Requirements Analysis to improve the Usefulness of Accounting Information for Not-for-Profit Organizations

This paper investigates that Not-for-Profit organizations can rebuild the reliable relationship and create the healthy donation culture for vitalization of public service. As our country expanding its social welfare policy while raising its global presence, Not-for-Profit organizations’ social function and role become more significant, but their lack of qualitative characteristics of accounting information in financial management and accounting and weakness of internal governance control structure make them into the failure in secure of confidence and proper evaluation. Most existing studies emphasize the aspects of accounting standards and legal system over Not-for-Profit organizations to just tell about macroscopic analysis and examination results, but practically each of Not-for-Profit organizations such as educational foundations, medical corporations, religious and culture corporations, mutual saving and finance companies, etc. has its own accounting treatment standard and therefore, a study for integration into one accounting treatment standard makes us worry about its practical applicability. Therefore, this study analyzes the contents of complicated services which are performed by development & welfare Not-for-Profit organizations such as Good Neighbors International, World Vision, etc. and explains reasons (limits) why the existing financial accounting rules of social welfare foundations and organizations cannot be applicable any longer and suggests a solution that promotes the usefulness of accounting information. At the same time, from both positions of internal information users (the management / KPI, including performance evaluation) and external information users (contribution provider / CSR, including ISO 26000), it summarizes their requirements of important information to include those into Electronic Data Processing(EDP) accounting system to heighten effectiveness. Also, when the supplement points acquired through this study are reflected in the process of establishing accounting standard and relevant legal system of Not-for-Profit organizations, a presentation of more realistic alternatives would be available and a cooperation cost with party in charged would be reduced and, in result, establishment of accounting standard and information system is expected to be completed much faster than before.