Philanthropy

Coutts Launches Microfinance Pilot for Donors

Nick Parmee 18 September 2008

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."




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