Giving to charity is usually a one-sided affair - after donating to a good cause, you don’t expect to see the money again. But in an arid fundraising climate in which bank credit is hard to come by, one charity has come up with a novel idea - it aims to multiply donations tenfold before handing back most of the money.

Scope, a disability charity specialising in supporting people with cerebral palsy, has launched a “leveraged fundraising” scheme to secure interest-free loans from wealthy donors, particularly those working in private equity. The charity then plans to borrow equal sums from banks, using its property portfolio as collateral. The scheme is believed to be the first example of leveraged fundraising in the UK ’s voluntary sector. “It represents a breakthrough in the way donations can be maximised by the charity sector,” says Jason Suckley, the director of fundraising for Scope.

Much like small businesses, charities have struggled to gain access to credit during the recession, with some charities being denied loans by banks and others lacking the necessary assets to use as collateral when borrowing.

This had led larger charities to look for more innovative ways of putting their often sizeable investment portfolios to work. Charities have historically shied away from taking on debt, but Scope believes that borrowing against its £18 million asset base is a low-risk way to help to finance more than £40 million in new projects and developments.

The charity hopes to get around the bank lending difficulties by asking individual donors for interest-free loans of £7,000 over three years. Donors will also be asked to make a £2,800 straight donation, which is worth £3,500 with Gift Aid. It will then ask banks to match each donation with a £7,500 commercial loan, using its property portfolio as collateral.

Scope hopes that through the complex combination of donations, bank debt and loans, the pilot project will generate £18,000 for every £1,750 donated. It aims to raise £1.8 million to build 15 flats for disabled adults at Kelvedon, Essex.

Karren Brady, the vice-chairman of West Ham United FC and a member of Scope’s business development board, says that the scheme “allows businesspeople to invest in a great cause in a much more efficient way”. She said: “As the majority of the capital is repaid after three years, people can make their donations work even harder by reinvesting in other causes orsocial businesses.”

The charity decided to target high net worth individuals working in private equity after research into “venture philanthropy” found that the concept of generating returns on an investment, rather than making a flat donation, appeals to financial investment professionals and makes them likelier to give.

Tim Lebus, an analyst for Duke Street Capital says: “In the current economic environment, charities need to think differently about how they fund their work and not rely solely on donations.”