charity-related activities carried out by natural persons, legal persons, and unincorporated organizations. If other laws have special provisions, such provisions shall apply.
Article 3 For the purpose of this Law, the term "charitable activities" refers to the following public interest activities voluntarily carried out by natural persons, legal persons, and unincorporated organizations by donating properties, providing services or any other means:
(1) helping the poor and assisting people in need;
(2) assisting seniors, orphans, people living with illness, persons with disabilities, and recipients of consolation compensation or preferential treatment;
(3) providing relief for damage caused by natural disasters, catastrophic accidents, public health incidents, and other emergencies;
(4) developing education, science, culture, health, sports, and other programs;
(5) controlling and preventing pollution and other public hazards, protecting and improving the ecological environment; and
(6) carrying out other public interest activities in accordance with the provisions of this Law.
Article 4 Charity work shall be conducted under the leadership of the Communist Party of China.
Charitable activities shall follow the principles of being lawful, voluntary, honest, and nonprofit, and shall not go against social morality, endanger national security, or jeopardize the public interest or the legal rights and interests of other persons.
Article 5 The state encourages and supports natural persons, legal persons, and unincorporated organizations to carry out charitable activities in accordance with the law for practicing the core socialist values and promoting traditional virtues of the Chinese nation.
Article 6 The people's governments at or above the county level shall conduct overall planning and coordination as well as supervise and give guidance to competent departments to support, develop, regulate and administer the charitable cause within the scope of their official duties.
The civil affairs department of the State Council is in charge of charity work nationwide and the civil affairs departments of the local people's governments at or above the county level are in charge of charity work within their respective administrative areas. The relevant departments of the people's governments at or above the county level shall promote the relevant work within the scope of their duties in accordance with this Law and other relevant laws and regulations in order to strengthen supervision and regulation over and provide good services for charitable activities. Where a charitable organization is under the regulation of a competent authority, this authority shall give guidance to and supervise its operation.
Article 7 September 5 shall be set as China Charity Day.
Chapter II Charitable Organizations
Article 8 For the purpose of this Law, the term "charitable organizations" refers to legally established nonprofit organizations that meet the requirements provided by this Law and aim to carry out charitable activities for the general public.
Charitable organizations may take the form of foundations, social groups, and social service organizations, among others.
Article 9 A charitable organization shall meet the following requirements:
(1) aiming to carry out charitable activities;
(2) being nonprofit;
(3) having a name and a domicile;
(4) having an organizational charter;
(5) having necessary assets;
(6) having an organizational structure and personnel in charge as required; and
(7) meeting other conditions prescribed in laws and administrative regulations.
Article 10 To establish a charitable organization, a registration application shall be filed with the civil affairs department of a people's government at or above the county level. The civil affairs department shall make a decision within 30 days of receiving the application. Organizations meeting the requirements stipulated in this Law shall have their registration approved, and the registration shall be announced; an application for registration from an organization that does not meet the requirements stipulated in this Law shall be denied and the reasons shall be explained in writing.
Nonprofit organizations such as foundations, social groups, and social service organizations already established may apply to the civil affairs departments that approved their registration for recognition as charitable organizations; the civil affairs departments shall make decisions within 20 days of receiving their applications. Organizations meeting the requirements shall be recognized as charitable organizations and the recognition shall be announced; recognition shall not be granted to nonprofit organizations that do not meet the requirements for charitable organizations, and the reasons shall be explained in writing.
Where the time period for making a decision on such an application for registration or recognition needs to be extended due to special circumstances, a reasonable extension may be approved by the civil affairs department of the State Council, but the extension shall not exceed 60 days.
Article 11 The charter of a charitable organization shall comply with laws and regulations and specify the following:
(1) the name and domicile;
(2) the form of organization;
(3) purposes and scope of activities;
(4) asset sources and composition;
(5) structures and functions of decision-making and executive bodies;
(6) internal oversight mechanisms;
(7) the asset management and usage system;
(8) project management system;
(9) circumstances requiring termination and methods for liquidation after termination; and
(10) other important items.
