Can Zuckerberg set up a charity program in China?

BEIJING, March 11 (Xinhua) - When Facebook founder Mark Zuckerberg in December penned a letter to his newborn daughter, he told her he was going to use 99 percent of his company shares, worth about 45 billion U.S. dollars, to fund a charity project.

When China's national lawmakers gathered Friday at its annual parliamentary session for reviewing its first bill on charities, a question is raised: Can the billionaire philanthropist set up a charity organization in China?

It is not unprecedented for foreign non-profit entities to launch philanthropic projects in China. For instance, the Seattle-based Bill and Melinda Gates Foundation established a representative office in 2007, mainly working to fight diseases, control tobacco and provide disaster relief.

Among other 27 approved overseas foundations are the Swiss World Wildlife Fund, the United States Energy Foundation and Britain's Save the Children, according to the Ministry of Civil Affairs.

Fu Ying, a spokesperson for the annual session, said last week that China will not "restrict their lawful, helpful activities in China," adding that there are over 7,000 NGOs in the country.

Could Zuckerberg donate "shares" instead of cash in China? More than likely. The draft charity law to be passed in coming days specifies the types of donations as either tangible or intangible, such as cash, securities, equities or even intellectual rights.

What Zuckerberg should do, if he is willing to, is to establish a representative office, define articles of association and a transparent accounting system.

But the "not-for-profit" clause is a prerequisite. A story written by the New York Times said that Zuckerberg's new organization, the Chan-Zuckerberg Initiative, planned to manage the money by "an unusual limited liability corporate structure."

It implied that the "charity company" will be able to invest in private companies.

So Zuckerberg can build a charity foundation in China, and he can invest as well, but he cannot do both in one stroke.

Also, because in the United States, companies are allowed to lobby and give political donations, Zuckerberg said in his letter that he would play a part in policy and advocacy.

The draft charity law lists the scope of charity activities including poverty and disaster relief, social development and pollution prevention.

An unborn law on overseas NGOs management, which will be a feature of legislative work in 2016, makes it clear that overseas organizations shall not participate in or finance political activities.

Spokesperson Fu said, the NGO law was open to advice from overseas NGOs.

Zuckerberg may have a chance to make his proposal. Endi