What’s an INGO to do?: The Uncertainty of Registering an International NGOs in China

An article in The Chinese Business Review discusses the plight of International NGOs (INGO) in China. The whole article is worth a read, but here are a few of the highlights:

INGOs have had a long struggle registering in China. Of course there is no official number, but the article estimates approximately 200 INGOs working, not necessarily under the radar, but without government registration. Such organizations must do their fair share of tip-toeing as they operate without any legal security. Funding must go through personal bank accounts and no tax breaks are provided to such “renegade” groups who often suffer in the funding department because foreign governments rarely fund an NGO not registered in the country where it operates. Unregistered organizations cannot get work visas or work papers for Chinese and foreign employees. Organizations that do not register or are denied registration but choose to continue working in China, may find that they are severely limited in what they can actually accomplish. In general, it is not defiance of authority which keeps INGOs on the edge of the law, but a number of pitfalls that exist in the current registration processes. For instance:

• An INGO must find a “leading professional unit” to sponsor it; however, the article raises a great point in that many Chinese ministries are unwilling to take on the risk of aligning themselves with a foreign group. Registered INGOs certainly are not immune from being disbanded by the government and in such instances, the umbrella organization might also be liable to sanction.

• Guidelines are narrow for foreign non-profits. Of the three NGO entities (popular non-enterprise work units, social organizations, and foundations) in China, the foundation category is the only one that includes INGOs.

• Like foreign businesses registering in China, a certain amount of capital is required to ensure stability. In the case of INGOs, however, it does not seem the government has set a fixed amount unlike with local NGOs which are required to have a minimum of 8 million RMB (approximately 1.2 million USD).

While approved INGOs are definitely better off than their nonregistered counterparts, they must still operate under strict guidelines and they may be closely monitored by their sponsoring professional unit and are definitely scrutinized by the government. Registered nonprofits do have the advantage of working above board with tax breaks, designated bank accounts, and proper benefits for employees. With only a few hundred registered INGOs in existence, it does beg the question—What does it take to get approval? According to the article, many of the INGOs that have been allowed to register are from large, well-known organizations rather than unknown grassroots groups. Such groups do provide a level of security and positive PR that others cannot.

Local and foreign voices have long been calling out to the Ministry of Civil Affairs to change stringent and unmanageable regulations for the general health of the country and its people. With the global recession affecting millions of China’s rural and migrant populations, the need for international and domestic NGOs is great and is likely to increase. We can hope that a greater level of trust will develop in the near future which will enable more charitable work and more philanthropy with and within China.

 

-Georgia

Comments

[fafa]

good sharing, we as an INGO, hopefully to get registered as social organization in local county level next month, cheers!