Philanthropic capital is a major funding channel for sustainable development. Nonprofit organizations deliver frontline programs in environmental conservation, climate adaptation, public health, and social welfare, yet the market that allocates resources to these organizations suffers from severe information asymmetries. In Hong Kong, over 17,611 organizations hold tax-exempt charitable status under the Inland Revenue Ordinance. Yet the philanthropic market operates under conditions that would be unacceptable in regulated financial markets: NGOs face very few regulations on publicly disclosure about financial statements, governance structures, or program outcomes. Funders cannot easily verify which organizations are well governed, financially sound, or effective at achieving their stated missions. The result is that organizations with stronger marketing but weaker governance may attract resources at the expense of better-managed organizations with greater development impact. This project tests whether a publicly deployed transparency benchmarking platform can improve nonprofit governance and the efficiency of philanthropic resource allocation.
