LCQ3: Promoting engagement in philanthropy by family offices and enterprises

LCQ3: Promoting engagement in philanthropy by family offices and enterprises

On 27 May 2026, the Legislative Council addressed a question by Hon Grace Chan regarding the Government's measures to promote philanthropy by family offices and enterprises. Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, replied in consultation with relevant bureaus and departments.

Statutory Tax Framework and Incentives

Regarding the definition of terms, there is no standardised definition for 'venture philanthropy' in society. However, a relevant research report by the Financial Services Development Council ("FSDC") in 2024 defines impact investing as a form of sustainable investing that integrates social and environmental good alongside investment returns as priorities, with a dual focus on financial return and impact being its key feature. Pursuant to section 88 of the Inland Revenue Ordinance (Cap. 112), charitable institutions are exempt from profits tax subject to certain conditions. Charitable donations made by a taxpayer, including family offices and companies engaged in venture philanthropy and impact investing, to any tax-exempt charitable institution are deductible from assessable profits, net assessable income, or total income, provided that the aggregate amount is not less than $100. The total deduction allowable in any year cannot exceed 35 per cent of the donor's assessable profits or income. To facilitate the deployment of charitable capital in Hong Kong by global asset owners, family offices and philanthropists, the Government has introduced relevant tax arrangements, such as allowing exempt charitable organisations to hold up to 25 per cent beneficial interest in eligible single family offices and their family-owned investment holding vehicles under the existing concessionary tax regime. The Government also proposes to broaden the definition of 'fund' under the unified tax regime for funds to include endowment funds, so as to facilitate these funds to utilise the tax exemption regime.

Family Office Ecosystem and Impact Initiatives

The Financial Services and the Treasury Bureau issued the Policy Statement on Developing Family Office Businesses in Hong Kong in March 2023, setting out the policy stance and measures on developing a vibrant ecosystem for global family offices and asset owners. Among the measures is the Hong Kong Alliance for Wealth Inheritors ("HKAWL") established under the FSDC, which provides a platform for collaboration, networking, knowledge sharing and talent development for asset owners, wealth inheritors and the family office sector. The HKAWL launched its flagship philanthropic initiative, Impact Link, in March 2024 and has since organised 17 workshops and seminars for over 700 family participants to encourage them to explore and develop philanthropic initiatives. In June 2025, the HKAWL further introduced the Impact Link Online Portal, a dedicated depository platform for invited family philanthropists to discover scalable impact investing initiatives in Hong Kong and other regions. As of end-March 2026, the portal has been joined by 55 family philanthropists, which altogether nominated 12 non-governmental organisations and charitable projects.

Tripartite Collaboration and Social Support

The Government actively fosters tripartite collaboration among the Government, the business sector and the community. Under the policy guidance of the Government, the business sector offers support in terms of funding, premises, technology and talent, while non-governmental organisations contribute their strengths in frontline insights, service experience and district networks, jointly promoting and implementing service projects, and to work together to build a more diverse, pluralistic and sustainable social support system. Over the past few years, the Government has launched targeted poverty alleviation schemes under the above collaboration model, including the Strive and Rise Programme, the Pilot Programme on Community Living Room and the School-based After School Care Service Scheme. These projects have achieved remarkable results, reflecting an organic integration of 'a capable government' and market forces, and have enabled philanthropic resources in society to generate greater benefits. The Government will continue to support vulnerable groups through the tripartite collaboration among the Government, the business sector and the community, including establishing a platform to encourage family offices involved in philanthropic endeavours to provide resources for implementing projects that benefit disadvantaged groups.

Social Innovation and Entrepreneurship Development Fund

In addition, the Government launched the Social Innovation and Entrepreneurship Development Fund (SIE Fund) in 2013, aiming to connect different sectors of the community, including businesses, non-governmental organisations, academics, philanthropies, etc to address poverty and social exclusion as well as foster the well-being and cohesion of society through innovative solutions. The SIE Fund supports the entire life cycle of innovative ventures, from supporting idea incubation, providing seed funding for implementing prototype and start-up projects, to assisting their eventual scale-up. The ultimate goal is to foster the development of the social innovation ecosystem where social entrepreneurs can thrive and potential talents can be unleashed to develop innovative ideas, products and services that can effectively meet social needs. With a total allocation of $1 billion, around $800 million has been earmarked or allocated to take forward various initiatives since its establishment. The SIE Fund has funded 755 projects, benefitting around 600 000 people in need. To optimise the use of resources and operations, the SIE Fund has appointed a consultant to conduct a strategic review on its funding mechanism and operational approach. The review will be completed by end-2026.