Research On The Impact Of Central Government Support On Non-Profit Organizations Performance

Non-profit organizations are one of the important participants in social governance innovation.How to effectively promote the development of non-profit organizations has become an important issue that governments around the world pay attention to.As an important policy to support the development of non-profit organizations,since 2012,China has started to allocate funds from the central government to support non-profit organizations to participate in social services.However,the development of China’s non-profit organizations still faces many difficulties and problems,such as low overall contribution and participation,unbalanced development,and lagging overall development quality.It is still an important task for China to further promote the development of non-profit organizations.In addition,during the “14th Five-Year Plan” period,strengthening social governance and promoting the modernization of social governance put forward clear demands on non-profit organizations,and the importance of promoting the development of non-profit organizations through government funding has become increasingly prominent.In this context,this dissertation studies the effect and mechanism of central government support on the performance of non-profit organizations,and provides theoretical support and decision-making reference for the development of non-profit organizations development and social governance innovation.At present,there is a lack of research on the impact of central government support on the performance of non-profit organizations.Specific questions such as the difference in the impact of central government funding on non-profit organizations with different performance levels and the comprehensive impact mechanism of central government funding on non-profit organization performance have not been effectively answered.Therefore,based on the research development trend in this field and the practical needs of the development of non-profit organizations,this dissertation constructs a two-stage DEA model,a panel quantile regression model,and uses Chinese data to analyze the effect of central government support on the performance of non-profit organizations.Firstly,this dissertation regards the fundraising activities and charity activities of non-profit organizations as two interrelated organizational operation stages,and constructs a two-stage DEA model suitable for performance measurement of non-profit organizations.In addition,in the process of comparative analysis,the stage performance and overall performance of non-profit organizations funded by the central government are clarified.The study found:(1)The overall performance of the funded non-profit organizations is low,and fundraising performance is lower than charitable performance;(2)The performance of the funded non-profit organizations is quite different;(3)The fundraising performance of non-profit organizations when they are funded is significantly higher than that when they are not funded,but the charitable performance and overall performance when they are funded are not significantly higher than those when they are not funded.Secondly,in order to measure the actual effect of central government support in improving the fundraising ability of non-profit organizations,a panel quantile regression model was constructed to test the influence of central government support on the fundraising performance of non-profit organizations with different performance levels.The study found:(1)Central government support only significantly improved the fundraising performance of local non-profit organizations at 30%-60% quantiles in the year that they were funded;(2)Central government support failed to significantly affect the fundraising performance of national non-profit organizations at any quantiles;(3)Profit-making behavior failed to significantly moderate the impact of central government support on the fundraising performance of non-profit organizations.The overall results show that,central government support can only attract a certain amount of social donations for some non-profit organizations in the year that they were funded,but it cannot substantially improve the legal status of non-profit organizations.Thirdly,in order to measure the actual effect of central government support in improving the ability of non-profit organizations to carry out charitable activities,a panel quantile regression model was constructed to test the impact of central government support on the charitable performance of non-profit organizations with different performance levels.The study found:(1)Central government support had a significant negative impact on the charitable performance of national non-profit organizations at the 10% and 20% quantiles in the year that they were funded;(2)Central government support had a significant negative impact on the charitable performance of national non-profit organizations at the 40% quantile in the following year;(3)Central government support only had a significant negative impact on the charitable performance of local non-profit organizations at the 30% quantile in the following year;(4)Unrestricted funds failed to moderate the impact of central government support on the charitable performance of non-profit organizations.The overall results show that,due to the need to concentrate resources to carry out funded projects,central government support restricts the development of other charitable activities of non-profit organizations with weak capital conversion capabilities.Finally,in order to measure the substantial effect of central government support in improving the overall operational capability of non-profit organizations,and to clarify its mechanism of action,a panel quantile regression model was constructed to examine the impact of central government support on the overall performance of non-profit organizations with different performance levels.The study found:(1)Central government support had a significant negative impact on the overall performance of national non-profit organizations at the 10% quantile in the year that they were funded;and had a significant negative impact on on the overall performance of national non-profit organizations at the 10% and 40% quantiles in the following year;(2)Central government support had a significant negative impact on the overall performance of the local non-profit organization at the 30% quantile and a significant positive effect at the 80% and 90% quantiles in the following year.The study also found: Central government support has provided and attracted a certain amount of funds for subsidized non-profit organizations,but at the same time,it has also led to a significant increase in the cost of non-profit organizations in the stage of charitable activities;Well-run non-profit organizations can maintain or even improve overall performance by rationally allocating cost,but since Central government support failed to improve the organization’s legitimacy,financial stability and management effectiveness,poorly-run non-profit organizations are unable to effectively respond to changes which result in a decline of overall performance.In general,this dissertation systematically evaluates the effect of central government support on the performance of non-profit organizations,and clarifies the mechanism of central government support on the performance of non-profit organizations.It provides theoretical basis and empirical evidence for improving the central government support policy and non-profit organizations’ countermeasures.