What Does a Foundation Director Do?

Public fundraising fund refers to a fundraising fund for the public.

Public Offering Foundation

In 2004, Article 3 of the "Fund Management Regulations" promulgated by China defined public fundraising, that is, fundraising for the public. Public fundraising foundations are divided into national public fundraising foundations and local public fundraising foundations according to the geographical scope of fundraising. For public fundraising organizations, resources are obtained from voluntary donations from the public. They do not have the compulsory nature of the financial mechanism and the transactional nature of the market mechanism, but are determined by the willingness of the public to donate. In general, the credibility of public fundraising foundations is that public fundraising funds publicly explain the flow of various resources obtained by the organization, and explain whether the various operations are effective, in line with the purpose of the organization and its social commitments, and are used to prove that they are reliable organizations .

China's "Fund Management Regulations" makes a distinction between public and non-public offerings of public welfare foundations. Non-public foundations, similar to foreign corporate foundations and family foundations, are mainly funded by specific groups, and they only raise funds in small circles; public foundations have a higher degree of public participation. Donate money to an unspecified majority of society.

There is no difference between the two foundations. Generally speaking, some socially innovative and experimental public welfare projects are better based on non-public fundraising foundations; while areas such as poverty alleviation, poverty relief, and disaster relief are more suitable for public fundraising foundations to launch public participation.

However, due to the public nature of public foundations and their wide-ranging scope, the Chinese government's approval management of public foundations is more stringent. As of the end of 2012, there were 1,316 public fundraising foundations across the country, the vast majority of which were initiated by the government and belonged to typical government-run charities.

The original fund of the national public fundraising foundation shall not be less than 8 million yuan.

The original fund of a local public fundraising fund shall not be less than RMB 4 million.

The original fund must be credited to the account.

Need a supervisor

Deng Guosheng, director of the Innovation and Social Responsibility Research Center of Tsinghua University, believes that based on the current law, as a transitional approach, the practice of combining the business management and registration authorities of non-public fund foundations in some provinces can be used as a way to let public fund foundations Just find a "mother-in-law", that is, the civil affairs department is both the business director and the registration director of the public fundraising foundation. Of course, this is not to encourage all charitable organizations to register as public fundraising foundations, but to allow some qualified civil charitable organizations to be converted into public fundraising foundations after a certain period of assessment and annual inspection.

Checked by administrative permission

Deng Guosheng believes that the release of public fundraising rights to all non-governmental charitable organizations is controlled by administrative permission. This point, Jiangsu Province has begun to try. The "Regulations on the Promotion of Charity in Jiangsu Province" implemented on May 1 stipulates that organizations that have the qualifications of a fundraising entity may, after obtaining a charity fundraising license, conduct charitable fundraising activities in a specified manner within a specific time and region.

However, China's charitable organizations have just started, and the phenomenon of self-discipline is relatively serious, and social credibility is not high.

Therefore, the transparency and supervision of charitable organizations cannot be relaxed. While reducing the threshold, the government also needs to strengthen the management of fundraising, especially mobilizing social forces to strengthen the supervision of charitable organizations and strengthen the self-regulation of the industry. Promote the development of charities by rating them and conducting regular evaluations.

Improve legal protection

Deng Guosheng believes that the most ideal plan for the future is that the government will amend the "Fund Management Regulations" to reform the current dual management system of the foundation. Both non-public foundations and public foundations will cancel the business department and register directly with the civil affairs department. registered. Another is to formulate the "Charity Law", lower the registration threshold of charitable organizations, moderately release the public fundraising rights of charitable organizations, and protect the legitimate rights and interests of donors and charitable organizations through legal means.

In 2014, there were 4,117 foundations nationwide, an increase of 568 or 16.0% over the previous year.

(1) Different fundraising targets:

Public fundraising foundations: can raise funds directly to the public;

Non-public foundations: Don't raise funds directly to the public.

(2) Geographical scope of fundraising activities:

Public fundraising foundations: divided into national public fundraising foundations and local public fundraising foundations. The public fundraising activities of national public fundraising foundations can be carried out nationwide, and the public fundraising activities of local public fundraising foundations can only be carried out within the administrative area of the registration place.

Non-public fundraising foundations: Because there is no public fundraising, there are no geographical restrictions.

(3) Registered original fund (Unit: RMB):

Public fundraising foundations: no less than 8 million yuan nationwide and no less than 4 million yuan locally;

Non-public fundraising foundation: no less than 2 million yuan.

(4) Registration authority:

Public fundraising foundations: National public fundraising foundations are registered by the Civil Organization Management Bureau of the Ministry of Civil Affairs; local public fundraising foundations are registered by the civil affairs departments of the people's governments of provinces, autonomous regions and municipalities.

Non-public fundraising foundations: Civil affairs departments of people's governments of provinces, autonomous regions, municipalities and above can register. (However, if the original funding is more than 20 million, and the promoters apply to the Civil Organizations Administration of the Ministry of Civil Affairs for establishment, they can register with the Civil Organizations Administration of the Ministry of Civil Affairs)

(5) Name:

The name of the foundation should reflect the business scope of public welfare activities.

The name of the foundation shall include the font size, the business scope of public welfare activities in order, and end with the word "foundation".

Public fundraising foundations may not use a font size.

National public fundraising foundations shall use the words "China", "Chinese", "National" and "National" in their names. Non-public fundraising foundations shall not use the above words.

Local public fundraising foundations and non-public fundraising foundations registered with the civil affairs departments of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall bear the name of the administrative division at or above the county level. The names of administrative divisions below the provincial level may be given the names of the provinces, autonomous regions and municipalities directly under the Central Government. The name of a municipal district shall be given the name of the city at the same time.

The name of public offering foundations shall not use the names of natural persons, legal persons or other organizations.

The name of a non-public foundation can use the name of a natural person, legal person, or other organization, but it must meet the following requirements:

(1) The use of the name of a natural person, legal person, or other organization requires the consent of the natural person, legal person, or other organization;

(2) The names of natural persons who have been sentenced to deprivation of political rights for crimes shall not be used;

(3) The names of party and state leaders and older generation revolutionaries are generally not used.

(6) Questions on the appointment of close relatives to the board:

For non-public foundations established with private property, the total number of directors of foundations with close relatives shall not exceed one third of the total number of directors; other foundations with close relatives may not serve on the board at the same time.

(7) Question of legal representative:

The legal representatives of public fundraising funds and non-public fundraising funds from the mainland of China shall be the residents of the mainland.

(8) Annual expenditure for public welfare under the articles of association:

Public fundraising foundation: no less than 70% of the total income of the previous year;

Non-public fundraising foundations: no less than 8% of the fund balance of the previous year.

(9) Accept social supervision:

In terms of information disclosure, public fundraising foundations have heavier obligations. Public fundraising foundations shall, when organizing fundraising activities, announce the public welfare activities and detailed plans for the use of funds that they intend to carry out after the funds are raised. During the duration of the fundraising activities, the income from the fundraising activities and the costs and expenses for conducting public welfare activities shall be announced in a timely manner. After the fundraising activities are over, the total income from the fundraising activities and their use shall be announced. Non-public fundraising foundations do not have public fundraising activities, so information disclosure requirements are relatively low.