China's Legal System Of Public Welfare Fund Governance Research

Along with China’s economic development and social progress, especially with the growth of social surplus wealth and the increasing awareness of social members, public welfare undertaking has been continually developing and has been playing an increasingly important role on alleviating social differentiation, promoting social justice and development, enhancing the social morality, etc. But because of a late start, the policies, Institutional background and social environment relevant to public welfare undertaking are imperfect. Some charity scandal events in recent years made the problems exposed in public. These events hindered the healthy development of public welfare undertaking and triggered intense attention of society. Public welfare foundation is the most important carriers of public welfare undertakings. Its healthy, credible, and sustainable development is significant and valuable to the Chinese public welfare undertakings. Therefore, this thesis is based on the public welfare foundation as the main object of study.The current operation situation of public welfare foundations shows that the demand for social development and the legal system to protect the public welfare undertakings are obviously not adaptable. Serious lag phenomenon can be found in the concept of governance, the construction of the system, the channels of supervision, the mechanism construction of information disclosure, and project assessment, tracking and evaluation of public welfare foundations. Criticism from home and abroad is on many government background welfare foundations. And the staffs are not professional enough and lack of abilities. The problems above are affecting the further development of public welfare undertakings. Those The laws and regulations relate to public welfare foundations in China are mainly the Law of Donation for Public Welfare Undertakings and Enterprise Income Tax Law enacted by the National People’s Congress, Fund Management Regulations and Rules for the Implementation of the Interim Regulations of Individual Income Tax enacted by the Sate Council, and regulations made by the Ministry of civil affairs, the Ministry of finance, the State Administration of Taxation. Overall, these regulations are not systemic or harmonious, the content is less detailed and the operability of some of the terms is poor. From the current development situation, the most important task of the development of public welfare foundations is to analyze all kinds of problems in the management of the foundations from a legal perspective, and make specific recommendations to promote the development of public welfare from the source and fundamental. This is also the major issue this thesis focuses on.This thesis has six chapters.Chapter One expounds the research background and purpose, and summarizes the basic situation of the development of public welfare foundation in China. In this chapter, the significance of the research, the research perspective and innovation points are analyzed.Chapter Two is mainly about theoretical and empirical Analysis on the governance of the public welfare foundation. This chapter explains the public welfare foundation’s concept, characteristics, and development conditions, management philosophy and principles as well as the foundation’s internal and external governance mechanism. The content is the in-depth analysis to lay a solid theoretical foundation, and accurately define the scope and framework of this paper.Chapter Three enumerates the major problems of the governance of the public welfare foundation and analysis of the causes. The major problems include internal governance mechanism, the external supervision mechanism, the imperfect information disclosure system, etc. The causes of those problems include excessive administrative interference, lagging of legislation, the lack of supervision, etc. The in-depth analysis of the problem provides the basis and puts forward countermeasures in the following chapters.Chapter Four explains how to further improve the internal control legal system of public welfare foundation in China. The content includes strengthening the management and decision-making functions of the council, the management of executive function, and the supervision function of board of supervisors, and also discusses every aspect of the specific operational measures.Chapter Five mainly discusses how to further improve the external governance system of public welfare foundation in China. The content includes the reconstruction of the administrative supervision mode, the improvement of information disclosure system, the establishment of industry supervision mechanism, and the construction of independent third party supervision mechanism. The focus is on the discussion of how to change the administrative role, and the formation of effective social supervision, etc.Chapter Six focuses on the analysis of how to improve the public welfare foundation’s legal relief system. Based on the analysis of the present status of the legal relief system, the content interprets the relevant theoretical basis and puts forward the improvement measures of legislation other legal relief system.This thesis takes the "governance" as the core of the research, discusses the governance system of public welfare foundation, and seeks the truth from facts to analysis of public welfare foundation’s governance problems. By using the advanced management concept and mechanism of modern foundations, this thesis offers proposals of improving governance system from both internal and external. Research methods include comparison research method, empirical research method, theoretical research, normative analysis method, and case study method.The innovation of this thesis includes three aspects. The first aspect is using the economics method of studying the corporate governance structure as the method of analyzing the governance structure of public welfare foundation, to analyze and improve the function of the Council, board of supervisors and staff qualification, especially study on the decision process and special carefulness of public welfare foundation while involving commercial behavior. The second aspect is using the methods of comparative analysis and empirical research, to put forward some specific ideas and suggestions on the improvement of the external governance mechanism of public welfare foundation. The third aspect is through the method of empirical research and case study, comprehensively reviewing the formulation and Implementation problems of the relief system of public welfare foundation, explaining and demonstrating the construction of legal relief system from the two aspects of legislation and justice.