Regulations of Shanghai Municipality on Charity

(September 28, 2021)

Chapter I  General Provisions

Article 1

With a view to developing the charity cause, carrying forward the charity culture, regulating charitable activities, protecting the legitimate rights and interests of participants in charitable activities, practicing the core socialist values, and promoting the soft power of this Municipality, these Regulations are formulated in accordance with the Charity Law of the People’s Republic of China and other relevant laws and administrative rules, and in light of the actual circumstances of this Municipality.

Article 2

These Regulations apply to charitable activities and charity-related activities within the administrative regions of this Municipality conducted by natural persons, legal persons and unincorporated organizations, except as otherwise specifically provided for by any other laws and rules.

Article 3

This Municipality shall adhere to the people-ed development ideology, promote the healthy development of the charity cause, and mobilize the whole society to support and participate in charity, giving full play to the third distribution role to advance common prosperity in high-quality development.

Charitable activities shall be conducted under the principles of legality, voluntariness, good faith and not-for-profit, shall not go against social ethnics, and shall not endanger national security, or damage pubic interests or any other person’s legitimate rights and interests.

Article 4

The Municipal People’s Government shall strengthen the coordination of the charity cause in this Municipality, formulate and improve related policies and measures, and support and regulate its development.

The district people’s governments shall organize and promote charitable work within their administrative regions, match charitable needs, integrate charity resources and optimize the environment for the development of the charity cause.

The municipal and district people’s governments shall establish and improve a comprehensive coordination mechanism led by the civil affairs department and composed of relevant departments and units to coordinate work related to promoting the development of the charity cause.

The town/township people’s governments and sub-district offices shall be responsible for implementing charity work in their jurisdictions and promoting the development of community charity.

Article 5

The municipal civil affairs department shall be in charge of charity work in this Municipality, responsible for organizing and implementing specific measures to promote the development of the charity cause and regulate charity activities, and for promoting the development of charitable organizations, charity activities and charitable trusts. The district civil affairs departments are responsible for the organization and implementation of charity work in their jurisdictions.

The taxation departments shall implement relevant tax preferential policies in accordance with the law, and provide relevant services to facilitate donors and charitable organizations handling tax-related matters.

The radio and television, press and publication departments shall guide the news media to carry out charitable public welfare publicity, publicize typical charities and promote the charity culture.

The education departments shall guide schools to incorporate the charity culture into the content of education.

Such departments as development & reform, finance, human resources and social security, emergency management, cyberspace administration, communications administration, public security, and auditing, and the banking and insurance regulatory agency shall do the relevant work within their respective areas of responsibility in accordance with the law.

Article 6

Trade unions, the Communist Youth League, the Women’s Federation, the Disabled Persons’ Federation, the Federation of Industry and Commerce, the Red Cross and other group organizations shall assist in work related to the promotion of the charity cause.

Neighborhood committees and villagers’ committees, with the support and guidance of the relevant government functional departments, shall participate in charitable work in accordance with the law.

Natural persons, legal persons and unincorporated organizations shall be encouraged and supported to practice the core socialist values, promote the traditional virtues of the Chinese nation, fulfil their social responsibilities and conduct charitable activities in accordance with the law.

Article 7

The municipal and district people’s governments shall incorporate charitable activities into the emergency response system of emergencies, establish a coordination mechanism to provide information on demand, and coordinate and guide all kinds of charitable forces to carry out fundraising, rescue, volunteer services and other charitable activities, and to participate in the response to emergency events in an orderly manner.

Article 8

This Municipality shall promote the development of charity exchange activities in the Yangtze River Delta region, strengthen the sharing of charity resources, carry forward the charity culture, and promote the synergistic development of the charity cause.

Article 9

Domestic and international cooperation and exchange in the field of charity shall be encouraged, and charitable organizations shall be guided to carry out orderly cooperation and exchange in charitable activities, personnel training, and others.

Chapter II  Charitable Organizations and Charity Property

Article 10

Charitable organizations may adopt the forms of organization such as foundations, social organizations and social service agencies.

Where laws and administrative rules provide otherwise for the form of organization of charitable organizations, such provisions shall apply.

