Research On The Management Of Foundations Base On Operating Mode Of Enterprises

Foundations play a special role in the field of public benefit or mutual benefit social life and are important mechanisms to make up market failure and government failure. It is very important for foundations in China to solve the following problem: how to raise, manage, use and supervise funds effectively. So it is valuable for the begin development of foundations in China to study the management mode of foundations based on the operating mode of enterprises.Foreign foundations have adopted the operating mode of enterprises for nearly100years. In USA, foundations seek economic benefit, and then invest original funds and remaining funds to preserve or increase the value in order to realize long-term development, gain more capital and keep their independence. In China, the theoretical research on management of foundations based on the operating mode of enterprises is still in an early stage. Through literature research, experience summary and combination of theory and practice, the paper studies the history of foreign foundations and successful examples in foreign countries, and analyzes the problems existing in investment mechanisms, fund allocation mechanisms and supervision mechanisms of foundations in China, which include slow yields of fund operation, imperfection of investment mechanisms and investment environment, non-effectiveness of fund allocation rules, few capital sources, imperfection of supervision system and lack of the idea of supervision, etc. And then the paper points out the necessity for foundations to be managed on the operating mode of enterprises and establishes the management mode of domestic foundations base on the operating mode of enterprises. Finally, through a practical case, the paper applies the operating mode of enterprises to a foundation and analyses its effectiveness.