Article 12 Charitable organizations shall establish sound internal governance frameworks and clarify the authority and responsibility for decision-making, execution, oversight, etc., and carry out charitable activities in accordance with provisions of laws, regulations, and the charters.
Charitable organizations shall implement the unified national accounting system, manage their accounting in accordance with the law, develop sound accounting oversight systems, and accept the oversight and administration of the relevant government departments.
Article 13 Charitable organizations shall submit annual work reports as well as financial reports every year to the civil affairs departments that approved their registration. The reports shall include annual fundraising activities, donations received, management and use of charitable assets, implementation of charitable projects, fundraising costs and the salary and benefits of the staff of the charitable organizations, the cooperation with overseas organizations and individuals, etc.
Article 14 Founders, major donors, and management staff of charitable organizations shall not use their connections to harm the interests of the organizations, the interests of the beneficiaries or the public interest.
Where the founders, major donors and management staff of a charitable organization have any business transaction with that organization, they shall not participate in the decision-making processes of the charitable organization regarding the transaction, and the relevant information about the transaction shall be made public.
Article 15 Charitable organizations shall not carry out or subsidize activities endangering national security and jeopardizing the public interest, shall not accept donations with additional conditions in violation of laws, regulations or social morality, and shall not attach any conditions that violate laws, regulations, or social morality for beneficiaries.
Article 16 A person shall not serve as the head of a charitable organization if:
(1) he has no or limited capacity for performing civil juristic acts;
(2) he has received criminal punishment for intentional crime, and less than five years have passed since the date of completion of the punishment;
(3) he was in charge of an organization that had its registration certificate revoked or was banned and less than five years have passed since the date of revocation or banning; or
(4) he fails to meet other conditions prescribed in laws and administrative regulations.
Article 17 A charitable organization shall terminate if:
(1) the circumstances for termination as prescribed in the charter are met;
(2) termination is required due to division or merger;
(3) it has not carried out charitable activities for two consecutive years;
(4) it has its registration certificate cancelled or revoked in accordance with the law; or
(5) other conditions prescribed in laws and administrative regulations under which it shall terminate are met.
Article 18 Liquidation shall be conducted upon the termination of a charitable organization.
The decision-making body of a charitable organization shall set up a liquidation team to carry out liquidation within 30 days from the occurrence of the circumstances for termination set forth in Article 17 of this Law, and make a public notification of the liquidation. Where no liquidation team is set up or the liquidation team fails to perform its functions, the civil affairs department that approved the registration of the charitable organization may apply to the people's court to assign relevant personnel for forming a team to conduct the liquidation.
Assets remaining after liquidation shall be transferred, in accordance with the provisions of the charter of the charitable organization, to other charitable organizations with the same or similar purposes. Where there is no such provisions in the charter of the charitable organization, the assets shall be transferred under the guidance of the civil affairs department that approved its registration to other charitable organizations with the same or similar purposes and information regarding the transfer shall be announced.
The charitable organization shall, after its liquidation, complete deregistration procedures at the civil affairs department that approved its registration, and the civil affairs department shall announce the deregistration.
Article 19 Charitable organizations shall form industry associations in accordance with the law.
Charitable industry associations shall reflect the needs of the industry, promote industrial exchange, enhance the credibility of the charitable industry, and promote the development of the charitable cause.
Article 20 The organizational forms of charitable organizations and the specific methods of their registration management shall be stipulated by the State Council.
Chapter III Charitable Fundraising
Article 21 For the purposes of this Law, the term "charitable fundraising" refers to the activities of charitable organizations to raise funds for their charitable purposes.
The term "charitable fundraising" includes fundraising aimed at the general public and fundraising aimed at specific potential donors.
Article 22 A charitable organization that raises funds from the general public should obtain the public fundraising qualification. A charitable organization that has been legally registered for at least one year may apply to the civil affairs department that approved its registration for the public fundraising qualification. The civil affairs department shall make a decision within 20 days of receiving the application. Where the charitable organization meets the conditions of having a sound internal governance framework and well-regulated operation, the civil affairs department shall issue the public fundraising certificate; where the conditions are not met, the civil affairs department shall not issue the public fundraising certificate and the reasons shall be explained in writing.
