Analysis Of Effect And Influencing Factors Of China’s Foundation Funding Grass-roots NGO

As playing more and more important role,The third sector have made an increasing influence in our society. The educational circles start a comprehensive and in-depth study on NGO and Foundation which have an important position in third sector.Comparing to several possible contributor, the foundation has its unique social mission and resource advantages, can play the particularly interesting role of NGO funding. At the same time, we also clearly recognize that Foundation funds grassroots NGO is of great significance operation mechanism in the aspect of optimizing the allocation of resources and promoting the growth of service industry,After looking forward to the sound of praise, however, we had to face the reality that "voluntary failure" widely exists in the process of foundation supporting grassroots NGO. This phenomenon makes the support effect largely inefficient, which greatly affects the development of finance practice.Through the review of previous research, we can found that there are little systematic analysis about the study of operation logic and potential reason。This article based on the existing description about domestic funding status, from the perspective of analogous value, resources benefit, complementary advantages of two sides, to analyze the necessity and possibility of Foundation funding NGO.And based on the cognition of current funding situation,we recognized funding practice did not only effectively alleviate the situation of shortage of funds in the grassroots NGO, also fail to improve cooperation between the two sides, and at the same time play an effective role in the development of service industry.Based on the understanding in China of the over-all development of NGO, we can get the opinion that the significance of forming factors and the effect of fund come from different angles and aspects of the results. Via to drawing on the theory of voluntary failure, rational choice and limited rationality and the theory of social exchange, this paper want to look for the answer from perspective of macro environment, industry development, foundation and the grassroots NGO.The macro external factors include the fragile social environment and limitations because of the system of government policy management. The factors of development is reflected in the operation mechanism of a link mainly from project approval to the final evaluation in the foundation, As for grassroots NGO,the reason consist of the organization structure, the limited ability of project execution and resource acquisition and improper interests alliance etc..Based on these factors, this article get a detailed analysis of the mechanism and the operation logic.