The Research On Financial Management Of Public Foundation

The 17 Congress party, Comrade Hu Jintao emphasis that we should speed up to build and improve the social security system covering urban and rural areas , in which social insurance, social relief, social welfare as the basis, the basic pension, basic medical care, the minimum living standard security system as the focus, charity, commercial insurance to supplement. It pointed out the direction for our charity development, and charity development will be new situation.Foundation, especially the public foundation as the main vector for China charity development , give indelible contribution to build a harmonious society. Since the first foundation in China - China Children and Teenagers Fund has been set up July 1981, our Foundation has grown to 1597. With economic restructuring and the government administrative functions changing, the Foundation as an important type of non-profit organization are playing an increasingly important role in education, culture, science, health, community development, poverty alleviation and other fields. Particularly after the"5.12 Wenchuan"earthquake in 2008 and the"8.8Taiwan"Typhoon in 2009, the Foundation became glorious in the field of public welfare. However, the foundation's situation which small number, small scale, inefficient financing is coordinated with the level of economic and social development in China. The reason for this phenomenon as follows ,one is external factors such as the political and legal, social and donor awareness and so on, another is that Foundation lack of reasonable and effective financial management system, such as the backward full-budgeting management, imbalance funding, imperfect investment patterns, disordered income and expenditure management, unclearly financial information etc.. The financial management in public foundation plays a vital role in its sustainable development, therefore, the study for the financial management of the Foundation is necessary.This article begins from the theory of public Foundation and its financial management, analyzes the financial management of the Foundation's goal, content, function, etc.. Based on a large number of data, then propose problems in financial management of foundation in China and give explanations. It is clear that a single measure can not solve the problems in financial management of the foundation , it needs a scientific and effective financial management system. So based on multi-faceted, multi-angle of summary and analysis to the financial condition, the author build a financial management system for the foundation newly, it includes full- budgeting management, financial risk management, financial analysis, financial information disclosure and other aspects. And then take Overseas Chinese Economic and Cultural Foundation as example to use the system. The author hope the article can give some reference for the sustainable development of china foundation.