Article 1 This Regulation is formulated with a view to standardizing
the organization and activities of funds, safeguarding the
legitimate rights and interests of funds, donators and beneficiaries
and promoting social involvement in the philanthropic undertakings.

Article 2 "The fund" in this Regulation refers to the non-profit
legal person incorporated under this Regulation for the purpose of
public benefit undertakings, on the strength of the properties
donated by natural persons, legal persons or other originations.

Article 3 Funds include those that can solicit donations from the
public (hereinafter referred to as public funds) and those that
shall not solicit donations from the public (hereinafter referred to
as non-public finds). Public funds include, in accordance with the
scope of solicitation region, national public funds and local public
funds.

Article 4 funds must abide by the constitution, laws, regulation,
rules and national policies, shall not harm security and unification
of the state and national solidarity and shall not go against public
morality.

Article 5 Funds shall engage in philanthropic activities in
accordance with the articles of incorporation thereof in compliance
with the principle of openness and transparency.

Article 6 The civil affairs authority of the State Council and such
authorities under the people''s governments at the level of a
province, an autonomous regions and a municipality directly under
the Central Government are administrations which funds should
register with.
　　The civil affairs authorities under the State Council are
responsible for the registration and administration of the following
funds or representative institutions of funds:
(1) National public funds;
(2) Funds whose legal representative is proposed to be assumed by a
non-Chinese-mainland resident;
(3) Non-public funds whose original fund exceeds 20 million RMB Yuan
and the sponsor thereof files the incorporation application to the
civil affairs authority under the State Council; and
(4) Representative institutions established on mainland of China by
overseas funds.
　　The civil affairs authorities under the people''s governments at
the level of a province, an autonomous region and a municipality
directly under the Central Government are responsible for the
registration and administration of local public funds within its
respective administrative region and non-public funds other than
those provided in the previous paragraph.
Article 7 Relevant authorities of the State Council or organizations
authorized by the State Council are competent agencies for the
business of funds and representative organizations of the overseas
funds registered with the civil affairs authority under the State
Council.
　　Relevant authorities under the people''s governments at the level
of a province, an autonomous regions and a municipality directly
under the Central Government or organizations authorized thereby are
competent agencies for the business of funds registered with the
civil affairs authorities under the people''s governments at the
level of a province, an autonomous regions and a municipality
directly under the Central Government.
Chapter 2 Incorporation, Alteration and Cancellation
Article 8 A fund shall meet the following conditions to be
incorporated:
(1) it is incorporated for specific public benefit purposes;
(2) the original fund shall be not less than, in the case of a
national public fund RMB 8 million Yuan, in the case of a local
public fund RMB 4 million Yuan, in the case of a non-public fund RMB
2 million Yuan. The original fund shall be the monetary fund on the
account.
(3) it shall has a name, articles of incorporation, an
organizational structure as well as full-time working staff in
compliance with the activities it conducts;
(4) it has a fixed domicile;
(5) it can assume civil liabilities independently.
Article 9 The applicant shall submit the following documents to the
authorities responsible for registration and administration for the
incorporation of a fund:
(1) the application;
(2) the draft articles of incorporation;
(3) the capital verification certificate and the domicile
certificate;
(4) the list of the directors, personal identity certificates
thereof as well as resumes of the proposed chairman of the board,
vice-chairman of the board and the secretary general;
(5) the documents approving the incorporation issued by the
competent authorities for business.
Article 10 The articles of incorporation of a fund shall specify its
public benefit nature and shall not inure to the benefits of
specific natural persons, legal persons or other organizations.
　　The articles of incorporation shall set forth:
(1) the name and the domicile;
(2) the purpose of incorporation and the business scope of public
benefit activities;
(3) the amount of original fund
(4) the composition, authorities and discussion rules of the board
of directors, and the qualification, determination and term of
office of the directors
(5) the responsibilities of the legal representative;
(6) the responsibilities, qualifications, determination and term of
office of the supervisors;
(7) the preparation and the examination and approval of financial
accounting reports;
(8) the system of the management and utilization of properties
(9) the conditions and procedures for the termination of the fund
and the disposal of properties after termination.
