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Draft of China's 1st charity law being discussed

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To establish a more standard and transparent environment around charity donations in China and encourage involvement, the draft of the country's first charity law will be discussed during the Two Sessions.

The country's first Charity Law -- a heated topic during the two sessions.

"We see more and more people are making charity donations, it is a symbol of social development. Now the country wants to raise the legislation to national level, it is definitely a good thing," NPC deputy Su Mingbo said.

"In recent years, we have seen some incidents regarding charity activities, like the Red Cross Society incident which aroused huge public debate. It is an urgent need for the country to have a Charity Law to protect the Charity industry," NPC deputy Liu YOnghao said.

The Chinese are getting rich and becoming more willing to give. A charity law is needed to guarantee donors' rights, help the underprivileged and punish fraud.

The message is very clear..NPC spokeswoman Fu Ying said in the press conference that the importance of the country's first Charity Law cannot be underestimated.

The amount of donations by social entities and individuals in 2014 reached 100 billion yuan ($15 billion), a big rise from the 10 billion yuan seen in 2004. The fast growth of philanthropy means China is in an urgent need of a charity law that can protect the rights of donors and the needy, as well as punishing fraud.

Lawmakers stressed transparency as the underlying factor for the vitality and credibility of charities, suggesting more specific methods for charitable organizations to disclose relevant information.

They could take the disclosure systems of public companies for reference, and there should be more specific stipulations to define a "timely disclosure".

"By putting the draft Charity Law under discussion during the Two Sessions, it means giving to charity is not a rich person's privilege. Everyone in society has a responsibility to better understand and participate in charity activities," NPC deputy Zheng Gongcheng said.

The draft law also stipulates that online fund-raising for charity ought to be covered by law, and legislation to cover this area will be expedited.

Only social organizations and non-profit government organizations designed for public welfare will be entitled to solicit donations from the public.

All parties concerned, whether individuals or entities, will be required to register why they are launching an online campaign.

The charity must also make public for proper supervision information on how any donations are collected and used.

 

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