Research In Fiscal Support On NGO's Participation In Social Governance

The key of the social management innovation is to turn "management" to "governance". Governance, refers to the individuals and organizations with a undefined hierarchy working together to resolve the conflict. The main difference between governance and management is to pay attention to the role of multiple subjects. It is an important part of China's social reform which to let the non-governmental organization (hereafter abbreviated as NGO) participate in social governance, promote the transformation of government functions and instead of the government exert its social service function. The concept of NGO is an organization which is set up in accordance with the law, engaging in non-profit activities, aiming to meet the public and voluntary requirements, an formal organization has different degree of independence and autonomy.The decision-making mechanism, the inner structure, social relations and the non-profit nature allow NGO to own a lower cost in social service. Therefore government should supervise and administrate this power through fiscal and tax leverages. The fiscal and tax policy of NGO is consistent with the nature of NGO. The author here exhibits the necessity of NGO providing public goods, and the government providing financial support to NGO through contract failure theory and altruism theory respectively. She further analyzes the reasons for NGO receiving the taxation incentives through the tax base definition theory.Judge from the current fiscal and tax policy, Chinese government support NGO mainly through the function of financial purchase, subsidy, and preferential policies. Among the three, the purchasing policy is increasingly recognized and accepted by the public and allows a smooth development of NGO; the financial subsidy supports NGO in its initial development; the preferential policy also helps booming the development of NGO.Currently, the policy to support NGO in China is still unregulated and incomplete. The management system pays more attention to regulation instead of service, therefore the subsidy policy is somehow inflexible and requires improvement; the tax policy could not stimulate and regulate NGO effectively, therefore requires reforms in legal construction, tax-exempt qualification, tax preference and benefit to perform more justly and effectively and to establish a complete revenue law system, to optimize the tax expenditure policy, to perfect the system of management of taxation, and to promote the development of public welfare establishment.