The legislature in East China's Jiangsu Province is reviewing a draft regulation on charity, said local authorities Wednesday.

If passed by the Standing Committee of the Jiangsu Provincial People's Congress, the regulation will be the first in China about charity.

The regulation stipulates that charity performances, contests, sellings and auctions should be co-held by a charity organization, audited and under notarization. Results of the receipts should be made public and the sum, minus costs, must all go to the charity, said Zhao Shunpan, an official with the Jiangsu Provincial People's Congress Standing Committee.

According to the draft, charity organizations should have executive and a supervision mechanism and prevent depreciation of assets. They should provide the society with regular asset reports, as well as annual working reports and auditing reports. The charity activities should be held voluntarily.

Each year, charity organizations should spend no less than 70 percent of their total gains last year into welfare, said the regulation. Individuals who donate to charity organizations could enjoy favorable taxation policies.

Jiangsu Province has played a leading role in charity development in China. By the end of 2008, the charity federations at provincial, city and county levels have donated a combined 10 billion yuan (about 1.47 billion U.S. dollars).

(Xinhua News Agency September 24, 2009)