Premier Li Qiang recently signed a State Council order promulgating the revised Regulations on the Administration of Foundations, which take effect on January 1, 2027.
The regulations aim to strengthen foundations’ credibility and promote their healthy and orderly development. They contain eight chapters and 79 articles. The main revisions are as follows.
Overall principles. Foundation work must adhere to the leadership of the Communist Party of China, with strengthened Party-building requirements. Public-welfare activities must follow the principles of legality, voluntariness, good faith, openness, transparency, and non-profit operation.
Registration management. The regulations clarify registration-management levels and registered capital, steadily advance direct registration, specify procedures for changes of registration, and refine liquidation procedures before cancellation.
Internal governance. Responsibilities of initiators and responsible persons are strengthened, and the powers of governing bodies and rules of procedure are improved. Responsible persons, directors, supervisors, and others are prohibited from using related-party relationships to harm the interests of the foundation, its beneficiaries, or the public interest.
Activities and assets. Requirements for fundraising, donations, and funding are improved. Online public fundraising and cooperative public fundraising are regulated. Property management is strengthened so that all proceeds are used for public-welfare purposes. Project implementation must be tracked and managed.
Disclosure and self-discipline. Foundations’ information-disclosure obligations are specified, channels for social supervision are kept open, and industry norms are to be established and improved.
Supervision. The duties of registration-management authorities, professional supervisory units, and industry-management departments are clarified, with responsibilities assigned across the parties involved so that regulatory efforts can be coordinated.
Original report: The Paper
