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1. Definition of Social Organizations

A social organization refers to a social group formed for specific purposes, such as religion, technology, culture, arts, charity, etc. Common suffixes include society, association, research association, promotion association, fellowship, federation, and chamber of commerce. To establish a social organization, a certain number of members, a charter, and registration with relevant authorities are required, with some needing legal permits.

Legally, social organizations in China are defined by the "Regulations on the Administration of Registration of Social Organizations" (State Council Orders No. 250 and 666), which describe them as non-profit social organizations voluntarily formed by Chinese citizens to achieve the common will of members and conduct activities according to their charters.

2. Core Characteristics of Chinese Social Organizations

Based on the "Regulations on the Administration of Registration of Social Organizations," Chinese social organizations have three core characteristics:

1. Civil Nature: They are not government entities, lack legal coercive power, cannot charge fees arbitrarily, and cannot misuse government-delegated industry management rights. Especially for industry associations and chambers of commerce, numerous administrative regulations have been issued since 2007 to prevent arbitrary fees and forced memberships.

2. Non-Profit Nature: Social organizations are not profit-driven entities. They are established for public or other non-profit purposes, aiming to solve social issues or achieve public goals. While they can charge for services or invest externally, profits cannot be distributed to founders, members, or investors. Any funds invested are considered donations, with no rights to ownership or profit distribution.

3. Service Orientation: Social organization projects should benefit the public, not just the organizers or board members. Activities should serve the public interest, be effective, and truly help beneficiaries or solve specific social problems.

3. Common Types of Social Organizations

Social organizations are generally categorized into academic, industry, professional, and federated types:

· Academic Organizations: Formed by experts and researchers to promote scientific research, knowledge dissemination, and talent cultivation, adhering to national academic classification standards.

· Industry Organizations: Formed by entities engaged in similar economic activities to coordinate industry interests, regulate market behavior, and provide services.

· Professional Organizations: Composed of professionals in specific fields to enhance professional skills and serve society.

· Federated Organizations: Formed by individuals or entities with common interests to promote exchange and protect mutual interests.

4. Differences Between Social Organizations and General Enterprises

· Purpose: Social organizations are non-profit, serving public interests, while enterprises are profit-oriented.

· Profit Distribution: Social organizations cannot distribute profits, while enterprises distribute profits to shareholders.

· Property Nature: Social organization assets are public property, unlike enterprise assets, which belong to shareholders.

· Decision-Making: Social organizations use a one-person-one-vote system, while enterprises base voting power on shareholding.

· Legal Recourse: Social organizations lack clear legal avenues for internal disputes, unlike enterprises, which have established legal mechanisms.

Social organizations, as non-profit entities, differ fundamentally from for-profit enterprises in terms of purpose, profit distribution, and governance. Their property is considered public, and their decision-making processes emphasize equality among members, contrasting with the profit-driven and ownership-focused nature of enterprises.

(To be continued)