This chapter analyses the legal nature of the charitable trust model and the implications that such analysis has for the governance of charitable trusts. It is found that, in Chinese charitable trusts, private law norms are always subordinated and subject to public law norms, and that charitable trusts are always operated in alignment with the public welfare policy of the state. Aside from governance in law, the chapter also identifies the connection between governance and practice, based on the fact that trust parties and regulators tend to adopt strategies to protect their interests from being adversely affected in the implementation of the law. In light of the ways in which trust parties and regulators engage with the law and the hybrid nature of charitable trusts, this chapter finally proposes three perspectives that are relevant to the understanding of charitable trust governance: legal, administrative, and contractual. These perspectives are then expanded upon in Chapters 3–5.