Because of the nature of China’s politics, many philanthropic activities in China originate from the government and the Party. For example, in 2002, the Ministry of Civil Affairs began construction of a national 'Regular Social Donation System,’ which will require cities and communities to establish special working stations for receiving donations from the public. Electronic and print media, the internet and other forms of communication are used with the assistance of the government in fund-raising activities. Mass gatherings are also organized to promote giving across sectors.

By the end of 2003, there were over 28,000 special working stations or centers for receiving charitable contributions nationwide.

Legal classifications of NPOs
There are three types of NPOs - Social organizations (shehui tuanti), private non-enterprise entities, and foundations.

They are not government agencies, though they are all closely linked to the government through the applicable establishment and oversight mechanisms.

A fourth type of organization, the Public Institution (shiye danwei), is a quasi-government agency, formed by the government and generally staffed with government employees. They frequently receive grants from foreign donors and are subject to some of the same taxes as NPOs.

Fundraising policy
The Chinese government has a very strict fundraising policy. Under government rules, only the China Red Cross and the Ministry of Civil Affairs are allowed to conduct all fund-raising activities for disaster relief. These activities are carried out through Party and government systems, and are targeted mostly towards their employees. The Ministry of Civil Affairs is also responsible for overseeing the fund-raising process and allocating the funds raised.

National policies towards NPOs
Through its reform and open door policy, the government has adopted a more positive attitude towards NPOs. This has encouraged the emergence of third sector organizations since the policy was announced in 1978.

However, while the Chinese Constitution guarantees the existence and development of NPOs in several of its articles, policy-making power remains the sole authority of the Communist Party.

Government rules require that all NPOs be affiliated with a government ministry in its professional field. The Bureau of Administration of Non-Governmental Organizations in the Ministry of Civil Affairs is responsible for overseeing and regulating all social organizations and private non-commercial institutions.

The third sector organizations can be incorporated, enjoy guaranteed rights, and pursue their interests only after registering with relevant authorities.

Social intermediary organizations for economic and social services, community-based service organizations, and public-benefit organizations are given policy preference for encouragement and support. However, any privately created third sector organization with political intention and pursuit are banned. Advocacy organizations as seen in the Western countries have little chance of surviving in the current environment.

The government's control over social organizations is mainly financial, as they are manned by government staff and fully dependent on government's financial support.

Several categories of civilian organizations are favorably treated by the government. They are business associations, public-benefit organizations, farmers' economic associations, community-based civilian organizations, and those civilian organizations engaged in the fields of education and technology, culture and art, health care and sports.

Increasing positive attitude
The government has increasingly adopted a positive attitude towards NGOs, citing their development and strengthening as one of its primary reform goals. However, governmental supervision over NPOs has also intensified alongside these pronouncements.

Local government policies towards NPOs. Many creative measures related to the management and governance of the third sector organizations have been undertaken by provincial, city and local governments.

In Beijing and Wuhan, the departments of civil affairs have simplified the procedures of registration for civilian organizations through a so-called One-Stop service measure.

In Tianjin and Shenyang, local governments have appointed Chief Representatives to be in charge of the affairs of civilian organizations. In Haerbin and Qingdao, local departments of civil affairs have incorporated community councils in their supervision systems.

Local governments have also been pushing the following reforms: allowing government-backed NPOs to have their own personnel, office facilities, and finance by separating them from government institutions; improving government supervision and evaluation over NPOs; and providing training programs and funding to support NPOs.

Under central government regulations, local governments have the authority, to some extent, to make their own concrete rules and policies on local civilian organizations.

Local policies adopted to support the growth and development of NPOs include those that provide the following: government financial and credit support, tax deduction and exemption, precedence in land using and transportation, technology and service contract support, and capacity building and personnel training. These have encouraged the rise in the number of NPOs in recent years.

In Shanghai, the largest city in China, for example, the number of registered civilian organizations has increased from 2,636 in 1999 to 6,705 in 2004.