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Charity Law Passed by the National People’s Congress

On 16 March, the National People’s Congress passed a landmark Charity Law. While the new Law will make it easier for Chinese nonprofit groups to obtain a legal registration and raise funding, it also includes strict regulations to prevent fraud and impose tighter supervision. The legislators introduce tax incentives to encourage enterprises and wealthy people to donate to charities, a move aimed at boosting an ailing internal donation market. The new Law mandates that charities should be recognised by authorities before they solicit public donations, with organisations raising funds from the public without a license risking fines of up to twenty thousand yuan. According to official data, at the end of June 2016, in China there were about six hundred and seventy thousand registered social organisations, including more than five thousand foundations.

(Sources: China Daily, NGOs in China, The Wall Street Journal, Xinhua)

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