Asda to distribute bag tax to SIS and Foundation Scotland
Called Asda Community Capital, the initiatve will provide a substantial funding boost to both organisations.
Asda raised £145,000 in the first few months of Scotland's plastic bag levy.
SIS’s half of the proceeds will be distributed through loans, with the aim of making investment capital available for voluntary charitable organisations that might otherwise struggle to gain access to funding. Loans of between £10,000 and £50,000 will be available for new organisations.
Alastair Davis, chief executive of SIS, said that “investment readiness or the lack of suitable financial products” acted as a barrier to community organisations obtaining funding.
“Through the creation of Asda’s Community Capital, we’ll be able to support the development of highly motivated, small, community-based enterprises throughout Scotland. In turn, we can help to connect more capital with communities, making a real, measurable and sustainable impact on people's lives,” he added.
Foundation Scotland will use its share of the proceeds to provide small grants of no more than £2,000 to projects that have been nominated by customers and colleagues of the foundation and subsequently voted on by Asda’s regional selection panel.
Kevin McBride, senior director for Scotland at Asda, said: “We want the carrier bag charge to have long-term social – as well as environmental – benefits. By working with our partners Social Investment Scotland and Foundation Scotland, we have the opportunity to invest innovatively in our local communities, helping to grow the social enterprise sector and supporting local projects”.
Asda has signed 12-month contracts with the two charities.