Children's Welfare Institute is a government funded charitable institution. It is responsible for taking in children whose parents both died while their relatives have no ability to adopt them into care; and taking in abandoned children and infants whose parents cannot be located by the police. Children in the Welfare Institutes are entitled to State social benefits, and the care and protection of the Welfare Institutes.

In order to place orphaned children and abandoned infants in the best care, Chinese government has funded a large sum of investment in establishing these Social Welfare Institutes and improving quality of facilities. Social Welfare Institute is based upon a combination of nurture, education, and medical treatment as guidance to provide the best care to these orphaned children and abandoned infants, which will allow them to receive the same loving care as a normal child, and ensuring a happy and healthy growth in a Social Welfare Institute environment.