Article 11 The registration and administration authorities shall,
within 60 days from its receipt of all the valid documents set forth
by Article 9 of this Regulation, decide whether to grant approval to
registration or not. In case of approval, a Registration Certificate
for the Fund Legal Person shall be issued; In case of disapproval,
reasons shall be given in writing.
　　The matters subject to incorporation registration of a fund
include: the name, the domicile, the type, the purposes, the
business scope of public benefit activities, the original fund
amount and the legal representative.
Article 12 To establish branches or representative institutions, a
fund shall file the application for registration to the original
registration and administration authority, and submit documents
containing such matters as the name, the domicile and the person in
charge thereof.
　　The registration and administration authorities shall, within 60
days from receipt of all the valid documents set forth in the
previous article, decide whether to grant approval to registration
or not. In case of approval, a Registration Certificate for Branch
(Representative) Institution of Fund shall be issued; In case of
disapproval, reasons shall be given in writing.
　　The matters subject to incorporation registration of branch or
representative institutions of a fund include: the name, the
domicile, the business scope of public benefit activities and the
person in charge.
　　Branches or the representative institutions of a fund shall
conduct activities as authorized by the fund and it does not possess
the status of a legal person.
Article 13 To establish representative institutions in mainland
China, an overseas fund shall submit the following documents to the
competent authorities responsible for registration after obtaining
the approval of the relevant authorities responsible for business:
(1) the application;
(2) the certificate of legal establishment of the fund abroad
according to law and the charter of the fund;
(3) the identity certificate and resume of the person in charge of
the proposed representative institutions;
(4) the certificate of domicile;
(5) the document issued by the competent authorities for the
business approving the establishment of the representative
institutions in mainland China.
　　The registration and administration authorities shall, within 60
days from receipt of all the valid documents set forth in the
previous article, decide whether to grant approval to registration
or not. In case of approval, a Registration Certificate for
Representative Institution of Overseas Fund shall be issued; In case
of disapproval, reasons shall be given in writing.
　　The matters subject to incorporation registration of the
representative institution of an overseas fund include: the name,
the domicile, the business scope of public benefit activities and
the person in charge.
　　Representative institution of an overseas fund shall engage in
activities in compliance with the nature of Chinese public benefit
undertakings. The overseas funds shall assume civil liabilities in
accordance with Chinese laws with respect to civil actions of their
representative institutions in mainland China.
Article 14 Funds and representative institutions of overseas funds
shall, after registration in accordance with this Regulation, go
through tax registration according to law.
　　Funds and representative institutions of overseas funds shall,
based on registration certificates, apply for organization code,
prepare seals and open bank accounts according to law.
　　Funds and representative institutions of overseas funds shall file
with the registration and administration authorities the
organization code, the sample of the seal, the bank account number
and the copy of taxation registration certificate.
Article 15 Funds, branches of funds, representative institutions of
funds, and representative institutions of overseas funds shall, in
case of any change of registration entries, apply to the
registration and administration authorities for alteration
registration.
　　Amendments to the articles of incorporation of the fund shall be
approved by the competent authorities of business and ratified by
the registration and administration authority.
Article 16 Funds and representative institutions of overseas funds
shall apply for cancellation registration to the registration and
administration authority in case of:
(1) termination pursuant to articles of incorporation;
(2) inability to continue to engage in the public benefit activities
pursuant to the purposes provided in the articles of incorporation;
(3) termination on account of other reasons.
Article 17 A fund shall, in event of cancellation of its branches or
its representative institutions, make cancellation registration of
its branches or its representative institutions with the
registration and administration authority.
　　Where a fund is canceled, its branches or representative
institutions shall be canceled simultaneously.
Article 18 A fund shall, before cancellation registration, establish
a liquidation group and complete liquidation under the guidance of
the registration and administration authority and competent
authorities of business.