Civil affairs departments of the people's governments at or above the county level shall issue public fundraising certificates directly to non-profit organizations that may raise funds from the general public as prescribed by other laws and administrative regulations.
Article 23 Fundraising aimed at the general public may be conducted in the following ways:
(1) placing collection boxes for donations in public places;
(2) holding charity performances, contests, sales, exhibitions, auctions, galas, etc., directed at the general public;
(3) releasing fundraising information through media such as radio, television, newspapers, periodicals, and the internet; or
(4) other ways to raise funds from the general public.
Where a charitable organization raises funds from the general public in the way prescribed in Sub-paragraph (1) or (2) of this Article, it shall carry out fundraising within the region under the administration of the civil affairs department that approved its registration. Where it is indeed necessary to carry out fundraising activities outside the above mentioned region, it shall be recorded with the local civil affairs departments of the people’s governments at or above the county level of the regions where the fundraising activities are carried out. Donors are not subject to geographical limitations when making donations.
Article 24 A fundraising proposal shall be drafted for any fundraising aimed at the general public. The proposal shall include the purposes, the starting and ending time, the region where the fundraising is carried out, the name and office address of the person in charge, the method of receiving donations, as well as bank accounts, beneficiaries, use of funds and goods collected, fundraising costs, and methods of dealing with remaining assets, etc.
The fundraising proposal shall be recorded with the civil affairs department that approved the charitable organization’s registration before the fundraising activity is carried out.
Article 25 When conducting fundraising aimed at the general public, information such as the name of the organization conducting fundraising, its public fundraising certificate, its fundraising proposal, the contact information and the means of inquiry for further information regarding the fundraising shall be displayed in a prominent place at the site of the fundraising activity or on the medium used for fundraising.
Article 26 For charitable purposes, organizations or individuals who do not have the public fundraising qualification may enter into cooperation with charitable organizations that have the public fundraising qualification and the latter may conduct fundraising aimed at the general public on their behalf. The former parties to cooperation shall not engage in fundraising aimed at the general public in any form on their own. Charitable organizations with the public fundraising qualification shall conduct assessment of the cooperation parties, sign written agreements with them in accordance with the law, specify their relevant information in fundraising proposals, and guide and supervise their relevant activities.
Charitable organizations with the public fundraising qualification shall be responsible for managing and conducting accounting of funds and goods raised through cooperation, and include all the revenues and expenditures into their accounts.
Article 27 Where charitable organizations wish to raise funds from the general public online, they should do so on the internet service platforms designated by the civil affairs department of the State Council for fundraising aimed at the general public. They may also do so on their own websites at the same time.
The internet service platforms designated by the civil affairs department of the State Council for fundraising aimed at the general public shall provide services including displaying information on fundraising, and searching information on donation payment and use of donation. They should not refuse to provide services for charitable organizations with the public fundraising qualification without just causes. They should not collect fees from such charitable organizations or insert commercial advertisements or links to commercial events on the page of information on fundraising aimed at the general public.
Article 28 Radio broadcasters, television stations, newspapers, and periodicals, as well as internet service providers and telecommunications operators shall inspect and verify the registration certificates and public fundraising certificates of charitable organizations that use their platforms to raise funds from the general public.
Article 29 Charitable organizations may engage in fundraising aimed at specific potential donors from the date of their registration.
Fundraising aimed at specific potential donors by charitable organizations shall be carried out within the scope of specific targets such as sponsors, council members, and organization members. The charitable organizations shall clarify to the potential donors the information on the purpose of the fundraising, the use of the raised funds and goods, and other matters.
Article 30 Fundraising aimed at specific potential donors shall not use, or use in a disguised form, the methods stipulated in Article 23 of this Law.
