The reforms of 1978 has engineered a shift from the “iron-rice bowl” approach of Mao’s era to increased privatization of social services. Citizens and non-profit organizations are taking on more financial and managerial responsibility for welfare services in the wake of the dissolution of state-owned enterprises. As China’s economy strengthens, more efforts are being directed to addressing the major issues of the coastal-inland income divide and the migrant worker population and aging population’s needs. The founding of the Non-Profit Incubator and the myriad services that NPI provides can be seen as part of an overall state effort to reach its objective of enhancing the welfare of its citizens with the help of non-state actors.