Philanthropy

Chinese charity foundations regulations tightened


By added on 31/07/2012

The Ministry of Civil Affairs has published a new set of regulations governing charity foundations, which require regular financial reports and tighter internal management structures, reports China Daily.

Under the regulations, foundations must provide detailed reports on donations and expenditures.

If a charity project goes on for more than three months, quarterly financial reports are required, and a comprehensive report must be released for public scrutiny at the end of a project.

The new regulations also state that donors may request information on how their money is spent.

Administrative expenses, including the salaries of charity employees, may not be more than 10 per cent of the annual spending, according to the regulations, and charitable foundations are prohibited from carrying out or sponsoring any profitable activities, the regulations stipulate.