Why family offices in Hong Kong are factoring philanthropy in to their investment portfolios

Aligning with global trends, Hong Kong family offices now increasingly view philanthropy as much more than just charitable giving. Though family offices are privately held companies whose central function is to maximise the wealth their client families pass on to subsequent generations, selective philanthropy can be a powerful tool for integrating family values into impact investments and wider legacy building.

Hong Kong is home to more than 2,700 single-family offices and 15,000 charities. Yet according to the Doing Good Index 2024, only 8 per cent of social organisations in Hong Kong receive ongoing funding for capacity building from social delivery organisations (SDOs) such as philanthropists and family foundations, well below the Asian average of 15 per cent.

“Engaging in philanthropy creates many knock-on benefits, not just to the community, but also to the family and their respective businesses,” said Kithmina Hewage, senior adviser at the Centre for Asian Philanthropy and Society. “Hong Kong has a well-established culture of philanthropic giving, but there is room to do more.”

Establishing a clear philanthropic mission that defines core principles and key causes is fundamental, according to Jason Fong, global head of family office at InvestHK. This mission statement “serves as a framework for aligning family values with social impact priorities”. A structured giving strategy with measurable goals is also critical, Fong said.

The challenges, however, that come with philanthropic giving are precisely measuring its impact, and that fundamentally it can even be at odds with a measurement-based business or corporate lifestyle, according to KPMG’s 2021 Global UHNWI Philanthropy White Paper. However, the paper also posits that philanthropic giving in any form is necessary to create impact, and can even bring generations close together within the family, fostering a long future of giving and goodwill within a high-net-worth family.

“Almost 80 per cent of the philanthropists participating in the [2021 KPMG Global Philanthropic Practices Survey],” the report said, “point to strengthening family bonds as a key benefit of philanthropy.”

The Kadoorie family’s commitment to sustainable development and environmental conservation is shown through the Kadoorie Charitable Foundation and ventures such as the Kadoorie Farm and Botanic Garden. With expertise in real estate, the Lee Hysan Family Office and Lee Hysan Foundation empower local communities through initiatives that improve access to education and healthcare. Both are examples of philanthropy in one generation reaching into the future to multiply the family’s impact and visibility.