This article seeks to deconstruct the phenomenon of the first permanent housing project, Da-Ai Village of Tzu-Chi Foundation, from the colonial history of Han and Indigenous peoples and the structure of welfare privatization in Taiwan. What embodied in the Da-Ai Village is the perspective of Tzu-Chi, rather than that of indigenous peoples. This pattern of cultural colonization represents the Han-centered thinking. In appearance, charity is a form of helping but also a form of denial of a disadvantaged group’s旧perspective. The Western Christian churches in the 1950s, the public housing project in Orchid Island in the 1960s, and the service teams by college students in the 1980s are products of this pattern of cultural colonization. The Da-Ai Village also represents the neo-liberal approach to welfare provision through privatization, through which the State passes its responsibility to charity organizations. We appeal that all welfare groups involved in post-disaster recovery efforts need to recognize the colonial history of indigenous peoples and endorse self-determination and community empowerment as the principles in their recovery efforts.