China Introduces Revised Management Guidelines for Foundations
Chinas new management guidelines for foundations aim to enhance credibility and ensure organized development, effective January 1, 2027.
Beijing, November 11 (Daily Kiran) : Chinese Premier Li Qiang has recently signed an order from the State Council to introduce revised management guidelines for foundations. These guidelines will take effect on January 1, 2027.
The primary goal of the new regulations is to strengthen the credibility of foundations while promoting their healthy and orderly development. The guidelines consist of eight chapters and 79 articles, with key amendments outlined.
First, the overall principles and requirements have been enhanced. It is explicitly stated that the activities of foundations must adhere to the leadership of the Chinese Communist Party. While conducting public welfare activities, foundations are required to follow principles of legal legitimacy, voluntariness, integrity, openness, transparency, and a non-profit approach.
Second, improvements have been made to the registration management system. The levels of registration management and registered capital have been clearly defined. The process for direct registration will be streamlined, and the requirements for changing registrations have been clarified, along with detailed procedures for dissolution prior to cancellation.
Third, internal governance structures have been improved. The responsibilities of founders and responsible individuals have been reinforced, and the rules governing the rights and processes of organizational bodies have been enhanced.
Fourth, activity management has been standardized. Requirements for fundraising, donations, and financial assistance activities have been clarified, ensuring that all received funds are used for public interest projects.
Fifth, the disclosure of information and self-regulation within the industry have been strengthened, and sixth, comprehensive monitoring has been enhanced.
This comprehensive approach reflects China’s commitment to improving the operational framework of its foundations, ensuring they serve their intended purposes effectively.
