China's Charity Law Effective on Thursday

By Mei Manuel, September 01, 2016 02:09 AM

(E-China Cities)

On Thursday, the Charity Law - which was passed by Chinese lawmakers in March - will finally be put into effect in order to ease the restrictions on fundraisers and the activities of charity organizations or groups in the country.

The new law will be setting up new guidelines and regulations to prevent fraud and ensure that charity groups are supervised properly by the government.

Currently, the country has 670,000 registered social organizations as of June 2016 with 5,038 foundations included in the roster according to the Ministry of Civil Affairs. In 2015, the organizations registered in the government had received 61 billion yuan in total for donations.

Before a charity organization or fundraiser can be done in China, it has to be recognized by the government before they can ask around for donations. They also need to get a license before they can do a fundraiser or else they will be fined to up to 20,000 yuan.

Nowadays, fundraisers online are becoming areas where fraud is prominent thus the necessity for the law to be enacted. Online charities must work with 13 websites which has gotten an approval from the civil affairs authorities such as run by Tencent Foundation. 

The new law is also expected to provide tax incentives for entreprises and the wealthy to donate to charity.

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