During the period of social transition, charity organizations play an important role in the "Third Sector", and become a hot issue. This thesis selects Shanghai charity foundation and Amity foundation as the cases. In the light of Kerlman, this thesis analyses the charity organization's inner operation (human capital and material capital) and outer operation (social capital). Since we have to face the model of "government-society-market", charity organizations should make partnership with governments and enterprises, and build up a wide and deep network to make full use of resource. Only in this way, can charity organizations operate smoothly in the social transition period.
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