trust money
a financial innovation by WEvolution
What is it? Trust Money is a one-off supply of capital from WEvolution to all eligible SelfReliant Groups (SRGs).
Initially, it is being tested in Scotland. Up to ÂŁ500 will be offered to each SRG for the purpose of internal group lending.
Lending could be used for: Individual consumption needs (eg: repair costs of a washing machine, a family emergency etc.) Individual business aspirations (eg: costs of a market stall, equipment for business etc.) Trust Money will compliment (and not substitute) group savings. It can be loaned out to group members at a small interest rate, helping to replenish and grow the group savings in the years to come. Trust Money is offered by WEvolution to each SRG and it does not have to be repaid to WEvolution, unless an SRG chooses to do so.
Why are we doing this? As the title says, because we trust people. And because we want to:Â Â
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Enable SRGs to provide small loans to members to help them in times of need or to enable access to low cost start-up capital.
Incentivise saving in groups and build financial resilience in times of crisis.
Study the impact on the economic wellbeing of people.
Fine print Again, it’s all about simplicity: Trust Money is £100 for every member in the group with an upper ceiling of £500 per SRG (eg: if an SRG has three members, the group will receive £300; an SRG with six members will receive the maximum i.e.£500) When taking the Trust Money, the SRG has to commit to two things: To use it for the sole purpose of lending within the group To share information on the use of Trust Money with WEvolution once every three months. Where Trust Money is loaned to members, the SRG may charge a small amount of interest on the loans, if they choose. The SRG should not lend to its members as though it is a business, as this activity is regulated in the UK. Each SRG should adopt a common-sense approach to avoid lending within an SRG which could be viewed as commercial or business-like or harms any individual’s wellbeing. The interest, along with the repayment of the loan, goes back into the common group savings.
How does an SRG get Trust Money? Firstly, you’ve got to be an operational SRG and to prove that, you’ll have to submit the following for an audit: Record of last 6 months’ savings Record of regular meetings and minutes Signed copy of Group Agreement (updated with how the money will be used) Signed Letter of Understanding with WEvolution Signed commitment to use the loan for internal group lending and share information with WEvolution Group Bank Account details
You can scan all of the above and email it to us at info@wevolution.org.uk or send it via WhatsApp on 07592537736. In time, we’ll plan to have an online portal to upload the documents, if easier. Once we receive the details, we will arrange a call with your SRG. Following the call, Trust Money will be transferred into your group bank account.
Other questions? Here we go... 1. What’s the catch? Use the money well. Spread the word about SRGs and the great movement that you are a part of. That’s it really. 2. Will WEvolution be making money from this? No. WEvolution will not be making any financial gains directly from Trust Money or the groups. Interest on internal loans and repayments go back into the group’s account. 3. Where does WEvolution get the money from? Several years back, the first SRGs and a few WEvolution volunteers went to 350 churches over three years in Scotland sharing their stories. WEvolution raised £100,000 from the churches and that’s where the money comes from. 4. Is the Trust Money available only to WEvolution SRGs? Initially, it’s available to all SRGs in Scotland including those at WEvolution and its partners. If successful, we will extend it to SRGs across the UK. 5. Can we use the money to lend to a friend or another SRG? No. Trust money is only to be loaned to your group members. 6. What if my group is not ready to take Trust Money now or we simply don’t want it? Don’t take it. It’s an offer and you can take it up anytime. Or not.
12. Do we need to show a minimum amount of savings in our account? No. We only need to see a record of regular savings (incomings and outgoings) over the last 6 months before you ask for the money. 13. Do we need to present a business plan for Trust Money? No. All we need from you is a commitment to use the money for internal loans along with the records of savings, etc. 14. What if the SRG folds up? If it does, WEvolution asks that you find a way to return the money back to us in good faith to allow us to support other SRGs in the future. 15. What if new members join the SRG? If the SRG has already received the money, then it will not be eligible for any more. 16. What if a member of the SRG defaults on the internal loan given? If a member defaults on the loan, they should not be charged any further interest. Otherwise, it is your group and your money so you have the discretion on how to deal with these situations. If you think there’s not enough trust in the group, then Trust Money is not for you at this time. 17. What if my group is worried about how Trust Money will impact our internal dynamics? We expect your group is stable and strong before taking up the offer of Trust Money. If you are worried, then your group is probably not ready for the money yet. Charity Number: SC043994 Authorised and regulated by the Financial Conduct Authority: 724717 C.I.C Number: 479596
Find us here...
info@wevolution.org.uk
srgmovement.com
@WEvolutionUK
07592537736