Opinions on Strengthening the Standardized Development of Social Organizations and Promoting High-Quality Growth, issued by the Ministry of Civil Affairs, the Central Department of Social Work, the Ministry of Agriculture and Rural Affairs, the State Administration for Market Regulation, and the All-China Federation of Industry and Commerce

Minfa [2024] No. 43

To the Civil Affairs Departments (Bureaus), Party Committees' Social Work Departments, Departments (Bureaus, Commissions) of Agriculture and Rural Affairs (Agriculture, Animal Husbandry, and Pastoral Industries), Market Supervision Bureaus (Departments, Commissions), and Federation of Industry and Commerce in all provinces, autonomous regions, and municipalities directly under the central government; as well as to the Civil Affairs Bureau, Party Committee's Social Work Department, Department of Agriculture and Rural Affairs, Market Supervision Bureau, and Federation of Industry and Commerce of the Xinjiang Production and Construction Corps:

To thoroughly implement the CPC Central Committee and the State Council's decisions and arrangements on strengthening the development and management of social organizations, and in response to the prominent issues currently facing social groups, foundations, and social service institutions, we hereby propose the following opinions aimed at promoting high-quality development of social organizations through standardized construction.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will earnestly implement the spirit of the 20th National Congress of the Communist Party of China, as well as the outcomes of the Second and Third Plenary Sessions of the 20th Central Committee. We will further deepen reform across the board in the field of social organizations, forging ahead steadily along a development path for social organizations that is uniquely Chinese in character. We will uphold and strengthen the CPC's overall leadership over social organization work, ensuring that Party leadership and Party building are integrated into every aspect of social organization operations. Adhering to the principles of upholding core values while fostering innovation, balancing reform and stability, and prioritizing establishment before dismantling, we will simultaneously promote proactive guidance for healthy growth and rigorous, law-based management. This approach will enable us to achieve steady progress amid stability, maintain balanced priorities, and provide tailored guidance based on diverse organizational types. Through standardized registration reviews, enhanced management services, lawful oversight, and active encouragement and guidance, we will focus on addressing the most pressing issues currently facing social organizations. Our goal is to help these organizations achieve more appropriate scale, a more rational structure, and increasingly effective governance—thereby empowering them to play a vital role in modernizing China’s national governance system and capacity-building efforts, and ultimately contributing even more significantly to the advancement of Chinese-style modernization.

II. Strictly Conduct Registration and Review in Accordance with the Law

(1) Implement advance notification and reminders. At the stage when social organizations apply for registration, civil affairs departments at all levels should first inform the initiators and donors in writing about the regulatory requirements and policy guidelines for registration management. Key points of the notification should emphasize that donors will not retain or claim any property rights over their contributions; administrative expenses such as staff salaries and benefits must be reasonable and kept within the prescribed limits; the assets of the social organization must be used exclusively for purposes and activities aligned with its articles of association; and, upon dissolution of the legal entity, any remaining assets may not be distributed to the initiators or donors. If initiators proceed with the application after receiving this notification, they shall acknowledge receipt of the advance notice. Similarly, if donors, fully aware of the nature of the organization’s assets and the legal implications of their donation, choose to proceed with the contribution, they will sign a commitment letter confirming their pledge.

(2) Strictly review candidates for leadership positions. Relevant departments responsible for vetting leaders of social organizations must refine the requirements for qualifications, appointment procedures, and other criteria, placing political standards first and conducting rigorous reviews based on the principles of upholding political integrity, maintaining firm convictions, demonstrating dedication, possessing strong capabilities, and emphasizing moral character. For incumbent leading cadres holding concurrent posts among the candidate pool, a thorough examination is required to verify whether they have properly completed the necessary approval process for their part-time roles; those who fail to follow the prescribed procedures shall not be considered as candidates for leadership positions. Social organizations should establish and improve comprehensive systems covering candidate selection, public announcement, duty performance, management, supervision, and exit mechanisms, while also refining incentive and constraint frameworks. They should nominate individuals who are politically qualified, representative within their respective fields, equipped with relevant experience and professional competence, and well-suited to the responsibilities of the role, ensuring compliance with regulations regarding appointment-related conflicts of interest. After fulfilling all required procedures as stipulated, social organizations may proceed with democratic elections. Prior to appointing a leader, they must provide full disclosure of the candidate’s background and qualifications to the members’ (or delegates’) assembly or the board of directors. Once selected, the organization must promptly complete the mandatory filing process with the civil affairs authorities as required by law.

