Yang Jie, founder of NGO Deep Blue, in this 2011 file photo, says getting a steady supply of condoms is a tough job. [Provided to China Daily]

This dilemma is not unique to Sun's organization, though. Wang Yi'ou, founder and director of China Dolls, a Beijing NGO that provides help for people with rare ailments such as brittle bone disease, said the restrictions on executive expenses have resulted in understaffing, which means her current employees are required to work long hours to cope with the enormous workload.

"Our 10 employees have to keep track of more than 2,000 patients who have applied for our medical aid programs. Some work until 4 or 5 am. It's exhausting," she said.

Wang was hopeful that the government will improve the policies related to tax-deductible donations, which would encourage more support from the business sector.

"At present, only donors to about 100 charities enjoy tax benefits. Those incentives disappear if the companies decide to donate to grassroots nonprofit organizations like ours," she said. "The existing rule dissuades a lot of potential donors."

Yu Fangqiang, director of an anti-discrimination NGO called Tianxiagong, or "Justice for All", based in Nanjing, the capital of Jiangsu province, believes the reform of social organization management has fallen behind economic reform.

"Last year, startup capital for people looking to establish an organization was abolished, so while you can literally register a company with 1 yuan, it's not possible to do the same if you plan to found an NGO," he said.

Contact the writer at hedan@chinadaily.com.cn