Transition Period Of China's Non-profit Organization Failure Prevention And Correction

Non-profit organization (NPO), constituting a consecutive spectrum between the private and public sphere or services, plays an important and active role in the fields of education, science and technology, culture, environment, health, social services and almsgivings. In the transition period, NPO in our country includes three major types: mass organizations, foundations and civil non-enterprise units. Along with the development and perfection of the market economic system and aggrandizement of political system restructuring, NPO increases the role in the sphere of "government failure" and "market failure", and becomes one of the major driving forces of economy development and society progress.NPO is not as omnipotent as government and market. In certain conditions and circumstances, NPO also could fail and violate the mechanism of voluntary weal and benefiting each other, thus it could result in the phenomenon of inefficient allocation of resources or violating the non-public values. Latent profit motivation and predicament of supervision are the internal reasons, and the external ones include inconsistent development level of civil society, and deficiency in administration system, and impotence of law and institution, and insufficiency of capacity of developing itself. To prevent and antidote the NPO failure in our country, it needs to adapt the relationship between government and NPO, create and build the external environment of restraint, and upgrade the internal governance mechanisms.