Some Observations of Philanthropy in Hong Kong

Yuk-shan Wong

City University of Hong Kong

21 January 2003

Philanthropy in Hong Kong

• relative new concept

• not professionally managed

• lack of co-ordination; co-operation; little information sharing

Philanthropy in Hong Kong

• relative new concept

• not professionally managed

• lack of co-ordination; co-operation; little information sharing

Charitable & Fund Raising Activities

• 1991 flooding in S.E. China, billions of dollars raised in one week’s time

• every conceivable kind of “thon”:walk-a-thon swim-a-thon

row-a-thon rickshaw pull

dress-up dress-down

concert/ball flag day• more than 250 NGOs, religious groups

- hospitals, schools, retirement homes

Main Organizations

• Hong Kong Jockey Club - education, medical

recreation

• Tung Wah Group - education (50 schools),

hospitals

• Po Leung Kuk - education (75 schools),

orphanages

• Community Chest - social welfare, voluntary

groups

• Oxfam, UNICEF

Hong Kong Jockey ClubAnnual Betting Turnover: US$11,900M

Donate US$200M annually

Special Projects

• Hong Kong University of Science & Technology

• Hong Kong Academy for Performing Arts

• Ocean Park

Hong Kong Jockey Club’s major donations to universities in the past decade

University Projects Amount (HK$)

University of Sci & Tech Construction/equipment of Campus 19 billion

Chinese University Institute of Biotechnology (building) 170 million

City University Complex for academic exchange & 100 million

Student residence

Polytechnic University Auditorium 63 million

Baptist University Buildings for Chinese medicine 105 million

Lingnan University Student hostel 78 million

Hong Kong University Clinical buildings 270 million

Institute of Education Model school 94 million

All universities Research projects/initiatives 250 million

Total amount of donation to universities from 1991-2001 HK$30.3 billion

HK$ 19 billion single gift to build

Hong Kong University of Science & Technology

Sources of Donations

• Individuals (families)

• Corporations

• Foundations

• General Public

“Personalism” is the Key Word

• Corporations, foundations and families are intimately connected

• Low tax rate (15%) provides little incentive for corporations• Usually, substantive proposals describing the cause of

donations are not important to donors

• Members of Board of Trustee who know the donors will make all the difference

• “To find a right solicitor to open his mouth at a right time to a right donor”

Personalism is more important than professionalism.

• Professional solicitors are yet to be effective

• Solicitors should be “heavy weight” with comparable status of the donors

• Solicitors may also be donors to facilitate the exercise

(set good example)

• Personal influence network is a “I-owe-you/you-owe-me” culture

• Speak the same dialect; “home town” relationship

Possible Future Scene of Hong Kong Philanthropy

• More philanthropic money to China from Hong Kong (80% pledged for projects in China)

• Government wants universities to raise fund to supplement their expenditure

• More Western institutions, particularly from USA, Canada, UK and Australia, come to Hong Kong to raise fund (International Alumni programs)

• Philanthropy will become more professionally managed; more co-operation and information sharing

Thank you !