Research On How To Measure The Financial Transparency Of Public-raising Foundations

In the past ten years, with the rapid development of public service, theconsequential financial problem of public service organization should be given moreconsideration. In another way, the financial transparency of our entire public serviceorganization is not so high, which not only damages the enthusias m and confidence ofdonors, but also prevents its self-development. As a key factor for public to see thefinancial situation of public service, financial transparency has always been givenadditional attention. The development of public-raising foundations requires toincrease its financial transparency and public the financial information automatically.Only doing these could make it easy for the public to assess and supervise, couldprotect the benefit of donors; moreover, is the guarantee of its own dev elopment.Based on the reviews of foreign and domestic research achievements ontransparency, starting from the basic standards of high transparency of information,taking the public-raising foundation for example, this report designs the index systemto measure the financial transparency. In this report, there are some data registered inthe Ministry of Civil Affairs about the public-raising foundation from2006to2011,including the relevant data revealed by the foundation’s website and public-raisingfoundation’s self-built website,which verify the theory in relevant studies about thatfinancial transparency should include non-financial information and financialinformation. Obtaining that the measurement of financial transparency ofpublic-raising foundation should include two modules: information disclosure andfinancial performance. Secondly, using entropy method to measure and assess thepublic-raising foundation registered in the Ministry of Civil Affairs in2011, andfinding out that the financial transparency of public-raising foundation in our countryis generally not high, especially irregularly in terms of the financial performancemodule. At last, according to the result of synthetical evaluation, this report advisethat the public-raising foundation should perfect the financial information disclosuremethod, establish stronger internal supervision system and feedback system, andrelevant supervision department should establish record of financial transparency.