What Are the Best Tips for Financial Management for Nonprofit Organizations?

The financial management of non-profit organizations refers to the financial activities of non-profit organizations, a management task that deals with financial relations with the government, resource providers, creditors and other aspects.

Non-profit organization financial management

Right!

Financial management of non-profit organizations refers to the financial activities of non-profit organizations. It is a management task that deals with financial relations with the government, resource providers, creditors and other aspects.

Chinese name

Non-profit organization financial management

Activity

Financial activities of non-profit organizations

Object

Government, resource provider, creditor

Content

Income projects, standards, and income progress

Non-profit organizations

I. Non-reimbursable funding sources ^[2]

Specifically, the objectives of financial management of non-profit organizations include the following aspects. ^[1]

1. The principle of managing money according to law ^[1]

1. Budget control ^[3]

China's current non-profit organization financial management regulations system can be divided into three levels according to its status and affiliation: laws, financial rules and industry financial systems. Among them, the "Budget Law of the People's Republic of China" is at the core and leading position in the entire financial management regulatory system of non-profit organizations. The Financial Rules for Administrative Units and Financial Rules for Institutions deal with transitional positions and provide general guidelines. The financial systems of various industries should be supplemented as necessary and make specific financial management regulations. ^[1]

1. Budget Law of the People's Republic of China

The basic purpose of the formulation is to strengthen the budget allocation and supervision function, improve the state's budget management, strengthen national macro-control, and ensure the healthy development of the economy and society. At present, most of the non-profit organizations in China are initiated and funded by the government. Therefore, their financial revenue and expenditure, management, budget preparation and approval must comply with the "PRC Budget Law". China's current "Budget Law of the People's Republic of China" was adopted at the Second Session of the Eighth National People's Congress on March 22, 1994, and was officially implemented on January 1, 1995.

2. Financial rules for administrative institutions

Under the guidance of the "Budget Law of the People's Republic of China", in order to regulate the financial behavior of administrative institutions and strengthen the financial management of administrative institutions, the Ministry of Finance promulgated and implemented the "Financial Rules for Institutions" and "Administrative Administration" in 1996 and 1998 respectively. The "Unit Financial Rules" provides comprehensive and clear regulations on the basic principles and management methods that administrative institutions should follow in their financial activities. Article 44 of the "Financial Rules for Public Institutions" states: "Non-state-owned public institutions and social groups that receive regular state funding are implemented in accordance with these rules; other non-state-owned public institutions and social groups may refer to these rules." Article 48, paragraph 1, of the Unit Financial Rules states: "Social organizations listed as administrative establishments and receiving financial appropriations and units not classified as administrative establishments but fully performing administrative management functions shall perform in accordance with these rules when conducting financial activities."

3 Administrative financial system

There are many industries and complex types of institutions. The "Financial Rules for Public Institutions" cannot cover all financial activities in all industries. Therefore, it is necessary to develop a separate industry financial system for some public institutions with outstanding industry characteristics under the guidance of the Financial Rules for Public Institutions. Article 46 of the Financial Rules of Public Institutions stipulates: "If the industry has outstanding characteristics and needs to formulate financial management measures for industrial institutions, the financial department of the State Council shall formulate them in accordance with these rules." At present, there are culture, cultural relics, radio, film and television, etc. 11 types of public institutions have promulgated the financial system of this industry.