Marketization and Its Discontents: Unveiling the Impacts of Foundation-led Venture Philanthropy on Grassroots NGOs in China

Abstract

AbstractAlthough 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.