Research On Financial Vulnerability Assessment Of Non-profit Organizations

Establishment of modern social reform so as to promote the healthy and orderly development of social organization and development is mentioned in The Eighteenth Conference of the Communist Party of China National People's Congress,it is closely related to development of non-profit organizations.Since the eighties of last century,non-profit organizations have developed rapidly in various countries.In recent years,under the new situation of Chinese economic and social development,non-profit organizations have mushroomed and gradually developed one of the main factors affecting the society.However,many non-profit organizations in the growth encountered a lot of difficulties because of the single source of funds and the low level of management,and financial problems is one of the key issues that impede the organization.In this context,it is particularly important to study the financial vulnerability of non-profit organizations.Based on this background,on the basis of summary of domestic and foreign theories,the essay defines relevant concept and analyses theory,the essay also analyses existing models of financial vulnerability of non-profit organizations,evaluates the financial vulnerability of 20 typical Foundations from 2013 to 2015 by using the classic model of financial vulnerability of non-profit organizations.The results show that the overall sample have a financial vulnerability,but we can see a good trend.From the type of Foundation,the public offering Fundation's financial vulnerability is lower than the non-public offering and the enterprise Foundation's financial vulnerability is lower than the education Foundation,indicating that different types of Foundations have some differences in financial vulnerability.From the impact factor,the income concentration and overhead rate have a greate impact on the Foundation's financial vulnerability.On the basis of the analysis of influencing factors,the essay puts forward countermeasures including the transformation of government functions,improve relevant laws and regulations and management system,broaden financing channels and reduce fund incomeconcentration,improve the quality of financial information and increase the transparency of financial information,strengthen internal control and explore new ways of development,follow the matching principle and adjust management expense ratio to reduce the financial vulnerability of non-profit organizations and from six aspects.