Asian Social Science
Vol. 6, No. 8; August 2010
A Survey of Non-profit Organizations Evaluation Methods
Haiyan Duan Henan University of Science and Technology Luoyang 471000, Henan, China E-mail: email@example.com Youth-Projects of Philosophy and Social Sciences Research, Ministry of Education (09YJC630057) Abstract Through reviewing the foreign evaluating methods, we recommend the following two kinds of methods and analysis both their advantages and disadvantages: methods that focused on a certain area as well as the comprehensible ones. Among the former one, we further introduce the multi-item scale to measure service quality, the GET (Glass Evaluation Tool) which speculates that an organization with poor internal structure will be less likely to perform sustainably, the method that predicting the financial vulnerability of NPOs, DEA that aims to measure the NPOs’ efficiency, as well as the outcome measurement. As to the comprehensive methods, we introduce financial analysis method, the balanced-scored card in detail, including the rationale of each method, how to establish the model, how to apply it in the real world, how to test its effectiveness, and also what we should notice while using it. The aim of this paper is to provide some new idea for the NPOs evaluation theory as well as practice in China. Keywords: NPOs, Evaluation method, Survey 1. Introduction As a non-profit organization which independent of government and firms outside social organization, its goal is the pursuit of social public welfare activities, the provision of social services to the public rather than to maximize the efficiency of their own. (Schiff & Weisbord, 1991). In the current developed countries or regions, whether from the view of the level of employment and total amount of economic activities, or from promotion of national economic and social sustainable development perspective, non-profit organizations not only have got achievement as government and enterprises, but also expected further trends. A general review of market-oriented reforms in China since the socio-economic development, China's non-profit organizations have grown up from small to large, and will continue to promote China's sustainable and healthy economic development and also helpful to harmonious society. In the end of 2008, a total of 414,000 various types of non-profit organizations, which increased 7.0% than the year before, including 230,000 social organizations, 182,000 private non-enterprise units, and 1597 foundations (see Table 1). These non-profit organizations involved in science and technology, education, culture, health, labor, civil affairs, sports, environmental protection, legal services, social intermediary services, work injury services, rural specific economics and other fields of social life who employed 4.758 million people. Non-profit organizations do an excellent job in economic development, creating jobs, activating markets, and maintaining social harmony and safeguarding social stability which leave corporations and governments far behind. People increasingly tend to seeking solutions which puzzle government by non-profit organizations. However, China is still a developing country which affected by the economic base and superstructure condition, non-profit organizations in China's development is still in its infancy and is not standardized, also not very mature. There are a number of constraints, especially in the personnel composition and structure, income sources, income efficiency, and management mechanism which lacking of scientific evaluation. This phenomenon not only interrupts its development, but also seriously weakened the social credibility of non-profit organizations. Building an effective evaluation system as a management tool can not only improve their operational efficiency and social credibility, but also can promote the healthy development of economy with the interaction between government and...