Research On The Operational Effectiveness Of The Internal Control Of The Charitable Organizations In China

In recent years, China’s charitable organizations has made great development with the help of society and government. The charity organization is all over the country and its service scope ranges from the poverty alleviation to the development of medical and health care, culture of science and technology, environmental protection and employment service, which is closely related to human survival. It plays a social service function which is different from the government and enterprises, which has become an indispensable part of China’s construction of socialist harmonious society with Chinese characteristics. However, Jocie Guo incident, illegal lending events of Henan Qingling Song foundation is not sounded the alarm for some of our charitable organizations, it still exists unreasonable internal governance structure, imperfect information disclosure is not complete, external supervision and lack of social credibility, and a series of problems affecting the effectiveness of internal control operation of the organization.This paper is based on the current situation of the development of charity organization and social, economic, political and cultural environment. First of all, the theory of internal control and the mechanism of organization and governance are used for reference, combined with system theory, principal-agent theory and the theory of performance influence on the effectiveness of internal control theory of the charitable organization, putting forward five factors which influence the operational effectiveness of the charitable organization internal control in China.It mainly includes credibility, organizational culture, organizational internal governance mechanism, supervision and control activities and organizations. Using influence factors as a starting point, and then combined with the organizational characteristics of the charitable organization, operation mode and the occurrence of charity event in China, analyzing the root causes of the failure of the internal control operation of charitable organizations in China. Finally, combining the present existing problems and the development of charity organization environment, putting forward rationalization proposal which is helpful with the social development in our country and is conducive to strengthening the internal control operation effectiveness of the charitable organization. That is making the correct strategy, formulating scientific organizations internal governance structure, combining information technology and control activities, and strengthen the organization project operation mechanism, etc. From the each link and procedures of organization operation to strengthen the effectiveness of the internal control of charitable organizations in our country.