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although for-profit and non-profit Organization share lots of legal precepts, for example，its corporate charter set forth the power to control and oversee the management ,they distinguishes by the former do have owners and looking for profit contribution, while nonprofit have missions instead of owners or shareholders. in the absence of supervision of investors, the role of internal governance seems more necessary. Despite the common ancestry and legal underpinnings, nonprofit corporate governance places heightened demands on trustees: a larger mix of stakeholders, a more complex economic model, and a lack of external accountability.
Of all kinds of organizations, good internal governance starts with the board of directors. it is a good way to ensure self-direct significant allocations of power, management of the organization ,their own corporate governance and operational policies ,its mission has been followed and fulfilled. Although is hard to lift the unfavorable institutional and resource environment, the independence of the board is important which is still have a long way to go in china. In spite of the great success in absorbing large amounts of funding, carrying out of various kinds of charity activities by “one foundation” which was initiated by the famous star, Jet Li. It does not have autonomous in personnel administration and daily operations. It should be supervised by the Red Cross.
Actually, there is another choice for some non-profit organization to survive when facing the “dual management” and the high standard of registration. They choose to live as unregistered organizations and remain to provide services for the increasing needs of the citizens. Considering the risks in manage, the additional workload, and the trends of loosen its restraint, the government take the attitude of tolerate it.
This type of NPOs (such as the neighborhood entertainment community, the senior citizen university, the senior citizen associations, the homeowner association, the religion association) raise funding on their own and live in a very flexible format . The virtual communities in the internet started to gathering internet users to help each other. It is a challenge posed to the Chinese government , to balance the strong willing in influencing the procedure for establishing and in day-to-day operation of NPOs with the allowing of private assets and human resources for public benificaries.
5. The Governance model of AIESEC
Owing to the developing of internet, the globe communication in economic, culture, education etc. many of those attained funding from the international foundations or became part of the non-profit organizations abroad. The governance of Chinese-foreign cooperation in the field of education, which is established in the form of a (legal person or non-legal person) CNI, is subject to a special set of regulations.
Comparing to getting affiliated with the existing registered non-profit organization and becoming part of it, Most of the non-profit organizations in Chinese university are of affiliation-type. They are not register as a legal entity. Those college student associations are led by and report to the Youth League Committees. In fact, there is no clear distinguish between the internal governance and external government supervision, the sponsor organization worked effectively in both ways. On the one hand, the sponsor organization has certain rights concerning the appointment and dismissal in the board of directors and the supervisory board in foundations and in the CNIs as legal persons. On the other hand, along with the registration and administrative authorities, the sponsor organization is involved in state supervision of the establishment and operation of the NPO.
AIESEC is a global platform for young people to explore and develop their leadership potential. in order to encourage the young leaders under the age of 30 to be a better one, they organize the global network and provide the communities around them. It is a non-political, independent, not-for-profit organization run by students and recent graduates of institutions of higher education. Its members should passionate about world issues, leadership and management development, cultural understanding and experiential learning.
AIESEC was founded in 1948 in 7 countries in Europe by Jean Choplin (France), Bengt Sjøstrand (Sweden), and Dr. Albert Kaltenthaler (Germany). The whole members shared the principle “by young people, for young people”. AIESEC expanded quickly in Over 65 years, nearly later in 126 countries and territories has its branches, china included.
AIESEC does not have a pre-defined or officially accepted political tendency or subscription. They are in consultative status with the United Nations Economic and Social Council (ECOSOC), affiliated with the UN DPI, member of ICMYO, and is recognised by UNESCO.
For it gains the great independence, AIESEC exists as a non-subsidiary or independent entity of any other bodies, so it wins the autonomous in its work, sustainability or decisions. As to the governance of AIESEC, every aspect of AIESEC’s operations are managed by students and recent graduates and The global leadership teams are elected by the membership annually.
5. Conclusion
On one hand, The increased regulation of NPOs on its fundraising foundations, regional restrictions shows the Chinese legislators has an awareness of rising importance of this sector .on the other hand, the numerous of unregistered NPOs being tolerated, the so called “no contact, no recognition, and no prohibiting” attitude on every level. the AIESEC foresaid providing services and organizing activities where public services is lacking also shows the general skepticism toward privately initiated non-profit organization. From a comparative law perspective, the unusually complex governance of foundations and CNIs as legal persons is especially remarkable. It becomes obvious that those Chinese regulations are by their nature suitable only to large NPOs. The skepticism and such unsuitable should be seen in the context of the Chinese political system, which is still based on a centralized socialist party dictatorship with a cadre party organized according to Leninist principles and exercising effectively unlimited decision-making and intervention powers in politics, administration, the economy, and society. Many researchers on the Public Policy and Management hold the requirement for the consent of a sponsor organization made approximately 3 million NPOs, only 320,000 are registered. Some were registered with the State Administration for Industry and Commerce as for profit enterprises, because potential sponsor organizations reluctant to “invite trouble”, refused to act as a sponsor organization. A three-stage procedure for establishing NPOs were suggested to get rid of the involvement of sponsor organization. In the first stage, NPOs would simply have to file the establishment of the NPO with the competent state authority without the need for any approval, in the second stage, NPOs with larger expenditures for activities and more employees would have to go through a registration and licensing procedure, In the last stage, NPOs that wanted to conduct charity solicitation would have to be recognized as “public benefit” and granted the right to raise funds. It is a more suitable way for the non-profit organizations to provide services that the government fails to match the society’s society when taking the gap between the rich and the poor enlarged background into consideration. It can be predicted the 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.
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Lesley Rosenthal, Nonprofit Corporate Governance: The Board’s Role, in: Lincoln Center for the performing Arts(2012).
Kaur, The third sector: The law in China and Non-profit organizations, in: International Journal of civil society law, Vol.4(2006),Issue 3,p.47 et seq.
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