Coutts launches fund to treble philanthropic donations
Coutts, the UK-based private bank, has developed a fund in partnership with the Community Foundation Network which allows philanthropists to increase their donations by up to 341%, through Gift Aid tax relief and government "top-up".
The Grassroots Personal Fund offers has the advantages of a private charitable trust but without the administrative overheads, according to Coutts. It enables a higher rate tax payer creating a new fund with a £100,000 contribution to increase its value to £128,210 through gift aid and, in areas where a 100% top up is available, then further leverage it to £256,420.
CFN, the UK based group that advises clients on local giving, said the new product will allow philanthropists to turn a £300,000 charitable endowment donation into as much as £1m, and as the capital investment is never eroded, a sustainable source of income is also created for local charities.
The inspiration for the programme was a similar initiative in the early 1990s when three community foundations managed to generate endowed funds in excess of £65 million by attracting over 300 individual and corporate philanthropists, using a government pump priming fund of only £2 million.
Mark Evans, head of philanthropy at Coutts said: "We are looking forward to talking to clients who are keen to support their local communities by leaving a legacy, starting with the Coutts Forum for Philanthropy in association with the Manchester Community Foundation."
He said that a lot of the issues that concern people today can only be addressed by supporting change from within local communities and this additional funding will accelerate the development of new sustainable sources of finance, independent of government.
Evans said: "The expertise of community foundations in identifying beneficiaries and managing funds is one of the best ways to make sure that giving makes a real difference at a local level."
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