Compared with developed countries,foundations in China started late and have intimate ties with government.While relying on self-man-agement,foundations are also subject to indirect management from government.Using data of China's foundations from year 2006 to year 2021,this paper investigates the influence of foundation background on organizational efficiency,from the perspective of government funding.This paper documents that the efficiency of government background foundations is higher than other foundations.Mechanism analysis shows that the background of foundation affects the organizational efficiency by affecting its internal governance.Further analysis shows that the positive impact of government background on foundation effi-ciency is more pronounced in regions with lower levels of economic development and in foundations without foreign donation.The economic consequence analysis reveals that government background foundations with high efficiency can attract more donation.This paper deepens the understanding of the rela-tionship between foundations and government.It can provide theoretical guidance and empirical evidence for the healthy development of foundations and provide political suggestions and reform directions for the governance of non-profit organizations and the development of charitable society in China,which has practical significance and theoretical value.