Primary schools belong to the nature of institutions. According to the classification principle of public institutions, primary and secondary schools undertake the basic educational functions and basic public welfare services provided by the government. It is not appropriate to allocate resources by the market, nor to carry out business activities and collect service fees. Its purpose, business scope and service norms are stipulated by the state, which is a typical feature of public welfare institutions. Primary and secondary schools belong to public institutions and are public welfare institutions, which are fully supplied by the finance. According to the classification principle of public institutions, primary and secondary schools undertake the functions of basic education and the basic public services provided by the government. They cannot or should not allocate resources by the market, nor do they carry out business activities and collect service fees. Their purpose, business scope and service norms are stipulated by the state. This is the characteristic of a typical public welfare organization.