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of the Ninth National People's Congress on 28 June 1999)
SUBJECT: WELFARE DONATINS; SOCIAL SERVICES
ISSUING-DEPT: NATIONAL PEOPLE'S CONGRESS
ISSUE-DATE: 06/28/1999
IMPLEMENT-DATE:
LENGTH: 2382 words
TEXT:
Contents
Chapter 1: General Provisions
Chapter II: Donation And Receipt Of Donation
Chapter III: The Use And Management Of Donated Assets
Chapter IV: Preferential Measures
Chapter V: Legal Liabilities
Chapter VI: Supplementary Provisions
Chapter 1: General Provisions
Article
1: This Law is formulated for the purpose of encouraging donations
and standardizing the behaviors
of both donation and receipt of
donation; protecting the legitimate rights and interests of the
donor,
the recipient and the beneficiary; and promoting public welfare
undertakings.
Article
2: This Law applies to any natural person, legal person, or other
organization that is willing
to donate assets to any legally established
social bodies engaged in public welfare and to non‑profit
welfare administration units for the use of public welfare undertakings.
Article
3: The public welfare undertakings stated in this Law refer to the
following non‑profit
activities:
1.
Activities carried out by social bodies and individuals to provide
disaster relief, aid the poor,
and give support and assistance to
the physically disabled;
2. Educational, scientific, cultural, public
health, and sports undertakings;
3. Construction of environmental protection
facilities and public utilities in society;
4.
Other public and welfare undertakings in society that aim to promote
social development and progress.
Article
4: Donations should be made on a voluntary and nonreimbursable basis.
Any forced apportion or
any covert act of apportion will be prohibited,
and no one may engage in profitmaking activities of any kind under
the guise of donation.
Article
5: The use of donated assets ought to be based on the will of the
donor and remain in keeping
with public welfare purposes. No one
is allowed to divert donated assets earmarked for public welfare
to other uses.
Article
6: Donations should be made in observation of relevant laws, rules,
and regulations; and must
not transgress social morality, or impair
public interests and other legitimate rights and interests of citizens.
Article
7: The donated assets received by social bodies engaged in public
welfare as well as the any
value added to such donated assets are
all public assets of the society and are under the protection of
relevant state laws. No unit or individual is allowed to encroach
upon, divert for other purposes, or cause damage
to donated assets.
Article
8: The State encourages the development of public welfare undertakings,
and extends support
and preferential treatment to social bodies
engaged in public welfare and non‑profit welfare administration
units. The state encourages natural persons, legal persons, or other
organizations to make donations
to public welfare undertakings.
Those natural persons, legal persons, or other organizations that
have
made outstanding contributions by making donations to public
welfare undertakings will be commended by the people's
governments
or relevant departments in charge. The consent of the donor should
first be sought before
any public commendation is extended to the
donor.
Chapter II: Donation And Receipt Of Donation
Article
9: Natural persons, legal persons, or other organizations can choose
to make donations to the
social bodies engaged in public welfare
and non‑profit welfare administration units that fit their
donation intentions. The assets they donate should be the legitimate
assets to which they have the right of
disposal.
Article
10: Social bodies engaged in public welfare and non‑profit
welfare administration units
are allowed to receive donations in
accordance with this Law. The social bodies engaged in public welfare
stated in this Law refer to legally established social bodies that
aim to develop public welfare undertakings.
The non‑profit
welfare administration units stated in this Law refer to legally
established educational
organs, scientific research organs, medical
and public health organs, social and public cultural organs, social
and public sports organs, and social welfare organs that are engaged
in public welfare undertakings with
no profit‑making purposes.
Article
11: In the case of natural disasters or when the people's governments
and their departments
at and above the county level are named by
the donor outside the country as the recipient, the people's governments
and their departments at and above the county level are allowed
to receive the donation and to exercise
management over the donation
in accordance with relevant stipulations of this Law. The people's
governments
and their departments at and above the county level
can either turn over the donated assets they have received to
social
bodies engaged in public welfare and non‑profit welfare administration
units, or they
can distribute to or run public welfare undertakings
according to the will of the donor. However, they are not allowed
to list themselves as the beneficiary of the donation.
Article
12: The donor can enter into a donation agreement with the recipient
concerning the nature,
quality, quantity, and uses of the donation.
The donor has the right to decide the quantity, the use, and the
form of the donation. The donor should fulfill the donation agreement
according to the law, and turn over
the donated assets to the recipient
in accordance with the time and the form agreed in the donation
agreement.
Article
13: If the donor is to donate assets to build a public welfare project,
the donor is required
to reach a donation agreement with the recipient
on the capital, construction, management, and use of the project.
The
recipient unit of the donated public welfare project should go through
the necessary examination
and approval formalities concerning the
project according to relevant state stipulations, and will organize
the construction of the project. The construction of the project
can also be organized through joint efforts
by both the donor and
the recipient. The quality of the project should meet state quality
standards.
Upon
the completion of the donated public welfare project, the recipient
unit should inform the donor
of the construction progress, the use
of construction funds, and the results of a quality assessment of
the project.
Article
14: The donor of a public welfare project can leave his or her name
on the project as a remembrance.
In the case that a donor is a sole
donor or a principal donor of a public welfare project, the donor
can suggest the name of the project and submit the suggestion to
the people's governments at and above the county
level for approval.
Article
15: The recipient of the assets donated by a donor outside the country
is responsible for handling
the entry formalities for the donated
assets according to relevant state stipulations. As regards the
donation of goods that require a permit, the recipient should apply
for the permit according to relevant state
stipulations, and the
customs office should conduct examination, clearance, and supervision
upon receipt
of the permit. For donations made by overseas Chinese
to localities inside the country, the Departments of Overseas
Chinese
Affairs under the people's governments at and above the county level
should help the donor
to go through necessary entry formalities,
and provide assistance for the donor with his donation of the project.
