July 30th, 2012 | China Daily Charity regulations tightened
Charity regulations tightened
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.
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 percent of the annual spending, according to the regulations, and charitable foundations are prohibited from carrying out or sponsoring any profitable activities, the regulations stipulate.