Government’s roles in public service administration need to be redefined in the revolution of social governance system，implying a change from government-led role to the active participant role in the market. As an important non-profit organization（NPO），the development of charitable foundations plays an unneglectable role in redistributing social resources，adjusting poverty gap，as well as urging structural and functional reforms of government，so as to perfect the national governance system. However，due to the shortage in charity development history and experience，a certain number of problems may derive from the management and operation of most Chinese charitable foundations. These problems affect the sustainable development of Chinese charitable industry and plays as a hindrance when charitable foundations coordinate with the government as a “third sector”. The internal problems of Chinese charitable foundation include ambiguous orientations of organization and motivation，unqualified levels in profession，specialization，publicity and transparency，and poor construction in public credibility. The external problems caused by restrictions of environment，include the unimproved policies and regulations，absence of self-disciplinary rules，immature supervision by public opinion，lack of philanthropic education to general public and unclear financially-favored policies for charitable organizations. These realistic difficulties restrict the development and function of charitable organizations. This article provides countermeasures to the aforementioned problems，and also suggestions to a fuller utilization of charitable foundations in public welfares，consisting of internal construction and development，and external systematic construction and supports for NPOs.