New philanthropy fund will report to donors

Venture capital group Doughty Hanson has established a venture philanthropy fund that aims to ensure charitable donations made by wealthy individuals are spent more effectively.

The Smart Fund will provide donors – organisations or high net worth individuals –with biannual reports including analysis and results detailing how their donation has been spent.

The fund, which aims to raise £1.25m for 1,250 charities over a five-year period, will also pay the Cranfield Trust to provide management consultancy to charities benefiting from donations it receives.

The trust will provide about £10m worth of consultancy services, including advice on business plans, marketing, finance and human resources worth between £5,000 and £16,000 for each project.

The fund includes the Execution Charitable Trust, the philanthropic arm of stockbrokers Execution, and bankers Coutts & Co among its founding partners.

Tina Baker, fundraising manager at the Cranfield Trust, said the fund would give charities “sustainable income for a fixed period”, rather than relying on grant funding which may be awarded annually and could make “long term strategic planning difficult”.

She added: “The Smart Fund is attractive to people who want a strategic approach and who want to see some social returns. Assessment reports will say what we have done, what the charity asked for and what the long-term outcome is.”

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