Research Highlights

Nonprofit organizations play a vital role in Hong Kong by delivering essential services in areas such as healthcare, education, religion, and poverty alleviation. As the sector continues to expand, with private charitable donations growing significantly relative to GDP, issues of accountability and transparency have become increasingly important. Although Hong Kong nonprofits are not legally required to publish annual reports, many voluntarily do so to communicate their performance and effectiveness to stakeholders. However, limited research exists on what drives such disclosure and whether it influences donor behavior.

This project employs an explanatory sequential mixed-methods approach to examine nonprofit voluntary disclosure in Hong Kong. Quantitative analysis investigates the determinants of disclosure, including governance strength, organizational performance, and funding sources, and evaluates its impact on charitable contributions, including during the COVID-19 pandemic. Disclosure indices are developed to assess financial, performance, and governance reporting. Qualitative interviews further explore nonprofit managers’ perspectives on the costs and benefits of transparency.

By focusing on Hong Kong’s distinct institutional context, this study contributes new insights into nonprofit accountability. Its findings offer practical implications for policymakers and stakeholders, highlighting how enhanced disclosure can strengthen stakeholder trust, improve organizational effectiveness, and support informed giving decisions.