Coutts launches two microfinance pilots for Philanthropists

***Advisory panel and 'Giving Club'***

Coutts & Co today announces two pilot services for philanthropists. A panel of eight members, to provide guidance and advice on the microfinance sector to aid clients in making the right funding decisions, and the Coutts Microfinance Donor Adviser Fund (Giving Club), which allow donors to collaborate with others in order to pool funds for microfinance projects around the world.

Microfinance

Today's traditional banking solutions are beyond the reach of most of the world's three billion poor who often have no choice but to approach informal and often exploitative money lenders. Hence the growth of microfinance: 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 (MFI) and 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. Typically, Microfinance repayment rates are between 90% and almost 100%, [and all monies received back are reinvested back into the charity and are not refunded back to the donor.]

Coutts Microfinance Advisory Service

A panel of eight advisers, including independent consultants, Microfinance experts, philanthropists, and Coutts experts have identified, through an elimination process, 11 microfinance organisations with a strong case for philanthropic support. The selection is aimed to give a balanced portfolio on the basis that donor support is needed in many areas to tackle the multi-faceted challenges adequately.

Coutts Microfinance Donor Adviser Fund

Administered by the Charities Aid Foundation, the fund, with a minimum donation of £10,000 allows donors to collaborate with other philanthropists to pool funds. Participants will receive advice, background and overview documents on the charities,

Mark Evans, Head of Philanthropy at Coutts & Co commented: "Giving to charity is a personal act of generosity, so its only natural that Coutts clients should desire a greater involvement in how they select and support the recipients of their charitable investments. One topic of interest to our clients is microfinance: small scale financial services aimed at poor people who have no access to them. That is why Coutts is piloting a Microfinance Advisory Service and Donor Advised Fund to offer clients more guidance in their giving. While there are many great organisations out there doing great work, we believe that with a portfolio approach the 11 selected organisations provide a good balance, representing a range of continents, services, geographies, organisations, projects and charities that act as re-granters."

"At Coutts we believe that philanthropic giving is about much more than pride and hubris. We believe that effective philanthropy requires donors to learn about microfinance, debates its successes and failures, and appreciate why organisations follow specific approaches. As such we're looking forward to establishing dialogue with clients and believe that this is the first time a private bank in the UK has ever trialled such an initiative."

"To kick off this pilot, we will be hosting two dinners, which clients and philanthropists interested in these schemes will be welcome to attend. The first dinner on the subject of Micro Finance specifically will be on 16 th September, and the second on 2nd October will focus on the environment. Those interested in attending can contact can contact Sarah Moriarty on 020 7649 4054."

Through its philanthropy specialists, Coutts offers specific knowledge and insights to help guide clients in creating an effective giving strategy, conducting market research, getting professional advice, evaluating projects and creating a portfolio of charitable interests. Coutts is also committed to providing donors/philanthropists with networking and educational opportunities through the Coutts Forums for Philanthropy.

For further information about Coutts please contact:

Jo Thorne, PR Manager, Coutts & Co. Tel: 020 7957 2650, mob: 07855411626 or email: joanna.thorne@coutts.com

Notes to Editors

  • Coutts & Co is the UK private banking arm of the Royal Bank of Scotland. The Royal Bank of Scotland Group is one of the world's largest banking groups.
  • The first Coutts & Co regional office to be opened was Eton in 1961. Today, Coutts & Co has regional offices in Bath, Birmingham, Bournemouth, Bristol, Cambridge, Cardiff, Chelmsford, Eton, Guildford, Hampshire, Leeds, Liverpool, Manchester, Milton Keynes, Newcastle, Nottingham, Oxford, Reading and Tunbridge Wells.
  • Coutts & Co offers clients a range of products and services covering sophisticated investment products together with expertise in trust and fiduciary services and UK tax and banking services. Coutts commercial banking arm also provides full banking service to UK businesses.
  • Coutts & Co is authorised and regulated by the Financial Services Authority. Coutts & Co Registered in England No 36695 Registered Office 440 Strand London WC2R 0QS.
  • Calls may be recorded.

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. 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. 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