Lump Sum Grant (LSG) Subvention System

Lump Sum Grant Subvention System (LSGSS) is to enhance efficiency and effectiveness, improve quality, encourage innovation, strengthen accountability and provide flexibility, with a view to deploying resources in the most cost-effective manner to meet changing needs in the community. The Lump Sum Grant (LSG) arrangements were introduced in 2000-01 for voluntary adoption by non-governmental organisations (NGOs). Under LSG, NGO management have autonomy and flexibility in the deployment of subvention resources to meet the service needs.

As at 1 March 2023, 166 out of the 171 NGOs operating subvented welfare services have joined LSG system and the subvention for these NGOs represents over 99% of the total recurrent subvention for 2022-23.

The following are the reference documents of the LSGSS 

1.  Director of Social Welfare's Speech in Lump Sum Grant Briefing
      (31 October 2000) (Chinese version only)

2.  Director of Social Welfare's Speech on 'Lump Sum Grant'  
     (September 2000) (Chinese version only)

3.  Paper on Social Welfare Subvention Reform 
     (June 2000) (Chinese version only)

4.  Welfare Sector Subvention Reforms 
     (June 2000)

5.  Subvention Reform - Lump Sum Grant 
     (April 2000) (Chinese version only)

6.  Social Welfare Reform: Proposed Lump Sum Funding Package 
     (February 2000)

7.  Review Report on Lump Sum Grant Subvention System
     (December 2008)

8.  Review Report on Enhancement of Lump Sum Grant Subvention System
     (July 2021)