Study On The Legal System Of Charity Organizations’ Credibility

The credibility of the charitable organization drew public’s attention after the incident ofGuoMeiMei. The public donations are the main funding for charitable organizations. If thepublic loss confidence in charitable organizations, charitable organizations will have nomoney. Then the charitable organizations will lose resources, loss of strength, loss of thevalue of existence. The main reason why public have no confidence in the charitableorganization is that they kwon little about charitable organizations. Charity informationdisclosure system is imperfect in China. A chain reaction will happen after something likeincident of GuoMeiMei. Therefore, we can improve the credibility of the charitableorganization i to promote the healthy development of our charity. The legal system of China’scharity organizations is the most important thing. This is the value of this study.This article includes the following sections:The first part studies the cause of charitable organizations. The recognition and trustfrom the public are very important to charitable organizations. And the information failure isfatal to the credibility of charitable organizations.The second part investigates the problem in three aspects of the legislative structure,information disclosure system and external oversight. First our legal system lacks an basic law.The relevant provisions of external oversight lack of maneuverability. The Guidelines ofInformation Disclosure do not have the force of law. Second information disclosure isinadequate. And there are no special assessment agencies. Furthermore administrativesupervision is not stringent enough. The public lack awareness of supervision.The third part analyzes the strengths and weaknesses of the legal system of charitableorganizations in the United States, the United Kingdom and Japan. They can provide areference for the Improvement of the legal system.Last part I have some suggestions about the legal system of charity organizations’credibility. I want to improve the legislative structure through the promotion of the CharityLaw. I want to improve the extent of the information disclosure through the establishment of athird-party evaluation mechanism and a unified platform for information public. I want toensure the information’s authenticity by perfecting the supervision mechanism. I alsoproposed revisions on The Guidelines of Information Disclosure.