Legal analysis: the incentive fund refers to the financial incentive fund arranged by the financial departments at all levels and specially used for the construction of village-level public welfare undertakings. Its main purpose is to help farmers solve the outdoor public welfare cause that is difficult for one household in the village through rewards and subsidies. Through private assistance, the government gives appropriate rewards and subsidies to village-level public welfare construction projects that meet the requirements. Public welfare construction projects include: village roads, villagers' drinking water projects, village public health facilities, bridge and culvert construction, village small-scale water conservancy construction, village public sports venues, village beautification and lighting, new energy facilities and other public welfare projects that villagers think need to be set up. The Measures for the Administration of Incentive Funds for the County-level Basic Financial Security Mechanism of the Central Finance stipulates that the central finance is responsible for allocating incentive funds for the county-level basic financial security mechanism, accurately and comprehensively grasping the county-level financial operation, and scientifically and objectively evaluating the local basic financial security capacity, efforts and work performance. Central finance refers to the part of national finance directly controlled by the central government, which reflects the distribution relationship between the central government and local governments within the scope of state power. It shoulders the heavy responsibility of safeguarding national security and stability, coordinating the interests between regions, allocating resources and stabilizing the growth of the whole national economy.

Legal basis: Article 10 of People's Republic of China (PRC) Public Welfare Donation Law. Public welfare social organizations and public welfare non-profit institutions may accept donations in accordance with this law.

The public welfare social organizations mentioned in this Law refer to foundations, charitable organizations and other social organizations established according to law with the purpose of developing public welfare undertakings.

The public welfare and non-profit institutions mentioned in this Law refer to non-profit educational institutions, scientific research institutions, medical and health institutions, social public cultural institutions, social public sports institutions and social welfare institutions established in accordance with the law.