A Study on the System Improvements of Nonprofit Corporation

Abstract

This study focuses on promoting the roles and functions of nonprofit corporations, and enhancing their organizational competency through understanding the current status of nonprofit corporations and analyzing problems by type of nonprofit corporation. As part of this purpose, the first year study examined the laws and institutions of nonprofit corporations and reviewed previous studies to understand the current status and the problems of nonprofit corporations, and also drew ways to improve the problems of the nonprofit corporations by reviewing nonprofit corporation systems in selected countries. This second year study conducts field surveys and evaluations in order to verify the problems of nonprofit corporations identified by the first year study, and seeks ways to increase the accountability of nonprofit corporations by evaluating them in terms of accountability. When the scale of the economy was small, the government was exclusively responsible for promoting public interest, but as the scale of the economy has become larger and the range of social demands has broadened, the role of the private sector has become crucial in serving the public interest, and as a result, the nonprofit sector has been formed. Whether the private sector should provide public goods and services on a voluntary basis has been discussed from economic and noneconomic perspectives, and the increased role of nonprofit corporations has become necessary to meet more diversified and complicated social demands. As a result, the demand for sound management systems of nonprofit corporations from the government and the society has been stronger and in this regard, whether nonprofit corporations are equipped with well-organized management systems in terms of accountability should be reviewed. In order to promote the credibility and objectivity of the public interest verification system, more specialized organizations in both the public and private sectors need to carry out the verification process, and to make the verification process more effective, besides document screening, reliable information should be gathered, and based on the information, more systematic statistics should be generated. Considering the role of nonprofit corporations will be further enhanced in the future, the role of nonprofit organizations should be more advanced and transparent, and it is also required to increase the accountability of nonprofit corporations by setting up the mission and vision through in-depth discussions to solidify the publicness and public interest of nonprofit corporations.