Paying it forward: Grant lets charities return funds as they grow

Money repaid interest-free within 5 years goes into supporting other recipients

- Shermaine Ang

As the founder of a small charity to help drug users overcome their addictions, Mr Alaric Tan found fund-raising almost impossible due to the perception that such individuals were to blame for their substance use, and would only fund their addiction.

"There's so much stigma, discrimination, donations misunderstanding; no one wants to give money," said Mr Tan, founder of The Greenhouse Community Services, a substance recovery centre for marginalised communities set up in 2017.

"It's very, very difficult." He had used his own savings to run Greenhouse, which had only $10,000 left in the bank by 2021 enough to operate the drug rehabilitation centre for another three months when he found out about a new grant which would give him up to $150,000.

he Mr Tan hesitated to apply for it because there was a catch would have to return the amount.

Mr Tan took the leap of faith, with Greenhouse being one of 17 charities picked to receive the Maybank Momentum Grant. Designed as a pay-it-forward model, the $3 million grant was launched in 2021 by Maybank Singapore and non-profit philanthropic organisation The Majurity Trust.

Recipients are encouraged to return the grant interest-free within five years, with the money going into supporting other grant recipients.

A total of 33 charities have applied for the grant so far, with the 17 recipients eventually chosen based on the severity of the social needs they were addressing, the impact they had created, as well as their five-year growth and financial sustainability plans.

In total, $360,000 was committed to the first batch of grant recipients, of which $195,000 has been repaid three years in.

The Majurity Trust checks in with grant recipients on their progress every six months for the first two years, and once a year afterwards.