China’s Charitable Foundations: Development and Policy-Related Issues

Abstract

As an innovative form of social organization, the charitable foundation is a new phenomenon in the People’s Republic of China. Since 2004, when the new Regulations on Administration of Foundations were promulgated, the charitable foundation sector has experienced rapid growth. However, compared to its potential and the important role the foundation sector can play in China’s social development, a more favorable institutional and legal environment should be considered to boost the expansion of charitable foundations. Because government policies are vital in shaping the landscape of the civil sector in China, this article will focus on how government policies can help create a conducive legal and institutional environment for the expansion of private foundations. Specifically, administrative barriers and tax incentives are extensively discussed. In doing so, experiences from other countries, especially the United States, will be discussed to serve as a reference as well as a model of best practice.