Guthi practice was developed as an earlier concept of the cooperative system as a community organization. This has been at work, which has been going on for centuries in Nepal. The Guthi system was so effective in social, religious and cultural work in the past that it set guidelines for the service to the humanity and society. Guthis were the custodians of religious and cultural sites, activities, and traditions and accordingly carried out their activities to preserve our rich culture and tradition.
Considering the importance and role of Guthis, the government set up the Guthi Sansthan (corporation) to manage, conduct, and coordinate the Guthis throughout the country more effectively and efficiently.
Guthi is a dynamic system of Nepalese Society guided by moral, ritual and traditional managerial system. Modern management system has introduced after second great war in the western hemisphere. Guthi system has various managerial outlooks which were introduced in our society by our ancestors, experienced at the time of king Mandev I, according to Changu Narayan temple script of Bhaktapur. This system has done attractive management for preserving ritual, traditional and cultural value in our society. In another word it is a cooperative system in modern concept and values. The purpose of establishing Guthi from our ancestors is seemed under the true religious, cultural and social spirit. In fact, Guthi is a concept of welfare and preserving ritual and cultural value according to the Guthi founder's interest. Different type of Jatra (Chariot procession), Parba (festival) also organized by Guthi Sansthan, like Machhendra (also called Matsyendra) Jatra (known as Bhoto Jatra), Sivaratri Parba, Bisket Jatra, Indra Jatra, Kumari Jatra, Bibaha Panchami (Ram-Sita Wedding) Parba, Ram Nawami Parba, Jhulan Parba etc. as per their cultural rituals.