The first operation is to raise funds, which requires a source of funds. Public offering foundations can raise funds from ordinary people. Non-public offerings are generally donated by the rich and enterprises, and are not open to ordinary people. After the fundraising is completed, it is necessary to manage the raised funds. Public welfare funds do not put all their money into public welfare undertakings, but also need financial management to maintain the sustained growth of fund assets and thus continue to operate. Generally choose some low-risk and low-yield projects. Generally do not make high-risk investments. Finally, invest in public welfare undertakings in accordance with the established articles of association and fund public welfare undertakings. For example, funds for certain diseases will be donated to relevant patients.

For public welfare funds, there is a minimum requirement for investment in public welfare undertakings every year, so public welfare funds can't just raise money for financial management without making public welfare investment.

A foundation is an organization that manages funds or special funds reserved for starting, maintaining or developing a cause. Generally, it is a non-profit organization. The purpose is to promote the development of social science, cultural education, social welfare assistance and other public welfare undertakings through free funding. The funds of the foundation have a clear purpose and purpose. Foundations in China are divided into public offerings and non-public offerings. The difference between the two is whether they can raise money for the public. At present, domestic public offering foundations are mostly semi-official government partnership foundations, and non-public offering foundations are mostly funded by enterprises. Of course, there are some exceptions. Tencent, which has the advantage of online community, was allowed to set up a public offering Tencent Charity Foundation because the Internet, landline and SMS have become effective ways to persuade donations outside the donation box.

Nowadays, more and more business people are involved in the operation of the foundation, and the fund-raising and donation of the foundation are becoming more and more enterprise-oriented. Some active foundations not only actively explore special activities, souvenir sales, new media and other fundraising channels, but also devote themselves to improving persuasion skills through marketing; In the governance structure, through the separation of investment and operation departments, the foundation is changing to improve operational efficiency and transparency; The traditional operating foundation in China began to introduce the project bidding system and transformed into a funded foundation; Other foundations have turned into venture capital or project projects, incubating non-governmental public welfare organizations, and introducing the mechanism of rescuers to help others, so that charity can be chained.

The establishment of new concepts such as commercial charity and charitable investment makes charity, one of the oldest social traditions of mankind, increasingly commercialized and sustainable, thus contributing to the optimal allocation of charitable resources. With the increase of China's total wealth and the maturity of the rich class, charity has been practiced by more and more entrepreneurs with social responsibility. Especially after the 512 Wenchuan earthquake, a considerable part of the donations from major enterprises were donated through the foundations established by enterprises or donated to some large public foundations, and various foundations entered people's field of vision more widely.