Foundations should not use their name, image or charity projects for commercial purposes, the draft said.

China had about 2,500 registered foundations in 2011, twice the number it had in 2005. Their total assets reached more than 60 billion yuan (9.52 billion US dollars) and donations received totaled 33.7 billion in 2011, according to the ministry.

However, over the past few years, there has been increasing public concerns about the transparency and conduct of charity groups, following a string of scandals concerning embezzlement.

The most famous case revolved around a young woman named Guo Meimei, who claimed to work for an organization under the Red Cross Society of China (RCSC) and boasted of a lavish lifestyle on her microblog.

Although Guo was later found to not be employed by the RCSC, the incident prompted worries of charity fund embezzlement and triggered calls for stricter scrutiny.

The draft regulation is open for public opinions till May 3.