Chapter X  Promotional Measures

Article 83 People's governments at or above the county level shall incorporate the development of the charitable cause into their national economic and social development plans and adopt policies and measures to promote the charitable cause.

Relevant departments of the people's governments at or above the county level shall, within the scope of their respective duties, provide charitable organizations and trustees of charitable trusts with information on charity needs, and provide guidance and assistance for charitable activities.

Article 84 Civil affairs departments of the people's governments at or above the county level shall establish a mechanism to share charity information with other departments.

Article 85 The state encourages, gives guidance to and supports natural persons, legal persons and unincorporated organizations that have the willingness and ability to get actively involved in charity.

The state shall implement tax benefit policies for the charitable cause. Specific measures shall be formulated by the financial and tax departments of the State Council in conjunction with the civil affairs department of the State Council in accordance with the provisions of laws and administrative regulations on taxation.

Article 86 Charitable organizations and their incomes are eligible for tax benefits in accordance with the law.

Article 87 Natural persons, legal persons and unincorporated organizations that donate assets for charitable activities are eligible for tax benefits in accordance with the law. When calculating taxable income of the enterprise income tax, the portion of an enterprise’s charitable donations exceeding the tax-deductible limit in the current year may be carried forward and deducted within the next three years.

Overseas donations for charitable activities are eligible for reduction or exemption from import duties and import value-added tax in accordance with the law.

Article 88 Natural persons, legal persons and unincorporated organizations that set up charitable trusts for carrying out charitable activities are eligible for tax benefits in accordance with the law.

Article 89 Beneficiaries that receive charitable donations are eligible for tax benefits in accordance with the law.

Article 90 Where charitable organizations, donors, and beneficiaries are eligible for tax benefits in accordance with the law, the relevant departments shall complete the necessary procedures in a timely manner.

Article 91 Physical goods, securities, equity, and intellectual property donated to charitable organizations are exempted from the administrative fees related to rights transfer in accordance with the law.

Article 92 The state shall apply special preferential policies to charitable activities that are aimed at assisting the poor and needy, responding to major emergencies and contributing to significant national strategies.

Article 93 Charitable organizations that conduct charitable activities stipulated in Subparagraphs (1) and (2) of Article 3 of this Law, which require the use of land for charitable service facilities, may apply for the use of allocated state-owned land or rural collective land for construction purposes in accordance with the law. The land for charitable service facilities shall not be altered except through legal procedures.

Article 94 The state provides the charitable cause with financial policy support and encourages financial institutions to provide financial services such as financing and settlement for charitable organizations and charitable trusts.

Article 95 People's governments at all levels and their relevant departments may support qualified charitable organizations in providing services to the public through purchasing their services and other methods in accordance with the law, and make public the relevant details as prescribed by relevant laws and regulations on government procurement.

The state encourages the application of modern information technologies in charity. It encourages social actors to provide funding support and capacity-building services to charitable organizations through ways such as venture philanthropy, incubation services, personnel training and project guidance.

Article 96 The state encourages localities where conditions permit to set up community charitable organizations, strengthen the capacity of community volunteers and develop community charity.

Article 97 The state adopts measures to promote a culture of charity and cultivate citizens' awareness of charity.

Schools and other educational organizations shall incorporate notions of charitable culture into their syllabuses, and the state encourages institutions of higher education to cultivate talents for the charitable cause, and supports theoretical research on charity at higher education and research institutions.

Radio broadcasters, television stations, newspapers, periodicals, the internet and other media channels shall actively promote charitable activities for the public interest, spread knowledge of charity and foster a culture of charity.

Article 98  The state encourages corporations, public institutions, and other organizations to provide venues and other favorable conditions for charitable activities.

Article 99  Donors may assign commemorative names to the charitable projects to which they donate with the consent of the beneficiaries. Where laws and regulations stipulate that such naming requires approval, such provisions shall prevail.

Article 100 The state establishes a charity commendation mechanism to commend natural persons, legal persons and unincorporated organizations that have made outstanding contributions to the development of the charitable cause. The commendations shall be granted by the people’s governments or relevant government departments at or above the county level.