Chapter III: The Use And Management Of Donated
Assets
Article
16: Upon receipt of donations, the recipient should issue a legal
and valid receipt to the donor.
In addition, the recipient should
also register and put the donated assets on file, and take good
care
of the donated assets.
Article
17: Social bodies engaged in public welfare should use the donated
assets they have received
to subsidize activities and undertakings
that are in keeping with their aims. They should promptly put into
use the donated assets that are earmarked for disaster relief. As
for funds, the amount of subsidies extended
to public welfare undertakings
every year should not go lower than the proportions stipulated by
the
State.
Social
bodies engaged in public welfare must strictly observe relevant
State stipulations, and take
active steps to preserve and increase
the value of donated assets in line with the principles of lawfulness,
safety, and effectiveness. Non‑profit welfare administration
units should use the donated assets they
have received for promoting
the public welfare undertakings under their jurisdiction, and they
are
forbidden to divert the donated assets to other uses.
As
for donated assets that are hard to keep in reserve or that will
not bear transportation, as well
as donated assets that have exceeded
actual demands, the recipient can sell off the donated assets, and
all the revenue acquired therefrom should be used for the original
purpose of the donation.
Article
18: In the cases wherein a donation agreement is established between
the recipient and the donor,
the recipient should make use of the
donated assets as agreed in the agreement, and is forbidden to change
arbitrarily the uses of the donated assets. If a change in the uses
of the donated assets is necessary, the
recipient should seek the
consent of the donor.
Article
19: The recipient of donated assets must set up a perfect financial
and accounting system, as
well as a system for the uses of donated
assets, in accordance with relevant state stipulations, with a view
to reinforcing its management over the donated assets.
Article
20: The recipient is required to subject itself to supervision by
submitting a report to relevant
government departments every fiscal
year concerning the use and management of the donated assets. Relevant
government departments can audit the accounts of the recipient when
necessary.
The
customs office will exercise supervision and control according to
the law over donated goods that
enjoy tax exemptions or reductions.
The people's governments at and above the county level can participate
in supervision over the use and management of the assets donated
by overseas Chinese to localities inside
the country.
Article
21: The donor has the right to inquire of the recipient about the
use and management of his
or her donated assets, and put forward
opinions and suggestions concerning the use and management of the
donated assets. When so inquired, the recipient should respond truthfully.
Article
22: The recipient should subject itself to supervision by the society
by making known to the
public its receipt of donations, as well
as its use and management of the donated assets.
Article
23: Social bodies engaged in public welfare should practice strict
economies, lower their management
costs, and pay the salaries of
their functionaries as well as administrative expenses with such
revenues
as bank interest according to relevant state stipulations.
Chapter IV: Preferential Measures
Article
24: Companies and other enterprises that have donated assets to
public welfare undertakings
according to the stipulations of this
Law can enjoy preferential treatment concerning enterprise income
tax according to the stipulations of relevant laws and administrative
regulations.
Article
25: Natural persons as well as individual businesses that have donated
assets to public welfare
undertakings according to the stipulations
of this Law can enjoy preferential treatment concerning personal
income tax according to the stipulations of relevant laws and administrative
regulations.
Article
26: According to the stipulations of relevant laws and administrative
regulations, import tariffs
and the value‑added tax imposed
on import links will be reduced or exempted for goods donated by
the donor from outside the country to social bodies engaged in public
welfare and non‑profit welfare administration
units for the
use of public welfare undertakings.
Article
27: Local people's governments should extend support and preferential
treatment to the public
welfare projects donated to localities under
their jurisdiction.
Chapter V: Legal Liabilities
Article
28: Any recipient that has arbitrarily changed the nature and uses
of donated assets without
seeking the consent of the donor will
be ordered to make corrections and will be given warnings by relevant
departments under the people's governments at and above the county
level. If the recipient refuses to make
corrections, then upon the
consent of the donor, the donated assets will be transferred by
the people's
governments at and above the county level to the care
of a public welfare social body or a non‑profit welfare
administration
unit that has the same or similar aims.
Article
29: Anyone who has diverted the use of, encroached upon, or embezzled
donated money and goods
will be ordered by the people's governments
at and above the county level to return the money and goods he has
used and acquired, and will be penalized; those who are found to
be directly responsible will be dealt
with by their units according
to relevant stipulations; and those who are found guilty of a crime
will
be prosecuted for criminal liability according to the law.
The donated money and goods recovered from people mentioned
in previous
articles should be used for the original purposes of the donation.
Article
30: In donation activities, anyone who is found to have committed
one of the following offenses
will be punished according to the
stipulations of relevant laws and regulations; and anyone who is
found guilty of a crime will be prosecuted for criminal liability
according to the law:
1. Evading foreign exchange controls and
obtaining foreign exchange by fraud;
2. Evading taxes and defrauding the revenue
service;
3. Engaging in smuggling;
4.
Selling, transferring, or diverting to other uses, any donated goods
inside the country that are
imported with tax reductions and exemptions,
without obtaining the authorization of the customs office and without
paying in full the payable taxes.
Article
31: Any functionaries in the recipient unit who have caused severe
damage to the donated assets
as a result of their abuse of power
and authority, dereliction of duty, malpractice through favoritism
and committing irregularities will be dealt with by their units
according to relevant stipulations; and those
who are found guilty
of a crime will be prosecuted for criminal liability according to
the law.
Chapter VI Supplementary Provisions
Article 32: This law shall go into
effect on 1 September 1999.
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