Analysis on the Disclosure Problems of Accounting Information in Charitable Organizations

Abstract

Charity is a very important institution in the public domain. Through donation income, funds are distributed to people in need of help in society. However, according to the theory of public goods, information asymmetry and principal-agent theory, it can be seen that charitable organizations access more information than donors. Accounting statements are the only way for charitable organizations to provide internal information to the society. People’s willingness to donate is strongly related to the integrity of accounting statements. When the organization’s accounting information improves, credibility and transparency of the organization will also increase, which is also an important aspect of the long-term development of charitable organizations. Through discussing the development and current situation of charitable organizations, charitable organizations have insufficient government supervision, inconsistent accounting systems, low awareness of disclosure and the need for adjustment of internal organizations. This paper puts forward three areas that can be improved: setting up a unified accounting information disclosure system, strengthening government management and improving social disclosure awareness.