China's Charity Law takes effect

The Charity Law, passed by national lawmakers in March this year, will take effect on Sept 1 in a move to ease restrictions on the fundraising and operational activities of charity groups.

The new law will also include strict regulations to prevent fraud and impose tighter supervision on the management of charity groups.

China had about 670,000 registered social organizations as of the end of June, including 5,038 foundations, according to the Ministry of Civil Affairs.

By the end of 2015, registered social organizations had received 61 billion yuan ($9.12 billion) in donations.

Charity organizations should be recognized by authorities before they solicit public donations, and organizations raising funds from the public without a license may face fines of up to 20,000 yuan.

Internet fundraising has become an easy platform for fraud, so the law requires online charities to work with 13 websites approved by civil affairs authorities, including www.gongyi.net under the Tencent Foundation.

The law also promises tax benefits to encourage more enterprises and wealthy people to donate to charity projects.