(III) Guide social organizations to focus on their core missions and primary activities. The civil affairs department, in collaboration with the supervising authorities and industry regulators, will strengthen the review of organization names and the verification of business scopes—adhering to the principles of clarity, precision, and focus on core operations—during the application process for establishment registration, name changes, and charter approvals. Additionally, if social organizations are found, during routine supervision, annual inspections and reporting, random audits, enforcement monitoring, rating assessments, or public opinion tracking, to be conducting activities beyond their stated purposes and scope of business, the civil affairs department, together with relevant departments, will take legal action accordingly.

III. Strengthen the Self-Development of Social Organizations

(Four) Strengthen the functions and roles of internal organizational structures. Social organizations should, in accordance with relevant laws, policies, and their articles of association, clearly define the powers, decision-making procedures, and accountability requirements of internal bodies such as the Members’ (Delegates’) Assembly, the Board of Directors, and the Supervisory Committee (or Board). They should also establish and implement a system for key leaders and legal representatives to report on their performance. The Members’ (Delegates’) Assembly and the Board of Directors must conduct democratic elections, decision-making, and management, ensuring equal voting rights where each member has one vote, with the chairperson (president) making the final statement. Any dissenting opinions must be properly recorded. Matters related to personnel, finances, assets, and activities—those that, according to regulations, require decisions by the Members’ (Delegates’) Assembly or the Board of Directors—must not be arbitrarily decided by individuals or delegated to bodies like the chairperson’s office meeting. Meanwhile, supervisors should faithfully and diligently fulfill their duties, strengthening oversight over the conduct of leaders, board members, and financial management personnel. Business supervisory units should encourage social organizations to establish and improve comprehensive systems governing the operation of their internal structures, while providing guidance to address any internal governance challenges.

(5) Strengthen the management of branch (representative) institutions. Social organizations and foundations should carefully evaluate the decision to establish branch (representative) institutions, thoroughly assessing the necessity and feasibility of such establishments to ensure they align with their own purposes and areas of expertise, as well as match their administrative capabilities, service offerings, and operational needs. It is essential to establish robust management systems for these branch (representative) institutions, enhancing oversight and review over critical aspects such as institutional names, leadership, staff, projects, activities, and financial matters. Branch (representative) institutions must not be entrusted to other organizations or individuals for operation, nor can they be used as a means to collect or indirectly charge management fees. Any legal liabilities arising from activities conducted by branch (representative) institutions shall be borne by the social organization or foundation that established them. Furthermore, when engaging in collaborative activities with other civil entities, prior authorization or approval from the founding social organization or foundation is mandatory.

(6) Strengthen financial management. Social organizations must strictly adhere to the provisions of the "Accounting Law of the People's Republic of China" and the "Accounting System for Non-Profit Civilian Organizations," effectively utilizing and properly managing assets in accordance with the requirements for non-profit legal entities. Based on their specific circumstances, organizations should establish robust internal financial oversight mechanisms and internal control systems characterized by clear accountability and strong constraints. These systems should clearly define the roles, scope, procedures, and responsibilities of internal oversight bodies, ensuring that the primary responsibility for internal financial supervision is firmly in place. Additionally, financial income and expenditure reports must be submitted regularly to the General Assembly (or its representatives), the Board of Directors, and the Supervisory Board. Individuals holding key positions within the organization—such as the head, directors, supervisors, or major donors—who have controlling relationships or significant influence over the organization should proactively disclose such connections and recuse themselves from voting as required. All relevant transaction details must also be disclosed truthfully and in compliance with the law.

(7) Enhance the Internal Dispute Resolution Mechanism. Social organizations should establish an internal dispute resolution mechanism to properly address internal conflicts and disputes in accordance with laws and regulations. Organizations must maintain thorough archival records and implement robust internal management systems for certificates, seals, archives, documents, and other essential materials. Disputes can be resolved by reviewing original archival documents and engaging in constructive negotiations. The chairperson (or president) should actively coordinate among all parties, promptly convene meetings, and facilitate consensus-building. If the chairperson (or president) is unable to perform their duties as usual, a designated leader may be appointed according to the procedures outlined in the organization’s charter to call and lead the meeting. For internal conflicts that remain unresolved through negotiation, alternative methods such as mediation or judicial proceedings can be employed to ensure compliance with the law.

4. Strengthen Management and Oversight

(8) Establish and improve a comprehensive reporting system for significant matters. The business supervisory authorities should establish a robust dual-management system for reporting major activities of social organizations, clearly defining the procedures, specific details, and management requirements for such reports. This includes incorporating into the reporting framework key personnel changes, important meetings and events, establishment of branch (representative) offices, large-scale financial transactions, international engagements, and receipt or initiation of overseas donations and funding. Meanwhile, industry regulators will strengthen their guidance and oversight of industry-specific associations, chambers of commerce, and directly registered social organizations within their respective sectors—particularly those that have already been decoupled from government control—by developing targeted lists of regulatory guidelines and other relevant tools. Additionally, the civil affairs department will guide social organizations in setting up mechanisms to assess the impact of their activities, ensuring that any critical issues potentially posing social risks are proactively reported to the relevant government authorities in advance.

