Study Of The Third Distribution In Modern China

China’s economy has been developed rapidly after the policy of reform and opening up, but the gap between rich and poor in China is growing. It has seriously affected the healthy development of the society. The third distribution can narrow the gap between rich and poor, and also alleviate social contradictions.The third distribution depends slowly, and lags behind economic development. The article discusses the status quo and major problem of charity in China. There are several reasons to explain it. First, the awareness of charity has not yet formed; Second, role confusion between government and charitable organizations; Third, the credibility of charitable organizations is weak. Fourth, the development of charitable organizations are very slow; Fifth, the effective incentives did not form; Six, the relevant law are not perfect.The paper presents several recommendations, based on the current situation of the third distribution. First, the government should developt charitable culture; Second, charity organizations should strengthen themselves; Third, the government and the charity organizations should clear relationship; Fourth, the whole society should perfect the charitable organization incentive mechanism;Fifth, the government should perfect the law; Sixth, the whole society should strengthen the charitable theory research.The third distribution of income can adjust the urban income gap in China and promote fairness and stability in China. All of us should become the member of this system.