A Study Of Management And Supervision System Of Charity Organization In China

Because of the "Guo meimei event", Charity organizations in China faced anunprecedented crisis of confidence and the public credibility of charity organization fellsharply. In order to upgrade the credibility of charity organization, the key lies in clearsubject position, democratic internal decision-making, complete external supervision ofcharity organization. Therefore, this paper studied on the management and supervisionsystem of charitable organizations. This paper defines a charitable organization as a legallyestablished non-profit organization by natural persons, legal persons and otherorganizations, which voluntarily engages in charitable activities by providing donatedproperty or charitable services, such as carrying out supporting the old, the disabled;saving the alone and the poor; helping the patient, the student, and relieving disaster. Byanalyzing the two legal systems, this paper locates charitable organizations as donationlegal person. According to new public management theory, especially the support of publicgovernance theory, the relation between charitable organizations and government is anequal partnership relation. Then, this paper takes China Red Cross and China CharityFederation for example to probe Council, Board of Supervisors and the implementingagencies of a charitable organization based on the theory of "separation of powers". Thispaper holds that it is necessary to introduce the independent director, in order to build areasonable internal governance structure. In addition, charity organizations exit voluntarymalfunction phenomenon. In order to overcome its weaknesses, charitable organizationsnot only perfect internal governance structure, but also should be complete externalsupervision mechanism. This paper standardizes the administrative supervision of thegovernment departments through improving the access system of charitable organizations,and strengthening the supervision of the audit department and tax department. In order to facilitate public supervision, it is necessary to improve the information disclosuresystem and establish an independent assessment committee. Only in this way, charityorganizations could improve the self-construction from both internal and externalaspects.