Tax relief is given for gifts to a charity.

The charity itself is exempt from tax and distributions from the charity to the charitable causes can be made without tax consequence.

 Charities can be a useful family wealth planning tool.

“Approved charitable donation” means a donation of money : to any charitable institution or trust of a public character, which is exempt from tax under section 88 of the Inland Revenue Ordinance, or
to the Government, for charitable purposes.

A charity is normally a company limited by guarantee or a trust which has as its aim one of the charitable purposes:

a. Advancement of education;
b. Advancement of religion;
c. Relief of poverty;
d. Advancement of health or the saving of lives; advancement of citizenship or community development; advancement of the arts, culture, heritage or science.