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ESTABLISH A PERPETUAL SOURCE OF INCOME FOR YOUR ORGANISATION


A well structured Endowment can provide a secure, stable income stream and fund your endeavours → far into the future
 

  

    

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Endowments

An endowment is a strategic, long-term investment made by an organisation (educational or non-profit) from capital provided by its backers, often through tax efficient means. Once established, it becomes a perpetual source of income for the organisation and acts as an insurance policy for the future

The income from an endowment is normally external to any statutory funding and is thus usually unrestricted - and once an endowment is in place, facing the ups and downs of the economy, managing budgets, balancing the books, funding programmes, projects, ventures, initiatives and services, etc becomes much easier for the organisation

Financial Backers

Endowments are often associated with large organisations, but it’s not exclusively just for them. Educational institutions or non-profit organisations of any size can establish an endowment, they just need the right approach and structure to attract financial backers - and we can help with this. Backers can be:

  • Parents of current and previous students of a school
  • Alumni
  • Worshippers and supporters of religious institutions
  • Employees (teachers, admin staff, etc)
  • Donors, customers, clients and other stakeholders
  • General public
  • Family, friends and colleagues of the above
  • Public and private Trusts, Charites and Foundations
  • Companies, Businesses, Clubs, Institutions, Associations and Groups
  • Corporate CSR Initiatives
  • Financial Advisers and Wealth Managers
  • Investment Funds and Family Offices

Doing Well While Doing Good

Effective altruism: from a purely altruistic perspective, through endowments, backers can make a real, lasting impact on many future generations to come and make organisations not only stronger financially but more effective in providing their core services. However, in most instances, pure altruism just may not be enough of a motive for your backers to enable you to raise the capital you need to establish your endowment. There often needs to be more

Capital Recoupment + Tax Relief

Along with an altruistic purpose, if (after a period of time) the financial backers of your endowment are able to separately and independently regain or recoup an equivalent amount of what they give to help establish your endowment and if there is also an unrelated element of separate and independent tax relief for them as well in the form of allowable deductions against Corporation Tax or Income/Capital Gains Tax, then this becomes a tremendous incentive for your financial backers to support your endowment → see Altruism+

Tax Efficient Giving

UK Government Approved Tax Relief Schemes

► SITR, EIS & SEIS

These are powerful ways to raise money as up to 64% Tax Relief can be claimed by your eligible backers. We specialise in setting up UK Government (Financial Conduct Authority, Cabinet Office, Charity Commission and HM Revenue & Customs) approved structures for you to take advantage of these schemes to raise substantial capital quickly and easily

Gift Aid

Your eligible individual backers can claim back tax relief of 31.25% (additional rate taxpayer) or 25% (higher rate taxpayer) for every £1 they give and companies and organisations can make allowable deductions against their Corporation Tax

Regulatory Compliance

Any activity you carry out to raise money (and its utilisation) has to be done in a particular way to meet regulatory compliance, otherwise your costs and legal complexity could increase significantly, along with your loss of opportunity. We help you to get this right


National Endowment Fund

A national non-profit organisation established to provide stable, long-term and sustainable financial support to educational institutions and non-profit organisations, through the establishment of endowments

To achieve effective economies of scale, access expert resources and maximise your income stream, you can establish your endowment under the National Endowment Fund (NEF). This will not cost you anything more and will reduce your overall endowment establishment and management costs and make it easier, quicker and more effective for you right from the start. In return, you would abide by NEF operational guidelines (available upon request)
 

  

    

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Social Bond

A Social Bond is a pledge made freely and unconditionally by one party to another to carry out a specific lawful and ethical act on a specific date or in response to a specific event

"My Word Is My Bond"

The old British maritime brokers' motto of “My Word Is My Bond” was used as a verbal pledge and an assurance that whatever agreement was entered into would be honoured. The spirit and substance of this motto also applies in the use of the word ‘bond’ in this context but where the verbal pledge is replaced by a written one

Moreover, although the word ‘bond’ often has a financial (investment/securities) connotation, it also has other well-known, well-defined and well-understood social, sociological and legal meanings as well, such as ‘connection’ and ‘promise’ and it is in these other non-financial contexts that the word ‘bond’ is used here

Structure, Use and Financial Utility

A Social Bond can be structured and utilised in a variety of ways to achieve a vast range of socio-economic purposes, objectives and outcomes, and the pledged act can be anything that is lawful and ethical (e.g. to gift money, carry out a Social Action, etc) 

