Research On The Internal Control System Of Private Non-profit Organization In China

The Non-profit organization has become an important force to alleviate socialcontradictions, coordinate the interest relationship of all parties, and decentralizegovernment functions. Meanwhile, Social public need Non-profit organization toprovide more public services, and compensate for government failure.The Non-profitorganization is becoming more and more importance in China. However, the currentsituation of Non-profit organization is worth worrying about, because the internalcontrol is not perfect, Non-profit organizations exposed a series of problems inmanagement. Social credibility of Non-profit organization has been affected seriously.Therefore, it is necessary to establish and perfect the internal control system ofNon-profit organization.This paper attempts to analyze the current situation of internal control ofNon-profit organizations, reference to internal control framework of profitenterprise.At the same time,combines the principal-agent theory,internal controltheory,risk management theory, and performance management theory of Non-profitorganization, it is proposed that internal control framework system based onperformance control of the private Non-profit organization. The system puts thediversification goal into the process of internal control activities of the organization,through performance indicators. And take the mission and the budget as the internalcontrol standard, control the operation activities of Non-profit organizations, In orderto optimize the internal control system of Non-profit organization, and achieve goalson performance control. On the one hand, it promotes Non-profit organizationmanagement theory and practice research, and improve the internal managementsystem of Non-profit organization, enrich and perfect the internal control theoryfurther, Thus, designing versatility of the internal control frame system to improve theoperation performance for Non-profit organizations. On the other hand, it provides guidelines to regulate internal control of Non-profit organization, and improve theefficiency and effectiveness of internal control. At the same time, the effective internalcontrol system is beneficial to improve performance management of internal controlfor Non-profit organizations, and generate performance information for meetingobjectivity and relevance, and establish credibility for Non-profit organizations.Ultimately, it is to promote the healthy development of the Non-profit organization.