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New transparency rules for charities

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New regulations on the management of the nation's charitable foundations were issued yesterday in an effort to enhance transparency and oversight in a sector whose credibility has suffered considerably following a recent series of scandals involving embezzled funds.

The Ministry of Civil Affairs published the new rules, requiring that charities regularly publish details of donations and expenditures, on its website.

For fund-raising projects that last more than three months, financial reports must be published quarterly, while a comprehensive report should be made public at the end of the drive, according to the regulations.

The new rules also stipulate that charities are not to engage in any profit-making endeavours.

'Foundations should not use their names, images or charity projects for non-charitable purposes,' the statement said.

For emergency-prompted fund-raising, organisations must disclose information such as total donations, details of all donated materials and of costs incurred in the drive.

The regulations make it clear that donors have the right to know how their money is spent, and authorities stressed foundations must 'give truthful answers in a timely manner'.

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