Three departments have issued documents to regulate the cost of fundraising expenses for charitable organizations.

On April 27th, the Ministry of Civil Affairs, together with the Ministry of Finance and the State Administration of Taxation, issued the "Regulations on Annual Expenditure, Management Expenses, and Fundraising Costs of Charitable Organizations conducting charitable activities", clarifying the definition of fundraising costs for charitable organizations, stipulating that the annual fundraising costs of charitable organizations shall not exceed 3% of the average of the donation income of the previous three years. The regulations shall be implemented from the date of publication. It is specified that the fundraising costs of charitable organizations refer to the expenses incurred by charitable organizations when raising funds based on their charitable purposes. The regulations require that the expenses related to the organization's venue, equipment, and staff during fundraising activities shall not be included in fundraising costs, and charitable organizations should truthfully list their fundraising costs. Setting a cap of 3% on fundraising costs takes into full consideration the actual needs of different types and scales of charitable organizations, follows the most necessary principle of fundraising costs stipulated in the Charity Law, and is conducive to guiding charitable organizations to use more of the funds raised for beneficiaries, and to fully and efficiently utilize charitable assets.