Article 11

Non-profit organizations such as foundations, social organizations, and social service agencies that meet the conditions for the establishment of charitable organizations can be registered as charitable organizations simultaneously when they are established and registered.

A foundation, social organization, social service agency or any other non-profit organization that has been established upon registration in this Municipality before the issuance of these Regulations may apply to the municipal or district civil affairs department registering it for recognizing it as a charitable organization.

If a charitable organization registered or recognized by the municipal or district civil affairs department is no longer engaged in charitable activities, it may apply for cancellation of the recognition as a charitable organization in accordance with the law.

Article 12

The constitution of a charitable organization shall comply with the provisions of laws and rules, and specify the statutory matters.

The municipal civil affairs department shall develop and issue a model text for the constitution of a charitable organization.

Article 13

A charitable industry organization shall be established in accordance with the law to promote the reflection of industry demands, strengthen industry exchanges, enhance the credibility of the charitable industry, and promote and regulate the development of the charity cause.

The charity industry organization shall establish and improve the industry standards, and strengthen the industry self-discipline.

Article 14

The heads and staff of charitable organizations shall carry out charitable activities in accordance with the law, and shall not hold part-time jobs or receive remuneration in the enterprises invested by charitable organizations, or use charitable organizations to engage in profit-making activities, misappropriate or disguise the property of charitable organizations, or harm the interests of beneficiaries or the public interests of society.

Article 15

The property of charitable organizations shall be used for charitable purposes in full in accordance with the provisions of the constitution and donation agreements, and shall not be distributed among the promoters, donors and members of the charitable organizations.

No organization or individual shall privately share, embezzle, intercept or misappropriate the charitable property.

Article 16

Every charitable organization shall register and create archives of the property, establish and improve a property management system, exercise strict management, and use funds for their specified purposes only.

Where the physical goods donated by donors can hardly be stored, transported or directly used for charitable purposes, the charitable organization may, in accordance with the law, auction them or sell them off, and use all income for charitable purposes after deduction of necessary expenses.

Article 17

Every charitable organization that conducts charitable activities shall, in accordance with the provisions of laws, rules and their constitution, use donated property on the basis of the fundraising plan or the donation agreement.

Where the fundraising plan or the donation agreement has clear provisions on the use of donated property, or the property is donated for emergency response, the charitable organization shall promptly use the donated property for relevant charitable projects.

If a charitable organization does need to change the use of donated property as specified in the donation plan, it shall report to the civil affairs department for the record; and if it does need to change the use of donated property as agreed upon in the donation agreement, it shall obtain the donor’s approval.

Article 18

Every charitable organization shall rationally design charitable projects, establish a project management system, follow up and monitor the implementation of the projects, and, in accordance with relevant provisions, evaluate the completed major charitable projects, with the evaluation results being made public.

Article 19

Every charitable organization shall determine the beneficiary under the principles of openness, fairness and impartiality, and shall not designate any interested party of managers of the charitable organization as the beneficiary.

The charitable organization shall supervise the reasonable use of charitable property by beneficiaries. If the beneficiary fails to use the charity property according to the agreement or otherwise seriously violates the agreement, the charitable organization shall have the right to order the beneficiary to take corrective action; and if the beneficiary refuses to do so, the charitable organization shall have the right to terminate the agreement and require the beneficiary to return the property.

Article 20

When the charitable organization terminates, the property shall be liquidated and disposed of according to law.

If an application is made to cancel the recognition of a charitable organization, the charitable property of the charitable organization during its existence shall be liquidated and disposed of with reference to the requirements for the termination of charitable organizations. The specific procedures shall be separately formulated by the municipal civil affairs department.

Chapter III  Charitable Fundraising and Donations

Article 21

Every charitable organization that conducts open fundraising shall obtain the qualification for open fundraising in accordance with the law.

An organization or individual without the qualification for open fundraising may, for charitable purposes, cooperate with a charitable organization qualified for open fundraising, and the said charitable organization shall organize the open fundraising.

A written agreement shall be signed in accordance with the law for cooperation in open fundraising. All the income and expenditure from fundraising activities shall be included in the account of the charitable organization with open fundraising qualification, and the financial accounting and management shall be carried out by the said charitable organization in a unified manner.

