The Research On Financial Governance Of Non-Profit Organizations

At present, there is a deep transformation period in China, and the Non-profit Organizations will be confronted with unprecedented opportunities. By the end of2010, there are439,400Non-profit Organizations in China, including2,160Foundations,194,500Non-enterprise Units and242,700Private Organizations. However, the Non-profit Organizations, which have been recognized as "Glass Pocket", are plagued by the endless of financial scandals, and gradually into a credibility crisis. Based on the above study, how to improve financial governance of the Non-Profit Organizations and enhance the efficiency of resource? How to solve a series of financial problems and maintain health, stability and sustainable development of the Non-profit Organizations? This article aims to improve financial governance of Non-profit Organizations by systematically analysis from corporate to the Non-profit Organization.The researcher will adopt comparative analysis, the literature research, standard research, case studies and other methods to define related on the basis of professional terms, and then puts forward the research of Non-profit Organizations the general framework of financial governance. The theory of property rights, the principal-agent theory, stakeholder theory, property rights and configuration theory will be used in this dissertation. In addition, the effective operation of financial management, also need to exterior restriction mechanism of the strong support, both supplement each other, be short of one cannot.This thesis is divided into six parts:The first chapter describes the background and significance the financial governance of non-profit organizations. The second chapter states the theoretical basis related with financial mechanism of the non-profit organizations, and then proposed a general analysis framework for financial governance of the non-profit organization. The third chapter introduces three aspects of internal financial governance mechanisms, which consists of the financial decision-making, the financial incentive, the restraint and financial monitoring mechanism. The fourth chapter mainly introduces external financial governance mechanism. There are government regulatory mechanisms, industry self-regulatory mechanism and social supervision mechanism. The fifth chapter reveals relationship between the internal financial governance mechanisms and external financial governance mechanisms through the analysis financial governance structure and problems of the Foundation A, which is in order to build the appropriate financial governance structure for the Foundation A. The last Chapter comes to conclusion based on the above analysis. This chapter also advocates the innovation of this paper, research limitations and research suggestions in future.Main conclusions:(1) financial governance of non-profit organizations mainly refers to the reasonable property right configuration and the effective of incentive and restraint from the council, secretariat and the board of supervisors;(2) Only the external restriction can play into full role to form self-discipline mechanism of non-profit organization.Innovations:(1)Investigate the financial governance of a non-profit organizations, which enhance the basic content of the financial theory;(2)Propose clearly the direction of financial governance of the non-profit organization in China and compensate the previous relevant studies at the same time.