The Research on Budget Process of Taiwan Foundations
Along with contemporary trends of political democratization, economic liberalization and social pluralization, nonprofit organizations’ establishment and development have dramatically increased and strengthened, so was related research on nonprofit organizations. Some of the research focused on internal management, and the other discussed their external relationships with governments and between those and the general public. However, any research attempting to thoroughly understand nonprofit organizations’ management can not neglect the issue of budget. Since nonprofit organizations heavily rely on donation and government grants, it is important to know their budget process and how it works. This study interviewed 11 foundations, 4 scholars / experts, and conducted questionnaires to foundations. The research found out that most foundations adopt bottom-up approach for budget preparation, though top-down to control budget scale due to economic recession. Budget and final reports have to been approved by the board before sending to the government agency in-charge. If budget slack or deficit, some foundations have formal procedures for budget amendment, but some only have simple requests made by chief executive officers. Since sound and complete budget process will benefit financial management and openness of budget information, it is suggested that foundations place great emphasis on each stage of budget process -budget preparation, approval, implementation and final reports.