Banking crisis hits foundation programme
Howard Lake | 28 August 2009 | News
The banking crisis has led to major changes in the grant programme of one of Northern Ireland’s biggest charitable trusts.
Lloyds TSB Foundation for Northern Ireland will now not consider organisations for their standard grant programme if they have a turnover of more than £250,000. In addition, the maximum grant is now £5,000. Previously Lloyds TSB supported charities no matter what their turnover and their maximum grant was £10,000.
Lloyds TSB Foundation Chairman, Mr Gary Mills, said in a statement on their website that he wanted to reassure the voluntary sector that the Foundation’s important role would continue despite the well publicised difficulties in the banking sector. However, he warned that levels of funding available to the Foundation for the foreseeable future would be lower than in previous years as they are linked to the Bank’s profitability.
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“The four Lloyds TSB Foundations across the UK derive their income from the Lloyds Banking Group receiving a percentage of pre-tax profits. Unfortunately, with a decrease in bank profits, the amount of money available to us with bank profitability under pressure has declined – a regrettable but unavoidable fact,” he said.
“Fortunately, the Foundation in Northern Ireland operates prudently and has a low cost base. Our rolling Grant Programmes focusing on Social and Community Welfare and Education and Training are ongoing, with quarterly closing dates, and continue to provide grants to under funded local charities,” he said.
Lloyds TSB Foundations in Northern Ireland and Britain are funded by the covenanted income of1% of pre-tax profits from Lloyds Banking Group (formerly Lloyds TSB Group) averaged over three years. The bank, which took over HBOS, is now partly nationalised. From 1st August 2009, Lloyds TSB Foundation for Northern Ireland will be processing applications for Matched Giving from HBOS employees in Northern Ireland.
Meanwhile the next closing date for receipt of applications is 9th October 2009.
www.lloydstsbfoundationni.org
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.