Six questions on the draft charity law
Updated: 2016-03-11 14:15
Staff members of the Red Cross Society of China load relief materials onto a vehicle on April 27, 2015. The relief materials were delivered to earthquake-stricken Nepal. [Photo/Xinhua]
5. Can charity organizations or donation recipients freely spend the remaining part of the money, after the initial goal was achieved?
Answer: It depends
Draft: If an agreement already exists on how to deal with the excess money, follow the agreement. If not, charitable organizations should spend the money on other similar charity projects, and publish the related information to the public.
For one condition, donations for individuals, let's say donations for a patient, the rest part of the money can be used for his subsequent treatment, checkups, fitness exercises, etc. For the other conditions, if charitable organizations have the money, they should give the money to other people in need. Such cases vary, and more detailed legal provisions are needed.
by Shi Jie
6. Can a company get tax deductions after making donations?
Draft: Individuals and institutions who made donations are entitled to favorable tax policies, according to law.
Favorable tax policies to companies doing charity are an important way to promote philanthropy. Current law prescribes detailed tax benefits for donors, charitable organizations and donation recipients.
by Kan Ke