The liberalisation of China’s welfare system, coupled with state decentralization from the late 1970s to 1990s, have fostered an environment for novel methods to deliver welfare assistance by both state and non-state stakeholders. This chapter explores the behaviour of the latter actor, the non-governmental organisation (NGO) in this process. It looks at the evolving role of NGOs as welfare providers, and the contemporary challenges and constraints they face. The case of social welfare-oriented NGOs in the city of Nanjing is used for illustrative purposes.