Revised Chinese foundation rules tighten governance and disclosure duties

Revised regulations governing foundations in China will take effect on 1 January 2027, with tighter requirements for internal governance, asset protection and public disclosure. The Ministry of Justice and Ministry of Civil Affairs said the changes address weak management, irregular activities and gaps in supervision under rules first introduced in 2004.

Foundations must have a clear charitable purpose, cash-contributed registered capital, a name and charter, an organisational structure, full-time employees and a permanent address. A foundation registered with city-level civil-affairs authorities, for example, must have at least 2 million yuan in registered capital. That example is not stated as the universal threshold for every registration level.

The rules restrict eligibility for key posts and prohibit chairpersons, directors and supervisors from distributing assets privately, misappropriating funds or acquiring foundation property through corruption. Founders, major donors and other connected people must not misuse their relationships to damage the foundation, its beneficiaries or the public interest.

Foundation assets and lawful income are protected public property. Foundations must not finance profit-driven activities or use their names and project brands for noncharitable purposes. Their disclosures must be truthful, accurate, complete and timely, without misleading statements or major omissions.

Civil-affairs departments are responsible for registration and oversight. Ministry figures counted 9,801 foundations at the end of 2024. That is a dated sector count, not an updated November 2026 total.