China to set up black lists and white lists of charity organizations

Forty authorities in China have signed a Memorandum of Understanding (MoU) to set up a black list and white list for charity organizations and their legal representatives to improve the credibility of the charity sector, reports Beijing Youth Daily.

The People's Court in Binzhou, Shandong Province publishes information of some deadbeat debtors on a big screen at the city's busiest street on September 13, 2017. [Photo: IC]

The authorities will share information for the lists on the national credit platform.

The white list includes charity organizations with 4A and 5A evaluations (the best is 5A), and organizations with a good donation record. The black list will contain organizations found to have engaged in dishonest behavior, and charity beneficiaries that have dishonestly obtained donations.

Organizations and their legal representatives face up to 24 types of sanction for improper behavior, including some directly impacting on their education, taxation, quality inspection, and customs dealings. For example, people on the black list will be banned from buying flight and high-speed rail tickets and luxury goods.

Conversely, good behavior by charity organizations and their legal representatives can open access to up to 26 different benefits.