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Overview of cultural “m é c é nat” in Asia: HK, China

Philanthropy and Sponsorship as agents for artistic and cultural development. Overview of cultural “m é c é nat” in Asia: HK, China. Desmond Hui Royaumont Abbey, Paris February 4, 2006. Theses. Tendency of “small government” “big society”

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Overview of cultural “m é c é nat” in Asia: HK, China

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  1. Philanthropy and Sponsorship as agents for artistic and cultural development Overview of cultural “mécénat” in Asia: HK, China Desmond Hui Royaumont Abbey, Paris February 4, 2006

  2. Theses • Tendency of “small government” “big society” • Economic model of non-intervention for Welfare and Culture • Civil Society Organizations as bridge between Public and State for policy development • Partnership among CSO, State and Market (West Kowloon Cultural District – a new form of mécénat?)

  3. Sectoral Interactions The Public provide direct services provide services Private Sector (Market) Government (Non-market) pay taxes serve pay for services provide funding Civil Society Organizations

  4. Mandate CSOs Government Market provides funding appoints Advisory committees Subvented NGOs Statutory bodies become institutionalized Public authorities The public sphere

  5. The Number of HK’s Major NPOsSource: Hua Qiao Ri Bao 2002 – 16,662 (source: CPU Study)

  6. HK’s Major NPOs (1992 & 2002), by Primary Activity Source: Hua Qiao Ri Bao *source: CPU Third Sector Study 2002

  7. Government Structure of Arts and Culture (since 1.1.2000) Government Secretariat 行政署 ITBB 資訊科技 及廣播局 Works Bureau 工務局 EMB 教育統 籌局 HAB 民政事務局 APA 演藝學院 ADC 藝術發展局 Advisory Committees 各諮詢委員會 AAB 古物諮詢 委員會 ED 教育署 RTHK 香港電台 ASD 建築署 L&CD 康樂及文化署 Subvention to Arts Groups Cultural / Arts TV Programs Building/ Designing Cultural Facilities Arts Education AMO 古物古蹟 辦事處 MO 音統處 Museums 博物館 Libraries 圖書館 4 Arts Groups 管弦樂團/中樂團 話劇團 / 舞蹈團 Civic Centres / Venues 文娛中心/ 表演場館 Radio 4 Legend (圖例) Central Gov. Bodies (中央政府架構) ___ Advisory Bodies (咨詢組織) ___ Subvented Statutory Bodies (直資法定組織) ___ Services / Functions Provided (服務或功能) ----

  8. Major Statistics 2001-02 • Government expenditure on culture and the arts totals HK$2.6 billion (US$333 million) a year (excluding capital works expenditure), representing approx. 1 % of total govt. expenditure. • Education 19%, health 13%, social welfare 11%. • LCSD takes 2.2 billion of which 31% spent on staff salary, 43% on departmental expenses, 9% on subvention and only 17% on programming (LCSD total budget 5.2 billion) • Academy of Performing Arts $180 million, ADC $140 million (half for grant allocation) • $1.3 billion (half of total) spent on performing arts

  9. LCSD Expenditure in 2002-03 Items HK$(Million) • Recreation and Sports 2,260.5 • Horticulture and Amenities 565.2 • Heritage and Museums 605.2 • Performing Arts 1,077.4 • Public Libraries 734.6 __________________ 5,253.0

  10. Hong Kong Arts Development CouncilGrants Allocation Item Total Grant (Project, 1-3 Year) Dance 25.1 (HK$ Million) Drama 16.1 Music 13.6 Film and Media Arts 5.1 Visual Arts 6.1 Xiqu 2.4 Literary 2.6 Multi-Discipline 1.5 ______ 72.6

  11. Arts Organization Year of Establishment Subvention (HK$ M) Percentage (%) Hong Kong Philharmonic Orchestra 1895 (1974 professionalized) 68.00000 29.28 Hong Kong Chinese Orchestra 1977 56.77000 24.45 Hong Kong Dance Company 1981 30.94000 13.02 Hong Kong Repertory Theatre 1977 30.23000 13.02 Hong Kong Ballet 1979 15.13000 6.52 Hong Kong Sinfonietta 1990 12.10600 5.21 City Contemporary Dance Company 1979 9.35200 4.03 Chung Ying Theatre Company 1979 (1982 professionalized) 5.94000 2.56 Zuni Icosahedron 1982 2.17800 0.94 Ming Ri Theatre Company 1995 1.56816 0.68 Grant Total 232.21416 100% HK Government Subvention to Professional Arts Organizations in 01/02

  12. HK home to 300,000 firms Employing 3.4 million 1016 approved charitable organizations (IRD, 2004) Corporate Giving in HK * HK Monthly Digest of Statistics, Jan 2001

  13. The Registering Date of Foundations in Hong Kong (International Grant Making Foundations: http://www.asianphilanthropy.org/grant/local/hongkong/hksar.html, 25 Jan 2006)

  14. Some Funding Organizations in HK for Arts and Culture, 2006

  15. 2003 Directory of Social Service Funding in HK covers 102 foundations, including 70 private foundations.

  16. Measure Corporate Giving Source: HK IRD (from Golin & Harris, 2001)

  17. Charitable Contributions as % of GDP Source: Various National Statistics

  18. Sources of Charitable Contributions(latest available years) Sources: AAFRC, Canadian Centre for Philanthropy,Charities Aid Foundation, HK Inland Revenue Department * Not separately identified

  19. Philanthropic Giving: Preferred Targets (%) * Corporate Giving only. HK respondents allowed multiple responses, so responses do not equal 100% Sources: Golin/Harris Survey, January 2001, AAFRC, Conference Board, Canadian Centre for Philanthropy and China Association of Sciences Foundations

  20. Priority Targets for Corporate Giving Source: Golin/Harris Survey, January 2001

  21. Percentage of Population that had Volunteer Experience Survey by Lingnan University, HK, 2001

  22. Individual Volunteering • Survey on 2,032 citizens aged 15 or above – 45.5% have participated in one form or another in the past year • Average 60 hours • each gave on average HK$827 (or approx. USD110) • Tax reduction not a significant incentive Source: HK Federation of Youth Groups Survey 2001

  23. The Role of Companies in the Development of a Vibrant Third Sector in HKGolin/Forrest 2001 Major Findings: • Corporate giving – accounts for 10% of total giving • Big companies give more (so do companies with large numbers of local staff) • SMEs give little in cash, but potentially valuable in terms of staff volunteers • Most companies family owned and not channel for philanthropic giving • IRD – approved charitable donations by companies of HK$850 million in 1999, 0.36% of total assessable profits of HK$234 billion (actual figures at least HK$1.4 b with upper bound at 2.6 b) • Successful business leaders give discretely • Broadening awareness by reliable academic research that strong community commitment coincides with strong profits performance • Forecast corporate giving will grow

  24. Charitable Donations in HK (HK$m) 3500 Amount of approved charitable donations allowed under Profits Tax (Company) HK$ (million) 3000 Amount of approved charitable donations allowed under Salaries Tax (Individual) 2500 2000 1500 1000 500 0 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Year

  25. Source: The Swire Group, HK

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