Draft charity law to improve transparency of Chinese charities

A draft law to regulate Chinese charity organizations and improve the industry has been submitted to China's top legislative body for an initial discussion on Friday.

Experts strongly approved of the draft charity law, because it is responding to hot issues in the industry, including how a charity organization manages its donations and what responsibility it should shoulder when it does not keep donation use transparent.

The draft clarifies that the charity in the judicial document is not only to help the poor, but also to improve the quality of life, such as in education and technology.

Under the draft, an organization with the intention to do charity should first register with civil affairs authorities at county level or above, and the authorities are asked to make a decision on whether it is authorized within 30 days.

A charity organization which has been registered for more than two years can apply for a certificate of public donation to the civil affairs authority it registered with, if it wants to collect donations from the public, the draft said.

When a charity organization receives the certificate and is registered at a provincial-level civil affairs authority, it will be allowed to collect public donations on its website or other online manifestations.

The draft recommends that information about charity organizations, including their basic descriptions and the use of donations from the public, should be disclosed, aiming to ensure transparency for the public.

In addition, the draft says donors will be given a tax deduction, in a move to encourage more people to donate. What's more, every charity organization is asked to provide its annual report, including its accounts, to civil affairs authorities every year, it added.