| Summary: | 碩士 === 中原大學 === 會計研究所 === 94 === The main differences between profit and non-profit organizations are as follows: Profit organizations obtain their profits through operation while non-profit organizations do not. In general, non-profit organization’s source of funds comes from private donations. Given the current legislations are outdated and not comprehensive enough for non-profit organizations, the legislation do not protect the rights of the donors, moreover they limit the ability for non-profit organizations to survive and expand.
Based on in-depth interview regarding the establishment of credibility and the transparency of financial statements for domestic non-profit organizations, the following conclusions have been reached:
1.The non-profit organizations should establish a certification institution to certify their credibility and financial transparency. This should reduce government intervention. The certification should be processed regularly, for instance the viability for each certification only lasts 3 years.
2.The certification of credibility should be based on non-profit organization’s quality of services, management skills, financial transparency and etc.
3.The certification of financial transparency should at least include annual report, the donor list, the size and classification of the donated assets, the basic information of beneficiary, and other basic operating details of the organization.
4.The government should provide tax incentives for those non-profit organizations who participated in the certification, and for those donors who donated through the certification institution, thereby encouraging the non-profit organizations to participate in the certification process.
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