On Development Issues of Non-profit Organizations Based on the Management

On Development Issues of Non-profit Organizations Based on the Management WANG Guan (School of Economy & Management, Henan Polytechnic University, Henan Jiaozuo 454000) wghpu@tom.com Abstract Non-profit organizations are indispensable force to build harmonious society in China, but the development of non-profit organizations is currently experiencing some bottlenecks. On the basis of the analysis of the development of China s non-profit organization existing problems, the paper provides scientific, operational measures combining characteristics of the non-profit organizations, the author would like it has a role to promote the development of non-profit organizations Keywords Non-profit organizations; harmonious society; Public Affairs 1 Introduction As China s economic system transformation and social structure comprehensively restructuring, the models of governance and public service system are faced with structural adjustment. China starts changing from big government, small community to small government, big society, the scale of government agencies increasingly smaller, the scope of the role gradually shrink. In the context of such a system, non-profit organizations as the product of a system innovation are produced, and become the alternative providers of the government functions and public service. Therefore, the status and role of the non-profit sector begin to receive wide attention from the whole society. Non-profit organizations are the non-governmental social organizations, which are mainly in the various voluntary welfare or mutually beneficial activities, and not for profit [1]. Since the 1980s, the non-profit organizations rapidly develop in various countries, Salamon, the professor of the United States, found: at present, in the world, almost all the countries, there exists a large sector formed by non-profit organizations, Based on the analysis of 41 countries. The average size of this sector is: accounted for 4.6% of GDP in various countries, number of employees accounted 5% for the working population of non-agricultural industries, accounted 10% for the working population of the service sector [2]. At present, many countries in the world, especially developed countries have formed a national, community, business, tripartite confrontation of the situation, these three sectors complement each other and promote each other, in the daily management of the country are playing a very important role. In the Fourth Plenum of the 16 th, our party proposed building a socialist harmonious society, this put forward new demands on the development of China s public utilities, which is to vigorously develop non-profit organizations. Although the non-profit organizations has played an important role in the development process of China, but there have been some problems in the development process of China s non-profit organizations, some of the problems is quite serious, these issues have become obstacles to the development of non-profit organizations. The paper made a number of measures to solve the problems from micro-level through analyzing the development of non-profit organization status and the existing problems. 2 development status of China s non-profit organizations According to civil affairs departments statistics, the number of non-profit organization was only 4446 in 1988, in 2005, the number was 0.3198 million, the average annual growth rate was 8.6%. The development of community t groups reached a peak in 1996, it was in a steady growth in recent years; private non-enterprise units showed the trend of rapid development, ministry of civil affairs statistics show that the number of the private non-enterprise units was 5901 in 1999, its number was 0.1476 million in 2005, the average annual growth rate was 71%, the units distribute in education, culture, 201

