There are three main types of non-profit organizations in China: social groups, foundations and private non-enterprise non-profit organizations are mainly engaged in public welfare undertakings, but social welfare undertakings are not exclusive to non-profit organizations, and governments and enterprises can also engage in public welfare undertakings.

Foundations cannot be transformed into enterprises, and their work features are gathering social funds for the purpose of public welfare and putting them into public welfare projects to provide welfare for the society. Of course, full-time staff of non-profit organizations are paid, but the cost cannot exceed 10% of income, and the current salary standard is not high.

At present, it is still lower than that of enterprises. Non-profit organizations can invest in enterprises, but enterprises must be independent legal persons, and the profits earned by non-profit organizations in enterprises should be used for public welfare purposes.

Non-profit organizations are embodied in the operation and management of foundations and the corresponding institutional norms, which are embodied in three aspects:

1. There is a non-profit distribution and income restraint mechanism, which requires the donors and actual trustees of the foundation not to profit from the foundation property and its operation.

2. There is a non-profit organization operation and management mechanism, which requires the foundation to have a self-management mechanism to effectively avoid high risks and high returns.

3. There is a non-profit property protection mechanism, and the foundation requires that the property and property rights structure should not be changed by means other than donation.