Frequently Asked Questions
- Is the Annual Fund unique to HKIS?
- What is the HKIS Annual Fund?
- Why does HKIS have an Annual Fund?
- Why not raise tuition to cover the cost of educating a student?
- If we have an Annual Fund, why does HKIS need to increase tuition?
- Who gives to the Annual Fund?
- How and When can I contribute?
- How much should I donate?
- Can I get tax benefits for my donation?
- Where should I sent my gift?
- How is my gift recognized? Can my gift be designated "Anonymous"?
- Does HKIS accept matching gifts?
- Who can I contact for more information on the Annual Fund?
Universities, colleges and independent schools around the world operate with a financial model similar to that of HKIS, whereby tuition is deliberately set below the cost of educating a student. In the majority of cases, gifts to the Annual Fund are directed to both the current operating budget as well as the endowment. 80% of Annual Fund proceeds go to fund current year operational needs while 20% is invested in an endowment for future needs. Interest income is spun off of the endowment yearly and directed to the current year operating budget. There are many reasons why this model is so prevalent:
By providing an alternate source of income from tuition alone, the Annual Fund provides HKIS with the financial flexibility to operate with a balanced budget. Financial flexibility means the school does not have to rely on tuition increases alone when making adjustments to staffing, programs, infrastructure, etc. As a non-profit, it is important that HKIS operate with a balance budget. The endowment allows the school to build a financial foundation upon which it may rely in times of need or opportunity.
HKIS is a non-profit organization. Contributions to the Annual Fund offer a tax benefit to donors and as well as the school. Tuition payments are not tax-creditable for parents/corporations and tuition income is not tax-creditable for HKIS.
Annual Fund contributions keep tuition increases at a minimum for every student. Because the operating budget receives supplemental income from both the Annual Fund and the endowment, the tuition required per student is reduced and relatively stable. These savings are critical. First, we know that over a third of our families are pay their own tuition. Many families make serious sacrifices to pay tuition. Therefore, keeping tuition low contributes to the diversity of our student population. Second, corporations benefit from lower tuition as it allows them to manage their compensation and benefits costs.
100% of Annual Fund contributions remain with HKIS. Our endowment is managed by a committee comprised of HKIS community members. Our school does not provide funds to, or receive funds from, any religious or civic organizations. Similarly, we do not receive funding from the United States or Hong Kong governments. Our schools is entirely self-sustaining and relies upon tuition income, Annual Fund contributions and endowment interest income for its operations needs.
The Annual Fund is the cornerstone of the school’s fundraising efforts. Contributions go toward the operating budget of each division and support the cost of faculty salaries, professional development, academic and co-curricular programs, and school infrastructure maintenance beyond what tuition alone could provide. Everyone in the HKIS community – parents, alumni, faculty and staff – are encouraged to contribute to the Annual Fund each year. In 2013-2014, over HKD 15,000,000 in gifts and pledges were received with grateful thanks.
Many HKIS parents pay their own tuition. Raising tuition to the full cost of educating a student would be prohibitive. Contributions to the Annual Fund are tax-deductible, both in the United States and Hong Kong. Without this charitable support, HKIS would not be able to sustain the breadth and quality of programs that currently exist.
HKIS gratefully welcomes your gift any time during the school year. Donations can be made by check or credit card or wire, in either HK dollars or US dollars. Everyone is encouraged to contribute, no matter the size of the gift. High levels of participation in the Annual Fund demonstrate commitment and support of the school’s Mission and Student Learning Results. Further, broad participation is a key factor when securing grants from corporations and foundations.
Our goal is 100 percent participation. Donations to the Annual Fund range from HKD 20 to more than HKD 2,000,000. Gifts of any amount are gratefully accepted. High levels of participation in the Annual Fund demonstrate commitment and support of the school’s Mission and Student Learning Results. Further, broad participation is a key factor when securing grants from corporations and foundations.
Yes. Gifts made to the HKIS Annual Fund are tax-deductible in both the United States and Hong Kong. For US tax deduction, please make your check payable to “Friends of Hong Kong Charities Inc.” and ensure that nothing is written on the lower left hand corner of the check. You must be a US citizen or resident and your check should be for HK$800 (approximately US$100) or more. Checks may be denominated in either US dollars or HK dollars. Each quarter, the Friends of Hong Kong Charities, Inc. issues receipts that support tax deductions in both the United States and Hong Kong. For Hong Kong Tax Deduction, please make your check payable to “Hong Kong International School” or “HKIS.” Only HK Dollar checks are accepted and tax receipts will be issued exclusively for Hong Kong tax deduction.
Yes, matching gifts are gratefully accepted. Corporate support makes a significant contribution as it can double or triple the size of your gift. Please contact your employer’s human resources department to obtain the appropriate forms to make a matching gift. The Advancement Office is pleased to assist with this process.
For more information, please contact Advancement at +852 3149 7819 or at firstname.lastname@example.org