China's Non-profit Organization Governance Structure Study

With the development of market economy and the change of governmentfunctions, under the influence of "global association revolution", China'snon-profit organization develops rapidly and It has played an irreplaceable role inthe cover of "government failure" and "market failure". However, the non-profitorganization is not a panacea, when "government failure" and "market failure"take pace, non-profit organization is also plagued with problems, leading to thecredibility crisis, the lack of social responsibility, inefficient organization, evenpocketing, the phenomenon is endless, which not only prevents the benefit tosociety, but makes some non-profit organizations become the tools for gaining,and distorts the public mission of the non-profit organization. Therefore, how tosolve these problems is essential to play the role of non-profit organizationeffectively.This article attempts to improve the governance structure of non-profitorganization to solve these problems, the reasons are as follows, The first, Perfectgovernance structure can encourage the policy-makers and executor of non-profitorganization to use resources effectively for achieving those goals according withthe mission of organization. The second, Perfect governance structure canguarantee the separation of powers and checks and balances to prevent internalcontrol, make use of power for private profit in violation of the purposes andprinciples of organizational. The third, Perfect governance structure is the bestway to improve self-discipline of the organization. It requirements that theoperation of organization must be in line with national laws and regulations andthe rules and regulations of organization, which will help to raise theorganization's credibility. The fourth, Perfect governance structure can providethe detailed procedures and regulations for non-profit organization, whichensures that the Organization operates effectively and gets efficient results so thatrealizes the charity mission in a better and faster way, and promotes thesustainable development.For these reasons, this article refers to the corporate governance structure,combines the speciality of non-profit organization, starts from the governance ofnon-profit organization discourse background to study the governance structure of a non-profit organization, analyses the connotation of the governance structureof nonprofit organization, and uses "separation of powers theory""principal-agent theory" "stakeholder theory "and "hypothesis of economic mantheory" to discuss the theory on the governance structure of non-profitorganization.On the basis of theoretical analysis, this article further analyses the currentsituation and the cause of the governance structure of non-Profit Organization inChina, and takes example for the governance structure of Private Colleges,analyses their problems to aim at the target during improving the governancestructure non-profit organization. In order to make the governance structure ofnon-profit organization much sounder, this article refers to the governancestructure of non-profit organization overseas. Relative to the development ofnon-profit organization in China, foreign non-profit organization is much moremature, Relatively its governance structure is much more better, especially theUnited States' non-profit organization, whose development has become anexample for global non-profit organization to leam. This article takes example forthe United States, Germany, Japan, Comparatively analyzing the governancestructure of foreign non-profit organizations.Finally, Based on the directorate governance, the corresponding oversightmechanisms for protection, this article establishes a macroeconomic frameworkfor the governance structure of Chinese non-profit organization, and givescorresponding advice for improving the governance structure of Private colleges.