Although the Chinese state has an outsized influence on shaping civil society in China, extant literature has generally overlooked the increasing role of the market in its non-governmental organization (NGO) development. This paper examines the marketization of Chinese civil society through an ethnographic investigation of funding relationships between domestic Chinese philanthropic foundations and grassroots NGOs. Two case studies of foundation venture philanthropy projects show that businesspeople, through their intensive involvement in foundation-led funding programmes, are introducing strong market influences to the non-profit sector. Notwithstanding the attraction of foundation funding, many NGOs decry the negative side effects of non-profit marketization. We argue that NGOs in this context risk being transformed into social product providers and resource-chasing machines, detracting from the self-directed social missions that many NGO leaders see as their original calling. These observations on emergent NGO–foundation relationships also reflect participants’ increasing uncertainty about the direction of Chinese civil society development.

From a regulatory perspective, philanthropy in China has been officially modernized. Since the government established a legal framework in 2004 based on models from overseas, the number of private foundations in China has grown more than six-fold. Drawing on a nationally representative survey of 214 private foundations conducted in 2012, we present a landscape view of these new philanthropic institutions, discussing both who begins foundations and how their monies are used. We find that despite the rise of new private wealth in China and the adoption of the private foundation form, government priorities are structuring the field of Chinese philanthropy in key and consequential ways. We conclude with some considerations of the implications of these findings for the development of broader civil society.