As an example: a bilateral transfer of capital between two parties can be structured, with the first transfer made now by A to B (for a specific use) and the second transfer to be made by B to A at a later date, and which is under a Social Bond pledge made by B. The second transfer amount pledged by B can be for any amount (i.e. it does not have to be for the same as the first transfer by A), as long as the Social Bond pledge made by B is not contingent upon, associated with or contractually linked to the first transfer made by A or is legally binding on either party

Example Social Bond Pledge


"I/we (full name of person, company or organisation) hereby freely, unconditionally and independently make a Social Bond pledge today, (date) to give (currency symbol + amount) to (full name of person, company or organisation) on (date) as an unrestricted gift. 

I/we confirm that this Social Bond pledge is a purely gratuitous, honour-based promise and is not an enforceable, legally binding contract/agreement (i.e. this Social Bond pledge cannot be enforced in a court of law). However, I/we reserve the right to voluntarily convert this Social Bond pledge into an enforceable, legally binding one at any time, without the involvement of any other parties, and to replace this Social Bond pledge with a legally binding, enforceable one"

Other elements can be included as required

Enforceability

The person or entity that makes the Social Bond pledge is always under a moral obligation to fulfill the pledge. However, a Social Bond by itself is not legally enforceable, but it can separately and independently made to be and if required, underpin with suitable collateral/security or guarantee

Regulatory Compliance

The word 'bond' in the phrase 'Social Bond' as used here in this context is not meant in the financial (investment/securities) sense. Within this context:

A Social Bond is not a legally binding, enforceable contract under law (it does not involve a 'consideration'), it's not a 'financial' bond, it's not a loan or a promise of repayment of a loan, it's not any kind of debt instrument nor an acknowledgement of a debt nor is it any form of debt or investment security – and it's not related to any form or type of lending or borrowing or investment activity by any of the parties involved

Consequently, a Social Bond (as it is referred to here and in this context) is not a regulated, investment or controlled activity nor is it a controlled investment or a specified investment as per the United Kingdom Financial Services and Markets Act 2000 (FSMA)

Religious Compliance

A Social Bond can be structured to be in full compliance with the laws and requirements of any religion or faith. For instance, we have ensured that Social Bonds are fully permissible under Islamic law

Public Promotions

As a Social Bond does not come under the purview of FSMA, it therefore is not subject to any UK Financial Conduct Authority (FCA) restrictions related to financial promotions (FPO) or its Conduct of Business (COBS) rules. A Social Bond therefore can be promoted in the public domain without any prior authorisation or exemption from the FCA, just as a charity does not require this when it seeks donations from the public. However, the same rules apply in terms of ensuring factual accuracy, risk warnings and social, ethical and legal responsibility when promoting to the public

  

    

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Social Action

A Social Action is any lawful and ethical activity that engenders a positive, beneficial outcome for society and/or the environment and/or enables or assists others to fulfill their objectives at any level or scale

Social Actions can be combined with Social Bonds in a variety of ways to achieve a vast range of socio-economic objectives and purposes


SOCIAL ACTION FOUNDATION

A non-profit organisation established to engender positive economic and social impact - locally, nationally and across the world - by encouraging individuals, companies and organisations to carry out lawful and ethical Social Actions that benefit society and the environment

  

    

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Religious Compliance

We provide services to a range of religious institutions and also to schools and non-profit organisations that follow specific religious or faith-based laws

We therefore ensure that none of our processes and services breach the laws, rules, regulations, obligations or practices of mainstream religions such as Islam, Judaism or Christianity

In particular, Islamic laws relating to finance, interest and trade are complex and thus special care is taken to ensure full compliance with all applicable laws

Please contact us if you need to learn or understand more about this

  

    

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How We Work

Who We Are

We are a strategic advisory based in the UK

What We Do

We help to establish and manage endowments for organisations (educational and non-profit) across the world, utilising a range of tax relief and capital efficient processes (we do not give any formal or regulated investment, taxation, legal or financial advice)

See here for a more detailed look at what we do

What This Costs You

We don’t charge you anything for our primary services

How We Get Paid

We generate revenues for ourselves from auxiliary activities that we carry out as part of our fee-free primary services. For example: we won't charge you anything to help you raise funds and to establish a new endowment for you, but we may charge the normal open market rate for managing the relevant endowment assets once they are established

