China’s Non-profit Organizations (NPO) play a very critical role in providing the services where government limits. The “graded registration”, “dual management”, and the non-competition rule restrict its developing. Some NPOs seeks to registered as a for profit enterprise, other choose to living as private and unregistered organizations. The increasing awareness of rising importance of this sector and the push of the Olympic Games and the Sichuang Earthquake made the government adopted a so called “no contact, no recognition, and no prohibiting” attitude on every level. improving the NPO’s internal governance is another way to deal with the problem of fund-raising, unclear responsibilities, and staff lacking. The case of AIESEC shows how an independent entity wins the autonomous in its work, sustainability or decisions. Comparing to Most of the non-profit organizations in Chinese university who are of affiliation-type and lead by the Youth League Committees. It can be predicted the widely cooperation in the quasi-governmental, the loosen restriction, the change of regulation policy, and the assisting in NPO’s internal governance would set a solid foundation for the further development of non-profit organizations and also benefit china’s economic and social development in the long run.
Education, culture cultivation, anti-poverty are the traditional area where Nonprofit Organization plays a important role ,it also make sound contribution in fulfilling the social services where public services left behind and the businesses felt uninterested .with the rapid economic development ,the increasing demands ,China’s landmark reform and several standout achievement gained in Peking Olympic Games ，the Sichuan Earthquake, the development of Nonprofit Organization gets a lot of pushing .thus it becomes more diversity, not only the fields it plays gets enrich to social security ,self-freedom, leadership and so on, but also the model of its structure increased ,can not only be divided into SOs, CNIs, Funds and private Nonprofit Organization. SOs are defined as organizations voluntarily formed by Chinese citizens in order to realize a common intention by developing nonprofit activities in accordance with their statues. CNIs are defined as social entities carrying out social service activities of a nonprofit nature, which are run by enterprises, institutional work units, social organizations, other social forces, or individual citizens using non-state assets. While the foundation refers as nonprofit legal persons, which utilize assets donated by natural or legal persons or other organizations to pursue a public benefit purpose.
In western countries, NPOs are defined as organizations that have five characteristics: “formal”, “nongovernmental”, “nonprofit,” “self-governing” and “voluntary”. The “formal”, carefully describe the necessities for the government to carry out regulations, laws and give them legal status. “nongovernmental” highlights the dependence of its entity. While “nonprofit,” “self-governing” and “voluntary” mostly emphasizes the difficulty of a Nonprofit Organization may face to make their goals achieved without profit contribution, manage a great number of volunteers instead of paid staff. The legal definition first came in the “Accounting System of Nonprofit organizations” which was promulgated by the Ministry of Finance in 2004. The NPO system include three types, social organizations, civil non-business institutions and foundations. The regulations provide three vital characteristics of NPOs, not for profit purposes, “resource providers” making investments are not allowed to receive an economic return, “resource providers” do not enjoy ownership of NPOs. In fact, Chinese literature explains the essence of “nonprofit” to be the “nonprofit distribution” rather than prohibiting NPOs from “making money”.
to some extent, the college students constitute the majority of those volunteer and provide most services in the Nonprofit Organization. It is been found 59.7% of the college students took part in the college associations, according to the survey conducted by the National Communist Youth League Committee and China Youth & Children Research Center in 2005. It equals every one student joins in 1.8 student associations. According to the most up-to-date statistics, by January 2008, there are 3506 student associations in universities located in Beijing and 27900 registered student members.
Since there is little difference between the governance of Nonprofit Organization in Chinese University and other Nonprofit Organizations, this paper explores the overall regulations on the same sector while giving a detail study of AIESEC .
Similar to their Western counterparts, China’s NPOs grew to fill a function that is left blank by the government as well as the businesses. For a long time, China’s NPOs struggled to expand their activity domain in spite of the lacking of legal status or legal personality. The relaxed governmental control in certain areas coupled with the bottom up efforts drove the progress of China’s NPO development. Although no definition of NPOs in China has been reached in the academic area or in the regulations of different period, civil organizations, social organizations, non-governmental, not-for-profit, NPOs, NGOs can be seen at the same time. Most of those organizations share the same idea of not for profit. In order to get a main idea of the governance and its changing, it is better to examining its history of developing.
2. The History of Nonprofit Organization in China
After the people’s republic of China has been established in 1949, the Chinese NPO suffered depression and slowed down gradually because of the tight control. The government investigated thoroughly the civil organizations, and got rid of the majority of charity organizations, associations, and religion organizations. Only a small number of those survived on the basis of eager to follow the guidance of the Chinese Communist party and obey to the NPO registration & management system. in 1950, Chinese Administrative Council drafted a regulation code called Temporary Registration and Management Rules for the Social Organizations. The activity domain has been strictly restricted and lots of administrative guidance lied on them. The statistics shows that between 1950 and 1965, there were only 100 nationwide social units, and 6000 local social organizations. due to the enacted of “the management rules for the city neighborhood councils” in 1954, The neighborhood council developed. But most of the big social organizations were became one department of the government, their staff got paid by the government, their task were assigned by the government. Although the neighborhood councils were defined as autonomous neighborhood organizations, in fact, the activities of these neighborhood councils have to follow the directions set by the Chinese Communist Party. Unsimilar to their western counterparts, China’s NPOs hardly reached a status known as “the third government”, nor did they in a position to promotion activities of their free choice. The social organizations literally disappeared.
In 1966 ,the Chinese Revolution has been started, the freedom of independent research and artisan creation got smaller .according to the statistics published in China statistics Yearbook,2007 ,the total number of social organizations declined from 6,100 to 0 in 3 years. Lacking of activities and functions made the social organizations non autonomous at all. They received directions from government, delivered and communicated the directions from government, and almost become the administrative organizations in the government.