　　A fund shall, within 15 days from the date when liquidation
terminates, make cancellation registration with the registration and
administration authority. No activities other than liquidation shall
be carried out within the liquidation period.
Article 19 Registration of incorporation, alteration or cancellation
of funds, branches of funds, representative institutions of funds
and representative institutions of overseas funds shall be made
public by the registration and administration authority.
Chapter 3 Organizational Structure
Article 20 A fund shall have a board of directors composed of 5 to
25 directors. Each term of office of the directors is provided for
in the articles of incorporation and shall not exceed 5 years. A
director may serve consecutive terms if reelected upon expiration of
his term of office.
　　In the case of a non-public fund incorporated with private
properties, the total number of directors as near relatives shall
not exceed one third of all the directors. In the case of other
funds, directors as near relatives shall not serve on the board
simultaneously.
　　The number of directors receiving remuneration from the fund shall
not exceed one third of the total number of the directors.
　　Chairman of the board, vice-chairman of the board and secretary
general of a fund are elected from the directors. The chairman of
the board is the legal representative of the fund.
Article 21 Board of directors, the decision-making organ of a
foundation, shall perform its functions provided in the articles of
incorporation according to law.
　　The board of directors shall convene at least twice a year. The
board of directors shall meet only if more than two thirds of the
directors are present. Any resolution of the board shall be approved
by half of the directors present to be valid.
　　Resolution with respect to the following important matters shall
be subject to vote by the directors present and approved by two
thirds to be valid:
(1) amendments to the articles of incorporation;
(2) election or removal of the Chairman of the Board, vice-chairman
of the Board or the secretary general;
(3) significant solicitation of donations or investment activities
provided for in the articles of incorporation;
(4) division or merger of the fund.
　　Meetings of the board shall be minted. Such minutes shall be
checked, approved and signed by the directors present.
Article 22 A fund shall have a Board of supervisors, whose term of
office is the same with that of the directors. Directors, close
relatives of the directors and financial staff of the fund shall not
serve concurrently as supervisors.
　　Supervisors shall examine the financial and accounting materials
pursuant to the procedures provided for in the articles of
incorporation, and supervise compliance by the Board of directors
with laws and articles of incorporation.
　　Supervisors shall attend meetings of the board of directors as
non-voting delegates. They have the right to inquire the board of
directors and make suggestions thereto and should report to the
registration and administration authority, competent authorities of
business and authorities responsible for taxation and accounting.
Article 23 The positions of Chairman of the board, Vice-chairman and
secretary general of funds shall not be held by current public
servants. The legal representative of funds shall not serve as the
legal representative of other organizations simultaneously. The
positions of legal representatives of public funds and the
non-public funds whose original fund comes from the mainland China
shall be held by residents in mainland China.
　　Anyone who was sentenced to public surveillance, detention or set
term of imprisonment for committing a crime and not more than five
years has elapsed since the date of the expiration of the
enforcement period, or anyone who is being or was deprived of
political rights for committing a crime, or anyone who ever served
as Chairman, Vice-chairman or secretary general of a fund whose
registration was cancelled for illegal activities and was personally
responsible for the illegal activities thereof, and not more than
five years has elapsed since the date of cancellation shall not
serve as Chairman of the board, Vice-chairman or secretary general
of a fund.
　　Directors of a fund shall not engage in the decision-making of
relevant matters where their personal interests are related with the
interests of the fund. Directors, supervisors and their close
relatives shall not have any transaction activities with the fund
that they are serving.
　　Supervisors and part-time directors serving in a fund shall not
receive remuneration therefrom.
Article 24 Residents from Hong Kong, Macau, Taiwan and foreigners
serving as Chairman of the board, Vice-chairman or secretary general
of funds as well as the person in charge of the representative
institutions of overseas funds shall stay in mainland China for not
less than three months a year.
Chapter 4 Management and Utilization of Properties
Article 25 Funds shall solicit donations and accept donations in
accordance with purposes and business scope of public benefit
activities provided for in the articles of incorporation thereof.
