The schemes will be in association with UBS Community Affairs and UBS Optimus Foundation.

UBS Wealth Management will pilot two UK philanthropy innovations called programme-related investments, as a way to scale the impact of philanthropic capital.

PRIs will allow investments in the form of a loan, which means donors can regain the initial investment plus a rate of return, UBS said in a statement.

The innovation will provide greater access to finance for social organisations and potentially allow philanthropists to use the same capital multiple times over.

UBS is piloting PRI through two schemes:

-- A UBS UK donor-advised foundation (DAF) loan to Community Affairs partner Fair Finance Business Loans, a not-for-profit organisation providing business loans to financially-excluded micro-entrepreneurs in the UK;
-- A UBS Optimus Foundation loan to Hope and Homes, which works to remove children from harmful orphanage environments and place them with a loving family.

The firm is collaborating with UBS Community Affairs and the UBS Optimus Foundation to give clients access to the scheme to drive positive philanthropic impact. UBS will bear all the administration costs relating to both the DAF and Optimus, ensuring that 100 per cent of its clients’ philanthropic budget will reach the charities they are seeking to support.

“At UBS we are constantly looking for ways to support our clients to get more value and impact from their philanthropy and PRIs are a good example,” said Tom Hall, head of philanthropy services UK. “Philanthropists can recycle their donations many times over, as well as driving greater impact and scale compared to traditional grants. This is an exciting development and something totally new to the wealth management market."