China is set to pass a law on philanthropy, according to a story in the China Daily.

The Legislative Affairs Office of the State Council is reviewing a draft submitted by the Ministry of Civil Affairs, with focuses on fostering philanthropic organizations, soliciting contributions, supervision and tax preferences.

The review to pass a philanthropic law was first mooted two years ago when the Chinese Academy of Social Sciences released an annual report on China’s philanthropic development.

"The mechanism, system and idea of China's charity sector has lagged far behind citizens' demand," said Wang Zhenyao, director of the social welfare and charity promotion department under the Ministry of Civil Affairs, at the time.

It is believed that the law will define the nature of charity organizations, as well as standardize the preferential tax policy, registration and internal governance of charity organizations. Legislation on soliciting contributions has also been discussed.

China is believed to have only about 54,000 registered charity organizations, and just two kinds - those providing a social service and those protecting the environment, said Yang Tuan, researcher with the social policy research center under CASS, at the time.

"I hope the definition of charity organizations can be broader in the charity law - with goals of serving the public interest or common good, all kinds of social organizations taking part in activities like poverty alleviating, educational, medical or cultural activities should be included in," said Yang, who is the chief editor of the annual report.