Representative institutions of overseas funds are not allowed to
solicit donations and accept donations within the territory of
China.
　　Public funds shall, in case of donations soliciting, make a public
notice of the public benefit activities proposed to be held and the
detailed plans for utilization of the funds after having raised the
funds concerned.
Article 26 Funds and donators and beneficiaries enjoy the
preferential taxation treatment in accordance with the provisions of
laws and administrative regulations.
Article 27 The properties and other income of funds are protected by
law and shall not be illicitly distributed, seized or embezzled
among any units or individuals.
　　Funds shall utilize its properties in accordance with purposes and
business scope of public benefit activities provided for in the
articles of incorporation thereof, or in case of the donation whose
specific way of utilization is specified in the donation agreement,
in accordance with the provisions in the donation agreement.
　　Where donated materials are unable to be utilized in compliance
with the purposes, funds may auction or sell it, and the income
thereof shall be subject to the purposes of donation.
Article 28 Funds shall realize the preservation and increase of the
value of funds on the principle of safety and efficiency according
to law.
Article 29 Expenditure on the public benefit undertakings stipulated
in the articles of incorporation every year shall be not less than,
in case of public funds 70% of the gross income in the previous
year, in case of non-public funds 8% of the fund balance in the
previous year.
　　Expenditure on staff salary and welfare and administrative outlay
of funds shall not exceed 10% of total expenditure in the current
year.
Article 30 Funds shall, in implementing public benefit financial
support programmes, make a public notice of the types of the public
benefit financial support programmes and the procedures for
application and appraisal.
Article 31 Funds may enter into contracts with beneficiaries, and
the way of support to provide for the amount of support as well as
the purpose and way of utilization of the funds.
　　Funds have the right to supervise the utilization of the financial
support. In case beneficiaries fail to utilize the financial support
in accordance with the contract or violate the contract, foundations
are entitled to rescind the financial support contract.
Article 32 Funds should carry out the national uniform accounting
system, conduct accounting check-up according to law and establish
and perfect the internal accounting supervisory system.
Article 33 Remaining fund properties after cancellation shall be
utilized for public benefit purposes as stipulated in the articles
of incorporation. For those cannot be disposed in accordance with
the articles of incorporation, the registration and administration
authority shall donate them to social public benefit organization
with the same nature and purpose as the said fund and make a public
notice thereof.
Chapter 5 Supervision and Administration
Article 34 Fund registration and administration authorities perform
the following supervisory and administrative functions:
(1) conduct annual inspection on funds and representative
institutions of overseas funds,
(2) conduct daily supervision and administration over the activities
of funds and representative institution of overseas funds in
accordance with this Regulation and the articles of incorporation,
(3) punish the actions of funds and representative institutions of
overseas funds in violation of this Regulation.
Article 35 Competent authorities for the business of the fund shall
perform the following supervisory and administrative functions:
(1) guide and supervise public benefit activities of funds and
representative institutions of overseas funds in accordance with law
and articles of incorporation;
(2) take charge of preliminary examination of the annual inspection
on funds and representative institutions of overseas funds
(3) cooperate with the registration and administration authorities
and other law enforcement agencies to inspect and punish illegal
actions of funds and representative institutions of overseas funds.
Article 36 Funds and representative institutions of overseas funds
shall submit annual working reports to the registration and
administration authorities before March 31st every year for annual
examination. Annual working reports shall be examined and approved
by competent authorities of businesses before their submission to
the registration and administration authorities.
　　Annual working reports shall include: financial accounting
reports, auditing reports issued by certified public accountants,
reports on such activities as donation soliciting, donation
acceptance, financial support provision and reports on the change of
personnel and organizational structure.
Article 37 Funds shall be subject to taxation and accounting
supervision conducted by authorities responsible for taxation and
accounting according to law.
　　Funds shall, before reelection at expiration of office terms and
change of legal representatives, conduct financial auditing.
Article 38 Funds and representative institutions of overseas funds
shall, after passing the annual examination conducted by the
registration and administration authorities, make public the working
reports through the media designated by the registration and
administration authorities for the inspection and supervision by the
public.