Article 22

A fundraising plan shall be made for open fundraising and reported to the civil affairs department that registered the charitable organization for the record 10 days before the fundraising activity is conducted.

If a charitable organization, outside the jurisdiction of the civil affairs department where it was registered, conducts open fundraising by setting up collection boxes in public places and holding charity performances, matches, bazaars, exhibitions, auctions and parties for the public, it shall, in addition to filing with the civil affairs department where it was registered, also file with the civil affairs department where the fundraising activities are conducted.

Where a charitable organization is unable to file a fundraising plan before launching a public fundraising activity in response to a major natural disaster, accident, disaster, public health event or other emergency, it shall first inform the civil affairs department where it was registered, and complete the filing procedures within ten days after the fundraising activity begins.

Article 23

Charitable organizations carrying out public fundraising shall abide by the following provisions:

1. determining clear fundraising purposes and plans for the use of the property collected in accordance with the purposes and scope of business set out in the organization’s constitution;

2. fulfilling the necessary internal decision-making procedures;

3. using the accounts of the organization and not using those of individuals or other organizations;

4. establishing public fundraising information files, keeping them properly and making them easily accessible; and

5. other provisions of laws, rules and regulations.

Article 24

Public fundraising may be conducted in the following ways:

setting collection boxes in public places;

2. holding charity performances, matches, bazaars, exhibitions, auctions and parties for the public;

3. releasing fundraising information through broadcasting, television, newspapers and journals, Internet and other media; and

4. other public fundraising methods.

Where charitable organizations carry out public fundraising through the Internet, they shall release the fundraising information on the charity information platform unified or designated by the civil affairs department of the State Council, and may also, release the fundraising information on its website, mobile client terminal and other network platforms at the same time.

Article 25

Charitable organizations may carry out targeted fundraising for specific objects from the date of registration.

Charitable organizations shall conduct targeted fundraising within the scope of specific objects such as the promoter, members of the board of directors, and its members, and explain the fundraising purpose, the use of raised funds and materials, and other matters to the fundraising objects.

To carry out targeted fundraising, public fundraising must not be adopted or adopted in a disguised form.

Article 26

In the event of major natural disasters, accidents, public health events and other emergencies, charitable organizations shall, according to the guidance of the government and its relevant departments and the demand information provided thereby, carry out charitable fundraising activities in accordance with the law, establish fast and convenient channels for the receipt and distribution of collected funds and materials, promptly release relevant information and accept social supervision.

Article 27

Donation of currencies, physical goods, housing, negotiable securities, equities, intellectual property rights and other forms of donations, as well as the provision of related services based on charitable purposes, shall be encouraged and supported.

The property donated by a donor shall be the legal property which the donor has the right to dispose of.

The physical goods donated by donors shall have their use value, in line with safety, hygiene, environmental protection and other standards. Donors donating their own enterprises’ products, shall assume responsibility and obligations for the product quality in accordance with the law.

Donors donating real estate such as housing involving changes in ownership, shall handle real estate registration procedures in accordance with the law; those who donate equity shall go through the procedures for shareholder change registration in accordance with the law; those who donate intangible assets such as intellectual property rights shall provide relevant certificates of rights and go through the transfer procedures in accordance with the law; where the value of the donated property needs to be assessed, it shall be assessed by a professional appraisal agency.

Article 28

No organization or individual may conduct fundraising activities to fraudulently obtain property under the guise of charity or by counterfeiting any charitable organization.

No organization or individual may use charitable donations to promote products and matters of which the promotion is prohibited by law, or promote products under the guise of charity, or make false publicity about charitable acts.

Article 29

Individuals may seek help from charitable organizations or their units, urban and rural community organizations, etc., due to their own, family members, or close relatives encountering major illness, accidental injuries and other special difficulties.

Individuals who release help-seeking information to the society through radio, television, newspapers and journals, network service providers, and telecommunication operators shall be responsible for the authenticity of the help-seeking information, and must not fabricate facts or exaggerate difficulties to defraud others for donations.

Individuals seeking help shall reasonably determine the upper limit of fundraising. When the fundraising amount reaches the upper limit or the purpose of help has been achieved or disappeared, they shall promptly and actively declare that they will not continue to accept donations; the excess or the donation funds not yet spent because the purpose of help has been achieved or disappeared shall be returned to the donor or transferred to a charitable organization.

