A total of 120 donations worth US$1m or more were identified in Hong Kong in 2013, representing a 15% increase over 2012, according to research conducted by the HKUST Business School in association with private bank Coutts.
This research project explored the scale and nature of donations of US$1m or more from philanthropists in Hong Kong, including the causes and geographies they focus on. The research data contributed to a multi-region “Million Dollar Donors Report” published by Coutts, which also covers the UK, the US, Russia, the Middle East, China and Singapore.
Data in Hong Kong in the latest report were collected by the Tanoto Center for Asian Family Business and Entrepreneurship Studies at the HKUST Business School. The center aims to understand the Asian family business and entrepreneurship sectors with a focus on ethnic Chinese family businesses as an influential network contributing to the world’s economy.
Behind the Rise
The center found 120 donations worth a million US dollars or more in Hong Kong in 2013, with a combined value of US$935m. Both the number and value of donations increased over the 2012 levels by 15% and 7% respectively.
|
Year |
Number of donations worth US$1m+ |
Total value of donations worth US$1m+ |
|
2012 |
104 |
US$877 million |
|
2013 |
120 |
US$935 million |
|
% |
15% |
7% |
“One key reason behind the rise was the Ya’an earthquake in the Sichuan Province of China in April 2013, in which major Hong Kong donors supported the disaster relief efforts,” explained Professor Roger King, Director of the Tanoto Center for Asian Family Business and Entrepreneurship Studies.
Of the 120 donations, the two largest ones came from the Li Ka Shing Foundation which together made up more than one third of the value of all identified donations. Indeed, foundations contributed nearly half of the total value of all donations in 2013, while the contributions from corporations and individuals accounted for 39% and 12% of the total values respectively.
The majority of donations went to recipients in Hong Kong, but there were more gifts to mainland China in 2013, which was thought to be driven at least in part by the relief for the Ya’an earthquake. A total of 83 organizations including operating charities, charitable foundations and governmental units, received at least one big cheque. Higher education attracted the highest number of gifts accounting for 34 of the 120 million dollar donations. Higher education, together with religion and government, were amongst the most popular causes.
Behind Donors’ Decisions
The report showed family philanthropy plays a vital role in the “giving” landscape in Hong Kong. Over half of these big donations by total value were made by family foundations, family businesses or their founders. To delve into the donors’ decision-making process, the research also included two in-depth interviews with philanthropists to learn about their motivations for giving and their causes of choice.
“We want the money we donate to have more impact, and ensure we are supporting issues that are important and relevant in Hong Kong and mainland China,” said Laura Lau, Head of Philanthropy at the Swire Group Charitable Trust, one of the interviewees for the research. She explained how the Trust operated and evolved over the past three decades in Hong Kong.
In another interview with the Chairman of the Tin Ka Ping Foundation, Sam Tin, he recalled how he took up the charitable mantle from his father Dr Tin Ka Ping, who set up the organization back in 1982. Sam has maintained a focus on programs that are able to develop a sustainable model for education and school improvement, saying that it is his father’s generosity that has inspired the next generation to continue with his philanthropic mission.
“We are grateful for the donors, who kindly shared their philanthropic experiences and insights on the communities they care about with the center,” said Professor King. “We are pleased to contribute our effort into putting together an informed report that helps understand the philosophy and causes of substantial donations not only locally but also across other major regions in the world.”
About the Coutts Million Dollar Donors Report
Since 2008, Coutts has produced the Million Pound Donors Report to provide insight into major UK philanthropy. In 2014 Coutts decided to cast its net wider to capture also the scale and nature of donations of $1m or more in the USA, Russia, Middle East (GCC), Singapore, China and Hong Kong. The result is a report that is a leading authority on major philanthropy internationally.
The link to the Coutts report including the case studies in Hong Kong and other regions is here: www.coutts.com/donorsreport