Abstract: Non-Profit Organization(NPO) is supposed to spread positive energy. NPO is needed to help government meet the demand of its social members and gain the recognition of the society. NPO obtains public influence from the encouragement of the government. Sound interaction of the two parties depends on the balance between the authority of the government and the freedom of the NPO. The paper puts forward a case study on the the current development situation of J Association in Henan province. The paper suggests that a benign development between the government and NPO lie in the ambiguity of the government in terms of functional boundaries and role positioning. The paper also holds the opinion that the goal of the two sides should be the same and NPO should adjust itself to meet the demand of the environment.