The Research Of Our Foundations’ Financial Performance Evaluation System

Since the 1980s, The Non-Profit Organization which has become one of the main forces impacts on society began to develop rapidly in various countries. The Non-Profit Organization is usually been called the Third Sector because the management mode of it is different from traditional departments like government and enterprise. As a typical representation of the non-profit organization, the Foundation also has some typical characteristics like non-profit and public which require the Foundation must get the trust of the society, so as to get more social donation resources. With the gradually changes among the socio-economic and political culture, our Foundation has also raised and grown up rapidly. However, in recent years, a series of scandals makes the development of Foundations is facing unprecedented difficulties. All of these scandals shows that there are still many management problems such as inadequate financial management mechanisms, incomplete disclosure system, opaque financial system etc inside our Foundation. Therefore, we have to strengthen the financial management of the Foundation as soon as possible.In this paper, we summaries some previous research experience, introduces the relevant concept and theoretical of the Foundation firstly. Then, we analyzes the current situation and the problems of performance evaluation of the Foundation, and the impact of network development for Foundation Development. Then we select some static data according to the FTI index ranking of 324 foundations in January 14,2015 from the Foundation Center Network and build a set of the Foundation Financial Performance Evaluation System which including 11 financial ratio that I filtered according to the typical principles of construction. Then, we analyzed the financial performance of the Foundation according to the system based on the factorial analysis and comes to the result that, the main factors affecting the financial performance evaluation of the Foundation are operational capacity, ability to raise funds, financial operations and income ratio. At last, we make some suggestions about how to improve the level of financial performance evaluation among Foundation both in micro and macro.