Article 101 The civil affairs departments and other relevant departments of the people’s governments at or above the county level shall include information such as charitable donations, and record of voluntary services in the credit record of individuals or entities concerned, and improve the credit incentive mechanism.

Article 102 The state encourages international exchanges and cooperation in the field of charity.

To accept charitable donations from abroad and carry out charitable activities in cooperation with overseas organizations or individuals, charitable organizations shall complete procedures for approval and for filing for the record in accordance with relevant regulations.

Chapter XI  Oversight and Management

Article 103 The civil affairs departments of the people's governments at or above the county level shall perform their duties in accordance with the law, carry out oversight and inspection of charitable activities, and provide guidance for charitable industry associations.

Article 104 The civil affairs departments of the people's governments at or above the county level have the power to take the following measures against charitable organizations and trustees of charitable trusts suspected of violating the provisions of this Law:

(1) carrying out inspections on domiciles of charitable organizations and of trustees of charitable trusts as well as charitable activity sites;

(2) requesting clarification from charitable organizations and trustees of charitable trusts, accessing or copying relevant materials;

(3) investigating organizations and individuals related to charitable activities for information concerning oversight and management;

(4) inquiring into the financial accounts of charitable organizations with the approval of the people's governments at corresponding levels; and

(5) adopting other measures prescribed in laws and administrative regulations.

Where a charitable organization or a trustee of a charitable trust is suspected of violating the provisions of this Law, the civil affairs departments of the people's governments at or above the county level may summon the persons in charge for questioning and request for clarification and measures of rectification.

Where other participants in charitable activities are suspected of violating the provisions of this Law, the civil affairs departments of the people's governments at or above the county level may, together with other relevant departments, investigate and handle the cases.

Article 105 Where the civil affairs department of a people's government at or above the county level undertakes an inspection or investigation of a charitable organization or relevant entities and individuals, there shall be two or more inspectors or investigators, and they shall produce legitimate certificates and inspection or investigation notices.

Article 106 The civil affairs departments of the people's governments at or above the county level shall establish a system of credit records for charitable organizations and their heads as well as trustees of charitable trusts, and release the information to the public.

The civil affairs departments of the people's governments at or above the county level shall establish a system of evaluating charitable organizations; they shall encourage and support third party institutions to evaluate the internal management, financial condition, progress in project implementation, information disclosure and other related matters of charitable organizations and release the results of the evaluation to the public.

Article 107 Charitable industry associations shall establish sound charitable industry standards, and strengthen the self-regulation of the charitable industry.

Article 108 Any entity or individual who finds any violation of law of any charitable organization or charitable trust may file a complaint or report with the civil affairs department or other relevant departments of a people's government at or above the county level, or to charitable industry associations. Upon receiving the complaint or report, the civil affairs department, other relevant departments or charitable industry associations shall investigate and handle the case in a timely manner.

The state encourages the public and media to supervise charitable activities, and expose activities where properties are obtained by fraud under the pretense of charity or by pretending to be charitable organizations, as well as illegal activities by charitable organizations and trusts, thereby giving full play to the role of public opinion and oversight.

Chapter XII  Legal Liability

Article 109 Where a charitable organization commits one of the following acts, the civil affairs department of a people's government at or above the county level shall order it to make rectification within a specified period, issue a warning to it or order it to suspend operation within a specified period and confiscate its illegal gains. Where the circumstances are serious, the registration certificate shall be revoked with a public notification:

(1) not carrying out charitable activities in line with the charitable purposes of charitable organizations;

(2) dividing up without authorization, misappropriating, withholding or unlawfully taking possession of charitable assets; or

(3) accepting donations with additional conditions in violation of laws, regulations or social morality, or attaching any conditions for beneficiaries that violate laws, regulations, or social morality.

