The sources and uses of funds for overseas non-governmental organizations' activities in China must be strictly examined and approved, and they can only be used after obtaining examination and approval documents and filing certificates in accordance with relevant regulations. In addition, the agency also needs to disclose the source and use of funds to the public in its financial report and accept audit supervision. The fund management of overseas NGOs in China is mainly subject to the Law of People's Republic of China (PRC) on the Administration of Domestic Activities of Overseas NGOs (hereinafter referred to as the Management Law) and other laws and regulations. According to the provisions of this law, overseas NGOs need to set up a permanent representative office in China and submit application materials for activities. They can only carry out activities in China after being approved by the State Council and obtaining the registration certificate issued by the public security organ for the management of domestic activities of overseas NGOs. At the same time, the institution should pay taxes according to law, disclose its financial revenues and expenditures, and accept audit supervision. As for the activity funds of overseas NGOs, the Management Law stipulates that organizations need to disclose the source and use of funds in their financial reports and accept audit supervision. In addition, the institution needs to declare the bank where the account is opened, the flow of funds and other information to the public security organ, and accept the supervision of the public security organ, the tax department and the audit department.
What are the restrictions on the use of foreign exchange funds by overseas NGOs in China? When using foreign exchange funds in China, overseas non-governmental organizations shall abide by the Foreign Exchange Administration Law of People's Republic of China (PRC) and its detailed rules for implementation. According to the law, foreign exchange receipts and payments must be conducted through legal banking channels and may not be transferred without permission. At the same time, it is necessary to provide relevant application materials, such as financial statements, income statements, business plans, etc. According to the regulations on foreign exchange management, report the foreign exchange receipts and payments to the foreign exchange management department. There are also special provisions for the special purposes of some foreign exchange funds, such as donations, which need to be used in accordance with relevant regulations and procedures.
The funds for activities of overseas NGOs in China shall be strictly observed by relevant laws and regulations, filed and made public in accordance with regulations, and subject to audit supervision by regulatory agencies. The use of foreign exchange funds by overseas NGOs in China should also comply with relevant regulations to ensure that the use of funds is legal and standardized.
Legal basis:
Law on the Administration of Domestic Activities of Non-governmental Organizations at Home and Abroad in People's Republic of China (PRC) Article 2 This Law shall apply to the activities of non-governmental organizations at home and abroad in China.