Foundation Scotland project releases Scotland's missing millions

Foundation Scotland’s release of over £2.3 million from dormant trusts “tip of the iceberg” windfall for communities

Trusts formed over a century ago to help boys with the surname Stewart, supply pensions to women of good character or provide medical assistance pre-NHS will now be used to fund current day needs thanks to a project that has already unlocked over £2.3 million from lost and forgotten charitable accounts.

Foundation Scotland has revealed they have identified nearly 300 dormant charitable trusts through the project, which is being run in collaboration with The Scottish Charity Regulator (OSCR). Charitable trusts typically provide public benefit by making grants or donations to other charities, voluntary groups or individuals as laid out in their original constitution. Launched in May 2021, Scotland’s Revitalising Trusts Project was set up to identify charitable trusts that appear to be inactive and support them to reactivate.  For a trust to be classed as inactive, they either had no income or expenditure or donated less than 30% of their total income over the last five years. 

There are different reasons why a trust can lie dormant.  It can be difficult to recruit new trustees, find time to run the charity or as times change, it can be impossible to identify beneficiaries befitting the original deeds of the trust. Foundation Scotland has over 25 years’ experience distributing funds which provide long-term benefit for communities.  As part of this national project, they are supporting trustees to release inactive funds so that they can be redistributed to good causes across Scotland. Alternatively, Foundation Scotland will support trustees to breathe new life into the charity, for example by changing their charitable purpose to help address new needs in local communities.

One such Trust was the William Stewart’s Trust. Formed in 1898 to provide for the sons of the eight Incorporate Trades of Perth, or failing that, boys with the surname Stewart, the overall purpose was to provide for their education. The William Stewart’s Trust was identified by Foundation Scotland and OSCR as a ‘dormant’ trust, which had not paid out for many years.  Only three of the original 8 Incorporated Trades still exist today and only supporting boys named Stewart is a limited remit. At the point Foundation Scotland made initial contact in early 2022, the Trust’s funds were being held with a local legal firm. The firm reached out to the current heads of the trades who were, unbeknown to them, listed in the deeds as the appointed trustees of the William Stewart’s Trust.  It was agreed that the trust would wind-up and John Wood, Chairman of the Bakers, worked alongside Foundation Scotland and the firm to put a reorganisation scheme in place with the intention of breathing life back into the remaining funds.  

It was important to all involved that the funds kept with the original purposes of the Trust – benefitting local educational needs. The trustees selected a small local charity, The Tay Rivers Trust, as the sole beneficiary of all the remaining funds.  The charity works in facilitating environmental research and education in the Perth and Angus area. This windfall has been an incredible boost for the charity, enabling the organisation to employ its very first member of staff who will help develop the charity’s successful Salmon in Classroom programme allowing the programme to potentially reach a further 100 young people in the area/year and establish a small fundraising plan, meaning the transfer of £11,000 will in fact mean so much more to the organisation.

John Wood, former trustee of The William Stewart’s Trust said, “It was certainly a surprise to find out that I was a trustee of a trust I had never heard of!  Initially I was really quite worried about what this would mean and what I would be obliged to do – however, the team at Foundation Scotland led the way and it was happily a very straight-forward process.  It’s frustrating to think that thousands of pounds have been sitting needlessly in a dusty bank account when the funds could have been helping others, but I am just delighted they are already working hard for the Tay Rivers Trust.  I know the charity well and their wonderful Salmon in the Classroom activity is a fitting beneficiary.  It’s great to know that hundreds of local young people will get the chance to learn, enjoy and take part in these great environmental activities all thanks to the Revitalising Trusts project”

Steff Bell, Revitalising Trust Project Advisor at Foundation Scotland said, “In the current climate it’s more important than ever that charitable funds are being put to good use. Communities the length and breadth of the country suffered through covid and now they are struggling with the cost of living crisis. It’s good to know that we’ve been able to assist in reactivating these funds and putting them to good use, when they’re needed most.  We’re delighted that we’ve already unlocked over £2.3 million for good causes across Scotland but we know this is just the tip of the iceberg. We are making great progress; overall, the trustees we have approached have received the offer of support positively, with several indicating that the trustees had been stuck for a number of years, unable to find appropriate support to distribute the funds.  We will continue to work collaboratively with more trustees, alongside OSCR, to help these trusts maximise their funds and reach for public good.  We know trustees want to make a real and positive difference to those who need it most. If you think your charity could benefit from support to spend its funds, please do get in touch with us and we’ll help you work out the best next steps for your charity.”

Steve Kent, Policy Manager at OSCR said, “We are delighted to be collaborating with Foundation Scotland on this important Project and to see our joint effort to reach out to inactive trusts starting to bear fruit. We want public trust in charities to remain strong and never more so than in the present challenging times. It is vital that every pound of charitable funds is seen to be working hard for good causes but, even with best intentions, it is sometimes a challenge for trustees to make that happen. This project is an excellent example of what can be achieved by offering trustees a little support and encouragement at the right time.”

For more information about the project visit Revitalising Trusts Project | Foundation Scotland