Premier Li Qiang has signed a State Council order promulgating the revised Regulations on the Administration of Foundations, according to a report by The Paper. The regulations take effect on 1 January 2027.
The regulations are intended to strengthen the credibility of foundations and support their healthy and orderly development. They contain eight chapters and 79 articles. The Paper summarised the main revisions as follows.
Overall principles. Foundation work is to adhere to the leadership of the Communist Party of China, with stronger requirements for Party building. Public-interest activities are to follow the principles of legality, voluntariness, good faith, openness, transparency and non-profit operation.
Registration. The rules clarify the levels of registration management and registered capital, steadily advance direct registration, set procedures for registration of changes, and spell out liquidation before cancellation.
Internal governance. Responsibilities of founders and persons in charge are strengthened, and the powers of organisational bodies and rules of procedure are improved. Persons in charge, directors and supervisors, among others, are prohibited from using related-party relationships to harm the interests of the foundation, beneficiaries or the public interest.
Activities and assets. Requirements for fundraising, donations and grants are improved, including rules on internet-based public fundraising and cooperative public fundraising. Property management is tightened, with income to be used entirely for public-interest purposes. Project management is stricter, and implementation is to be tracked.
Disclosure and self-regulation. Foundations’ information-disclosure duties are set out, channels for public oversight are to be kept open, and industry norms are to be established.
Supervision. Duties of registration authorities, professional supervisory units and industry regulators are clarified, with responsibilities assigned so that oversight is coordinated.
Original report: The Paper.
