China's national lawmakers on Wednesday passed the Charity Law with 2,636 votes in favor, 92.49 percent of the total. [Special coverage]
The new law, which was adopted at the annual legislative session and will take effect in September, eases restrictions on the fundraising and operational activities of charity groups, promises tax benefits for the sector, and will tighten supervision on their internal management.
Charity groups and law experts praised the law for responding to public concerns.
Annual donations to registered charities in China soared from 10 billion yuan (1.5 billion U.S. dollars) to 100 billion yuan over the past decade.
The charity sector will support the ongoing poverty alleviation campaign, which has the pressing goal of lifting all rural residents above the poverty line by 2020.
As of the end of 2015, 55.75 million rural Chinese had been classed as impoverished, meaning they had a per capita net income of less than 2,800 yuan a year.
Both the public and authorities are wary of corruption and mismanagement in the charity sector, the reputation of which took a hit after several scandals in the past few years.
As one way of redistributing wealth, charities can support areas overlooked by market and government investment, said Cao Yisun, with the China University of Political Science and Law and a national political advisor.
Take for instance, the Charity Law outlines rules clarifying the responsibilities and liabilities of different parties involved in charitable activities, a good boost for the cause, he said.
"RESERVOIR OF CHARITY FUND"
The law defines how charities should be registered, giving approved charities more freedom in their operations than the current time.
Only a handful of charities are currently allowed to raise money from anyone, while others are restricted to specific groups of donors.