(9) Enhance the quality of annual inspection and reporting processes. The civil affairs department will urge social organizations to accurately complete their annual work reports and financial accounting reports, ensuring that these documents are submitted promptly after collective review as required. Additionally, the department will further refine the annual inspection system, clarify inspection criteria, and strengthen oversight of social organization leaders who continue to serve beyond their mandated terms or age limits. Moreover, the department will intensify the analysis and application of inspection results and identified issues in annual reports, providing timely feedback—where appropriate—to relevant supervisory bodies such as business authorities, industry regulators, and social work departments regarding prominent challenges faced by these organizations. For problems uncovered during annual inspections and reporting, a tiered regulatory approach will be employed, including reminders, urging actions, interviews with responsible individuals, issuance of corrective action notices, and, if necessary, administrative penalties—all designed to effectively drive necessary improvements. Finally, leveraging annual inspections and reporting efforts, the department will compile comprehensive baseline information on social organizations, establish robust organizational work files, and enhance information sharing and the practical application of collected data.

(10) Standardize fee-charging practices of social organizations. Market regulation, civil affairs, and other relevant departments will continue to guide industry associations, chambers of commerce, and other social organizations to regulate their fee-collection activities. Fees should be set reasonably based on principles of legality, compliance, openness, transparency, equality, and voluntariness, while taking into account factors such as service costs, members' business conditions, affordability, and industry development trends. Organizations are also required to promptly disclose information about fee items, fee types, service details, fee standards, and the basis for these charges. Any practices involving mandatory membership or compulsory fees, unauthorized charges leveraging statutory duties or matters entrusted/authorized by administrative agencies, fees collected through evaluation, benchmarking, and commendation activities, improper charges linked to professional qualification certification, illegal fees imposed under the guise of training or certification programs, or instances where fees are collected without providing corresponding services will be rigorously addressed in accordance with laws and regulations.

(11) Strengthen comprehensive supervision and management. The civil affairs department will enhance registration reviews, oversight, and enforcement inspections of social organizations in accordance with the law. Competent supervisory bodies will earnestly assume their respective responsibilities for overseeing and managing the social organizations under their purview, as stipulated by relevant regulations. Industry regulators will integrate social organizations into sector-specific management frameworks, stepping up both operational guidance and industry oversight. Audit authorities will conduct statutory audits and monitoring of financial resources, state-owned assets, and other public funds entrusted to social organizations by the government. Meanwhile, relevant functional departments will fulfill their regulatory duties over the service activities and business operations of social organizations—each according to their own legal mandates—ensuring effective oversight through coordinated efforts.

(12) Innovate supervision and management approaches. The civil affairs department should effectively build and utilize foundational platforms such as the Legal Entity Database for Social Organizations, the Social Organization Credit Information Management Platform, and "Charity China," to promote refined classification of social organizations. Additionally, they should establish robust big-data-driven decision-making and early-warning mechanisms, fully leveraging digital technologies to enhance integrated online-and-offline oversight and smart regulatory practices. Furthermore, the department will advance inter-departmental information sharing and collaboration, refining the seamless connection between administrative law enforcement against social organizations and disciplinary inspections, as well as criminal justice procedures. This will strengthen accountability measures and ensure thorough investigations into relevant personnel. At the same time, efforts will be intensified to develop a comprehensive credit system for social organizations. The civil affairs department, in coordination with other relevant agencies, will implement tailored incentive and penalty measures based on the credit information of these organizations, with a particular focus on jointly sanctioning socially responsible entities that fail to uphold their commitments. Finally, all sectors are encouraged to actively engage in social oversight, while increasing transparency by publicly exposing high-profile cases involving social organizations. Educational campaigns will also be conducted through case-based legal explanations, aiming to raise awareness and deter misconduct within the sector.

V. Actively Guide Development

(13) Strengthen policy support. Improve the management system for social organizations, accelerate the development of laws and regulations for social organizations in key areas, and encourage local civil affairs departments to take the lead in piloting and innovating institutional frameworks tailored to local conditions. Fully leverage the role of mainstream media, expand online publicity channels, and regularly organize training sessions on relevant laws and policies to promote widespread awareness and understanding. Implement institutional arrangements that enable social organizations to undertake government-purchased services, access tax incentives, and benefit from talent-related initiatives, ensuring they can enjoy applicable preferential treatments as stipulated by law.

