The mainland’s first charity law was approved by the national legislature on Wednesday and is due to come into effect in September.
The legislation approved by the National People’s Congress lays out details on registration, fundraising and government oversight of charitable groups.
It promises tax benefits for charitable activities and tightens scrutiny of such groups’ internal management.
The regulatory framework is expected to boost public confidence in the sector after a series of scandals.
It is also expected to increase donations to needy causes. Despite having the world’s second-largest economy, China ranked 144 among 145 countries for charitable behaviour in a survey by non-government organisation Charities Aid Foundation.
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The legislation retains a controversial ban on donation appeals by individuals. The NPC’s legal committee had said such appeals were seen as personal requests for help rather than charity.
