Sumitomo Mitsui Trust Bank to show donors where cash is being spent

JIJI

Sumitomo Mitsui Trust Bank will start a new service that will make it easier for charitable donors to confirm how the money they give is being spent, bank officials said.

Through the service, the core unit of Sumitomo Mitsui Trust Holdings Inc. will encourage the wealthy to donate toward the reconstruction of areas devastated by the March 11, 2011, earthquake and tsunami, the officials said.

The target of the service will be donors who put at least ¥10 million into special donation trusts the bank set up for charitable purposes. The bank will regularly report how their money is being spent, a step designed to make the use of donations clearly “visible,” the officials said.

Sumitomo Mitsui Trust Bank’s customer base includes a number of wealthy people, many of whom are interested in making large donations to support reconstruction, the officials said. But some remain hesitant, an official said, noting they are unsure whether the donations will be spent wisely.

The bank will significantly broaden the coverage to include various nongovernmental organizations, including those operating in the medical and educational fields as well as in the agricultural, forestry and fisheries industries.