According to the requirements of the classification reform of public institutions, institutions that undertake public service functions such as basic scientific research, basic education, public health, public culture and basic medical services are classified as public welfare.

In the cultural category, public libraries, together with public archives, basic archives, memorial halls, cultural centers, museums, archaeological relics protection, intangible cultural heritage protection, radio and television, are classified as public welfare and undertake public welfare services that should be provided by the government. Functions undertaken by public libraries.

Classification by social function

(1) Institutions undertaking administrative functions. That is, institutions engaged in administrative decision-making, administrative execution, administrative supervision and other administrative work. Examples: urban management supervision, environmental supervision, land supervision, etc.

(2) Institutions engaged in public services. That is, institutions that provide public welfare services to the society or provide support and guarantee for the government to exercise its functions, the state guarantees funds and no longer engages in business activities. Can be specifically divided into two small categories.

Public welfare category. That is to say, institutions engaged in public welfare services related to national security, public safety, public education, public culture, public health, economic and social order and citizens' basic social rights cannot or should not be allocated resources by the market. For example: libraries, museums, environmental monitoring stations, hydrological stations, etc.

Public welfare category ii. That is, to provide the whole society with public welfare services involving the general needs of the people and the needs of economic and social development, and partially realize the market allocation of resources. For example: vocational and technical schools, health service stations, etc.

(3) Institutions engaged in production and operation are self-supporting units that provide paid services to the society to obtain income. They develop according to the enterprise model, participate in social competition, take responsibility for their own profits and losses, and the state finance no longer bears the head expenses.