Article 110 Where a charitable organization commits one of the following acts, the civil affairs department of a people's government at or above the county level shall order it to make rectification within a specified period, issue a warning to it and confiscate its illegal gains. If the charitable organization fails to make rectification within the specified period, it shall be ordered to suspend operation within a specified period for rectification:

(1)  violating Article 14 of this Law, causing damage to charitable assets;

(2)  designating, or designating in a disguised form, an interested party of donors or management personnel of the charitable organization as beneficiaries;

(3)  investing assets that should not be used for investments；

(4)  changing without authorization the purpose of the donated assets;

(5)  causing major loss of charitable assets due to mismanagement;

(6)  the annual expenditure, management expenses or fundraising costs of charitable activities violating regulations;

(7)  not fulfilling information disclosure obligations;

(8)  not submitting annual work reports as well as financial reports or not filing fundraising proposals in accordance with the law; or

(9)  leaking privacy about donors, volunteers, or beneficiaries as well as information such as names, titles, addresses and contact information that donors and settlors of charitable trusts do not agree to make public.

Where a charitable organization, in violation of this Law, discloses state secrets or commercial secrets, it shall be punished in accordance with provisions of the relevant laws.

Where a charitable organization commits a violation as specified in the preceding two paragraphs, if it repeats a violation specified in the previous paragraphs within one year after it is punished in accordance with the law, or there are other serious circumstances, its registration certificate shall be revoked by the civil affairs department of a people's government at or above the county level with a public notification.

Article 111 Where one of the following circumstances appears in fundraising activities organized by a charitable organization, the civil affairs department of a people's government at or above the county level shall issue a warning to it, order it to stop fundraising activities and return properties raised illegally to donors. If such properties are impossible to be returned, they shall be confiscated and transferred to other charitable organizations to be used for charitable purposes by the civil affairs department concerned. Where the circumstances are serious, the certificate of the public fundraising qualification or the certificate of registration of the charitable organization involved shall be revoked with public notification. If the certificate of the public fundraising qualification of a charitable organization is revoked, it shall not be allowed to reapply for such qualification within five years.

(1)  deceiving or misleading the potential donors into donation by fabricating facts or by other means;

(2)  allocating donation quotas to organizations or individuals compulsorily or doing so in a disguised form;

(3)  disrupting public order, enterprises' production and business operation or people's lives;

(4)  engaging in cooperation with organizations or individuals without the public fundraising qualification in violation of Article 26 of this Law;

(5)  raising funds from the general public online in violation of Article 27 of this Law; and

(6)  not distributing and using funds and goods accepted through public fundraising in response to a major emergency in a timely way.

Article 112 Where a charitable organization commits an act specified in Article 109, Article 110 and Article 111 of this Law, a fine not less than RMB 20,000 yuan but not more than RMB 200,000 yuan shall be imposed on the directly responsible person in charge and other directly responsible persons by the civil affairs department of a people's government at or above the county level, and the illegal gains shall be confiscated. Where the circumstances are serious, the persons involved shall be forbidden to be management personnel of any charitable organization for one to five years.

Article 113 Where organizations or individuals who have no public fundraising qualification raise funds from the general public, the civil affairs departments of the people's governments at or above the county level shall issue them a warning and order them to stop fundraising activities. They shall be ordered to return properties illegally raised. If such porperties are impossible to be returned, they shall be confiscated and transferred to other charitable organizations to be used for charitable purposes by the civil affairs department concerned. Where the circumstances are serious, a fine not less than RMB 20,000 yuan but not more than RMB 200,000 yuan shall be imposed on the organizations or individuals involved.

Where a natural person, legal person or unincorporated organization obtains properties by fraud under the pretense of charity or by pretending to be a charitable organization, they shall be investigated and dealt with by the public security organs.

Article 114 If an internet service platform for fundraising aimed at the general public violates Article 27 of this Law, the civil affairs department of a people's government at or above the provincial level shall order it to make rectification within a specified period. If it fails to make rectification within the specified period, the civil affairs department of the State Council shall revoke its designation.

If an undesignated internet information service provider provides internet service for fundraising aimed at the general public, the civil affairs department of a people’s government at or above the county level shall order it to make rectification within a specified period. If it fails to make rectification within the specified period, the matter shall be dealt with by the civil affairs department of the people's government at or above the county level in conjunction with the cyberspace administration and the industry and information technology department.

If a radio broadcaster, television station, newspaper, periodical, internet service provider or telecommunications operator fails to fulfill its obligations to conduct verification in accordance with the law, the competent departments shall order it to make rectification within a specified period and issue a warning to it. If it fails to make rectification within the specified period, a notification of criticism shall be issued and circulated.

