Clifford Chance

Hong Kong non-profit boards reveal opportunities for deeper impact

Clifford Chance and Asian Charity Services unveil

Hong Kong's first survey on non-profit board governance

Leading international law firm Clifford Chance and Asian Charity Services, a provider of services on a pro bono basis to non-profit organisations in Asia, have found that these organisations have passionate board members who see opportunities to improve longer term planning, processes, internal policies and performance measurement. This is according to the Hong Kong Non-Profit Board Governance Report, the first ever survey to assess Hong Kong non-profit organisations' views on board governance.

As part of the report, 50 local Hong Kong-based non-profit organisations were surveyed to gain insights into several key issues, including the role of board members/top management and the board's decision-making processes. While the survey's findings show non-profit board members are inspired by their organisation’s mission and values, it also reveals a strong interest in improving board governance. In particular to improve the long-term planning processes at the board level,  more effective processes for the board, routine reviews and updates on internal policies, regular performance evaluations, and generally improved board processes.

"Contributing to and actually supporting local communities has become a key business priority for organisations worldwide," commented Peter Charlton, Managing Partner, Asia Pacific at Clifford Chance. "Charitable work has always been an integral part of the Hong Kong community. By assisting local charities and other non-profit organisations in making a longer, deeper impact on the community, we aim to make a lasting difference to communities where we live and work."

The report proposes four opportunities to enhance overall board-level governance of non-profit organisations in Hong Kong and to increase their impact on society. These include:

• Board process development. Practical and easy-to-implement board processes help to focus a board’s goal-setting, policy-setting and review, as well as succession planning efforts.
• Leadership development. Continually strengthening the leadership skills of board members in order to raise the board's overall effectiveness. 
• External consultation support. Input from business specialists is highly valuable in helping non-profit organisations raise their performance levels by adopting best practices and more effective management tools.
• Investing in organisation capacity. Significant funding and resource support is needed to improve the effectiveness of non-profit organisations' board. 

As a result of the study, Clifford Chance will organise a series of workshops for non-profit organisations in Hong Kong to help address the key issues raised.

"There are thousands of charities across Hong Kong making an incredible difference to their local communities every day, and yet their continuing need to grow their organisation capacity remains unmet. We foresee that much more can be done for these charities to enhance further their overall impact to society," commented Nancy Yang, Executive Director of Asian Charity Services.

Fifty Hong Kong non-profit organisations completed the self-assessment survey which comprised two parts: Part I, 24 assessment criteria which measured five categories of board capabilities: goals, values, rules, roles and processes; and Part II, 21 criteria which measured five categories of board member skills: rational/logical skills, time management skills, physical skills, inter-relation skills, and inspirational skills.