1. Establish a classified management system. Non-profit and profit-making classified management shall be implemented for private schools (including other private educational institutions). The organizers of non-profit private schools do not obtain school income, and all the school balances are used for running schools. The organizers of for-profit private schools can obtain school-running income, and the school-running balance is distributed in accordance with relevant state regulations. Private schools enjoy legal person property rights according to law.
The organizers independently choose to set up non-profit private schools or for-profit private schools, and register according to the law and regulations. In accordance with the principle of voluntary organizers, the existing private schools are subject to policy management.
2. Establish a differentiated policy system. The state actively encourages and strongly supports social forces to set up non-profit private schools. People's governments at all levels should improve their systems and policies, and give support to non-profit private schools in terms of government subsidies, government purchase of services, financial incentives, donation incentives, land allocation, tax reduction and exemption, etc.
People's governments at all levels can support for-profit private schools through government purchase of services and tax incentives according to the needs of economic and social development and public service demand.
3. Relax the access conditions for running schools. The government shall not restrict social forces from investing in education, as long as laws and regulations do not prohibit it and do not harm the interests of third parties, social interests and national security.
The government makes a negative list of access, which lists the prohibited and restricted school-running behaviors. All localities should reorganize the access conditions and procedures of private schools, further simplify administration and decentralize power, and attract more social resources to enter the field of education.
4. Broaden the financing channels for running schools. Encourage and attract social funds to enter the field of education to hold schools or investment projects. Innovate the investment and financing mechanism of education, attract social funds through multiple channels, and expand the sources of funds for running schools.
Encourage financial institutions to develop financial products suitable for the characteristics of private schools under the premise of controllable risks, explore the future operating income and intellectual property pledge loan business of private schools, and provide diversified financial services such as bank loans, trusts and financial leasing. Encourage social forces to donate to non-profit private schools.
Legal basis: People's Republic of China (PRC) Private Education Promotion Law.
Article 2 This Law shall apply to social organizations or individuals other than state institutions that use non-state financial funds to organize activities of schools and other educational institutions facing the society. Where there is no provision in this law, it shall be implemented in accordance with the provisions of the Education Law and other relevant education laws.
Article 3 Private education is a public welfare undertaking and an integral part of socialist education.
The state implements the policy of active encouragement, strong support, correct guidance and management according to law for private education.
People's governments at all levels should incorporate private education into the national economic and social development plan.
Article 4 Private schools shall abide by laws and regulations, implement the national education policy, ensure the quality of education, and devote themselves to cultivating all kinds of talents for socialist construction.
Private schools should implement the principle of separating education from religion. No organization or individual may use religion to carry out activities that hinder the national education system.
Article 5 Private schools have the same legal status as public schools, and the state guarantees the autonomy of running schools.
The state protects the legitimate rights and interests of the organizers, principals, teaching staff and educatees of private schools.
Article 6 The State encourages donations to run schools.
The state awards and commends organizations and individuals that have made outstanding contributions to the development of private education.