On The Supervision Of Charitable Organizations In China

Charitable organizations, as non-profit social organizations, have been playing an increasingly important role as a main driving force for the development of charity cause in China. Being a key point in the run of charitable organizations, the supervision on charitable organizations, including internal supervision and external supervision, is a crucial guarantee for the sound development of charitable organizations.The internal supervision on charitable organizations primarily depends on supervisory board. As a special organ in charitable organizations the supervisory board plays an important in the internal supervision. Although in many countries where the charitable organizations highly advanced, there isn't supervisory board, the supervisory board is necessary in our charitable organizations. This is mainly because we don't have effective external supervision. The supervisory board supervises the whole affairs of charitable organizations, including the enlistment of charitable funds, capital investments and the use of funds, of which the financial affairs and accounts are points of the supervision. In order to have an effective inspect, there should be professionals of accounting in supervisory board.Upon effective functioning of the internal supervision, the external supervision should also be strengthened, which covers administrative supervision, social supervision, supervision of the interest-related parties, as well as supervision of third-party evaluation institutions. The administrative supervision covers the supervision of the apparatus in change and taxation apparatus; the effective social supervision depends on the information disclosure; the supervision of the interest-related parties including contributors and beneficiaries of charitable organizations; the supervision of the third-party evaluation institutions covers the self-discipline of charitable associations and the supervision of independent organizations. With implementation of these rights of supervising main bodies, an interlocking and circular supervision mechanism outside charitable organizations can be formed. Thus, distribution of power within charitable organizations and clarification of the rights and responsibilities of various institutions can be achieved, and then a balanced relationship will be produced. Meanwhile, they should take responsibilities for the interest-related parties and remain open to external supervision to ensure the smooth and healthy run of charitable organization, balancing and protecting interests of all parties, including those of organization members, directors, supervisors, contributors and beneficiaries. And then we can ultimately achieve the goal of operating charitable organizations and advance the development of our country's charity cause.