While much of the scholarly work on the development of non-governmental organizations (NGOs) in China focuses on their relations with the state, this paper adopts an anthropological approach to explore previously understudied peasant–NGO relations through the lens of a village-level post-earthquake recovery project in Sichuan. The findings highlight three main types of gaps between the NGO and local villagers: the gaps between the villagers’ immediate needs and the NGO's long-term development plan; the gaps between the villagers’ pragmatic concerns and the “building a new socialist countryside” campaign; and the gaps between the private and collective economies. In spite of the project's unsatisfactory outcome, the NGO did not consider the project a failure. We argue that these gaps were, to a great extent, attributable to the continuing development of the institutional values of NGOs, which guide the transition of Chinese NGOs from traditional charities to modern philanthropic organizations.