Alibaba’s Jack Ma Sets Up Philanthropic Trust

Jack Ma (pictured above), the founder of Alibaba, a Chinese e-commerce giant, and Joseph Tsai, a co-founder, announced on April 24th that they have set up charities to be funded by stock options in the firm.  The two trusts will together receive share options equal to about 2 per cent of Alibaba’s equity, which are likely to be worth more than $2bn. Their philanthropic activities will initially be focused on causes including the environment, medicine, education and culture in China, Hong Kong and abroad, according to a press release.

With an estimated net worth of $4.05 billion, Mr. Ma ranked 29th on the 2013 Hurun Rich List of China’s wealthiest people, compiled by the Shanghai-based research group Hurun Report. Mr. Ma is already involved in Chinese philanthropy. In 2009, he joined the board of the Nature Conservancy. He is also friends with Jet Li, and sits on the board of Mr. Li’s One Foundation, which has been on the leading edge of philanthropic giving in China over the past decade.

The new trust is by far the largest endowment of its kind in China, say experts, and could rival one named after Hong Kong billionaire Li Ka-shing.  Besides the commitment to tackling tough problems in China, both philanthropists expect to inspire more entrepreneurs to join them in their philanthropic efforts. Their action is also highly praised by American philanthropic leaders, including Michael Bloomberg, Bill Gates and Warren Buffett.

For more details:

• Alibaba’s Jack Ma Sets Up Philanthropic Trust, April 24, 2014, Wall Street Journal
• Alibaba Founders Establish Charitable Trusts, April 25, 2014, PRNewswire