The Legitimacy And Legal Guarantee Of The Profit-making Behavior Of Social Service Organizations

Nowadays,with the dramatic transformation of social governance model,whether and how a social service agencypromotesitsprofit-making behavior has become a concern of all circles.Under the concept of traditional social organization classification,social service agencies have been branded as non-profit,prohibition from engagementinprofit-making activities has been taken for granted,and their justification for engaging in profit-making activities and the legal guarantee have been ignored for a long time.Engagementinprofit-seeking activities by social service agencies,in fact,meets the actual needs of social governance,and is in line with the social governance theory of shared governance,the state-society coordination theory,and the cost/benefit theory of social service agency supervision,theoretically and practically legitimate.A sound legal support system is indispensable for ensuring the effective implementation of profit-making behaviors by social service agencies.As to the basic process of social service agencies engaging in profit-making activities(Access-Operation-Supervision-Exit),the author explores the current legal support system for social service agencies in China to engage in profit-making activities,and finds that social service agencies in China are confronted with many legal dilemmas in engaging in profit-making activities,specifically as follows: first,in the aspect of agency access,uncertain access policy,lack of operability and strict access standards restricted the scale of social service agencies engaging in profit-making activities;second,in the aspect of market operation,the lack of preferential taxation policies,insufficient government-level financial supports and business activities facing with regulatory and administrative barriers have hindered social service agencies from engaging in profit-making activities;third,in the aspect ofsupervision,the lack of continuously effective dynamic supervision,the obscure application of property supervision system and the absence of operability have also impeded the orderly implementation of profit-making activities by social service agencies;andfourth,in the aspect of exit,the absence of diversion mechanism and exit mechanism is not conducive to promoting the formation of market evaluation standards fortheprofit-making behavior of social service agencies.To ensure the implementation of profit-making behaviors of social service agencies andconsidering the shortcomings of current legal support system regarding social service agencies in China the author believes that the current system should be adjusted as follows:First,in terms of agency access,relatively loose market access standards shall be established while the stability and operability of access policies arestrengthened,expanding the scale of social service agencies engaged in profit-making behavior.Second,in terms of market operation,encourage social service agencies to engage in profit-making activities by formulating a reasonable tax incentive system,enhancing government support,and eliminating legal and administrative barriers faced by social service agencies in their business processes.Third,in terms of supervision,establish a dynamic supervision mechanism centered on information credit and a sound property supervision system,ensure the orderly implementation of profit-making behaviors by social service agencies.Fourth,in terms of agency exit,it is required to rely on reasonable diversion and introduction mechanisms to promote the application of market evaluation standards for profit-making behavior of social service agencies.