Non-Lump Sum Grant (LSG) Mode

For those NGOs that have not decided to join LSG system, they will continue to receive subvention for the various units subvented under the four conventional modes of subvention as follows:

• Modified Standard Cost System: The Standard cost is based on Personal Emoluments calculated at mid-point salaries of the recognized posts. Within this limit of provision, NGOs are allowed the flexibility in employment of staff.

• Model System: Subvention is provided on the basis of the recognized cost of the unit which is adjusted for inflation annually.

• Lump Sum Grant Mode: Units are subvented on a lump sum basis. Under this system, there is no clawing back of surplus.

• Subsidy Scheme: For purchasing social welfare services from organizations, a fixed unit cost has been agreed in the form of a contract signed between the Department and the NGO administrator. There is neither topping up of deficit nor clawing of surplus.