sports, science and technology, civil affairs, health, labor and social security sectors; Foundation was included in community groups before 2002, it was considered as independent sector from 2003, its number was 954 in 2003, the number reached 975 in 2005. By the end of 2005, the number of the registration social organizations was 171.15 thousand; it included 53004 industry associations, 50328 professional societies, 39640 academic societies, 23961 association societies, 4217 other associations. We can see that, in social groups, the number of industry associations was the largest, which was directly related to that our country paid more attention to the development of the intermediary organizations. The number of the registered private non-enterprise sectors was 147.6 thousand, it included 75813 educational sectors, 27179 health sectors, 6915science and technology sectors, 4012 sport sectors, 12048 labor sectors, 10445 home sectors, 1665 intermediary services sectors, 662 legal services sectors, 5088other industries sectors. The development of China s private non-enterprise sectors was in common with most of the world's countries, education sectors and health sectors were the main sectors. From the above analysis on the development of non-profit organizations, we can see that the development of non-profit organizations to show the following characteristics: (1) The number of non-profit organizations has been substantially increased, it type has been more complete The number of non-profit organization was only 4446 in 1988, in 2005, the number was 0.3198 million. Before the 1980s, the non-profit organizations only included nine groups, for example: the Green Mission, women's federations, the text, the Federation of Industry and Commerce, the Association for Science and Technology, etc. At present, China s national associations in accordance with the official classification criteria can be divided into 17 categories: industrial sector, social services and social welfare, public affairs, information and technology services, health, sports, education, culture and arts, press and publication, science and technology, humanities and social sciences, environmental and energy, Enterprise industry organizations, professional organizations, regional organizations, individuals and other recreational organizations. It business involves education, science and technology, culture, health, environmental protection, public welfare, philanthropy and so on. (2) Areas of activity has become diversified The diversity of needs and the change of government functions make the activity fields of the non-profit organizations be diversification. The non-profit organizations which are engaged in social service, research and industry management, and other activities continue to develop, at the same time, the entity non-profit organizations show a strong momentum of development. According to the Ministry of Civil Affairs statistics, the number of the private non-enterprise sectors was 147.6 thousand in 2005, their activities expanded to economic, educational, health, sports, culture, environmental protection, social welfare, and other fields. (3) Activity is mainly with providing services and propagating education From survey results of the Institute of non-profit organizations in Tsinghua University, we can see China s non-profit organization's activities is mainly with providing services, communication, propaganda and training, followed by the investigation and research; again is to provide information and provide policy recommendations; the activities of donation & sale campaign, setting up business entities and commercial activities are the least. From the above analysis we also can see that the main role of the non-profit organizations is to provide information, advocacy and education services. In fact this is also the characteristics of non-profit organizations. As non-profit organizations have very limited resources, and some even rely entirely on volunteers, so it can not be like the government, enterprises, to provide the same service-oriented material, and more to provide information, education and publicity service. 3 Analysis on the existing problems of China s non-profit organizations 3.1 Service quality and efficiency are low We believe that the non-profit organizations as an independent organization to provide services to the public can be perfectly justifiable to charge for his services to the public, thereby reducing the total government input costs, reduce government costs, such as colleges and universities to charge student 202

tuition fees appropriate can reduce the country's educational costs. In addition, we know that the non-profit organizations rely mainly on public donations and volunteers to operate, non-profit organizations in the provision of public goods or services should be lower cost, higher quality. However, this view has not been verified and support. The Related regulations establish the non-profit organizations has the same business scope with the registered non-profit organizations in one region is not necessary to set up. This makes the non-profit organizations operating in the same region be monopoly. It is due to the lack of competition mechanism, making the operation efficiency and the service quality of non-profit organizations is low. 3.2 Fund-raising ability is weak, and the source of funding is unreasonable The survey on non-profit organization showed 41.7% non-profit organization have the problem of shortage of funds [1], the shortage of funds has become the main bottleneck to China s non-profit organization. 1997 U.S. the annual total receipts of non-profit organization waif 665 billion U.S. dollars in United States in 1997, 38% came from fees and service income, 31% from the Government, 20% from civil donations, other income is 11% [4]. This showed that two-thirds of the revenue of the non-profit organizations in the United States was from operating their own organizations. But to the non-profit organization in China, 49.97% of the proceeds came from financial subsidies, 21.18% were the contributions of members [5], which showed that nearly half the income of China s non-profit organizations depended on the government financial subsidies. 3.3 Shortage of human resources NGO Research Institute of Tsinghua University has organized an investigation; the investigation revealed that there were problems of high-quality talent and expertise with the full-time staff shortage in China s non-profit organizations. In the non-profit organizations involved in the investigation, the number of the staffs have received junior middle school education was 3436, accounted for 11.03%; the number of the staffs have received high school and secondary school education was 9869, accounted for 31.7%; the number of the staffs have received tertiary education was 8525, accounted for 27.4%; the number of the staffs have received undergraduate education was 8657, accounted for 27.8%; the number of the staffs have received postgraduate education was 646, accounted 2.07%. The number of the NPO with 1-4 full-time staff accounted for 33.5%, the number of the NPO with 5-9 full-time staff accounted for 38%, the number of the NPO with 10-39 full-time staff accounted for 19.4%, the number of the NPO with more than 40 full-time staff only accounted for 2.2% [1]. 3.4 Administrative intervention from the government is serious, innovation capability is lack In China s non-profit organizations, 23.2% principal leaders were nominated by the top leaders of the non-profit organizations firstly, and then appointed by the competent departments; 38.5% principal leaders were appointed directly by the competent departments; 28.4 principal leaders were appointed through democratic elections; 8.6% non-profit organizations were not with special rules 6]. At the same time, management talent as a whole are generally low academic qualifications, does not receive formal management training, so the employees of the NPO are accustomed to proceed step by step, and thinking is conservative, lack awareness of innovation, coupled with lack of independent personnel appointment and removal right, these directly lead to organizations lack dynamism and innovation. 3.5The existence of various forms of corruption, credibility is low In the non-profit sector, corruptions appear in various forms. In 2001, two reports caused great concern in the public: one was Chinese mother Human Li was reported using the identity of legal representation of mother of Lijiang Association continue to seek personal gains for themselves; the other was hope project contributions were embezzled [7]. NPO is driven by the moral force and the voluntary spirit, corruption is fatal to NPO. 4 Measures to promote the development of non-profit organizations in new era 203

