Care package or gift horse? China’s legislature weighs landmark draft law to regulate charities
Proposal aims to encourage philanthropy but critics say it could impose too many restrictions
China’s top legislature began on Wednesday to deliberate its first draft charity law, which spells out for the first time how charity groups would be able to operate in the country.
Despite hopes that such legislation could encourage more charitable activities in the world’s second-largest economy, critics said it put too many restrictions on fundraising and could further restrain the non-profit sector.
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The draft charity law, submitted to the National People’s Congress for its third reading on Wednesday, lays out details on registration, fundraising, and government oversight.
According to the draft, charities would not be allowed to carry out or sponsor activities that endangered national security or the public interest.
It would also prohibit charities from launching public campaigns within two years of being officially registered.
Offline appeals for public donations could only be conducted within the area the organisation was registered.
“These limitations would pose a big challenge for the survival of newly registered charities because public appeals are an essential source of funding for them,” said Zhang Gaorong, assistant director of the China Philanthropy Research Institute.