Other Costs

There may be some incidental costs related to services provided to you by other parties (e.g. legal advice, PR activities, etc) that may be incurred, but you can decide who these third parties are and which services (if any) you require from them. Besides this, there are no other cost implications for you
 

  

    

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Free Advice

Get free professional advice from us so that you can raise funds in a tax and capital efficient way to establish your endowment much more quickly and easily, with minimal costs and ensuring full applicable regulatory compliance. You'll never be charged anything by us for this or be under any obligations

  

Services

We help to establish and manage endowments for organisations (educational and non-profit) across the world, utilising a range of tax relief and capital efficient processes

Once you engage us, we'll do everything necessary: e.g. setting up your legal and corporate structures, using and ensuring compliance with approved UK Government Tax Relief schemes, helping you to attract financial backers through private and public PR & marketing, liaising with regulators and officials if required (e.g. Financial Conduct Authority, Cabinet Office, Charity Commission, Department for Education, HM Revenue & Customs, etc), managing processes, legal documentation, deploying funds and resources, building up assets, managing the income stream, ensuring funds are safeguarded and audited, etc

You'll never be charged anything by us for our primary services or be under any obligations (see how much this costs you)

THE WORK WE CARRY OUT
 

  1. Process Structuring → we'll ensure that all of the legal and regulatory side of your endowment, required entities, Social Bond and Social Action mechanism (including structuring, validation and verification), tax relief processes and your overall fundraising campaign for the establishment of your endowment is implemented properly
     
  2. Religious Compliance → we'll ensure that all of the relevant laws of your particular religion or faith are fully complied with and secure the approval of any religious authorities, scholars or experts that you require approval from
     
  3. Transaction Administration → we'll manage the end-to-end transaction flow for all parties involved and deal with all relevant legal documentation
     
  4. Backer Liaison → we'll ensure that your financial backers get the right legal documents and handle their related legal and technical queries
     
  5. Legal Procedure Management → we'll ensure that relevant regulators and officials (e.g. Financial Conduct Authority, Cabinet Office, Charity Commission, Department for Education, HM Revenue & Customs, etc) receive all the correct documentation from you so that they can issue any specific confirmations required by you or by your backers (e.g. so that they can claim tax their reliefs, etc)
     
  6. PR & Marketing → we'll help you to communicate and engage with potential backers within regulatory boundaries. If required, we'll help you to promote your fundraising campaign for the establishment of your endowment on Facebook, Instagram, Twitter, LinkedIn, Google, Bing, etc and on many high traffic blogs and websites etc so that you can put your campaign in front of a mass of socially active potential backers → locally, nationally, globally
     

  7. Asset Development, Deployment & Management → we'll help you to build up your endowment asset base and manage it. To ensure stability and to de-risk the asset portfolio, this would generally involve the strategic development or acquisition of UK residential or commercial property, which would then be rented out to generate the highest possible rental income
     

  8. Income Management → we'll ensure that the net income (after all relevant taxes and necessary expenses have been paid) from all the asset strands are channelled to you, which will then be available for your unrestricted use
     

  9. Bespoke → we can provide you with other support or services that you may need or refer you to verified expert providers
     

  

    

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UK Government Approved Tax Relief Schemes

There are a number of UK Government approved tax relief schemes that can be utilised for endowments. There are specific rules that both you (as an eligible UK based organisation or company) and your eligible backers (who must be UK tax payers) must follow and some schemes have a 3 year minimum holding period. Further details are available on the relevant UK Government information page for each scheme (see below)

Although we may be able to assist you in utilising some of these schemes, we cannot give any formal investment, taxation, legal or financial advice to you or to your backers ourselves, and strongly recommend that you or they seek all such professional advice from qualified independent providers. Should you or they require it, we can make referrals to authorised independent financial advisers, expert tax consultants, lawyers, etc

 
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Range of Approved Tax Relief Schemes
 

 

SITR | Social Investment Tax Relief

See UK Government website for further details

Raise £1.5M in total (debt or equity)

  • 30% Tax Relief
  • CGT Exemption/Deferral
  • CGT Reinvestment Relief
  • Loss Relief (equity)
  • 100% Inheritance Tax Relief (equity)
  • Carry Back
  • Open to UK tax paying individuals only (irrespective of their rate of income tax)


