Abstract: The third plenary session of the 20th central committee of the Communist Party of China proposed improving the income distribution system, and under the goal of common prosperity, the third distribution is regarded as an important way of distributing resources, which is carried out through non-compulsory means, such as voluntary contributions by individuals, and makes up for the market mechanism and the government's redistribution policy. The concept of third distribution was first proposed by Professor Li Yining, and its connotations include the breadth of resource contributors, the attribute of voluntariness, the diversity of industries involved and the profoundness of value orientation. The third distribution can help narrow the gap between the rich and the poor, enrich the spiritual and cultural life of the people, attract more social capital to participate, and to achieve the goal of "those who become prosperous first helping those who lag behind". The realization of the third distribution relies on the leadership of the CPC, which adheres to the value tenet of putting the people at the center, and has significant advantages in enhancing the efficiency and precision of distribution. In order to optimize the third distribution, it is necessary for the government to play a guiding role, improve tax incentives and fiduciary management mechanisms, and at the same time strengthen the construction of laws, regulations and policy environments, as well as the capacity building of charitable organizations themselves.

Key words: the third plenary session of the 20th CPC central committee, third distribution, common prosperity, distribution system