4.1 Trying to explore new forms of non-profit organizations The traditional views think the profitability of the non-profit organizations can not be allocated to its employees, managers and investors, all of which can only be used for the cause of development organizations, so, non-profit organizations can not implement shareholding system. However, the author believes that the concept of the shareholding system can be introduced to non-profit organizations. Through introducing the concept, more funds can be attracted to non-profit organizations; sources of funding channels will be expanded to non-profit organizations. Searching the benefit of capital is the characteristics and the foundation of shareholding economy, non-profit organizers would like to raise capital through shareholding system, they must give investors a certain economic returns, certain profits will be allocated to the investor can make public welfare and benefit of the capital be met. 4.2 Implementing digital management, realizing network management and control Digital management is management activities and means using technologies to quantify management targets and management behavior, such as computers, communications, networking, artificial intelligence, etc, realize the functions of planning, organization, coordination, innovation, and so on. In order to realize digital management, firstly, non-profit organizations should take digital management as a business strategy, firmly believe that the digital management is essential to improve competitiveness and achieve sustainable development, and to spare no effort to implement the strategic plan of digital management; secondly, establishing organization system and forms to support digital management; thirdly, developing software to support digital management. 4.3 Strengthening human resources management and to stimulate motivation of non-profit organization members Maslow s theory of demand levels shows that different people at different times or different levels have different demand. Therefore, we should adopt different incentives to the various staff of the non-profit organizations. For the full-time staff, we should focus on economic incentives to stimulate their enthusiasm for work, for the part-time staff, we should focus on spirit incentives. Using appropriate human resource management stimulate the work enthusiasm of the staff, at the same time, also can attract more and better staff to work in non-profit organizations; it can help NPO solve the shortage of human resources. 4.4 Establishing the Learning Organization, to improve the innovative capacity of non-profit organizations For non-profit organizations, the establishment of learning organization needs efforts from the following aspects:firstly, should foster the advanced study concepts, establish concepts of team learning and lifelong learning, learning is an investment and so on; secondly, improving learning methods and tools, methods and tools are the bridge connected with the concept of the actual work; Thirdly, improving the quality of leaders, who play a leading designer, servants and teachers in the establishment process of learning organization. 5 Conclusions The development of over several aspects can continually enhance the independence, autonomy and social public welfare of non-profit organizations, so that it can eventually become independent social organization to take social management responsibility. This process is not only development process for non-profit organizations, but also the process of social governance model changes, multi-governance model formation; it also is an indispensable process for construction of a harmonious society in China. References [1] Wang Ming. The management outline of the non-profit organizations. Beijing: Chinese People's University Press, 2002:63-65(in Chinese) 204

[2]Lester M. Salamon, Helmut K. Anheier. Global Society Dimension of the Nonprofit Sector. John Hopkins University, 1999. [3]Chen Xiangyang. Current situation and challenges of NGO in China, net of China s non-government organizations. [4]http://www.npo.org.tw [5] Deng Guosheng. Non-profit organization assessment. Beijing: Social Sciences Documents Publishing House, 2001:101-102(in Chinese) [6] Wang Shaoguang. Pluralistic unity the third sector of international comparison. Hangzhou: Zhejiang People s Publishing House, 2001:152-153(in Chinese) [7] Li Hong. On the social credibility of the non-profit organization building, Shanghai Jiaotong University Journal (philosophy and social sciences), 2003:24-26(in Chinese) (Sponsored by the Ministry of Education of the People s Republic of China (NO: 07JA630072), and the Department of Science & Technology of Henan Province (NO:082400430390)) 205