Philanthropy
Coutts Launches Microfinance Pilot for Donors

London-based RBS-owned private bank Coutts & Co has launched a new pilot scheme for philanthropists. Clients will have access to a Microfinance Advisory Service to provide specific knowledge and insight into organisations within the microfinance sector to help them decide how to maximise the impact of their giving.
Clients will also benefit from a new Microfinance Donor Advised
Fund, giving them the opportunity to collaborate with each other
and increase the impact of their donations by pooling funds
together.
Microfinance is designed to help those with no access to
commercial banking solutions keep away from exploitative money
lenders. It typically offers small scale financial services,
including loans, savings and insurance. The approach was first
attributed to Nobel prize winner Dr Muhammad Yunus in Bangladesh
in 1976, but with now over 3,000 microfinance institutions of
varying size and quality and little guidance, it is becoming
increasingly difficult for individual donors to make informed
decisions on how they can positively impact the world's poor.
In addition to receiving assistance from Coutts Philanthropy
Specialists on creating a giving strategy, clients can contact
the independent Microfinance Advisory Panel. Clients will also
have access to written reports on microfinance and microfinance
organisations that the panel has prepared.
The Donor Advised Fund is a collection of irrevocable donations
administered by the Charities Aid Foundation and intended for
distribution, in entirety and at the direction of the donors, to
organisations with charitable purposes. Donors will
contribute a minimum donation of £10,000 (about $18,000) and will
benefit from collaborating with other philanthropists in pooling
funds and directing donations.
Maya Prabhu, Coutts senior philanthropy adviser, said: "To kick
off this pilot, Coutts are hosting a dinner which clients and
philanthropists interested in these schemes are welcome to
attend."