The Guangzhou Social Organization Research Institute has published a report on how the government has been helping social organizations during the pandemic. The main points are as follows:
1. Preferential financial policies
a) Halving or exempting social organizations from the “three social insurances” (basic pension insurance, unemployment insurance, work injury insurance): this was done for all social organizations outside of Hubei Province between February and April 2020, while within Hubei Province social organizations are exempt until June 2020.
b) Reducing the organization’s portion of the payment of the basic medical insurance for employees.
c) Reducing or exempting VAT for small-scale taxpayers. Taxpayers in Hubei Province with annual VAT sales of 5 million yuan or less are exempt from VAT. The rate of VAT collection and pre-collection in other provinces has been reduced from 3% to 1%.
2. Management optimization and funding support policies
a) Optimizing the management of social organizations, including optimizing the approval process, postponing the annual inspection and annual report, and loosening the conditions for the annual inspection.
b) Optimizing the implementation of projects. If a project is suspended due to the pandemic, the content can be adjusted or it can be postponed, and the funds will be allocated in a full and timely fashion according to the project’s progress.
c) Increasing financial support.
3. Special support policies
Corresponding support policies have been formulated for agencies for elderly care and kindergartens registered as “private non-enterprise unites” (民办非企业单位), one of the three kinds of social organizations officially recognized in China.