Radio, television, newspapers and journals, as well as network service providers and telecommunication operators shall verify the authenticity of the information released about individuals seeking help, and provide risk warnings to the public in a conspicuous position or through other easily identifiable means, informing the public that the information does not belong to charitable public fundraising information. The above-mentioned entities shall not accept donations on behalf of the person seeking help. If illegal acts such as fact fabrication are found, the service shall be immediately stopped, measures shall be taken to prevent the spread of information, relevant records shall be kept, and reports shall be made to public security, civil affairs and other relevant departments to assist in the investigation and processing.

Chapter IV  Charitable Trust

Article 30

This Municipality shall support the development of charitable trusts, actively explore different models for the development of charitable trusts, improve policy initiatives to support the development of charitable trusts and promote innovation in the charity cause.

Article 31

To establish a charitable trust, there should be certain trust assets, and the trust property is the property legally owned by the trustor.

The charitable trust property and its proceeds shall be used entirely for charitable purposes.

Article 32

A settlor of a charitable trust may determine a charitable organization or trust company he/she trusts as the trustee. Charitable organizations and trust companies are encouraged to jointly act as trustees .

Where there are two or more trustees of the same charitable trust, the settlor shall determine one of the trustees to assume the primary fiduciary management responsibility.

Article 33

The trustee shall, within 7 days from the date of signing the charitable trust document, file the relevant documents with the civil affairs department and submit the relevant written materials in accordance with the provisions.

Article 34

In the event that the trustee violates the obligations of the charitable trust document, or in the event of dissolution in accordance with the law, loss of legal capacity, revocation in accordance with the law, declaration of bankruptcy or other circumstances that make it difficult for the trustee to perform its duties, the settlor may change the trustee in accordance with the law.

According to the agreement of the charitable trust document or with the consent of the settlor,a new trustee or trust property may be added, or the scope of beneficiaries and their selection procedures and methods and other trust matters may be changed.

Where the trustee or trust matters are changed in accordance with the provisions of the preceding two Paragraphs, the procedures for re-recording or modification shall be handled in accordance with the relevant provisions of the State.

Article 35

The settlor of charitable trust shall be encouraged to set up trust supervisors if necessary.

The supervisor shall supervise the conduct of the trustee and protect the rights and interests of the settlor and the beneficiaries in accordance with the law. Where the trust supervisor finds that the trustee has breached its trust obligations or has difficulty in performance, he/she shall report to the settlor and shall have the right to bring a lawsuit in his/her own name to the people’s court.

Article 36

Where a charitable trust is terminated, the trustee shall, in accordance with the prescribed time limit, report to the civil affairs department the reasons and the date for the termination, the plan for the disposal of the remaining trust property and other relevant information.

The trustee shall make a liquidation report on the handling of the affairs of the charitable trust in accordance with the prescribed time limit, report to the civil affairs department and then make a public announcement.

Where a charitable trust has set up a trust supervisor, the liquidation report shall be approved by the trust supervisor in advance.

Chapter V  Community Charity

Article 37

This Municipality shall establish a linkage mechanism between communities and social organizations, social workers, community volunteers and social charity resources, and promote the development of community charity and basic social governance through the development of charity supermarkets and community funds, the cultivation of community charity-based social organizations, and the development of mass mutual aid activities.

Article 38

This Municipality shall support the establishment of charity supermarkets in communities to undertake the functions of receiving community charity funds and materials, charity sales, relief for the needy, voluntary services and the spread of charity culture, so that they can play the role of a comprehensive community service sharing platform for people’s convenience and benefit.

Social forces shall be encouraged to operate charity supermarkets. Charity supermarkets that meet the conditions shall be encouraged to be registered as social service institutions.

Article 39

This Municipality shall support the establishment of community foundations, or special community funds under the foundations established by law, to raise charitable funds and materials, organize or finance community charity activities and projects, develop community public welfare causes and participate in community governance.

The community foundation board of directors shall be composed of donors, sponsors, and representatives of basic mass self-governing organizations, community residents, community units, community social organizations, towns/townships and sub-districts.

