Study Of Nonprofit Organization’s Financial Governance And Financial Information Disclosure Status

Nonprofit organization is an important form of social organization, unlike governmental organizations and enterprise, its main features include the following sections: to serve the community for the purpose of charity, voluntary, autonomous. Academia often referred it as the third sector, NGO or nonprofit organizations. Since the reform and opening up, nonprofit organization in China has been booming, not only number has significantly increased but also the range of services has been a big leap, expanding to all areas of social life. NGO has become important force which cannot be ignored. However, the financial governance of nonprofit organizations cannot keep up with the times, the financial information of non-profit organization is not standardized and transparent, lack of financial professionals, difficult fund-raising, are all big issues of nonprofit organizations. Therefore, a research of non-profit organization’s financial governance and financial information disclosure status in China will undoubtedly have important theoretical and practical value.In this paper, we started from the basic theory of non-profit organizations, compared financial governance status of domestic and foreign, then raised a survey of financial governance of nonprofit organizations in Shanghai by questionnaire, summarized and analyzed the association between the problem and the factors during the financial governance, dig out the importance of disclosure in improving financial governance. Based on the result, this paper gave out a suggestion to build a healthy financial governance system and proposed a financial disclosure mechanism from four aspects.