Introduction of Child Development Fund

The Government has accepted the recommendation of the former Commission on Poverty to establish the Child Development Fund (CDF), so as to draw on and consolidate the resources from the family, the private sector, the community and the Government effectively in support of the longer-term development of children from a disadvantaged background. The Government obtained the approval from the Legislative Council Finance Committee on 25 April 2008, to establish the $300 million CDF, with a view to trying out a new model for promoting the longer-term personal development of children from a disadvantaged background.

The CDF seeks to provide the participating children with more personal development opportunities. Through formulating and implementing personal development plans, the CDF also seeks to encourage these children to develop an asset-building habit and to accumulate financial assets as well as non-financial assets (such as right attitudes and a proper mindset, personal resilience and capacities as well as social networks), as such assets are important for their future development.

The CDF allocates funds to non-governmental organisations (NGOs) to run projects throughout the territory in batches. Each project, benefiting 100 to 120 children, lasts for three years. The first batch seven pioneer projects was rolled out in December 2008, benefiting a total of 750 children. The second batch 15 projects was rolled out in June 2010, benefiting a total of 1 520 children. The third batch 18 projects has been rolled out in November 2011 benefiting a total of 2 188 children.

Besides, children aged 14-16 are given priority. They constitute no less than 70% of the participants in each of the first two batches of projects, and no less than 50% of the participants in each third batch project.

The CDF has three major components, namely personal development plans, mentorship programme and targeted savings. These three components are to enhance the children's abilities to manage resources and plan for their own future.

The participating children are required to draw up personal development plans with specific targets (both short-term and long-term ones) under on-going guidance from mentors and operating NGOs. In the third year, the operating NGOs will monitor the progress of how the children have achieved their development targets.

They will also receive basic training provided / identified by the operating NGOs. These training programmes are also intended to serve a broader objective of helping participating children develop a more forward-planning perspective and build up non-financial assets. These children will also be encouraged to participate in community services.

The CDF has set aside $15,000 per each participating child for the provision of relevant training programmes.

The operating NGOs will identify a personal mentor, who is a volunteer, for each participating child. Mentors will provide guidance to children in drawing up and implementing their personal development plans with specific development targets.

There will be a savings programme under the CDF to help participating children accumulate financial assets to realise their personal development plans. The savings target for each participating child and his / her family is set at $200 per month during the two-year savings period. They, however, can agree with the operating NGOs to set a lower savings target so as to address the special needs or circumstances of individual children and their families.

The operating NGOs will seek partnership from the business sector as well as individual donors to provide matching contribution for the resources accumulated by participating children under the savings programme (at least 1:1 matching contribution). The Government will also provide special financial incentive ($3,000) for each participating child upon completion of the two-year savings programme.

The participating children will spend the savings in accordance with their personal development plans in the third year.

The Government has set up a Steering Committee on Child Development Fund under the Labour and Welfare Bureau, to give policy steer to the design as well as oversee and monitor the implementation of the CDF. The Government will closely monitor the implementation of the CDF projects. The operating NGOs will also be required to present progress reports to the Steering Committee.

The Government will conduct an evaluation of the first batch of the seven pioneer projects, and take into account the results of the evaluation in deciding how the CDF can be further developed into a long-term model to promote the personal development of children from a disadvantaged background.

Centum Charitas Foundation, Lions Clubs International District 303 - Hong Kong and Macau, China and Child Development Matching Fund are the strategic partners of the CDF.

Sun Hung Kai Properties Limited and Treasury Markets Association are the supporting organisations of CDF.