Article 40

This Municipality shall rely on community social organization service s, community social organization associations and social organization incubation bases to foster the development of community-based charitable social organizations.

Article 41

Urban and rural community organizations may carry out mass mutual aid activities in their own communities through mutual assistance in the neighborhood, voluntary services, donations and other forms.

Urban and rural community organizations that need to raise property in their own community for the purpose of carrying out mass mutual aid activities shall respect the wishes of the donor, and disclose the management and use of the raised property in the community and accept supervision.

Charity organizations shall be encouraged to provide guidance to urban and rural community organizations in carrying out mass mutual aid activities, or to cooperate in carrying out related charity activities.

Chapter VI  Charitable Culture

Article 42

The municipal and district people’s governments and their relevant departments shall strengthen the cultivation of the charity culture, promote the charity culture, spread the charity spirit, and guide the public to care for, support and participate in the charity cause.

Article 43

This Municipality shall incorporate the charity work into mass spiritual civilization creation activities to enhance the civilization of the residents and the civilization of the city.

Article 44

The Municipal People’s Government shall set up the Shanghai Charity Award to commend units, individuals and projects that have made outstanding contributions, with a great social impact, to the charity cause.

All districts shall be encouraged to carry out various forms of charity award activities, in line with the actual charity work in their administrative regions.

Article 45

The week of September 5 every year (Chinese Charity Day) shall be designated as Shanghai Charity Week to focus on charity activities and cultural publicity.

Article 46

The municipal and district people’s governments and their relevant departments shall rely on public cultural and other facilities to carry out cultural publicity for charity.

Media such as radio, television, newspapers and journals, websites and advertising operators shall arrange a certain number of pages or time slots for the publication or broadcast of charitable public service advertisements to publicize such contents as charitable culture, charitable activities, typical figures and deeds, etc., so as to create a favorable atmosphere conducive to the development of charitable causes; relevant units shall reduce or waive the costs of charitable public service publicity.

Charitable organizations shall be encouraged to give full play to their advantages, popularize charity knowledge and promote charity culture.

Article 47

This Municipality shall promote the introduction of charity culture into organs, enterprises, schools, communities and villages, integrate charity culture into daily life, and cultivate public awareness of charity.

Primary and secondary schools shall incorporate charity culture into relevant school curricula and organize students to participate in charitable activities that are in line with their physical and mental characteristics.

Higher education institutions and secondary vocational schools shall be encouraged to incorporate charity culture into their general studies curriculum and include students’ participation in charitable activities in the management of practice credits.

Chapter VII  Information Publicity

Article 48

This Municipality shall establish and improve the system of statistics and publication of charitable information. The municipal civil affairs departments shall annually issue to society a report on the development of charity in this Municipality.

The municipal and district civil affairs departments and other relevant departments shall, within their respective areas of responsibility, make charity-related information available to society in a timely manner in accordance with the law and provide services such as consultation on laws, rules, regulations and policies, and publication of charity needs.

Article 49

This Municipality shall rely on the big data resource platform to integrate charity-related information and data resources, enhance the functions of the charity information platform, and realize the unified collection, unified management, as well as the unified sharing and exchange of charity data in the whole Municipality.

Article 50

Every charitable organization shall publicize the following information to society on the charity information platform in accordance with the law.

the basic information of charitable organizations;

the public fundraising project recorded by the civil affairs department, and the corresponding situation;

the use of the property raised;

the implementation of charitable projects;

the annual work reports and financial and accounting reports; and

other information as provided for by laws, rules and regulations.

Where the financial and accounting reports of charitable organizations are subject to audit in accordance with the relevant state provisions, they shall be made public after the audit.

Article 51

The trustee of a charitable trust shall publicize the following information to society on the charity information platform in accordance with the law:

the establishment of the charitable trust;

reports on the handling of trust affairs and the reports on the status of property;

the reasons for the change and termination of the charitable trust; and

other information as provided for by laws, rules and regulations.

Article 52

Charitable organizations and trustees of charitable trusts  shall disclose information in a truthful, complete and timely manner, and shall not contain false accounts, misleading statements or material omissions, and shall not replace the information disclosure obligations   in the form of press releases, advertising promotion,etc.

