China e-commerce giant Alibaba Group Holding's founders strengthen philanthropic efforts by setting up new charitable trusts.
The founders of Alibaba Group Holding, the Chinese Internet-based e-commerce business that also offers wealth management services, have announced plans to set up charitable trusts to further their philanthropic activities.
Jack Ma and Joseph Tsai, co-founders of Alibaba, said that the trusts will be funded by share options granted by the firm to selected trusts for around two per cent of equity. This project will initially focus on causes related to the environment, medicine, education and culture in Mainland China, Hong Kong and abroad, according to a statement.
Both Ma and Tsai plan to make philanthropic contributions to their personal trusts alongside the company's corporate foundation, which is managed by employees. Since 2010, the firm has dedicated 0.3 per cent of its annual revenue to the foundation. The gifts to the respective trusts consist of options granted by Alibaba to acquire ordinary shares on the firm. The option grant represents around two per cent of the equity in the company and will be divided between the two founders' trusts.
This move is set to inspire more Chinese institutions to dedicate more toward philanthropic endeavours. According to Forbes, Jack Ma has a net worth of $8.8 billion as at 26 April 2014, while Joe Tsai has $3 billion. In the latest Charities Aid Foundation's World Giving Index, China ranked 133 out of 135 countries surveyed based on the percentage of people who give to charity. There are 444 billioniares in Asia, adds Forbes.
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