Social welfare foundation is a non-profit social organization that manages donated funds. It is not an administrative organization, enterprise, institution or its affiliated institution, but an independent social organization. According to national laws and regulations and their purposes, and in accordance with the articles of association of the foundation, a set of self-restraint, self-improvement and self-development operation mechanism should be established. The foundation's source of funds mainly depends on social donations. The salary, housing, medical care and other expenses of its employees need to be solved by the foundation itself, instead of collecting membership fees from members like other societies and associations. The public welfare foundation was established to absorb the funds raised by the society more effectively. Through the establishment of their own scientific management system, financial system, capital appreciation plan and funding plan for social welfare undertakings, the accumulation and expenditure of social welfare funds will be optimized and the public welfare will be maximized. Social undertaking is one of the characteristics of modern institution system in China. The foundation's establishment and development provide strong economic support for social institutions. For example, the China Youth Development Foundation has made great achievements in the past decade: First, it has played a significant role in promoting. As far as the market mechanism is concerned, it is impossible to achieve such a goal. This is because the profit-making sector, especially China, is still in the primary stage of development, lacking sufficient strength to form the concept of "taking from the people and returning it to the people" and paying deep attention to social problems.