Selecting the imbalanced panel data of 47 charitable foundations which have acquired government subsidies from 2007 to 2013 as the subject and using the fixed effect model and random effect model, this paper studies the effect of the subsidy policy on organizational behavior of social organizations from the perspectives of financing and public goods or service supply. The empirical result demonstrates that direct fiscal subsidy policy is a double-edged sword. On one hand, it plays a great role in strengthening the capacity building of social organizations and its capacity of providing the public goods or service. On the other hand, this policy can create significant crowding-out effect for donation financing of social organizations, and suppress the financing initiative of foundations, thus aggravating the fiscal dependence on government subsidies. On the basis of categorizing subsidy revenue, restrictive subsidy exerts a weaker crowding-out effect than non-restrictive subsidy, while bringing forth positive influences on public goods or service supply from social organizations. That is to say, the policy effect of restrictive subsidy is better than that of non-restrictive subsidy.