The Construction And Performance Of Charity Service Market Under Industrial Ecology Perspective

With the economic development and social progress, China’s public welfare undertakings make rapid development. But behind this, the development in the field of charity service is unsatisfactory. On the one hand, there is only a small number of charity service organizations, and they are mostly in the " illegal" status, organizations that are able to provide high-quality professional services are scarce, these charity service organizations are limited to raise funds, hard to survive, founders feel puzzle; on the other hand, consumers need to spend a lot of money to buy professional services, ordinary families simply cannot afford, the services which they sell is quite different, all this makes many stakeholders being full of doubts. Thus, the current China’s charity service market is a very imperfect market. Buyers of basic services still cannot be met through the current market transactions; the number of sellers is small, the incumbents are hard to survive; intermediary organizations do not play their due role well. Even worse, the Foundations are managed badly, high expenditure, misappropriation of funds are damage to the credibility of the Foundations, and these events are often found in newspapers. According to all these the charity service market is inefficient, which is bad for social progress.This paper attempts to clarify the relationship between the parties, build a healthy and fair-competition charity service market from the following aspects. With charity assistance, through market-oriented operation, relying on the price, it can meet the needs of charity service and achieve market clearing.Charity service the demand side, the buyers of charity service are the physical, intellectual disabilities and other special populations, they demand physical care, rehabilitation, training, special education, professional counseling and other related services, these core needs is the cornerstone of the market. With limited charity resource, if they are directly against the basic needs to solve the problem, there is a demand for such services. This kind of service is able to meet the core needs of the buyers, of course, should also be given funding and attention. In addition, taking into account that most of the recipients is poor and distinguishing the buyers is difficult, the buyers often pay the least, or even zero. Charity organizations and government become the mainstream of payment.Market structure, because monopoly do not exist in the field of charity service, competitive market mechanism is reasonable. According to the theory which there are no barriers to enter, if we reduce barriers to entry, the pressure from the potential enterer will lead to fair competition in charity service market, inefficient allocation problem can be largely eliminated, prices in allocating resources play a fundamental role, and supply and demand regulation makes the market clearing.Pricing, Hotelling said that all things priced in accordance with marginal cost would make social welfare maximization. For charity service organizations due to the presence of fixed costs, management fees and other common costs. In accordance with marginal cost pricing they may suffer losses, thus charity service institutions should take these cost factors into consideration. This paper presents two methods for pricing, namely Amuse pricing and Two-part pricing.Market model, comparing directly matching mode, no foundation model, charity funds directly docking mode and charity funds indirectly docking mode, we find charitable funds indirectly docking mode is a more conducive to fair competition, more in line with the development of market, but also we clear the positioning and funding methods of foundation in charity service market. The Foundation should provide public resources to support charity service organization, as a charity service organizations, professional services organizations in the field should also clear their role, and status. Their role is providing professional services. For the same amount of foundation grants, the proportion of consumption subsidies will produce greater substitution effect than income subsidies, achieve a higher level of service consumption.Finally, through the analysis of the current market, we meet institutional barriers in charity service market, market barriers and other issues, institutional barriers include bad system, inadequate supervision; nonprofit high access threshold; high barriers to entry government purchase of professional services; imperfect tax incentives; limited public offering activity. Market barriers include inadequate pricing, pricing mechanisms confusion; inefficient allocation of charity service,In this paper, the following aspects of the proposal are provided to build China ’s charity service markets, they are as follows:perfecting charity relevant laws and regulations; transformation of government functions, encouraging the development of non-profit organizations; establishing a standardized information disclosure system and punishment mechanism; breaking the monopoly situation, establishing fair competition environment for development; funding areas should be selected based on the core needs of the buyers; the fees model requires diversification; nonprofit organizations should understand their advantages, reasonable position.