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
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.
Interpretation:
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, CPPCC member, lawyer from Grandall Law Firm
6. Can a company get tax deductions after making donations?
Answer: Yes
Draft: Individuals and institutions who made donations are entitled to favorable tax policies, according to law.
Interpretation:
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,deputy director of the Legislative Affairs Commission of the NPC Standing Committee