Article 115 If a charitable organization fails to issue donation receipts to donors or proof of volunteer service to volunteers in accordance with the law, or fails to give feedback to donors in a timely manner, the civil affairs department of a people's government at or above the county level shall issue a warning to it and order it to make rectification within a specified period. If the charitable organization fails to make rectification within the specified period, it shall be ordered to suspend operation within a specified period.

Article 116 If a charitable organization obtains tax benefits through fraud, it shall be investigated and dealt with by the taxation organ in accordance with the law. Where the circumstances are serious, the civil affairs department of the people's government at or above the county level shall revoke its registration certificate with a public notification.

Article 117 If a charitable organization engages in or provides funding support to activities that endanger national security or the public interest, it shall be investigated and dealt with by the relevant organs. The civil affairs department of a people's government at or above the county level shall revoke its registration certificate with a public notification.

Article 118 If any of the following acts is committed by the settlors or trustees of charitable trusts, the civil affairs departments of the people's governments at or above the county level shall order them to make rectification within a specified period, issue a warning to them, and confiscate their illegal gains. A fine not less than RMB 20,000 yuan but not more than RMB 200,000 yuan shall be imposed on the directly responsible person in charge and other directly responsible persons:

(1) the use of a trust's assets and proceeds for non-charitable purposes;

(2) designation of a person who is an interested party of the settlors, trustee or their personnel as the beneficiary or doing so in a disguised form;

(3) failure to report to the civil affairs departments the handling of trust affairs and the trusts' financial position in violation of relevant regulations;

(4) failure to meet the standards for annual expenditures and management expenses of charitable trusts; and

(5) failure to fulfill the obligation of information disclosure in accordance with the law.

Article 119 Charitable organizations shall, in accordance with the law, bear the liability for compensation for damage caused to beneficiaries or third parties during the charitable services due to negligence by them or the volunteers. If the damage is caused by the volunteers intentionally or due to gross negligence, the charitable organizations may claim indemnification from them.

Charitable organizations shall, in accordance with the law, bear the liability for compensation for volunteers who suffer harm due to the negligence of the charitable organizations while engaging in charitable services. If the damage is caused by force majeure, the charitable organizations shall make appropriate compensations.

Article 120 If any of the following acts is committed by a civil affairs department or any other relevant department of a people's government at or above the county level and their staff, the organs at higher levels or the supervisory organ shall order it or them to make rectification. Where a sanction shall be given in accordance with the law, the organ for the appointment and removal or the supervisory organ shall give a sanction to the directly responsible person in charge and other directly responsible persons:

(1)  failure to fulfill the obligation of information disclosure in accordance with the law;

(2)  allocating donation quotas compulsorily or doing so in a disguised form, or designating and forcing specific volunteers and charitable organizations to provide services;

(3)  failure to perform oversight and management duties in accordance with the law;

(4)  implementing compulsory administrative measures or administrative penalties unlawfully;

(5)  dividing up without authorization, misappropriating, withholding, or unlawfully taking possession of charitable assets; or

(6)  committing other acts of abusing power, neglecting duties, or engaging in malpractice for personal gain.

Article 121 Where a violation of this Law constitutes a violation of the administration of public security, the public security organ shall impose an administrative penalty for public security in accordance with the law; where the violation constitutes a crime, the violator shall bear criminal liability in accordance with the law.

Chapter XIII  Supplementary Provisions

Article 122 Urban and rural community organizations as well as other entities may carry out internal mutual aid activities within their communities and entities respectively.

Article 123 Organizations other than charitable organizations may carry out charitable activities within their capacity.

Article 124 Where an individual sees his family in financial difficulty because of his illness or other hardships, and seeks help from society by releasing assistance information, both the person seeking help and the information publisher shall be responsible for the authenticity of the information and must not resort to fabricating or concealing facts to obtain assistance fraudulently.

An internet platform providing assistance-seeking services for individuals shall, as designated by the civil affairs department of the State Council, verify the authenticity of the information it releases and make public relevant information in a timely and comprehensive way. The specific administrative measures shall be formulated by the civil affairs department of the State Council together with the cyberspace administration, industry and information technology and other relevant departments.

Article 125 This Law shall come into force on September 1, 2016.