How to set up a charitable foundation?condition、process

20early century，Charitable foundations in the modern sense began to appear and flourish in the United States.。Charitable foundations in the modern sense of China，For example, China Charity Federation、Red Cross Society of China、Soong Ching Ling Foundation、Yanran Angel Fund、Foundations such as One Foundation have also become famous、thrive。As the Third Plenary Session of the 18th CPC Central Committee proposed “improving the tax exemption system for charitable donations”，China’s philanthropy will also reach another peak。

So，How to set up a charity foundation in China? According to the "Foundation Management Regulations" and other relevant information，The author summarizes eight major steps for establishing a charitable foundation。1First，Conditions for establishing a foundation。natural person、Legal persons or other organizations can apply to establish a foundation，Applicants can be donors to the foundation，It can also be other citizens or organizations that are enthusiastic about public welfare undertakings.。

Foundations are divided into public foundations (which can solicit donations from the public) and non-public foundations (which cannot solicit donations from the public).。Public foundations can carry out fund-raising according to the geographical scope，Divided into national public foundations and local public foundations。

To establish a foundation, the following conditions must be met:：

1. Established for specific public welfare purposes；
2. The original fund of a national public foundation shall not be less than RMB 8 million.，The original fund of a local public foundation shall not be less than RMB 4 million.，The original fund of a non-public foundation shall not be less than RMB 2 million.，The original fund of a non-public foundation registered with the Ministry of Civil Affairs shall not be less than 20 million yuan.；The original fund must be the received monetary fund；
3. standardized name、Charter、Organizational structure and dedicated staff appropriate to its activities；
4. Have a fixed residence；
5. Ability to independently bear civil liability。

2second、The special name of the foundation

Require

。

1. The name of the foundation should reflect the business scope of public welfare activities，The name of the foundation should include the font size in order、Business scope of public welfare activities，and ends with the word "Foundation"，The name of a public foundation does not need to use a font size，The name of a public foundation must not use the name of a natural person、The name or trade name of a legal person or other organization；
2. National public foundations should use “China” in their names、"China"、"Nationwide"、"Country" and other words。

Non-public foundations are not allowed to use the above words。(3) Local public foundations and provincial、autonomous region、Non-public foundations registered by the civil affairs department of the people's government of the municipality directly under the Central Government shall be named after the county level or administrative division above the county level where they are located.。Named with the name of an administrative division below the provincial level，You can also add the province you are in、autonomous region、Name of municipality。

Named with the name of a municipal district，should also be titled with the name of the city；

1. Non-public foundations can use the names of natural persons as their font size.、The name or trade name of a legal person or other organization，The name of a public foundation must not use the name of a natural person、The name or trade name of a legal person or other organization。3third、Conditions for the person in charge of the foundation。The heads of the foundation include the chairman、Vice Chairman、Secretary General。
2. Foundation Chairman、The vice-chairman and secretary-general shall not be concurrently held by current national staff；The chairman of the foundation is the legal representative；The legal representative of the foundation shall not serve as the legal representative of other organizations at the same time.；
3. Legal representative of public foundations and non-public foundations with original funds from mainland China，Should be held by mainland residents；
4. Sentenced to surveillance for crime、Criminal detention or fixed-term imprisonment，Less than 5 years have passed since the completion of the sentence，Those who have been sentenced to deprivation of political rights due to crimes are currently being executed or have been sentenced to deprivation of political rights.，He also served as the chairman of a foundation that had its registration revoked due to violations of the law.、Vice Chairman or Secretary General，and is personally responsible for the foundation’s illegal acts.，It has not been more than 5 years since the foundation was cancelled.，Not allowed to serve as chairman of the foundation、Vice Chairman or Secretary General；
5. Served as Chairman of the Foundation、Hong Kong residents of the Vice Chairman or Secretary General、Macao residents、Taiwan residents、foreigner，The period of stay in mainland China shall not be less than 3 months each year。

4fourth、The composition of the foundation’s organizational structure。

1. The Board of Directors is the decision-making body of the Foundation，Board size: 5 to 25 people；
2. Non-public foundation established with private property，Foundation directors who are closely related to each other，The total number shall not exceed one-third of the total number of directors；Other foundations，Persons with close relatives are not allowed to serve on the Board of Directors at the same time；
3. The foundation has supervisors，The term of office of supervisors is the same as that of directors.，Foundation Director、Close relatives of directors and accounting personnel are not allowed to concurrently serve as supervisors；
4. Directors receiving remuneration from the foundation shall not exceed 1/3 of the total number of directors；Supervisors and directors who do not hold full-time jobs in the foundation shall not receive remuneration from the foundation.；
5. When a foundation director has personal interests related to the interests of the foundation，Not allowed to participate in decision-making on related matters；Foundation Director、Supervisors and their close relatives are not allowed to have any transactions with the foundation。

