For the study of NGOs’ financing dilemma, many foreign studies are carried out on the basis of investigation. One particular investigation is a very important research. It provides the status of the financing difficulties of the authoritative statistics for a lot of scholars to study the NGO financing dilemma -- Johns University of Non-profit Sector Comparison Project. This study divides NGOs financing mode into three types: government or public sector support, income charges and charitable donations. And statistics were collected according to these three types of financing difficulties for the NGOs.
On the issue of financing channels, the reality of the statistical results show that the proportion of government subsidies and service charges is quite a lot and the proportion of charitable donations is small. Frumkin (2001) believes that ENGOs cannot passively wait for the outside world to provide financial support and should take the initiative to raise funds while spending the necessary expenses in the financing process is …show more content…
Bob (1995) believes that the positive report of the results of the ENGOs process is a very effective behaviour.
Luo (2010) also believes that many ENGOs in China have the problems in financing. It seriously hindered the survival and development of China 's ENGOs. The main reasons for the lack of funds include less private donations, reduced government subsidies and their own income is low.
Chen Xiaochun 's research shows that although ENGOs is a non-profit organization, not for the purpose of making profit. But it does not mean that ENGOs can not engage in commercial behaviour, cannot be profitable. In fact ENGOs can attract funds to solve the current financial difficulties by way of privatization (Chen,