Research On Financing Performance Evaluation Index System Of Non-profit Organization In China

In recent years, as China's economy booms, non-profit organizations have also been rapidly developed. It have played a pivotal role in poverty alleviation, education, disaster, environmental protection, employment assistance and other vulnerable groups in all areas of society. Any organization's survival and development are inseparable from the capital. The identity and mission of non-profit organizations determines themselves not gaining profit through the market and there is no fixed source of funds contrasted with the government. Therefore, the shortage of funds is the major problem for non-profit organizations. How to solve the problem of financing non-profit organization has become a hot issue for Theorists and Practitioners.Non-profit organizations can not only stress the number of funding. It should concern about whether the funding process is consistent with the mission. Non-profit organizations should establish a correct concept of financing, which can guide the conduct of their fund-raising. Non-profit organizations can not profit themselves like normal companies using market signals to evaluate the operating performance. It is necessary to establish the financing performance evaluation system of Non-profit Organization. The purpose is to regulatet acts of financing of non-profit organizations.This paper is divided into five parts:The first part introduces the research background of this article, and summarize related documents of financing and performance evaluation of non-profit organizations, discussing financing performance of non-profit organizations research gaps, and regard it as a starting point of this paper.The second part describes the content of non-profit organizations. Starting from the definition of performance, this paper investigates the definition, characteristics and research significance of financing performance of non-profit organizations. This paper is based on Public choice Theory, Principal-agent Theory, Performance Management Theory and Marketing Theory, discussing their main points and reference on this paper.The third part analyzes financing status of non-profit organizations in China, including external factors and internal factors which leading to financing difficulties, and then discuss the necessity of financing performance evaluation.The fourth part discusses the principles of design, including purpose principle, systematic principle, feasibility principle, internal and external integration principle and representation. It analyzes reasonable and standardized financing process. Finally this paper builds a complete index system, including quantitative indicators and qualitative indicators such as efficiency, input, output, satisfaction etc.The fifth part studies related institutional systems of the performance evaluation respectively from the external and internal, such as improving the legal system, accurately locating the relationship between government and non-profit organizations, accelerating capital market development, improving human resources management system, improving the internal controling system etc.The purpose is to create good institutional environment for financing of non-profit organizations.