A Study On Implementation Mechanism Of Charitable Trust Of China

The charitable trust refers to a legal trust which is purposed for the relief of poverty, the advancement of education, scientific research, artistic activities, medical health, environmental protection and other issues beneficial to the public. The client creates a charitable trust by donating part of his/her wealth and appoints a trustee to hold property on trust for purpose which is charitable. The charitable trust system has been widely used in many common-law countries. It was played a very important role in the advancement of science, culture, education and the minority of the society. Meanwhile, it promotes the safety and stability of the society. In China, the social donations mostly donate their wealth to fund foundation."Trust Law" has a special chapter for "charitable trust", and some governmental departments like Banking Regulatory Commission also encourage trust companies to develop charitable trust. However, charitable trust of unique advantages has not been effectively applied. It’s no doubt that the public have less knowledge of charitable trust and can’t accept it universally. More important, there is a lack of implementation mechanism in harmony with the charitable trust system, which leads to the difficulty in taking it into practice. The main regulatory of charitable trust is "Trust Law" that only focuses on supervision,meanwhile,it ignores important incentive mechanism and relief mechanism which are developed in countries of mature charitable trust system. That the experience of foreign practice and comparative study with national condition, can provide good reference for the perfection of implementation mechanism of charitable trust of China.