The Research On Internal Control Institution Of Non-Profit Organizations

The influence of non-profit organization in the process of development of our country economy is gradually widely. It plays the same social service with the government. But it is different from the government organizations, because it is the public group who can be more close to society. By improving the operating efficiency of non-profit organization and the management, it can play a greater extent social utility of the organization.But with the rapid development of economy and society, some problems appear in non-profit organizations. For example, in recent years, Guomeimei,"astronomical-Price meal" of Red Cross of Luwan District in Shanghai, astronomical-Price Purchase, the Red Cross of Wuhan rent out warehouse illegally which is used to provide disaster relief, the Suspicions of money-laundering of China charities aid for foundation for children. Things appear one after another and are far more than that. Non-Profit organizations frequently have problems, its clean has been covered by dark suspicions. Mismanagement within the non-profit organization has become a constraint to the development of organization. Therefore, we must take all effective measures to solve the non-profit organization focused on the credibility issue, maintaining its basic public reputation. Strengthen internal control, it is the source of the important measures to solve the problemBased on the enterprise internal control theory, and combined with the characteristics of non-profit organization, this paper will perfect the internal control system of non-profit organization. This paper takes the case of One Foundation and the Chinese Red Cross as examples, we put forward basic measures to further improve internal control of non-profit organization. By citing and summarizing a lot more social disputed cases, this paper reveals some typical defects of the non-profit organization’s internal control from four aspects of internal control. When we talk about how to improve and perfect the internal control of non-profit organizations, then we put forward a series of universal policies, which will be used for the improvements of the internal control of the non-profit organizations.This article includes the following six Parts:Part Ⅰ:Introduction.This section mainly describes the background, significance of research and domestic and international research, research methods.Part Ⅱ:Two basic theories are introduced:Government failure theory and Contract failure theory. To understand characteristics of non-profit organizations, the major responsibility of non-profit organizations to help further understanding of the internal control system problems.Part Ⅲ:. Outline of the internal control of non-Pro fit Organizations in China. Defining the internal control of non-profit organizations and analyzing the aims with the research.Part Ⅳ:The Problems of the internal control in non-profit organizations. This Part begins with the scandals of non-Profit organizations to draws out the Problems of internal control existing in non-profit organizations. And the reasons.Part Ⅴ Suggestions. First, discusses three key conditions the non-profit organization should have to ensure internal control system work well and then contrary to the aforementioned issues for non-profit organizations to enhance the effectiveness of internal control recommendations.Part VI:Conclusion, forecast, the innovation and insufficiency of the article.