DONATION GUIDELINES

DONATION GUIDELINES (Abridged Public Version)

Definition of Donations

For the purpose of these Guidelines, we adopt the HKSAR Inland Revenue Department’s definition of “Donations” as appeared in “A Tax Guide for Charitable Institutions and Trusts of a Public Character” (“Tax Guide”). In paragraph 56 of the Tax Guide, it says “The word “donation” means a gift. To constitute a gift, the property transferred must be transferred voluntarily and not as a result of a contractual obligation to transfer it and no advantage of a material character is received by the transferor by way of a return...”

Tax Implications

The Hong Kong University of Science and Technology (HKUST) is a charitable institution exempt from tax under Section 88 of the Inland Revenue Ordinance, Cap. 112 of the laws of Hong Kong. Donors are advised to seek their own legal/tax advice if they wish to arrange tax deduction.

Key Principles in Considering whether a Donation will be Accepted

In considering an intended donation pledge, the University will consider, among other things, whether the donor (including, without limitation, the business of the donor) or the donation will be compatible with the purposes, goals, objects, reputation, ethos and mission of the University. In addition, the donation should predominantly be for the benefit of the University, contributing to the fulfillment of the University’s functions in teaching, research and service.

Approval Process

Acceptance of donations of over HK$10 million (in cash or in kind) needs to be approved by the University Council. For donations of HK$10 million and below, the Council has delegated its authority to the President, Vice-Presidents and Deans.

Documentation and Payment

All donations will be documented in writing. Major donation of HK$1,000,000 or above will be documented by a Donation Agreement. Reference can be made to the “Donation Agreement Template” developed by the University.
Donations of cash can be made by cheque, direct transfer, credit card or internet banking bill payment services through authorized financial institutions. Please refer to the University Giving Website (http://giving.ust.hk/) for more details.
Donors should make the donation to the University and not to name individual staff or the Beneficiary Unit as the recipient.
Donations in kind should be sent to the head of the Beneficiary Unit.

Naming Arrangement

The University may, at its own discretion and voluntary initiative, acknowledge/recognize the donor in such manner, duration and subject to such conditions as the University Council deems appropriate.
To name a School or an Academic Department after a donor is more complex and requires more deliberation. The University Management will have to lead the discussion and work out a plan.

Acknowledgment and Publicity

For monetary donations, the University will issue an official receipt to the donor. No official receipt will be issued for in-kind donations. The Beneficiary Unit can issue a letter to acknowledge the donor.
Normally, the University will acknowledge the donor through channels such as website and/or printed materials and/or other media. Donation ceremony with or without media presence can be arranged. If the donor intends to arrange its own publicity, please inform the University so that both parties can agree on the arrangement.
For activities such as conference, forum or competition, the University may offer title sponsorship to the donor, subject to any policy that may be introduced by Council from time to time.

Placement and Investment

The Finance Committee of the Council oversees and advises the Council on all matters within the jurisdiction of the Council which have important financial implications including investment strategy and governance. Based on the investment strategies and policies as approved by Council from time to time as well as the purpose and expected utilization of the donation, the Finance Committee shall decide on how the money is invested to safeguard its value and maximize the return.

Utilization and Reporting

For donations with specified usage, utilization will follow the usage as agreed between the donor and the University.
For donations without specified usage, they will be placed in the “unspecified donation” account of the University. The University management will decide the utilization with reference to the Strategic Plan and/or the Annual Budget Plan, following established governance and approval processes.
As may be directed in Donation Agreement, annual or periodic reports shall be provided to the donor.

Circumstances that may Affect the Donation Arrangement

In entering the Donation Agreement, the donor and the University may specify the procedures should there is the wish or need to make changes to the terms of the donation.

In the event of any situation under which either the donor or the University may not be able to fulfill the terms of the Donation Agreement, the University will first consult with the donor as to whether the terms of the donation can be adjusted. But if there is no agreement between the University and the donor, the University will have the discretion to decide on the arrangement.

Enquiries

The Development and Alumni Office (DAO) is the central coordination office for donations. Enquiries can be made to DAO (tel: 2358 8365; email: dao@ust.hk).

(26 September 2025)