Article 53

Donors have the right to inquire from charitable organizations about information about the use of their donated property , and the charitable organizations shall respond within 10 working days; if the donor disagrees with the reply, he/she may request the charitable organization to verify it; if there is still a dispute after verification, the donor may request the civil affairs department for verification in accordance with the law.

Article 54

Where the donor requests that information about his/her donation, donated property, etc. not be made public, the charitable organization shall respect the will of the donor.

Charitable organizations, when funding beneficiaries, shall respect the personal dignity of the beneficiary; information on the privacy of the beneficiary, without the consent of the beneficiary, shall not be disclosed to the public.

Chapter VIII  Promotional Measures

Article 55

The municipal and district people’s governments shall incorporate the charity cause into the national economic and social development planning, and include funds for the promotion of charity in their annual financial budgets.

Article 56

Civil affairs and other departments shall make public the guidelines, simplify and standardize the work process, strengthen information sharing, and provide guidance and all kinds of service convenience for charitable organizations, charitable activities and charitable trusts.

Article 57

Charitable organizations and the income they obtain shall enjoy tax incentives in accordance with the law.

Natural persons, legal persons and unincorporated organizations that donate property for charitable activities, shall enjoy tax incentives in accordance with the law.

The municipal finance, taxation, civil affairs and other departments shall promptly confirm and publish the list of charitable organizations qualified for pre-tax deduction of public welfare donations in accordance with the law.

Article 58

Donors donating to charitable organizations physical goods, negotiable securities, equity, intellectual property rights, etc., shall be exempted from related administrative and institutional fees in the transfer of rights.

For the public welfare construction and service projects of charitable organizations, relevant administrative and institutional fees shall be reduced or exempted in accordance with the law.

Article 59

The people’s governments at all levels and their relevant departments may support qualified charitable organizations in providing services to society by purchasing services and other methods in accordance with the law. Where the government and its relevant departments purchase services from charitable organizations, they shall include the management costs of the charitable organizations in the project budget.

Charitable projects that conform to the principles and scope of use of the welfare lottery public welfare fund may be financed by the welfare lottery public welfare fund through public welfare bidding and other means.

Article 60

The civil affairs departments shall, in cooperation with the education, human resources and social security departments, formulate policies for the training of charitable personnel and establish a catalogue of charitable personnel and talent pool; strengthen vocational education and training for charitable practitioners and provide training subsidies to those who meet the requirements in accordance with the provisions.

Higher education institutions and scientific research institutions shall be encouraged and supported to cooperate with charitable organizations to open charity-related majors, conduct research on charity theory and charity culture, establish bases for training charitable personnel and practical training bases, and cultivate the professional talents needed for the development of charity.

Article 61

The town/township people’s governments and sub-district offices shall provide support for charity supermarkets and community foundations in terms of venue and personnel.

Relevant departments shall support qualified charity supermarkets in accordance with the law to handle relevant business licensing matters.

Article 62

The state organs, enterprises, public institutions and other organizations shall be encouraged to provide premises and other convenient conditions for carrying out charitable activities.

Financial, audit, appraisal, legal services and other institutions shall be encouraged and supported to provide professional services for donors, charitable organizations, charitable trusts, etc., and to reduce or waive related service fees.

Article 63

Where an individual who has made a substantial contribution to the charity cause applies to a charitable organization for assistance due to difficulties in his/her own or his/her family’s life, the charitable organization shall give priority to assistance.

Chapter IX  Supervision and Administration

Article 64

The civil affairs departments shall, in conjunction with relevant departments, strengthen the daily supervision and inspection of charitable organizations and charitable activities, and the special inspection of major charitable projects, with focus put on the fundraising activities, property management and use, and information publicity of charitable organizations and with investigation of and prosecution against violations of laws, rules and regulations in accordance with the law.

Article 65

The civil affairs departments shall, in accordance with the law, supervise and administer the publication of public fundraising information and the conduct of public fundraising activities by charitable organizations; where any violation of laws, rules or regulations is found, they shall, in conjunction with the relevant departments, investigate and deal with the matters in accordance with the law.

