A bond that enables subscribers to save and give to charity has been launched by UK-based charitable investment company Allia. Charities sign up to the scheme and then approach potential donors to invest their savings in the bond. Savers can choose to receive either 0, 1 or 2 per cent interest after five years. Allia then lends most of the money to the social housing organization Places for People, repayments on which produce the money to repay investors. The remaining money is given to the charity as a grant, minus a small administration fee.
Martin Clark of Allia describes the bond as ‘useful for getting money that would not be available as a straight donation’. Robin Thomas, director of business development at the consultancy Action Planning, was less circumspect. Speaking at a Raising Funds from the Rich conference in London last month, he called it ‘one of the most exciting developments in philanthropy’. Charities involved in the first round of the bond include the children and young people’s charity Step Forward and the employment charity Tomorrow’s People. Charities can currently sign up for the next round of bonds, which are set to open in April.
Third Sector Online, 8 December