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Chinese ministry orders transparency for charity organizations

June 02nd, 2011 | Xinhua

China’s Civil Affairs Ministry has urged charity organizations to increase transparency in both donations and the salaries of their employees.

In a provisional regulation issued on Wednesday, the ministry ordered social organizations, including charity funds and federations, to publish information related to the organization and spending of their received donations.

Donors are not allowed to be involved in the distribution of charity organizations’ property or funds, according to the regulation.

To promote transparency, the ministry also barred state-sponsored social organizations from taking advantage of preferential tax cuts for charity donations.

Trade confederations or chambers of commerce that serve the interests of enterprises or government institutions, as well as professional organizations, will not be allowed to enjoy preferential tax reductions, it read.

In China, companies may avoid paying taxes on up to 12 percent of their annual profits if their public welfare donations are equal to or exceed that same amount.

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Category: Civil Society