If you are a UK registered charity, a community benefit society (with an asset lock), an accredited Social Impact Contractor (SIC) or a Community Interest Company (CIC) and meet certain other conditions, you can raise up to £1.5 Million in total under SITR. See video below for an introduction to SITR (note: some information in the video may not be up to date)
 

 
 


EIS | Enterprise Investment Scheme

See UK Government website for further details

Raise £5M per year (equity)

  • 30% Tax Relief
  • CGT Exemption/Deferral
  • CGT Reinvestment Relief
  • Loss Relief
  • 100% Inheritance Tax Relief
  • Carry Back
  • Open to UK tax paying individuals only  (irrespective of their rate of income tax)


If you are a UK private limited company or a community benefit society (i.e. an entity that can issue shares) and meet certain other conditions, you can raise up to £5 Million every year under EIS (£12 Million or £20 Million in total). If you are a charity or a non-profit that is unable to issue shares but still wish to take advantage of EIS, you can do so by setting up a separate and independent UK company or society that can issue shares
 

SEIS | Seed Enterprise Investment Scheme

See UK Government website for further details

Raise £150,000 in total (equity)

  • 50% Tax Relief
  • CGT Exemption
  • CGT Reinvestment Relief
  • Loss Relief
  • 100% Inheritance Tax Relief
  • Carry Back
  • Open to UK tax paying individuals only  (irrespective of their rate of income tax)


If you are a UK private limited company or a community benefit society (i.e. an entity that can issue shares) and meet certain other conditions, you can raise up to a total of £150,000 under SEIS. If you are a charity or a non-profit that is unable to issue shares but still wish to take advantage of SEIS, you can do so by setting up a separate and independent UK company or society that can issue shares
 

GA | Gift Aid

See UK Government website for further details

Claim an extra 25p for every £1 of donation you receive

If you are a UK registered charity (or a CASC) and meet certain other conditions, you automatically qualify to claim an extra 25p for every £1 of donation you receive from a UK individual who pays income tax (who can then claim tax relief on their donation to you)

Your eligible individual backers can claim back tax relief of 31.25% (additional rate taxpayer) or 25% (higher rate taxpayer) for every £1 they give. If the donor is a company, you can't claim Gift Aid but they can offset their donation to you against their corporation tax, and there are other, more sophisticated ways they can support you

  

    

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Corporate

Governance

Our Executive Board drives our operational direction, with the management team overseeing the day-to-day activities of the various operational teams. We don't publish names of our personnel or clients due to privacy and confidentality

Company

Centrum Global Partners Limited is a private company registered in England and Wales. Registered number: 8617283

Getting In Touch

Please complete the form below or email info@centrum.global 

Registered Offices

Holly House
220 New London Road
Chelmsford
Essex
CM2 9AE
England

London Offices

17 Hanover Square
Mayfair
London
W1S 1HU
United Kingdom
0843 289 9656

 
 
 

  

    

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Learn More

HOME

WELCOME

ENDOWMENTS
- Introduction
- Financial Backers
- Doing Well While Doing Good
- Capital Recoupment + Tax Relief
- Tax Efficient Giving
- SITR, EIS, SEIS & Gift Aid
- Regulatory Compliance

ALTRUISM+

WAQF

INDIGO

TITAN

NATIONAL ENDOWMENT FUND (NEF)

SOCIAL BOND
- Introduction
- "My Word Is My Bond"
- Enforceability
- Regulatory Compliance
- Public Promotions

SOCIAL ACTION

SOCIAL ACTION FOUNDATION (SAF)

RELIGIOUS COMPLIANCE

HOW WE  WORK
- Who We Are
- What We Do
- What This Costs You
- How We Get Paid
- Other Costs

FREE ADVICE

SERVICES
- The Work We Carry Out

UK GOVERNMENT APPROVED TAX RELIEF SCHEMES
- SITR
- EIS
- SEIS
- Gift Aid

CORPORATE
- Governance
- Company
- Getting In Touch
- Offices

PRIVACY

GET STARTED → CONTACT

  

    

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Get Started

Tell us a bit about you and your institution

Our advice and primary services are free and there are no obligations on your part. You can send us an email to info@centrum.global or just fill in the form below to get started and we'll get back to you as soon as we can
 

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Privacy Commitment

We are committed to keeping your information and e-mail address fully confidential at all times. We don't sell, rent or lease any information you give us to anyone, we don't send out spam and our contact with you will only be in reference to any enquiries you make regarding the services that we provide