EconomicsofEducationResearch(Beida)InstituteofEconomicsofEducation,PekingUniversity33820059AbstractNonprofitorganization,for-profitorganizationandpublicorganizationarethreetypesoforganizations.Eachofthemhasits’ownoperationalmechanism.Privateeducationalinstitutionsaremostlynonprofitorganizationinnature.Noownerandnon-distributionconstraintsaretwostrikingcharacteristicsofnonprofitorganizations.Innonprofitsector,externalandinternalgovernancesarebasedontrustbetweensocietyandorganizations,betweenmanagersandemployeesrespectively.Withthetrust-ship,nonprofitorganizationscanmobilizeresourcesfromexternalenvironment,andemployeescanconductcomplexandprofessionalwork.Accordingtointernationalexperienceofprivateeducation,Chinaneedstodifferentiatenonprofiteducationalinstitutionsfromfor-profiteducationalinstitutions,providesincentivetononprofitorganization,anddesignseffectivegovernancesystem.Keywordsprivateeducationalinstitution,nonprofitorganization,ownership,governance2005525338EconomicsofEducationResearch(Beida)200592owneridealtype338EconomicsofEducationResearch(Beida)200593ownershipaccountability1112residualclaimagencycostaltruismvoluntary338EconomicsofEducationResearch(Beida)200594GNP6%10%1310%20%142070BurtonWeisbrodgovernmentmarketfailurevotermedian1580HenryHansmanncontractfailurenoownernon-distributionconstraint16LesterSalamonthird-partygovernmentvoluntaryfailure17KirstenGronbjergSusanBersteinStevenRathgebSmithMichaelLipsky338EconomicsofEducationResearch(Beida)20059518338EconomicsofEducationResearch(Beida)200596multiplestakeholders1920MichaelD.CohenJamesG.March21222324338EconomicsofEducationResearch(Beida)200597governancemechanismmarkethierarchy252627338EconomicsofEducationResearch(Beida)200598BoardofTrusteesBoardofDirectors2829208030338EconomicsofEducationResearch(Beida)20059930338EconomicsofEducationResearch(Beida)2005910338EconomicsofEducationResearch(Beida)2005911..[J].200412...[J].20019.57ISICNACE.[M].200012-16Frumkin,Peter(2002)OnBeingNonprofit,pp10-16,Cambridge:HarvardUniversityPress.Frumkin,Peter(2002)OnBeingNonprofit,p9,Cambridge:HarvardUniversityPress.WilliamG.Bowen,ThomasI.Nygrem,SarahE.TurnerandElizabethA.Duffy(1994),TheCharitableNonprofits:AnAnalysisofInstitutionalDynamicsandCharacteristics,p188,SanFrancisco:Jossey-BassPublishers.GilbertM.GaulandNeillA.Borowski(1993)FreeRide:TheTax-exemptEconomy,p5,Kansas:AndrewsandMcMeel.11Frumkin,Peter(2002)OnBeingNonprofit,p3,Cambridge:HarvardUniversityPress.12Swedberg,Richard(2003)“EconomicversueSociologicalApproachestoOrganizationTheory”,inHaridimosTsoukasandChristianKnudsen(eds.)TheOxfordHandbookofOrganizationTheory,pp377-378,OxfordUniversityPress.131991WilliamG.Bowen,ThomasI.Nygrem,SarahE.TurnerandElizabethA.Duffy(1994),TheCharitableNonprofits:AnAnalysisofInstitutionalDynamicsandCharacteristics,p4,SanFrancisco:Jossey-BassPublishers.14Hansmann,Henry(1996),TheOwnershipofEnterprise,p227,Massachusetts:TheBelknapPressofHarvardUniversityPress.15Frumkin,Peter(2002)OnBeingNonprofit,pp65-67,Cambridge:HarvardUniversityPress.16Hansmann,Henry(1987)“EconomicTheoriesofNonprofitOrganization”inWalterW.Powell(ed.)TheNonprofitSector:AResearchHandbook,pp99-117,NewHaven:YaleUniversityPress.17Salamon,Lester(1987)“PartnerinPublicService:TheScopeandTheoryofGovernment-NonprofitRelations”inWalterW.Powell(ed.)TheNonprofitSector:AResearchHandbook,pp27-42,NewHaven:YaleUniversityPress.18Frumkin,Peter(2002)OnBeingNonprofit,pp74-78,Cambridge:HarvardUniversityPress.19WilliamG.Bowen,ThomasI.Nygrem,SarahE.TurnerandElizabethA.Duffy(1994),TheCharitableNonprofits:AnAnalysisofInstitutionalDynamicsandCharacteristics,pXIX,SanFrancisco:Jossey-BassPublishers.20.[M].:,2004,19.21MichaelD.CohenandJamesG.March(1974)LeadershipandAmbiguity:TheAmericanCollegePresident,NY:McGraw-HallBookCompany.22WeickKarl1976EducationalorganizationaslooselycoupledsystemAdministrativeScienceQuarterlyVol.21.23338EconomicsofEducationResearch(Beida)200591224InternalRevenueServiceWilliamG.Bowen,ThomasI.Nygrem,SarahE.TurnerandElizabethA.Duffy(1994),TheCharitableNonprofits:AnAnalysisofInstitutionalDynamicsandCharacteristics,p6,SanFrancisco:Jossey-BassPublishers.25JayB.BarneyandWilliamHesterly(1999)“OrganizationalEconomics:UnderstandingtheRelationshipbetweenOrganizationsandEconomicAnalysis”,inStewartR.CleggandCynthiaHardy(eds.)StudyingOrganization:TheoryandMethod,p114,London:SAGEPublications.2627Hansmann,Henry(1999)TheStateandtheMarketinHigherEducation.28.[M].20023432930Hansmann,Henry(1996),TheOwnershipofEnterprise,p287,Massachusetts:TheBelknapPressofHarvardUniversityPress.