As the nation celebrates the 75th anniversary of the founding of the People’s Republic of China, it is a good moment to reflect on the economic transformation that has taken place in the country, and the impact of the immense wealth creation.

This includes Hong Kong, which has around 10,000 officially recognized charitable institutions. With our population of 7.5 million, this is one charity per 750 residents. Compared with Singapore, which has approximately 2,400 registered charities and a population of 6 million, and therefore one charity per 2,500 residents of the city-state, Hong Kong seems to be more generous.

This relatively high number of Hong Kong charities is despite the fact that it has become increasingly cumbersome for an organization to obtain the coveted profit tax exemptions from the Inland Revenue Department under Section 88 of the Inland Revenue Ordinance. This exempt status is very important for a charity, as the donations can all be used for charitable causes, without a portion being paid as tax. But perhaps even more important, it serves as a “stamp of approval”, making it easier to approach potential donors, who in turn also benefit from their donations being tax-deductible.

Unfortunately, the “black-clad riots” we suffered in 2019 had an impact on the world of charities in Hong Kong, as it was discovered that a number of them were a clandestine cover for noncharitable and even criminal activities to be financed under the cover of charity. This has unsurprisingly made the IRD’s due-diligence process more detailed and therefore very lengthy. A local charity that I know well is Birthday Happiness Asia, which organizes birthday parties for local disadvantaged children. This is unfortunately still necessary in our very prosperous city, with an estimated 253,000 children struggling with poverty, and 50,000 children living in “caged homes” or partitioned rooms, doing their homework on beds. This important and much-needed charity, which gives these children an unforgettable experience, needed more than three years to obtain the IRD stamp of approval. This is simply too long, and while a correct and robust due diligence is important, it should not have to take so long. Hong Kong prides itself on having an efficient civil service, but in this aspect, the efficiency seems to have been taken too far.

Birthday Happiness is but one example; there will surely be many more. The HKSAR government should look at ways to streamline the process and thereby attract more charitable institutions to our territory. There is often a strong link between wealthy entrepreneurs, family offices and charitable institutions, so if Hong Kong attracts charities, then the founders and their family offices will also follow. Hong Kong has the opportunity to become the charity hub for Asia, and be the center of excellence for the establishment and management of a charitable foundation.

Looking at the largest charities in the world as listed by ARCO, of the top 100, the vast majority are from the United States, with the rest being from European countries. There is not one Asian charity in the list, which is astonishing, considering the amount of wealth that has been created during the last few decades, most notably in China. As we have seen in other parts of the world, once the newly superwealthy grow tired of playing with fast cars, super yachts and airplanes, they often move on to more meaningful things such as art and charitable causes. This is the moment for Hong Kong to build the ecosystem necessary for charitable institutions to thrive, and become the charity hub of China, and Asia. This includes education on how to run a charity, dedicated bank staff, and government support on all levels, including an efficient streamlined approval process.

As such, it is a very promising opportunity that Global Philanthropic, a leading international company (established while its founder lived in Hong Kong over 20 years ago), dedicated to advising both philanthropists, corporations and fundraisers, will host its philanthropic forum in Hong Kong in November. Together with the Hong Kong University of Science and Technology and some of the world’s leading foundations and NGOs, Global Philanthropic will bring the fifth “Talking Philanthropy” event to Hong Kong. It is the largest philanthropic forum in the world, with the last one having taken place in Singapore. The opportunity for fundraisers, family offices and charitable foundations to mix and mingle will surely result in positive action for all, and will be another steppingstone in placing Hong Kong, and China as a whole, on the global charity map.

Once the Chinese high-net-worth individuals understand the legacy and positive reputation they can leave behind for future generations, and all the good they can do, Hong Kong will benefit, and other Asian and global families will follow. The more there are charitable foundations like Birthday Happiness, the better for society.

Hong Kong becoming the philanthropic center of Asia seems a befitting and lasting 75th-anniversary present for the nation.

The author is an adviser on China-related matters to both the private and public sectors, and was the first non-Chinese CEO of a Chinese State-owned finance company.

The views do not necessarily reflect those of China Daily.