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Blockbuster | China Philanthropy Research Institute Released a Report on the Implementation of the Charity Law in 2018

:2019/09/29

Reform and opening up have promoted the sustainable development of modern philanthropy -- report on the implementation of the Charity Law of China in 2018


On September 1, the third anniversary of the implementation of the Charity Law, China Philanthropy Research Institute released the 2018 report on the implementation of the Charity Law of China in Beijing. In 2018, the supporting laws and policies of the Charity Law were further improved. The Measures on Disclosure of Information of Charity Organizations and the Interim Measures on the Management of the Preservation and Appreciation of Investment Activities of Charity Organizations were released successively. A number of supporting documents have been issued in the fields of voluntary service and charitable taxation. Data from the report showed that in 2018, 1,349 charitable organizations were registered nationwide, 229 of which were eligible for public donations. The 20 online fundraising information platforms raised a total amount of more than 3.17 billion RMB. A total of 87 new charitable trusts were filed, with a total contract value of 1.98 billion RMB.

In 2018, several provinces and cities are gradually promoting the effective implementation of the Charity Law locally. More than 160 policies and regulations on charitable and social organizations have been issued by 31 provinces, covering the registration and identification of charitable organizations, the filing of public donations, information disclosure, supervision, voluntary services, and the development of community social organizations. In terms of comprehensive documents, Measures for Implementing the Charity Law in Zhejiang province, Measures for Implementing the Charity Law in Anhui province, and Measures for Implementing the Charity Law in Shaanxi province will be released in 2019 after solicitation of opinions. Beijing has revised Several Regulations on Promoting Charity in Beijing and released the draft for comments, which is expected to be officially released in 2019.

By December 31, 2018, 5,260 charitable organizations had been registered nationwide, increasing 34.5 percent from the end of 2017. Charitable organizations are centered on the eastern region and more developed provinces, among which Guangdong ranks the first with 748 charitable organizations, accounting for 14.2% of the total number of charitable organizations in China; while Beijing and Zhejiang ranked second and third with 728 and 630 charitable organizations respectively. Growth rate in Ningxia, Guangxi and Shandong rank the top three in China.

In 2018, progress was made in the registration and identification of organizations at all levels and at all categories, with more than 60 percent of them registered with Civil Affairs Departments at or above the provincial level, and 38.2 percent of them registered with Civil Affairs Departments at the city and county (district) levels, up from 34.3 percent at the end of 2017. About three-quarters of the charitable organizations are foundations, while the proportion of social organizations and social service organizations (private non-enterprise units) rose from 17.9% and 4.5% to 19.0% and 5.3% respectively.


Figure 1 Change trends of different types of charitable organizations from 2016 to 2018 (Unit: jia)

It is noteworthy that 96.5% of foundations in Beijing are registered as charitable organizations. The figure was 57.7 percent (3982/6896) nationwide.

By the end of 2018, 1,235 out of 5,260 charitable organizations had been eligible for public fundraising, and 7,639 fundraising activities had been recorded. China Social Welfare Foundation recorded the largest number of fund-raising activities, with 487. Among the organizations eligible for public fundraising, 60.6% are foundations and 38.9% are social organizations, with only 6 social service organizations. About 60 percent of public fundraising organizations are registered with Civil Affairs Departments at or above the provincial level. Compared with the end of 2017, the proportion of organizations registered in municipal and county (district) Civil Affairs Departments increased from 37.7% to 39.7%.

Figure 2 Hierarchical distributions of registration authorities of charitable organizations in 2018 (Unit: jia)

From the perspective of local work, public fundraising charitable organizations in Guizhou account for 63.6 percent of the charitable charity organizations in the Province. In addition, more than half of the charitable organizations in Sichuan and Hunan provinces are eligible for public fundraising. In general, charitable organizations in the central and western regions have a higher proportion of being eligible for public fundraising.

In June 2018, the Ministry of Civil Affairs published the list of 9 Internet public fundraising information platforms in the second batch. After the withdrawal of China Charity Information Platform and China Foundation Center, the number of designated platforms by the Ministry of Civil Affairs has reached 20, among which 6 are run by social organizations (5 foundations and 1 social group). In 2018, the above platforms released more than 21,000 pieces of fundraising information for more than 1,400 public fundraising charity organizations nationwide, attracting 8.46 billion netizens' attention and participation. The total amount raised exceeded 3.17 billion RMB, increasing 26.8% compared with that in 2017. The top three platforms for raising funds were Tencent Charity Foundation (1.725 billion RMB), Alipay Foundation (670 million RMB) and Alibaba Foundation (440 million RMB).

In 2018, charitable trusts were included in the selection of the China Charity Awards for the first time at the 10th China Charity Awards. The "2016 SDIC Charity No. 1 Charity Trust" of SDIC Taikang Trust Co., LTD. finally won the "Charity Project" award, which has increased the public's attention to charitable trusts. By the end of 2018, the total number of filings of charitable trusts in China was 154, and the total size of charitable trust property reached 1.98 billion RMB. In 2018, 87 charitable trusts were filed, an increase of 93% over 2017. The total amount of trust contracts reached 1.13 billion RMB, up 28% year-on-year in 2017. In 2018, the top five purposes set up by charitable trusts were poverty alleviation, public charity [1], education, child welfare and environmental protection, and there are charitable trusts with themes of public finance, social organization capacity building, youth entrepreneurship and employment, rural development and One Belt and One Road. The purposes of trust are expanding day by day.

Figure 3 the number of registered charitable trusts increased in 2018 (Unit: dan)


In November 2018, the Ministry of Civil Affairs issued the Regulations on the Jurisdiction of Illegal Cases of Public Fundraising (trial), which clearly stipulated how to divide the jurisdiction powers and responsibilities of Civil Affairs Departments at all levels for different types of illegal cases of public fundraising. While the central government is improving the supervision system of charity, local supervision authorities should also combine local characteristics and actual needs to innovate law enforcement work by establishing a comprehensive supervision platform for social organizations and carrying out special spot checks and audits of public charity projects of foundation.

After the promulgation of the Measures on the Administration of Credit Information of Social Organizations in January 2018, Civil Affairs Departments at all levels have actively implemented relevant provisions. The Public Service Platform of China Social Organizations sets up two information modules, namely, "list of abnormal activities" and "list of serious violation of laws and credibility". The Ministry of Civil Affairs and the local civil affairs departments at all levels publish the information of social organizations listed in the list according to the Measures on the Administration of Credit Information of Social Organizations. By the end of 2018, a total of 1,069 social organizations had been listed on the list of abnormal activities, and 970 had been listed on the list of serious violations of laws and credibility.



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