China to increase transparency of non-profit organizations

BEIJING -- Social groups working in China must publicize specific key information or they may be banned from operating, according to a draft amendment to a regulation on the management of social groups.

The draft amendment released on Monday by the Ministry of Civil Affairs will solicit public opinions until Aug 21, in a bid to "safeguard people's freedom to set up social groups and better protect these groups' interests."

Social groups, which refers to non-profit social organizations such as environmental protection agencies or mental health assistance associations, must publicize details of their members and leaders, as well as donations they receive and other required information, according to the draft amendment.

They must also deliver an annual work report to authorities before May 31 each year and make it public.

Social groups failing to release such information will be listed as "abnormal," which will lead to cancellation of their tax exemption and other preferential government benefits.

Their registration certificates will be revoked if they violate the rules for two consecutive years, it said, resulting in a suspension of operations.

China had nearly 329,000 registered social groups as of the end of 2015, which the ministry said played an important role in "promoting economic development, improving social governance and expanding exchange with the outside world."