Eight groups blacklisted by charity watchdog

China's top charity watchdog blacklisted eight organizations last year following a slew of scams that dealt heavy blows to the credibility of the growing sector, the Ministry of Civil Affairs said.

The blacklist will trigger a coordinated effort by 40 government agencies to restrict their activities. Penalties for the disgraced charities include more scrutiny in land acquisition, as well as higher standards for qualifying for tax breaks, going public or participating in government purchase programs. Their executive staff will be barred from bullet trains, air travel and automobile purchases.

Meanwhile, 58 charitable groups that performed well were put on a reward list, enabling them to get preferential treatment. Their executives will be given priority in such areas as adoptions, scholarships for studying abroad and hukou - the household registration that gives access to healthcare and schooling.

Guangming Daily cited an official from the Ministry of Civil Affairs as saying that misconduct in the charity sector seriously hurts people's feelings and interests, and damages trust.

"The ministry will continue to improve the joint law enforcement system and the system for the public to lodge complaints," said the official, who wasn't named, adding that the move aims to punish dishonest charities with restrictions imposed across a broad front.

The charities were among the first to be blacklisted after the list was introduced in February last year. The list is part of a national credit system that aims to root out dishonesty in various sectors.

The listings came in the wake of scams purporting to raise money for charitable purposes in the last few years, shaking public trust in a sector that has seen explosive growth in the internet era.

One example involved a mother who sought donations through crowdfunding for her daughter with eye cancer. The mother said the money would be used for medical purposes but used it in other ways instead.

Another case that began to erode public confidence in charitable organizations involved a woman called Guo Meimei who in 2011 posted photos of her extravagant lifestyle online and claimed to work for the Red Cross Society of China - the country's major provider of humanitarian assistance. Although she was later found to have nothing to do with the organization, an investigation exposed management flaws and a lack of transparency.

According to the China Philanthropy Research Institute, which is affiliated with Beijing Normal University, China had 3,378 charities nationwide at the end of 2017, with 816 eligible for fundraising.

Twelve online fundraisers, including Tencent Charity, raised 2.6 billion yuan ($380 million) in 2017, the institute said.