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Alibaba Founders Establish Charitable Trusts

Osborne & Partners
2014-04-25 15:21 1557

HANGZHOU, China, April 25, 2014 /PRNewswire/ --

GIFT OF 2% OF ALIBABA EQUITY TO FOCUS ON ENVIRONMENT, MEDICINE, EDUCATION AND CULTURE

Jack Ma and Joe Tsai, co-founders of Alibaba Group Holding Limited ("Alibaba" or "the company"), today announced the establishment of personal charitable trusts funded by share options granted by Alibaba to the charitable trusts designated by Jack Ma and Joe Tsai for approximately two percent (2%) of Alibaba's equity. Their philanthropic activities will initially be focused on causes including the environment, medicine, education and culture in mainland China, Hong Kong and abroad.

Jack Ma and Joe Tsai intend to make philanthropic contributions through their respective personal charitable trusts, in part, alongside Alibaba's corporate charitable foundation, which is managed by volunteer employees of the company and contributes to initiatives in environmental awareness and conservation. Since 2010, Alibaba has earmarked 0.3% of the company's annual revenues to fund the Alibaba corporate charitable foundation, in addition to Jack Ma's previously announced commitment to donate all of his economic interests in a general partner of the Yunfeng Funds to the foundation.

Alibaba and its employees have also dedicated significant time and resources toward disaster relief efforts and other community activities in China and internationally. Recently, Alibaba initiated a program to provide citizens with water testing kits to encourage self-reporting and raise awareness of the water pollution issues across China.

Jack Ma said: "Alibaba was founded 15 years ago with a mission 'to make it easy to do business anywhere' and a set of principles and values that emphasize our responsibility to society. Giving back to society is deeply embedded in Alibaba's culture and I am incredibly proud of the commitment that our employees have shown to improving peoples' lives."

The gifts to the respective charitable trusts of the two founders consist of options granted by Alibaba to the charitable trusts designated by Jack Ma and Joe Tsai to acquire ordinary shares of Alibaba. The option grant, approved by Alibaba's board of directors last year, represents approximately two percent of the equity in Alibaba and will be divided between the two trusts in approximately the same proportion as the equity stakes currently held by the two founders in Alibaba.

"We hope to live in a world with bluer skies, cleaner water and better access to healthcare. I am extremely focused on the environment, medical care and education in China but concern and complaints cannot change the current situation. I am passionate about actively contributing and helping to solve these problems. We must assume responsibility and take action to improve the environment that our children will inherit, and this is why I strongly support the efforts of The Nature Conservancy and agreed to take on the role of China Chairman last year," Jack Ma continued.

"I hope that by taking this path and drawing attention to these issues, we raise awareness among even more people, and that we inspire and encourage our peers, partners and other entrepreneurs to join us in our philanthropic efforts," said Joe Tsai.

The charitable initiative of Jack Ma and Joe Tsai was unanimously endorsed by the board of directors of Alibaba.

Masayoshi Son, founder, Chairman and Chief Executive Officer of SoftBank Corp. and a director of Alibaba, said: "I have tremendous respect for this charitable initiative of Jack and Joe. I think it is truly outstanding that the people of Alibaba are contributing to Chinese society in this way, and I fully support the endeavor."

Jackie Reses, Chief Development Officer of Yahoo, Inc. and a director of Alibaba, said: "I am impressed by the thoughtfulness and community spirit behind the establishment of the two personal charity trusts by Alibaba's co-founders and by their strong desire to give back to the community."

Support from business and philanthropic leaders:

Michael R. Bloomberg, former Mayor of New York City and Founder of Bloomberg Philanthropies, commented: "Jack Ma and Joe Tsai are both very generous individuals who understand the importance of giving back and helping others, which is reflected in the culture of Alibaba. I've spent time with both of them to discuss their commitment to improving lives. Their gifts set a new bar for philanthropy in China, and hopefully other entrepreneurs and business leaders around the world will follow in their footsteps."

Bill Gates, Co-Chair of The Bill and Melinda Gates Foundation; Founder and Technology Advisor of Microsoft Corp. commented: "This is terrific news. Jack and Joe's generosity, leadership and example will do an immense amount of good, particularly in this remarkable time in the development of philanthropy in China."

Warren Buffett, Trustee of The Bill and Melinda Gates Foundation; Chairman and Chief Executive Officer of Berkshire Hathaway, commented: "Jack and Joe have been extraordinary leaders in business and have now become leaders in philanthropy. I admire and applaud them."

Source: Osborne & Partners
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