Background
Dr. Charles Huang is a Chinese-American entrepreneur who was born and raised in Wuhan. He completed his Bachelor’s degree in economics at Wuhan University, and MBA and PhD in marketing at the University of Strathclyde in the UK. Formerly a top analyst at HSBC securities, he is the founder and current chairman of Pasaca Capital Inc. As he climbed the ladder of success, Dr. Huang founded the Charles Huang Foundation (CHF) in California, USA, in 2020. The first donations went to his alma maters. In September 2021, CHF donated US$70 million to the University of Strathclyde. This donation from alumnus Dr. Charles Huang is the largest gift the University of Strathclyde has ever received and also among the most generous made to any British university. In November of the same year, the Foundation made a gift of US$40 million (approximately RMB255 million) to Wuhan University, the largest personal grant made through foreign currency ever received by Wuhan University.
Q: When did you think of making a donation to your alma mater, Wuhan University? It’s said that you had a meeting with the University’s leaders on the sixth day of the 2021 Lunar New Year. What’s the reason behind such a determined decision and promotion? How was the exact amount of the donation determined? Did you decide at the beginning to make the single-largest donation? What was your original aspiration? Are you satisfied with the current progress and why?
Dr. Charles Huang: Education is a great cause that drives human progress which should be fully supported. My studies at Wuhan University signified the starting point of my journey into the world, and I deeply believe that all my achievements are founded on the excellent education that I received. Making a donation to my alma mater and paying tribute to knowledge has been my long-cherished dream ever since I got into business. At the end of 2016, I started my own business and established Pasaca Capital Inc. At that time, I set two major goals: one was to achieve huge commercial success within five years and the other was to donate a cumulative minimum of US$100 million from my personal wealth to my alma maters in China and the UK upon my firm achieving tremendous business success. The donations to my alma maters are just the beginning of my philanthropic endeavors, and more donations will be made to education and medicine in the future.
So, when I set up the Foundation in 2020, I made my alma maters in China and the UK the first recipients of donations in the first year. It was during the Spring Festival of 2021 that I approached Wuhan University’s leaders and helddetailed discussions about the donation. In China we say that a whole year's work depends on a good start in spring. Such a major event is of great importance to the university and me and, if we needed to complete it within the year, we had better take swift action because the framework, foci, design and management of such a big donation require careful consideration. What's more, since CHF is a private foundation set up in the US, this donation needs to meet the regulatory compliance requirements of both the US and China, all of which is a big challenge for the newly established CHF. It's the joint efforts of both sides that contribute to the successful implementation of the donation project.
Although the goals and promises were set for myself five years ago, they were serious. So, when my firm achieved considerable success, I followed through on my promise, donating US$70 million to my alma mater in the UK in September 2021 and US$40 million to my alma mater Wuhan University in November. So far, I am more than satisfied with the donation.
Q: Did you personally participate in the design of the framework and use of this major gift? What’s your expectation or goal for this donation?
Dr. Charles Huang: This gift to Wuhan University was determined under the framework which was worked out by our team and negotiated with the University. Through the donation, I hope to both express my gratitude to my alma mater and to make a positive impact in multiple ways through the various programs supported by the donation. The donation aims to enhance Wuhan University's academic standards and global reputation, promote the commercialization of scientific and technological achievements as well as help some alumni who are financially challenged but have the intelligence and talent to finish their studies successfully.
Of course, I also hope that my life story will inspire Wuhan University alumni to strive for excellence and lay a solid foundation for their future.
Q: We have noticed that more than 60% of the funding is permanent and endowed, which is uncommon among the major gifts received by universities in China. What’s your consideration or intention? Have you communicated with the university about value preservation and increase? Since the financial management of the university will have a direct influence on the longterm development continuation of the gift, what suggestions do you have for its management?
Dr. Charles Huang: Since the programs under this large donation focus on talent cultivation that will exert a profound influence on teachers and students, the permanent endowment type is more in line with the needs.
I believe that the university will pay as much attention to the preservation and increase of its value as I do and conduct necessary fund management and financial allocation in accordance with the regulatory requirements so as to support school and extend its influence to the university permanently.
Q: In what ways do you plan to stay in touch with Wuhan University in the future and participate in the implementation of this major gift? What are your main concerns? Do you think that the input-output ratio of philanthropic donations should be evaluated?
Dr. Charles Huang: My private foundation and I will be in constant contact with Wuhan University. The signing of the donation agreement, the arrival of the funds and the ceremony are just the starting point of this large donation. I believe that, as the CHF projects unfold, we will receive feedback from all parties involved, and it requires joint efforts to achieve smooth implementation and good results for all six programs. For this reason, we have chosen a Chinese charity consulting firm as our partner to assist the CHF team in project monitoring and management.
Apart from making donations, my private foundation and I intend to integrate related resources to further improve the academic standards and global reputation of Wuhan University and facilitate its internationalization. For example, my two alma maters can become sister schools and we can conduct international exchanges between them. Meanwhile, they can exchange ideas about their funds so as to better conduct joint programs. Through the donation, we also helped the Wuhan University Education and Development Foundation to obtain reciprocal accreditation as a non-profit organization in the U.S., which will facilitate a connection between overseas alumni and the university and bring convenience and new momentum for them to give back to their alma mater. All in all, I am concerned about the achievement of the ultimate goal and believe that more efforts in this regard will be needed in the future.
Q：Do you have a benchmark in the private foundation sector? Or which private foundations do you think can be models to learn from? What are the main functions and role of the private foundation in your overall plan?
Dr. Charles Huang: Our vision is to develop higher education, protect human health and promote growth-driven innovation globally, but we are still new in the field of foundations. My philosophy in philanthropy and business is to do the best in everything and become the benchmark. The scale and speed of my business success has broken many records, making it the latest legend in global business history. As for my foundation, I also hope that one day it will become a pioneer in the field.
Q: What experience (including tips and advice) or message do you have to share with future donors, including alumni, who are currently about to make major gifts to university foundations?
Dr. Charles Huang: I believe that educational institutions are the most important partners in accelerating innovation, so creating opportunities to maximize the potential of aspiring scholars and researchers is our mission. By collaborating with educational institutions to create new academic and research opportunities, the Foundation seeks to empower students, educators, and researchers in cultivating inventive and impactful solutions for the current and future challenges of our world. We hope that alumni and friends interested in growth-driven innovation can join hands to provide grants targeted at innovative development in higher education.
The above interview is excerpted from the 2021 Report on Major Gifts Received by University Foundations in China, the first domestic themed report on major grants in higher education. Through data analysis, interviews and case studies, the report provides insights into the current situation and trends of major gifts, which has received a heated response from donors, university foundations, relevant researchers and the media.