Article 39 Donators are entitled to inquire with funds the
utilization and management of donated properties and make
suggestions. Funds should respond to the inquiry of donators
faithfully and in time.
　　In case funds utilize donated properties in violation of the
donation contracts, donators are entitled to request funds to act in
compliance with the donation contract or apply to the people''s
court for revoking the donation action or rescind donation contract.
Chapter 6 Legal Liabilities
Article 40 In case any organization that have not been registered or
have its registration cancelled carries out activities in the name
of a fund, a branch of fund, a representative institution of a fund
or a representative institutions of an overseas fund, the
registration and administration authorities shall outlaw it,
confiscate its unlawful properties and issue public notice thereof.
Article 41 In the following cases, registration of involved funds,
branches of funds, representative institutions of funds or
representative institutions of overseas funds shall be cancelled by
the registration and administration authorities:
(1) conceal real situations and practice fraud when applying for
registration, or fail to conduct activities in accordance with
articles of incorporation within 12 months from the date of
obtaining registration certificate;
(2) where they satisfy conditions for cancellation but do not go
through cancellation registration in accordance with this Regulation
and still continue to carry out activities .
Article 42 In the following cases, funds, branches of funds,
representative institutions of funds or representative institutions
of overseas funds, which engage in any of the following
circumstances, shall be given a warning, ordered to cease their
activities by the registration and administration authority and in
serious cases, registration shall be cancelled:
(1) fail to conduct activities in accordance with purposes and
business scope of public benefit activities provided for in the
articles of incorporation thereof;
(2) conceal real situations and practice fraud when preparing
accounting certificates, registering accounting records or preparing
financial accounting reports;
(3) fail to go through alteration registration procedures in
accordance with provisions;
(4) fail to fulfill the expenditure amount for public benefit
undertakings in accordance with this Regulation;
(5) fail to accept annual examination in accordance with this
Regulation, or fail to qualify therein;
(6) fail to perform the obligation of information disclosure or
disclose fraudulent information
　　In case funds and representative institutions of overseas funds
engaging in any of the above actions, the registration and
administration authority should request taxation authority to order
the supplementary payment of the deducted and exempted taxes enjoyed
during the period of the continuing illegal actions by them.
Article 43 In case the board of directors make inappropriate
decisions in violation of the provisions of this Regulation and
articles of incorporation, which incurred property loss to funds,
directors participating in the decision shall assume corresponding
liability for compensation.
　　Directors, supervisors and full-time working staff of funds who
illegally distribute, seize or embezzle fund properties, shall
return property illegally possessed and utilized, or shall be
prosecuted for criminal liabilities if the case constitutes a crime.
Article 44 In case funds and representative institutions of overseas
funds are ordered to cease activities, the registration and
administration authority shall seal up the registration
certificates, seals and financial certificates.
Article 45 In case any staff member working in the registration and
administration authority and competent authorities of businesses
abuses his power, neglects his duty, engages in malpractices for
personal gains, he shall be prosecuted for criminal liabilities if
the case constitutes a crime, or shall be subject to administrative
sanctions or disciplinary sanctions if the case dose not constitute
a crime according to law.
Chapter 7 Supplementary Provisions
Article 46 For the purposes of this Regulation, overseas funds refer
to funds incorporated according to law in foreign countries as well
as in Hong Kong Special Administrative Region, Macao Special
Administrative Region, and Taiwan Region of the People''s Republic
of China.

Article 47 Applications for establishing funds, format for annual
working reports of funds and sample for articles of incorporation of
funds shall be formulated by civil affairs authorities under the
State Council.

Article 48 This Regulation shall enter into force as of June 1,
2004, and Measures for Funds Administration promulgated by the State
Council on September 27, 1988 shall be repealed simultaneously.
　　Funds and representative institutions of overseas funds
established before this Regulation goes into force shall, within six
months from the date when this Regulation come into force, apply for
issuance of a new registration certificate in accordance with this
Regulation.