5fifth、Procedure for establishing a foundation。

1. After review and approval by the business supervisory unit，Submit all valid application materials to the registration management authority；
2. After review by the registration management authority，permitted to register，After the applicant completes the registration procedures online,，Issue a legal person registration certificate to the foundation；
3. After the foundation is registered，You should apply for seal engraving at the Civil Service Center of the Ministry of Civil Affairs；Apply for an organization code certificate at the National Organization Code Center，Apply for tax registration at the tax department，Open a bank account at a bank，And report it to the registration management authority for record。

6sixth、Determination of foundation registration and management authority。

1. The civil affairs department of the State Council and the provincial、autonomous region、The civil affairs department of the people's government of the municipality directly under the Central Government is the registration and management authority of the foundation.；
2. Foundations that must register with the Ministry of Civil Affairs include：National public foundation；Foundations intending to have non-mainland residents serve as legal representatives；The original fund exceeds 20 million yuan，A non-public foundation whose sponsor applies to the Civil Affairs Department of the State Council for establishment；Representative offices established by overseas foundations in mainland China。

7seventh、When the foundation applies for establishment，Documents that applicants should submit (in duplicate，At least one original copy) (1) Application for establishment registration (reason for establishing the foundation)，As well as the basic information of the applicant (major donor) and his or her participation in recent years、Support for public welfare undertakings；Basic information about the foundation，include：name、purpose、Business scope、Original Fund and its Donors、Chairman, etc.。

The application form shall be signed or stamped by the applicant)；

1. A document in which the business supervisory unit agrees to the establishment and registration (states that it agrees to the establishment of the foundation and agrees to serve as its business supervisory unit)、assume corresponding responsibilities，stamp)；
2. Draft Articles of Association (Drafted in accordance with the model text of Articles of Association)；
3. Proof of right to use residence (residence is rented)，A copy of the lease contract and a copy of the real estate certificate must be provided；Accommodation provided free of charge by other organizations or individuals，Must be certified by property owner，and provide a copy of the property ownership certificate)；
4. Donation commitment letter from the fund source unit or individual (specifying the proposed donation amount、As the original capital for the proposed foundation，Promise that the funds will be the legal property of the donor，Donor’s signature or donation unit’s seal)；
5. "Foundation Director、Supervisor Registration Form" and copies of identity documents (including proposed vice chairman、Secretary General、director、supervisor，One table per person，Stamped with the seal of my employer)；
6. Secretary-General's full-time commitment letter (commitment to work full-time as Secretary-General after the foundation is established)，My signature，Stamped with the seal of the personnel department of the unit where you work)；
7. "Foundation Legal Person Registration Application Form"
8. "Foundation Legal Representative Registration Form"
9. After passing the preliminary review of the "Foundation Articles Approval Form"，The applicant goes to the Ministry of Civil Affairs to obtain the capital verification notice，Conduct capital verification。

8eighth、Application for foundation tax-exempt status After the foundation is formally established and obtains the legal person registration certificate and seal，According to the Ministry of Finance、State Administration of Taxation、The Ministry of Civil Affairs jointly issued the "Notice on Issues Concerning the Pre-tax Deduction of Public Welfare Donations" (Finance and Taxation No. 2008160) and its supplementary notice (Finance and Taxation No.[2010]45No.) regulations，Newly established foundation less than one year old，You can apply for pre-tax deduction qualifications for public welfare donations。

also，Foundations may also act under the Ministry of Finance、The provisions of the "Notice on Issues Concerning the Management of the Determination of Tax-Free Qualifications for Non-Profit Organizations" issued by the State Administration of Taxation，Submit an application for tax exemption qualification to the local tax authority。The establishment of charitable foundations is regulated in the "Foundation Management Regulations"，It does not reflect the "charitable" particularity of charitable foundations very well.，In addition, the threshold is too high，It has become a bottleneck that troubles and restricts the registration of charitable foundations.。

The Charity Law is about to be promulgated，We expect philanthropic foundations to adopt a more relaxed approach、Born and grown in a more standardized legal environment!

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