First, the operation of charitable organizations is not transparent enough. The credibility of charitable organizations is very important to their development, and the strictness, standardization and transparency of fund management are very important. In the development of charitable organizations in China, the final use of some charitable donations is opaque, and some donations are even used for other purposes. How much money some charitable donations have raised, to whom, and where they are finally used may become a confused account, and there may even be problems such as sky-high tents and meals of 10,000 yuan. These phenomena not only undermine the social credibility gradually established by China's charity, but also affect the public's enthusiasm for charity.
Second, the supervision of charitable organizations is not in place. With super supervision, there will be super trust. Only a benign charity system and mechanism can realize the strict, standardized and transparent management of charity funds and ensure the healthy and benign development of charity. However, China currently lacks an effective supervision system. In terms of external supervision, the media has carried out more positive publicity on the charity industry, but less substantive problems have been exposed. As a result, the public knows little about the real operation of charity, and even lacks understanding of some deep-seated problems, thus losing the "right to speak." In internal supervision, the self-discipline mechanism of charity industry has not yet been formed, and the operation of charitable organizations lacks internal management.
Third, the absence of charity law hinders the development of charitable organizations. So far, China has not yet formed a complete legal system to promote the development of charity, and there is no institutional regulation on the degree, standards and procedures of charity information disclosure, which has caused information asymmetry between donors and recipients to some extent.