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China - NGO Law Monitor - Research Center - ICNL http://www.icnl.org/research/monitor/china.html[11/9/2012 4:19:31 PM] resource mobilization generally subject to state approval. In early 2010, for example, the PRC State Administration of Foreign Exchange issued a formal notice, Notice 63 on Issues Concerning the Administration of Foreign Exchange Donated to or by Domestic Institutions that requires many domestic nonprofit organizations to comply with new and more complex rules for receiving and using foreign donations. These include, for certain kinds of organizations, an application attesting to the authority of the domestic organization and the foreign donor; the domestic group’s business license; a notarized donation agreement between the domestic group and the foreign donor organization with the purpose of the donation prescribed; and a registration certificate for the foreign nonprofit group. The Notice spurred significant concern in both domestic NGO and foreign nonprofit circles and its implications are still being worked out. Many nonprofits have been able to continue accessing foreign funds, but some organizations have experienced difficulties especially in cases where funding is coming from foreign organizations, such as the National Endowment for Democracy, the Open Society Institute, and the International Republican Institute, that are perceived as sensitive because of their “democracy promotion” work. [7] [7] English text of Notice 63, Chinese text of Notice 63. There is as yet no detailed domestic fundraising regulation, but generally speaking public fundraising, which is understood to mean fundraising through the media, in public spaces and online, is restricted to a small number of organizations. These include government agencies, such as the Ministry of Civil Affairs, officially designated organizations such as the Chinese Red Cross and China Charity Federation, and one type of foundation. The 2004 Regulations on the Management of Foundations creates two categories of foundations: public fundraising foundations and non-public fundraising foundations (hereafter referred to as “public” and “private” foundations respectively). Only public foundations have the authority to engage in public fundraising. Private foundations are funded by a major gift from a company or family, and can accept donations through private channels, but cannot engage in public fundraising. Other nonprofits, such as SOs or CNIs, are also not allowed to engage in public fundraising. Provisions in the draft Charity Law (not yet enacted as of February 2012) would provide some general regulation of domestic fundraising. There is some concern in China about several important fundraising issues, including the regulatory and tax treatment of gifts of domestic stock for nonprofit and philanthropic purposes, and the business activities of nonprofits or their for-profit subsidiaries. A series of scandals in 2011 in some prominent public fundraising foundations, such as the Chinese Red Cross and the Soong Ching Ling Foundation, have made public problems with the lack of transparency and accountability in the philanthropic sector, and the need for improved regulations governing this sector. These issues have not, for the most part, been fully worked out in the Chinese regulatory framework. Reports UN Universal Periodic Review Reports Reports of UN Special Rapporteurs China USIG (United States International Grantmaking) Country Notes U.S. State Department Universal Periodic Review: China USIG: China 2011 Country Reports on Human Rights Practices: China Advancing Freedom and Democracy Reports, 2009: China Failed States Index Reports Foreign Policy: Failed States Index 2012 IMF Country Reports China and the IMF International Commission of Jurists Not available International Center for Not-for- Profit Law Online Library China News and Additional Resources Back to Top Back to Top News of importance to the nonprofit sector will be updated on a continual basis in China Development Brief’s column, A View from the Top.
China - NGO Law Monitor - Research Center - ICNL http://www.icnl.org/research/monitor/china.html[11/9/2012 4:19:31 PM] While we aim to maintain information that is as current as possible, we realize that situations can rapidly change. If you are aware of any additional information or inaccuracies on this page, please keep us informed; write to ICNL at ngomonitor@icnl.org. General News Civil society solid base for nation's future (November 2012) The future trajectories of Chinese politics are closely linked with the growing emergence of a civil society. It is already a widely held consensus in China that the nation's civil society is growing and will become increasingly diversified in the future. The functions of some grass-roots social organs are undergoing some transformations. For instance, sub-district residential committees are increasingly dealing with everyday conflicts and community affairs. They are increasingly playing the role of mediator and helping dilute emerging conflicts. This is a positive development. State to tighten oversight of international NGOs (September 2012) By amending existing law, China will set clear rules for international NGOs to register on the mainland and will strengthen supervision of their activities. Li Liguo, Minister of Civil Affairs, made the announcement at a news conference in Beijing. "The Chinese government recognizes the contributions of international NGOs in China's economic and social development and praises their contributions in fields like culture, education, health and poverty alleviation," Li said. Activist and artist Ai Weiwei loses appeal on tax evasion charges (September 2012) Ai Weiwei has been battling tax evasion charges brought by the Beijing tax bureau against his artistic company, Fake Cultural Development Ltd., for over a year. The outspoken artist, blogger, filmmaker, and architect was on his way to Hong Kong in April 2011 when he was taken into custody at Beijing's international airport and detained for 81 days amid a government crackdown on political activists. Ai's studio in Beijing was raided, and his wife and several employees were taken into custody for questioning. Seven weeks after Ai was taken into custody, state news agency Xinhua reported that Beijing police said his company evaded a "huge amount of taxes" and "intentionally destroyed accounting documents." He was released on one year's probation the following June, with heavy restrictions imposed on his movements. Ai was forbidden to speak to the media or post on his Twitter account about his detainment. His phone was tapped, his e-mails were checked, and he had to report his appointments with other people to the police. The government campaign against Ai Weiwei has been attributed to fears of a potential Arab-Spring-style uprising, following online calls for a "Jasmine Revolution" in 2011. China's door "wide open" to foreign NGOs (September 2012) China welcomes law-abiding International non-governmental organizations (INGOs), but registration of INGOs needs strengthening, said Minister of Civil Affairs Li Liguo at at a press conference organized by the State Council Information Office. Chinese turn to microblogs for donations instead of government charities (August 2012) Chinese citizens increasingly depend not on government or officially sanctioned non-profit organizations, but on Twitter-like microblogs called Weibo, for donations. NGOs get boost from Shenzhen register reforms (August 2012) Wang Jinyun had waited nine years for the piece of paper that officially confirmed his organization's NGO status. That precious piece of paper also confirmed that Shenzhen’s NGO registration reforms are working. Wang, founder of Shenzhen-based Yangguangxia (Under the Sun), said his application, the fifth since 2003, was approved due to the reforms. Government wants more transparency, which means more control over NGOs (August 2012) New rules proposed by the Ministry of Civil Affairs would impose new restrictions on NGOs in the name of transparency. Financial statements must be more readily available and the use of funds must be restricted. "Transparency is good, but it should be applied to all societal fields," says one source familiar with the law. New regulations on the management of charitable foundations issued (July 2012) On July 30, the Ministry of Civil Affairs published new regulations to enhance accountability and transparency and increase public confidence in charities. However, several restrictive provisions related to administrative expenses and operating costs were also introduced. The regulations were released after a number of controversies hit the sector, which created fury among Web users who demanded more transparency of China's charities. Changing climate for religious NGOs? (July 2012) Religious non-governmental organizations (RNGOs) in China may face many challenges. They mainly support people such as migrant workers and their families, orphans, and victims of natural disasters. The government encourages this, but also places many restrictions on RNGOs acquiring legal registration. It also bans RNGOs from overt religious activity. This has led many groups engaged in charitable activity - like those associated
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