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How May Chinese Charity Law Benefit from Insights Gained from the Study of UK Charity Law

KANG XU05.02.2015

The main features of the British charity law

Contents

11

Comparative Analysis of Chinese and British charity22

The Enlightenment to Chinese Philanthropy33

Diagram 2

The clear legal definition of charity

Flexible registration system

Diagram 2

1.The main features of the British charity law

feature 1

feature 2

feature 3

feature 4

feature 5

feature 6

feature 8

feature 7

Strict regulatory

audit system

Perfect information

disclosure system

Effective charityappeals court

system

Strict fundraising system

The variety of legal forms of charitable organizations

Charity Commission's unique system

Feature 1: clear legal definition of charity

Clarification of the definition of ‘charity’ 11

Expanding the scope of charity 22

Emphasizing the principle of charity33

1.The main features of the British charity law

“Charitable purpose” means “12+1”(a) the prevention or relief of poverty;(b) the advancement of education;(c) the advancement of religion;(d) the advancement of health or the saving of lives;(e) the advancement of citizenship or community development; etc.

‘Charity’ means an institution which is established for charitable purposes only.

1. A charitable organization must have a charitable purpose to accord with the interests of the public, public welfare charitable organizations must be identifiable, objective;

2. The beneficiary of charitable organizations must be part of the public or the public.

Feature 2: Charity Commission's unique system

1.The main features of the British charity law

Charity Commission is unique in government agencies.

11

Charity Commission has a unique regulatory functions.22

The partnership between the Charity Commission and charities is unique.33

Feature 3: Flexible registration system

1.The main features of the British charity law

Small charities whose annual income of £5,000 or less11

Exempt Charities22

excepted charities33

Charitable organizations exempt from registration requirements:

Feature 4: The variety of legal forms

1.The main features of the British charity law

Unincorporated organization form11

Legal entities organization form22

The charity organization with legal form diversification can have more choices:

Trust Unincorporated Association

Charitable Companies

Charitable Incorporated Organization, CIO

Industrial and Provident Society, IPS

Feature 5: Strict fundraising system

1.The main features of the British charity law

Must apply for a license for public collectionto the Charity Commission

11

Must apply for a license to local government22

A strict system of public collection has three elements:

33Must follow the ‘principles of good practice requirements’

Feature 6: Strict regulatory audit system

1.The main features of the British charity law

Charity Commission's regulatory11

Comprehensive regulatory system22

Through strong supervision to ensure thatthe charity organizations achieve its commitment to the public interest.

Feature 7: Perfect information disclosure system

1.The main features of the British charity law

Disclosure of charitable organizations11

22 Disclosure of the Charity Commission

Feature 8: Effective charity appeals court system

1.The main features of the British charity law

Charities Act has established the charity tribunal, as the first to accept charity organization appeals.

Law specified the content of tribunal, personnel, procedures and its relationship with the high court and procuratorial organs, also provided for what condition the Attorney General can take the initiative to intervene in the proceedings.

Diagram 2

Chinese Chinese charitiescharities

Problem 5The charities operate non-standard.

Problem 4The way of fundraising is limited.

Problem 6Charity funds use unreasonable

2.Comparative Analysis of Chinese and British charity

Problem 2The charitable resources distribution is not uniform.

Problem 3The form of charities is single.

Problem 1In the stage of small-scale

2.Comparative Analysis of Chinese and British charity

33

Different historical and cultural traditions 11

Different stages of economic development 22

Different ecological environment of Charity

UK CHINA

History ofcharities

597 AD, King's School Canterbury

12-13 century, the tradition of Philanthropy

started

the temples of Han and Tang Dynasties

folk charity groups of Ming and Qing Dynasties

History ofCharity law

The Statute of Charitable Uses 1601

After 400 years, gradually forming the perfect modern

charitable legal system

The late 20th century, the special law, department law

or local law2015, the Basic Law will enter the formal legislative

process

Religious traditions Jesus Culture Confucianism, Buddhism and

Taoism culture

Subject of philanthropy Folk Government

2.Comparative Analysis of Chinese and British charity

Difference 1: Historical and cultural traditions

UK CHINA

Land area 245,000 k ㎡ 9,600,000 k ㎡

Population 6,240 MILLION 1.34 BILLION

2013 GDP $2.53 trillion $9.04 trillionWorld rankingof 2013 GDP 6 2

2013 Per capita GDP $38,000 $6,629

World ranking of 2013 pre capita GDP 25 86

Development stagea early developed

country

In transition period from developing

country to the medium developed country

2.Comparative Analysis of Chinese and British charity

Difference 2: The stages of economic development

The current status of economic

UK CHINA

The number of social organizations

900,000 500,000

Per capita 70 268

2013 donation income

￡ 17 billion ￡ 10 billion

Per capita 27 7

2.Comparative Analysis of Chinese and British charity

Difference 3: ecological environment of Charity

TThe current status of charitieshe current status of charities

In China charity is not a way of life. Owing to In China charity is not a way of life. Owing to various reasons, Chinese public understanding of various reasons, Chinese public understanding of and attention to philanthropy is far less than the and attention to philanthropy is far less than the UK.UK.

Diagram 2

Diagram 2

3.The Enlightenment to Chinese Philanthropy

1

2

43

5

Enlightenment 1The basic orientation of charity law should be clear

Enlightenment 1The basic orientation of charity law should be clear

Enlightenment 2The modern philanthropy should be redefined

Enlightenment 2The modern philanthropy should be redefined

Enlightenment 3Charity law should establish a legislative model with Chinese characteristics

Enlightenment 3Charity law should establish a legislative model with Chinese characteristics

Enlightenment 4Charity law should focus on integrity and systemic

Enlightenment 4Charity law should focus on integrity and systemic

Enlightenment 5Relations between the government and social organizations should be constructed newly

Enlightenment 5Relations between the government and social organizations should be constructed newly

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