(Fourteen) Promote evaluation-driven development. The civil affairs department is actively refining the rating assessment indicators for social organizations, strengthening the capacity-building of the assessment team, and encouraging social organizations to actively participate in the evaluations. This initiative aims to ensure that the evaluation results are effectively utilized in areas such as social organizations taking over government-transferred functions, procuring services, and competing for awards or recognition, thereby continuously boosting the participation rate of social organizations in these assessments. Additionally, the department will organize and implement industry standards specific to the social sector, further enhancing the capacity-building efforts of social organizations. Furthermore, social organizations will be guided to continuously improve their management systems, streamline internal governance practices, and enhance their service delivery capabilities.

(Fifteen) Promote brand development. The civil affairs department will guide social organizations to cultivate brand awareness, encouraging them to deliver professional, differentiated, and personalized services tailored to their charters, operational scopes, and unique expertise, thereby building competitive service brands. Strengthen education and training for social organizations, actively develop case studies of leading organizations, and promote exemplary models through various initiatives. Additionally, in accordance with relevant national regulations, carry out recognition and reward programs, effectively publicize and promote outstanding brand-oriented social organizations, and leverage their role as models to drive broader adoption and impact.

(Sixteen) Highlight distinctive strengths. The civil affairs department actively encourages social organizations to continuously enhance their professional expertise and service capabilities, leveraging their unique advantages to identify key areas where they can effectively support the broader national agenda and grassroots initiatives. These organizations are encouraged to focus on serving innovation-driven development, accelerating the growth of new-quality productivity, and attracting top-tier global talent—while also strengthening their contributions to essential livelihood safeguards, grassroots social governance, and basic social services. Meanwhile, departments such as agriculture and rural affairs, along with civil affairs, guide social organizations to capitalize on their strengths in industry, technology, and human resources to support rural revitalization. They actively engage in rural industrial development, village construction, and governance initiatives. Leveraging mechanisms like East-West collaboration and targeted poverty alleviation efforts, these departments also encourage various social organizations to contribute to rural development in poverty-stricken regions through measures such as sending personnel, providing financial support, and mobilizing resource integration.

6. Strengthen Organizational Leadership

(17) Uphold Party building as the guiding principle. Intensify efforts to establish Party organizations within social organizations, expanding both the organizational reach of the Party and the effective coverage of its work. Establish and improve institutional mechanisms that ensure Party organizations participate in decision-making on major issues facing social organizations, and develop practical lists outlining specific matters for which Party involvement in decision-making is required. Strengthen the political and organizational functions of Party organizations, fully leveraging their role in providing political guidance, educating and managing Party members, leading initiatives to serve the public, and driving the advancement of organizational development.

(18) Strengthen inter-departmental collaboration. Departments and units at all levels—including civil affairs, social work, agriculture and rural affairs, market regulation, and the All-China Federation of Industry and Commerce—should actively collaborate with relevant functional departments, fulfill their respective responsibilities, enhance coordination and cooperation, and bolster overall working synergy. The civil affairs department should, in conjunction with the special action on standardizing the development of social organizations, play a comprehensive coordinating role, closely oversee implementation, and ensure tangible results are achieved.

Ministry of Civil Affairs, Central Department of Social Work, Ministry of Agriculture and Rural Affairs
State Administration for Market Regulation, All-China Federation of Industry and Commerce
September 25, 2024

Yunnan Provincial Department of Civil Affairs, Social Work Department of the Yunnan Provincial Committee of the Communist Party of China, Yunnan Provincial Department of Agriculture and Rural Affairs, Yunnan Provincial Administration for Market Regulation

Notice from the Yunnan Provincial Federation of Industry and Commerce on Forwarding Documents Related to Strengthening the Standardized Development of Social Organizations and Promoting High-Quality Growth of Social Organizations

To the Civil Affairs Bureaus, Party Committees' Departments of Social Work, Departments of Agriculture and Rural Affairs, Market Supervision Bureaus, and Federation of Industry and Commerce Associations of Each Province (City):

We are now forwarding to you the "Opinions of the Ministry of Civil Affairs, the Central Social Work Department, the Ministry of Agriculture and Rural Affairs, the State Administration for Market Regulation, and the All-China Federation of Industry and Commerce on Strengthening the Standardized Development of Social Organizations and Promoting High-Quality Growth of Social Organizations" (Minfa [2024] No. 43), hereinafter referred to as the "Opinions." We also provide the following recommendations—please ensure their effective implementation as well.