Article 31 Fundraising activities shall be conducted in a manner that respects and protects the legal rights and interests of the potential donors, and ensures their right to know. They shall not deceive or mislead the potential donors into donation by fabricating facts or by other means.
Article 32 Fundraising activities shall not allocate donation quotas compulsorily or do so in a disguised form, and shall not disrupt public order, enterprises' production and business operations or people's lives.
Article 33 It is forbidden for any organization or individual to carry out fundraising activities and obtains properties by fraud under the pretense of charity or by pretending to be a charitable organization.
Chapter IV Charitable Donations
Article 34 For the purposes of this Law, the term "charitable donations" refers to the voluntary, unpaid donation of properties by natural persons, legal persons, and unincorporated organizations for charitable purposes.
Article 35 Donors can donate through charitable organizations or directly to beneficiaries.
Article 36 Properties donated by donors shall be legal properties that the donors hold the right to dispose of. Charitable donations of assets include cash, physical goods, buildings, securities, equity, intellectual property, and other tangible and intangible properties.
Donated physical goods shall have use value, and shall meet safety, health, environmental and other standards.
Donors donating products of their own enterprises shall assume the responsibilities and obligations for product quality in accordance with the law.
Article 37 Natural persons, legal persons, and unincorporated organizations that organize performances, contests, sales, auctions or other commercial activities, and that promise to use all or part of the proceeds for charitable purposes, shall sign a donation agreement with charitable organizations or other recipients before the events, fulfill their obligations after the events in accordance with the donation agreement, and make public information concerning the donation.
Article 38 Charitable organizations that accept donations shall issue to the donors a donation receipt printed by or under the supervision of the finance departments. A donation receipt shall specify the donor, the type and quantity of the properties donated, the name of the charitable organization, the name of the handler, the date of the receipt, etc. In the case of a donor wishing to remain anonymous or waive the donation receipt, the charitable organization shall record the relevant information.
Article 39 When accepting a donation, a charitable organization shall sign a written donation agreement with the donor if the donor requests so.
A written donation agreement shall include the name of the donor and charitable organization, the type, quantity, quality, use and delivery time of the donated properties, etc.
Article 40 When agreeing on the use and beneficiaries of donated properties, donors and charitable organizations shall not designate, or designate in a disguised form, any interested party of the donors to be their beneficiaries.
No organization or individual shall publicize tobacco products by exploiting charitable donations in violation of the law. No organization or individual shall, in any manner, publicize products and matters that are prohibited from being publicized in accordance with the law through exploiting charitable donations.
Article 41 Donors shall fulfill their donation obligations in accordance with donation agreements. Where donors, in violation of their donation agreements, fail to deliver properties they agreed to donate within the agreed time period, charitable organizations or other beneficiaries may require delivery from donors under any of the following circumstances; if donors refuse delivery, charitable organizations and other recipients may apply to the people's courts for the order of payment or file lawsuits:
(1) where donors have made a public commitment of donation through the radio, television, newspapers, periodicals, the internet etc.; or
(2) where donated properties are for charitable activities specified in Sub-paragraphs (1) to (3) of Article 3 of this Law, and written donation agreements are signed.
Where the financial situation of a donor deteriorates significantly and seriously affects the donor's business operation or the life of his family after the donor makes a public commitment of donation or signs a written donation agreement, the donor may be relieved of his donation obligation if he reports such situation to the civil affairs department of the people's government at or above the county level of the place where he made the public commitment or signed the written donation agreement, and provides an explanation on such situation to the public.
Article 42 Donors have the right to inquire about and copy relevant information on the management and use of their donated properties. Charitable organizations shall take the initiative to provide such relevant information to donors in a timely manner.
If a charitable organization misuses donated properties in violation of the purposes agreed upon in the donation agreement, the donor is entitled to request it to make a rectification. Where the charitable organization fails to make a rectification, the donor may report or file a complaint to the civil affairs department of the people's government at or above the county level or file a lawsuit to the people's court.
Article 43 State-owned enterprises shall ensure their charitable donations follow the relevant regulations on the management of state-owned assets, and conduct approval and recording procedures.