Six questions on the draft charity law

The Library Project was founded in 2006 to raise money for libraries for schools in rural areas. Gao Erqiang/China Daily

3. Must donations come through charitable organizations?

Answer: It depends

Draft: Donors can give their money to charitable organizations, or give the money directly to beneficiaries.

Interpretation:

Donors can enjoy the country's preferential tax policies while donating a large amount of money to charitable organizations. If they had no need to enjoy the preferential tax policies in donating a small amount of money, they can directly give the money to beneficiaries.

by Zhang Tiehan, a NPC deputy and vice president of Liaoning Charity Federation

4. Can individuals or organizations refuse to make the donation that they promised earlier?

Answer: No

Draft: Donors, who have made public announcements through TV, radio or other media, promising to donate a certain amount of money, will be violating the donation agreement if they failed to make donations in due time. Charity organizations and the supposed donation beneficiaries can sue them, or file a petition for the court to order them to pay.

Interpretation:

Once one makes a promise of donation, he/she cannot retract it. Charity organizations are given the legal rights to sue them for the default. Companies and individuals have to be discreet in making such public promises.

by Shi Jie, CPPCC member, lawyer from Grandall Law Firm

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