1. Enhance ideological awareness and ensure thorough implementation

Social organizations are a vital force in China's socialist modernization drive, serving as essential platforms and critical supports for advancing the modernization of the national governance system and governance capacity. Currently, the province boasts over 22,000 social organizations, which have played a significant role in serving the nation, society, the public, and various industries. The Third Plenary Session of the 20th Central Committee of the Communist Party of China has laid out major plans for the work of social organizations, providing crucial guidance for this field in the new era. The "Opinions" further enhance the quality of social organization development by refining registration services, strengthening supervision and management, and actively encouraging and guiding these entities. This initiative is a key step in implementing the spirit of the 20th National Congress of the CPC, as well as the Second and Third Plenary Sessions of the 20th Central Committee. It is of great significance for bolstering social organizations' ability to manage risks, maintaining orderly growth, and optimizing their operating environment—ultimately enabling high-quality development that better supports China’s high-quality economic and social progress. All regions are urged to elevate their political awareness, fully recognizing the importance of standardizing and strengthening social organizations to drive their high-quality development. They must genuinely enhance their political, ideological, and practical consciousness, thoroughly study and disseminate the "Opinions," carefully plan and arrange implementation strategies, and meticulously carry out organizational measures to ensure that the policies and requirements outlined in the document are effectively put into practice and yield tangible results in Yunnan Province.

II. Strengthen collaborative coordination and reinforce comprehensive supervision

Relevant departments and organizations—including civil affairs, social work, agriculture and rural development, market regulation, and the Federation of Industry and Commerce—should fully leverage their collaborative efforts. They should actively work together with related functional departments, fulfilling the tasks outlined in the "Opinions" according to their respective responsibilities. Additionally, they must proactively strengthen communication and coordination with party-building agencies for social organizations, business supervisory units, industry regulators, as well as administrative approval and comprehensive law enforcement authorities. Together, they should establish and refine a robust working linkage mechanism to jointly advance the standardized development of social organizations. Local areas should rely on existing mechanisms such as the coordination mechanism for social organization work, the fund supervision mechanism for social organizations, and the joint law enforcement mechanism for social organizations. These mechanisms should focus on critical aspects like personnel, finances, assets, and organizational activities, while closely monitoring key areas such as evaluation, benchmarking, awards, festivals, exhibitions, forums, and compliant fee structures. By employing a combination of proactive measures—including advance notifications, policy training, administrative reminders, inter-departmental consultations, credit-based oversight, public exposure, joint enforcement actions, and case-specific legal interpretations—local authorities can effectively address prominent issues and potential risks within social organizations. Ultimately, this will help establish a comprehensive regulatory framework for social organizations that ensures unified registration, clear division of responsibilities, seamless coordination, tiered accountability, and compliance with the rule of law, thereby fostering more standardized and higher-quality growth of these organizations.

3. Optimize guidance services and enhance their effectiveness

All regions must firmly grasp the primary task of high-quality development, guiding and encouraging social organizations to align their efforts with the provincial party committee’s “3815” strategic development goals. They should focus on supporting the growth of the “three major economies,” clearly defining their developmental positioning and exploring innovative pathways. In doing so, social organizations can actively contribute to economic development, drive technological innovation, and participate in grassroots governance. To ensure sustained progress, it is essential to establish and refine a comprehensive system of policies and institutions for social organizations—covering service support, oversight management, and public engagement—to foster long-term, high-quality growth. Moreover, robust training programs on relevant policies and regulations should be implemented, targeting both social organizations and their leaders. These initiatives will provide clear guidance on standardized practices, address management challenges, and enhance organizations’ awareness and commitment to complying with the law. By staying grounded in the realities of social organizations, we must elevate service philosophies and introduce creative solutions that inspire these groups to proactively strengthen their own standardization efforts. This, in turn, will boost their enthusiasm and readiness to contribute meaningfully to high-quality development. Together, let us rally all types and levels of social organizations to actively engage in key initiatives such as pairing-up assistance for rural revitalization, supporting college graduates in finding employment, optimizing the business environment, and promoting China’s story abroad. Through these collaborative efforts, we can cultivate impactful, high-quality, and well-reputed brand projects in rural revitalization and social entrepreneurship—ultimately enabling social organizations to play their rightful role in Yunnan’s transformative development journey.

   
Yunnan Provincial Department of Civil Affairs, Social Work Department of the Yunnan Provincial Committee of the Communist Party of China
Yunnan Provincial Department of Agriculture and Rural Affairs Yunnan Provincial Administration for Market Regulation
Yunnan Provincial Federation of Industry and Commerce
December 3, 2024
(This document is proactively disclosed.)