Radio and television, press and publication, cyberspace administration and communications administration departments shall, within their respective responsibility, carry out supervision and administration of the platform services provided by radio, television, newspapers and journals, as well as network service providers and telecommunication operators, for charitable organizations to carry out public fundraising, and investigate and deal with violations of laws, rules and regulations in accordance with the law.

The civil affairs departments and relevant competent departments shall establish and improve mechanisms for information sharing, coordination and investigation of violations, and information publicity mechanisms for investigation and handling, so as to strengthen coordinated supervision.

Article 66

The civil affairs departments shall strengthen the filing and relevant supervision and management of charitable trusts. The banking and insurance regulatory agencies shall be responsible for the supervision and management of the charitable trust business of trust companies and the fund custody business of charitable trust accounts of commercial banks.

The civil affairs departments shall strengthen cooperation with the banking and insurance supervision and management agencies to enhance on-processing and post-event supervision.

Article 67

The civil affairs departments shall, in conjunction with relevant departments, enhance the supervision over charitable credit, collect relevant credit information to this Municipality’s Public Credit Information Service Platform in accordance with the law, and take punitive measures against untrustworthy subjects in accordance with the law.

Article 68

Charitable organizations shall improve their governance structure and consciously accept the supervision of a third party in society.

The public and the media shall be encouraged to exercise social supervision over charitable activities.

Any unit or individual who finds that a charitable organization or charitable trust has violated the law may complain or report to the departments of civil affairs or other relevant departments.

The civil affairs and other relevant departments shall promptly verify and deal with the complaints and reports received, and shall keep the information of the informant confidential and protect the legitimate rights and interests of the informant.

Chapter X  Legal Liability

Article 69

If there are provisions for handling violations of these Regulations in laws and administrative rules, those provisions shall be followed; if a crime is constituted, criminal responsibility shall be investigated in accordance with the law.

Article 70

Where an individual fabricates facts and exaggerates difficulties to defraud others of donation, or the amount of money raised reaches the upper limit, or the purpose of asking for help has been achieved or disappeared, but he/she fails to voluntarily announce that he/she will not accept any donation again, in violation of the provisions of Paragraphs 2 and 3 of Article 29 of these Regulations, the individual shall bear the corresponding legal liability in accordance with the law.

Where radio, television, newspapers and journals, network service providers or telecommunication operators violate Paragraph 4 of Article 29 hereof and commit any of the following illegal acts, the relevant competent department shall issue a warning and order them to make corrections within a time limit. If they fail to make corrections within the time limit, they shall be criticized in a circular notice:

1. failing to verify the authenticity of the personal help information;

2. accepting donations on behalf of others;

3. failing to give risk warnings at a conspicuous position or by other ways that are easy to be identified by the public; and

4. failing to immediately stop services or take measures to prevent the spread of information, when such illegal acts as fabrication of facts are found.

Article 71

Where natural persons, legal persons or unincorporated organizations defraud property in the name of charity or under the disguise of charitable organizations, or defraud property by fabricating facts on individuals for help, the public security organs shall investigate and impose penalties in accordance with the law.

Article 72

If the municipal or district department of civil affairs or other relevant departments or their working personnel commit one of the following matters, the superior department or the supervisory department shall order them to make corrections; where they shall be punished according to law, the appointment and removal department or the supervisory department shall give punishment to the chief person in direct charge and other person(s) held directly responsible:

failing to fulfill the obligation of information disclosure according to law;

2. engaging in forcible apportionment or doing so in a disguised form, or forcing volunteers and charitable organizations to provide services;

3. failing to fulfill supervision and administration duties according to law;

4. unlawfully enforcing administrative compulsory measures or administrative penalties;

5. distributing without authorization, misappropriating, withholding or embezzling charitable property; or

6. committing other acts such as abusing power, neglecting duties, and practicing irregularities and favoritism for personal gains.

Chapter XI  Supplementary Provisions

Article 73

Where an activity of mutual aid is carried out within an entity, the relevant provisions for the urban and rural community organizations to carry out activities of mutual aid shall apply.

Article 74

These Regulations shall be effective as of November 1, 2021. The Regulations of Shanghai Municipality on Donation Soliciting adopted at the 34th Session of the Standing Committee of the 13th Shanghai Municipal People’s Congress on June 7, 2012 shall be repealed simultaneously.