A Research On The Reform Of The Management System Of Chinese Private Philanthropic Foundation

Nowadays, China stays at a new phase of economic transformation when different kinds of social contradictions occurs, so our country invests more in the social security domain. As the bottom line of social security, Social assistance plays a pivotal role in the realization of social fairness and maintaining social stability. After several years of rapid development, the social assistance system gradually is evaluated into four levels:regular relief, emergency rescue, temporary relief and complementary social relief. And it also appears diversification of the main and multi-level system trend. All kinds of private philanthropic, in which foundation is the leading role, effectively make up for the deficiency of the original social relief system. In the form of non-governmental organizations and non-profit organizations, civil charity fund has exerted its unique social function to poverty relief, medical rescue, disaster relief, science&culture education, public health and other fields, providing omnibearing social relief service, which is an important supplement for the government relief. Actually, its importance has been widely recognized by society. Private philanthropic fund has developed rapidly these years in China. However, relevant theoretic research falls behind the phenomenon. Especially comparing with foreign advanced theory system, domestic scholars do little research about private philanthropic fund.Foreign charitable foundation has a long history and develops to be mature. Chinese folk charitable foundations started late, although they grow rapidly in quantity. During the process of development, due to unreasonable management system of charitable foundation many problems occurred such as excessive government intervention, weak credibility and so on. This paper tries to define the management system of folk charitable foundation, and summarizes the defect of the existing management system from macroscopic and microscopic level. Combined with the experience of foreign charitable foundation and case analysis of one fund transformation, the paper finally attempts to put forward corresponding recommendations, and hope to promote the reform and innovation of our country’s private charitable foundation management system.This paper consists of five parts. The main content is as following:Part one:Discuss the research purpose and significance of this paper, briefly summarize those related references on domestic and foreign management system of private philanthropic foundation.Part two:Folk charitable foundation’s status in Chinese social assistance system. First of all, this part describes the situation of social assistance in China, and analyzes Chinese current relief mechanism from the supply and demand. The fact is that social relief mostly relies on authority, which is single and scarce, but private philanthropic foundation could be the effective supplement of official measures. Secondly, this paper defines and classifies the charitable foundation according to the entity and source of funds, and then leads to the phenomenon that government controls and dominates public funding, and the development of non-public foundation is more restricted. Finally, the writer briefly analyses present situation and problems of folk charitable foundation, and conclude that the root cause is the defect on the management system, which will be discussed as below.Part three:Analyses of folk charitable foundation management system in our country. Because there is no official definition of private philanthropic foundation management system, therefore this chapter defines and classifies the management system, and then analyses the problems from macroscopic and microscopic level. From the perspective of government management and the external environment, macroscopic level induces problems:charity resource configuration is not reasonable, the "dual management system", imperfect laws, lack of tax incentives, external regulation, etc. The author has carried on detailed analysis on these questions, then points out that the lack of good external management environment is a bottleneck to the development of private philanthropic foundation. From the folk charitable foundation itself, writer induces the folk charitable foundation has immature internal governance and capital operation, lack of effective charity management talents and professional self-discipline mechanism, etc. These problems not only severely hindered the development of private philanthropic foundation itself, but also further led to the government and the public mistrust on the folk charitable foundation. This analyzing approach not only manifest problems that folk charitable foundations encountered on the management system, but also lay a solid base for finding solutions combining with the foreign charity foundation.Part four:Enlightenment from management experience of foreign folk charitable foundation. This chapter first introduces general situation of the development of private philanthropic foundation in the USA and British, where there has been mature management system. In the case of Gates foundation, namely world’s largest charity foundation, this chapter wants to seek the enlightenment of foreign charitable foundation operation regime. Under the background of specific social and economic situation, the enlightenment can be divided into macroscopic and microscopic level respectively. Judging from macroscopic level, the enlightenment mainly focus on establishing the related legislation system and a multi-level social constraint mechanism. On the microscopic level, the enlightenment contains a sound internal governance structure and efficient fund operation.Part five:Reform path and suggestion of private philanthropic foundation management system. At the very beginning of this part, writer analyzes the case of one fund. The analysis includes a brief introduction and internal governance structure, difficulties encountered and development after transformation. The essay points out the plight of one fund, which widely spread among folk charitable foundation. The key to this dilemma is reforming the management system from macroscopic and microscopic level. Secondly, the writer summarizes the reason from the successful transition of one fund. Based on the iteration of part four, writer puts forward a reform path and policy suggestions from macroscopic and microscopic level. On the macroscopic level, we need to eliminate the government monopoly on charity resources, accelerate the reform of "dual management" system, lower the accessibly of the folk charitable foundation, improve the charitable legislation (especially the charity law), and establish the multi-level regulatory system. On the microscopic level, the suggestions includes strengthen charitable foundation system construction and establishing intergraded internal governance structure. Simultaneously, in order to promote the long-term sustainable development of fork philanthropy, it is pivotal to improve the charity fund management operations and investments and build complete mechanism including the cultivation motivation and attraction of professional talents.The unique features and innovations of this paper include:1) Paper researches our country private philanthropic development from the perspective of the management system, comprehensively and deeply analyses existing problems of folk charitable foundation management system on both macroscopic and microscopic level, suggest that an intrinsic defect in the management system is the key factor affecting the development of our country’s folk philanthropy, so the research perspective is unique.2) Analyzing the case of one fund restructuring and the operation of the gates foundation has carried on a comparative study about management system, which combines with China’s actual conditions, and then innovatively put forward reform train about "double management system" and internal governance structure of private philanthropic foundation, etc. So these countermeasures and suggestions have strong pertinence and application value.