Contact Us
【Register for our Free Trial Powerup S】 Register Now
product hero background

NGO Actuarial Study for Finance and HR

Learn More
Background of LSGUtilization of LSGPatterns and corresponding effects of using LSGUnlocking Success for Organizations with Actuarial Studies

Background of LSG

The Lump Sum Grant (LSG) aims to give NGOs flexibility and greater autonomy to deploy resources and re-engineer services to meet changing community needs
During the financial year of 2022/23, the government subsidized over HK$20 Billion to 170 NGOs
However, a significant concern is that the LSG reserve has exceeded HK$5 billion
Surpassing 25% of the Social Welfare Department's (SWD) subvention. Some organizations have even accumulated LSG reserves of more than HK$0.3 billion
In 2021/22, 47 NGOs recorded a reserve balance exceeding the 25% threshold
resulting in a total refund of HK$80 million to the SWD. This highlights the importance of effectively utilizing the grant to avoid unnecessary financial burdens and ensure optimal resource allocation.
Can organizations effectively utilize the Lump Sum Grant (LSG) considering the growing severity of frontline staff turnover, given that the largest expense covered by the LSG is personal enrolments of staff?

Utilization of LSG

Proportion of expenseUtilization Of LSG 1

Factors affecting LSG income

Utilization Of LSG 2
1
Composite Consumer Price Index
Utilization Of LSG 3
2
Civil Service Salary Adjustment
Utilization Of LSG 4
3
New Service Units
Utilization Of LSG 5
4
Financial Budget of the Government

Patterns and corresponding effects of using LSG

Over Conservative

Over Conservative

Over Aggressive

Over Aggressive

Common Practice
  • Max. Salary Point = Mid Point of MPS
  • Limited Employee Benefits
Common Practice
  • Max. Salary Point = Last Point of MPS
  • Competitive Employee Benefits
Effects
Challenges in retaining talents and hiring new staff
Increased risk of a high turnover rate
Potential compromise on service quality
Refunding of excess reserve (>25%) to the government

VS

Effects
Challenges in forecasting the organization's financial sustainability
Risk of facing deficit, or even a negative reserve
Potential impact on long-term commitments and obligations
The necessity for additional funding
TalentOut Flow 1
Does Lump Sum Grant (LSG) usage lead to talent outflow?
The issue is less about the LSG itself, and more about how it's managed.Ineffective financial planning can cause talent loss and impact service quality.
The Social Welfare Department promotes actuarial studies to guide NGOs in effective LSG management, enhancing decision-making and preventing excessive reserve clawbacks. This ensures sustainable talent retention and service delivery. The LSG is not the problem, poor financial management is - let's change this narrative together.TalentOut Flow 1

Unlocking Success for Organizations with Actuarial Studies: A Simplified Guide

Actuarial Studies
  • Actuarial Studies 1

    Actuarial Studies: Helping Organizations Solve Problems

    • Finding out root causes of problems
    • Creating smart plans to overcome these hurdles
    • Retaining talents
    • Utilizing allocation of resources
  • Actuarial Studies 2

    Optimizing Provident Fund Contributions with Actuarial Studies

    • Designing plans according to employees' job grade and years of service
    • Analysing the actual contribution rate of each employee
    • Offering a better plan than suits stakeholders' needs
  • Actuarial Studies 3

    Using Actuarial Studies for Better Planning and People Management

    • Planning budgets for up to 10 years ahead for effective decision-making
    • Evaluating factors affecting development and plan ahead
    • Analysing the utilization of LSG and implementing flexible strategies
  • Actuarial Studies 4

    Building a Strong Future with Actuarial Studies

    • Solving problems early for long-term success
    • Using resources in the best possible way
    • Making choices that help reach goals
    • Dealing with surprises better and working more efficiently
    • Building a strong and successful future for the organization

Don't Wait. Act Now!

Talk to us for more details of NGO Actuarial Study for Finance and HR

Contact Us

Talk with our specialist

Talk with our specialist

Please fill in the details to know more

GUM MPF IndexAboutReportMPF Offset Abolition Insight PaperEmployee Insurance Benefits Research 2023Engaging your people with Total Wellbeing 2023Flexible Benefits 2023 - Trendy or the New NecessityGUM Top 10 Things you have to know in 2022Powerup Program TrialNewsroomContact UsCareers

Get Start with GUM for Business

Everything you need to know about the product and service.
Contact Us
marketing@gumhk.comOffice A-D, 31/F, Legend Tower 7 Shing Yip Street, Kwun Tong Kowloon, Hong Kong

Privacy Policy
Terms of Use
Copyright © 2023 GUM. All rights reserved.