The Charity positions itself as a grant-making charity providing strategic charitable services for donors, and does not focus on managing or operating specific charitable projects. However, in order to better serve the donors, to further transparently disclose the cash flow and information flow of the use of assets granted to the qualified grantees, and to supervise the legality and compliance of the use of assets granted to qualified grantees, the Charity will promote the establishment of the database of qualified grantees’ supervisory institutions and the post-grant multi-level supervisory service system. The service provided by qualified grantees’ supervisory institutions is an extra fee-paying service based on the information disclosure conducted on Information Platforms, which could be divided into following two aspects according to different identities of parties who select such service: one is the supervisory service selected by charitable account advisors, and the other is the supervisory service selected by the Charity.

（1）Establishment of the Database of Qualified Grantees’ Supervisory Institutions: The Charity will promote the establishment of the database of qualified grantees’ supervisory institutions. After approval at the Secretary-General’s Staff Meeting, a third-party service organization may sign the Service Agreement with the Charity, and be listed in the database of qualified grantees’ supervisory institutions.

（2）Duties of the Qualified Grantees’ Supervisory Institutions: The duties of the qualified grantees’ supervisory institutions are mainly to manage, supervise, disclose, and evaluate the qualified grantees’ use of charitable assets, the implementation of charitable projects and the benefit status of the final beneficiaries, and to submit comprehensive, detailed and professional reports to the Charity and the relevant parties of charitable accounts.

（3）When Giving Grant Advice or During the Implementation of Charitable Projects, Charitable Account Advisors May Select Special Supervisory Services Towards Qualified Grantees: In order to further transparently disclose the use of assets granted to the qualified grantees, in addition to the duty of basic information disclosure assumed by qualified grantees towards the public and the duty of real-time and process-based information disclosure assumed by qualified grantees towards specific parties specified in the Contribution, Investment, and Granting Guidelines of the China DAF Charity, the Charity encourages charitable account advisors to select special supervisory services herein towards qualified grantees when giving grant advice or during the implementation of charitable projects. Based on different assessment results received by qualified grantees, the Charity makes the following arrangements:

① Social Organizations Receiving Assessment Result as 5A: If a qualified grantee is a social group, social service organization (originally private non-enterprise unit) or a foundation which has been classified as 5A for its good credibility and transparency, in principle, the Charity will not require the qualified grantees’ supervisory institution to supervise it unless the charitable account advisor selects it when they give grant advice;

② Other NPOs Except for the Social Organizations Receiving Assessment Result as 5A: If a qualified grantee is a social organization, social service organization (originally private non-enterprise unit), foundation or other type of NPO which has not been classified as 5A, the Charity will encourage charitable account advisors to select special supervisory services in accordance with the following rules:

   a) Charitable Account Advisor Is Encouraged to Appoint a Qualified Grantees’ Supervisory Institution: The Charity encourages the charitable account advisor to appoint a qualified grantees’ supervisory institution from the corresponding database according to the Charity’s rules when advising a grant or during the implementation of the charitable project. When the charitable account advisor appoints a specific qualified grantees’ supervisory institution, they shall also come up with a plan for deducting a service fee from the corresponding charitable account;

   b) The Charity Is Entitled to Appoint a Qualified Grantees’ Supervisory Institution Based on the Implementation of the Charitable Project: The Charity is entitled, when necessary, to appoint a qualified grantees’ supervisory institution based on the implementation of the charitable project and to come up with a plan for deducting a service fee from the corresponding charitable account if the charitable account advisor fails to do so while advising a grant;

   c) The Charity Is Entitled to Alter the Qualified Grantees’ Supervisory Institution Appointed by the Charitable Account Advisor: On the premise that the charitable account advisor is notified, the Charity is entitled to alter the qualified grantees’ supervisory institution appointed by the charitable account advisor;

   d) When the Charitable Account Advisor Disagrees with the Service Plan Concerning the Appointment or the Change of Qualified Grantees’ Supervisory Institutions Provided by the Charity: The Charity is entitled to provide service plans concerning the appointment or the change of qualified grantees’ supervisory institutions. If the charitable account advisor disagrees with it, the Charity is entitled to reject the grant advice given by the charitable account advisor. If a part of the granted assets has been given to the qualified grantee, the Charity is entitled to reject subsequent grant advice given by the charitable account advisor and freeze such charitable account.

   e) According to relevant rules, the qualified grantees’ supervisory institutions shall supervise the use of assets granted to the qualified grantees.

（4）Supervisory Service Fee: Based on different service standards and service ranges provided by different qualified grantees’ supervisory institutions, the Charity will be charged by the corresponding supervisory institutions:

① When the charitable account advisor appoints a qualified grantees’ supervisory institution, the Charity will deduct or charge relevant fees based on the plan provided by the charitable account advisor in accordance with (3) a) of this article.

② When the Charity appoints or changes a qualified grantees’ supervisory institution, the Charity will deduct or charge relevant fees based on the plan provided by the Charity in accordance with (3) b) of this article.

③ If a qualified grantees’ supervisory institution has opened a charitable account in the Charity, the Charity has the right to transfer the service fee to this charitable account from the charitable account that advised to grant to the qualified grantee. If a qualified grantees’ supervisory institution has not opened a charitable account, the Charity may deduct such fees from the charitable account that advised to grant to the qualified grantee and then pay service fees to it, in the form of contribution or in other forms. The specific fee standards and payment methods are elaborated on in the Management Measures on Fees and Expenses of the China DAF Charity.

Since the Charity and the qualified grantee establish the Contribution Relationship during the granting process, and the qualified grantee organizes and operates specific charitable projects independently, the Charity does not actually operate the charitable projects that shall be executed by the qualified grantees. Subject to laws and regulations, all risks that may arise during the implementation of charitable projects by qualified grantees shall be borne by themselves and shall not be passed on to the Charity.

Apart from requiring qualified grantees to fulfill the duty of basic information disclosure towards the public and the duty of real-time and process-based information disclosure towards specific parties, as well as receive special supervisory services upon the request of charitable account advisors or the Charity, the Charity shall be exempt from any responsibilities or obligations regarding the supervision and management of qualified grantees. Qualified grantees exempt the Charity from other responsibilities or obligations rising from the implementation of charitable projects and assume all risks therein independently.