Our country's law does not stipulate that natural persons have the subject qualification of organizing and initiating fund-raising, so private placement is in an awkward position in law. There are no specific provisions in laws and regulations prohibiting individuals from raising funds. However, according to 1999, the Law of People's Republic of China (PRC) Municipality on Donation for Public Welfare clearly stipulates that only legally established public welfare social organizations and public welfare non-profit institutions can accept donations, so individuals cannot initiate fund-raising.
Because there is no perfect supervision mechanism, fraud and illegal profit-making crimes caused by temporary spontaneous fund-raising have appeared in some areas. Public welfare social organizations and institutions established according to law are subject to audit supervision. This kind of temporary fund-raising behavior initiated by setting up individual account organization lacks effective accounting audit and supervision mechanism, and in some cases it may evolve into fund-raising fraud, disguised apportionment and other behaviors.
The Origin of Collective Donation Model
1In September 1995, five far-sighted women jointly founded the Washington Women's Foundation (WWF). Women can make charitable donations through the foundation platform, and concentrating their financial resources will have a great impact on improving the Seattle community, while developing their talents as charitable philanthropists.
20 1 1 The Washington Women's Foundation injected capital into non-profit organizations and institutions in Washington State through fund-raising donations and individual donations. This unique public welfare model has inspired many charitable organizations in the United States. The concept of collective donation not only gives more individuals the opportunity to participate in public welfare, but also provides them with a channel for their own public welfare donations to accumulate, thus making maximum contributions to the community.
20 13 The Beijing Friendship Charity Foundation (CBUCF) initiated the mode of collective donation in China, and launched "Friendship Donation", aiming at developing the mode of collective donation in China and promoting the deep participation of donors in public welfare.
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