What Does China’s Twin-Pillared NGO Funding Game Entail? Growing Diversity and Increasing Isomorphism

Two trends are gaining prevalence across China: (1) NGO needs for funding in order to survive and (2) the transformation of the government and private foundations into major NGO donors. This study explores grassroots NGOs’ experience with the government’s purchase-of-services contracting and private foundations’ grant schemes in Shanghai, Beijing and Sichuan. The research findings show that two opposite effects of the funding game are simultaneously felt: growing space for diversity and increasing isomorphic pressures. The two donor types have jointly created a result-driven and institutionalized environment in which NGOs easily lose sight of their missions and uniqueness. Nonetheless, despite finding their options extremely limited, NGOs adopt constantly evolving, multifaceted resource strategies.