Legal analysis: the participation of charitable organizations in private lending depends on whether the purpose of borrowing is charitable or not. Charitable organizations may provide loans for charitable purposes to individuals, legal persons or other organizations, but charitable organizations may not provide loans unrelated to public welfare to individuals, legal persons or other organizations.

Legal basis: Article 2 of "Several Provisions of the Ministry of Civil Affairs on Regulating the Behavior of Foundations (Trial)" stipulates that foundations may not directly provide loans unrelated to public welfare activities to individuals and enterprises.

Article 54 "Charity Law" Charitable organizations shall follow the principles of legality, safety and effectiveness when investing in property preservation and appreciation, and all the investment proceeds shall be used for charity.