China Foundation Credibility: Reality Demands And Path Of Ascension

After more than30years of rapid development, Chinese foundations have been widely and deeply participate in many aspects of the social welfare field, and became an important participant in the social public affairs governance. However, Chinese foundations are still not mature and some problems are still existed, the most prominent problem is the lack of credibility in the foundations. This problem has an adverse impact on the organization legitimacy and behavioral effectiveness of the Foundation, restricting the further development of the Foundation. Therefore, Chinese foundations are facing the urgent realistic aspirations to upgrade organizational credibility.There are a wide range of reasons which result in the lack of credibility for Chinese foundations, the internal reasons include of the weak effectiveness of internal governance mechanisms, the lack of specialized personnel, the lack of standardization in financial management system and so on; the external reasons include of the dual management institutions, the weak of legal system and the insufficient external supervision, etc.In this paper, first of all the author uses the theories and methods of public management to explore the relevant theories of the research of the credibility of Foundations and the important role of the credibility for Foundations, and then analyze the reasons of which result in the status of the lack of credibility in Chinese foundations and the relevant experience of the American foundation for reference of Chinese foundations, and finally propose the specific path to upgrade the credibility of Chinese foundations on the basis of the above analysis.In the process of upgrade the credibility of Chinese foundations, we should adhere to the principle of independence, the principle of social supervision and the principle of self-discipline, and exert the joint efforts of foundations, social forces and government departments. On the one hand, we should improve the internal governance of the Foundation through the measures of improving the corporate governance structure, regulating the internal management system, shaping the team of professionals, strengthening the self-discipline consciousness and so on. On the other hand, we should create a favorable external environment for the improvement of the credibility of Chinese foundations through the measures of changing the dual management institutions, perfecting the legal system, giving full play to the supervisory role of social organizations, encouraging the media and the public to supervise, etc.