Exploring The Government Regulation On Business Behavior Of Foundations

Recently, in the fie ld of fo undation, commerc ia lization has become an importanttrend in our country. Through the co mmercia l operatio n, foundatio n began to breakthe limitatio n of traditio nal financ ing mode, and establis hed a more stab le andsustainable sources of fund ing cha nne ls to so me extent, so that it promote thedeve lopme nt of itse lves effective ly. However, frequent vio lations in thecommerc ia lization process caused public doubt ing about the le gitimacy o ffoundatio n’s bus iness behavior. What’s the worse; they a lso serious ly dama ge thefoundation’s credibility, and enlarge various potential risks. Based on the analysis ofrelated proble ms, we find foundation’s bus iness irre gularities large ly d ue to the fuzzyand drawbacks of the curre nt government re gulatio n. It has serious ly restricted thedeve lopme nt of foundation’s bus iness behavio r, and affected the hea lthy deve lopme ntof our country’s foudation and even the whole philanthropy.Therefore, comb ined with the pub lic interest theory, commonwea l property rightstheory and incentive regulation theory, and with the integrated use of literatureresearch, comparative research and emp irical ana lys is method, we ana lyze the currentsituation of the go vernme nt regulation to foundation’s co mmercia l behavior, andsummed up the main proble ms existing in the actua l regulation p rocess and the ircauses. What’s more, based on the fully study of United States and Japan, we drawlessons fro m their successful experience of go vernment regulation. Comb ined witeconcrete practice in our country, we put forward some suggestio ns to perfect ourcountry’s governme nt regulatio n of foundation’s bus iness behavior. Firstly, change thetrad itiona l concept, especia lly on the definition of commerc ial behavior and charitableactivities, and the understanding of foundation’s related party transactions. Second ly,in order to perfect the existing lega l s yste m, the basis o f lega l construction must beaccelerated and supporting regulatio ns rules must be prefected. Third ly, reform thedoub le mana ge ment syste m and construct diversified mode of supervis ion, so thatgovernme nt can e nha nce the effect of its regulatory s ystem. Fourthly, attaches greatimportance to benefit oriented mecha nis m, inc lud ing preferentia l tax polic y ofpositive incentive and punis hment o f illega l bus iness behaviors of ne gative ince ntives.Fifthly, optimizing informatio n disc losure and participation mecha nis m, promoteinformatio n disc losure pla ying a part in the optimization o f foundation treatment. Fourthmore, in order to reduce the go vernment regulation cost and enhance thegovernme nt regulatio n effect, partic ipation mechanis m must be establis hed andperfected.