The multimillionaire, who is chair of conference firm IIR Holdings, has invested 1m in the Laidlaw Youth Project. The initial funding will see the trust through its first year, after which its future will be evaluated.
It will help Scottish projects that provide mentoring support for young people or involve youth organisations working together.
The Scottish Executive has given the trust a 250,000 grant and seconded an official to operate the fund. The executive's donation formed part of a 3m package unveiled by First Minister Jack McConnell last week.
Projects to benefit include the Lloyds TSB Partnership Drugs Initiative, which will receive 1.5m to last until March 2006.
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