Research On The Governance Mechanism Of Nonprofit Organiztions

Over a long period of time, non-profit organizations together with enterprises that operate by relying on market mechanism and government that allocates resources by depending on administrative power have joined hands in promoting the advancement and development of human society, which has become one of the three foundation stones for the stable operation of society. There has existed a swiftly developing and widely dispersed non-profit organization that has made a major contribution in all countries across the world. Currently, while the Chinese economy and society has been undergoing an in-depth transition process, the reform of public institutions, shrinking of government function and ever increasing donation awareness of society have heralded in unprecedented opportunities for the development of non-profit organizations.Under such a context, this thesis, based on the literature review of research results, has explored from the perspective of governance mechanism, the bottleneck that restrains the development of non-profit organization, giving a clear definition to the connotation and characteristics of non-profit organizations by applying multi-subject theory research, comparative analysis, regime research and case study. A theoretical framework for the purpose of analyzing the governance mechanism of non-profit organizations has thus been created, approaching the internal and external governance mechanism of non-profit organizations and pointing out that the core of non-profit organization governance is to resolve all kinds of problems under the circumstance of separation of ownership, controlling power and beneficiary power within non-profit organizations. The property rights structure of separation of powers has added to the difficulty of internal governance of non-profit organizations. When internal governance has played a role in the complex commission among main bodies, agency relationship has enhanced the controlling power of insiders compared with profiting organizations. Through structural optimization and improvement of internal incentive and restraint mechanism, the internal powers balance of an organization and the harmony of the main bodies in internal governance can be achieved.In terms of external governance, the relationship between non-profit organizations and government is interactive rather than contradictory and repelling. Government should regulate the development path of non-profit organizations through a series of supervisory and management measures. Only when a favorable legislative policy environment, organizational inward self-discipline and industrial self-discipline mechanisms, a perfect information revealing mechanism and independent third party appraisal mechanism are erected and the supervisory role of public opinions is given into full play, can a self-restraint and self-controlling security mechanism be created for non-profit organizations.After conducting a systematic and overall analysis in the structuring of the governance mechanism of non-profit organizations, this thesis has explored the internal and external governance of organizations of this kind through conducting a case study with the just operating non-profit organization—Guangdong Science Center. While reviewing the status quo of the governance of non-profit organizations in China, we have found that such governance deficiencies have existed as empty shell executive council, vacancy in supervisory council, inappropriate government regulating and lack of incentive and restraint mechanism. By drawing upon the overseas practice and based on the case study, this thesis has put forward the perfect path of governance mechanism for non-profit organizations in China, including recreating the relationship between non-profit organizations and government, improving the balance mechanism featured by responsibility, power and interest within the organization and with the executive council as the core, strengthening the internal and external supervision of non-profit organizations and perfecting their governance environment.