August 25th, 2011 | Global Times New charity guidelines to include tighter regulations on donations
The Ministry of Civil Affairs (MCA) is soliciting public opinion on draft guidelines requiring charity organizations and governments to disclose detailed information on donations, the first regulation of its kind for charities.
The Guidelines of the Charitable Donations Information Disclosure draft, published Tuesday on the MCA’s website, required donation recipients to publish their organization’s information, fund-raising activities, donation details, use of donations and the financial status of the charity organization.
The information must be released within seven working days for regular donations while information on significant and special donations should be reported within 24 hours. The guideline stipulates the use of the donations need to be publicized within one month.
Zheng Yuanchang, an official with the social welfare and philanthropy promotion department of the MCA, said the guidelines are “more targeted” because they require the content, time and method of donation be disclosed in a more detailed and regulated way, according to Beijing Times.
In April, Sina Weibo netizen Xiao Xuehui posted about a Red Cross Society of China Shanghai Luwan District Branch invoice ringing in at nearly 10,000 yuan ($1,565) for one meal, triggering suspicions among the public about the use of the charity organization’s donation fund.
Guo Meimei, the woman who embarrassed the Red Cross Society of China by flaunting her wealth on microblog while claiming to be affiliated with the “Red Cross Chamber of Commerce,” cast another shadow on the credibility of the Chinese charity organization.
A sample investigation entitled the 2010 National Charity Organization Information Disclosure Status Report, launched by a subsidiary body of the MCA, showed 75 percent of charity organizations rarely disclose all their donation information. The statistics are based on questionnaires conducted among 65 charity organizations.
“Transparency is the iron law of charity organizations,” said professor Wangming of the NGO Research Institute, Tsinghua University, according to Sina Finance News.
By Luo Wei