The private enterprise foundation refers to the foundation which is set up by the private enterprise or private entrepreneurs. It serves as the main part of the enterprise foundation in China and plays an important role in the public welfare charity. Since 2004，there has been a steady increase of private enterprise foundation，but the number and proportion is not high. In the aspect of assets，private enterprise foundation has obvious advantages，though it is under the control of a few large foundations. As to the regional distribution，there are more foundations in the eastern region than the west. Generally the sponsors of the private foundation are famous entrepreneurs with economic strength and positive motivation. Compared with other foundations，foundation of private enterprises has standardized operation efficiency，autonomy of capital，concentration of business scope and more public welfare spending. But in the meantime there are disadvantages in the operation of the private enterprise foundation，such as the lack of independence，connection transaction risk，lack of professional talents，underestimated credibility，limits of project. What is more，the implementation of the charity law brings more challenges and pressure to the private enterprise foundation. For the healthy development of the foundation of private enterprises，we should strengthen the related guidance and specification，encourage and guide the capital preservation and appreciation，as well as equity donations of the private enterprise foundation，and explore “foundation + charitable trust” mode，thereby promote the development of privately operated enterprise foundation in China making it play a positive role in the construction of governing ability.