November 4, 2009
Key funder at risk
Since being set up in 1985, Lloyds TSB Foundation for Scotland has made some 12,000 awards (£84 million) to our sector. But now the future of the Foundation, which was set up by an Act of Parliament, is threatened by the actions of Lloyds Banking Group (43% owned by the taxpayer) . A petition calling on Gordon Brown PM to intervene has been launched
A petition calling on Prime Minister Gordon Brown to “save” the Lloyds TSB Foundation for Scotland has attracted 1,540 signatures.
The Scottish Council for Voluntary Organisations set up the petition on the 10 Downing Street website on 27 October.
The petition calls on Brown to intervene to save the foundation, which has said it will suspend its grant-making in less than two months after rejecting a funding proposal from the Lloyds Banking Group.
The group offered the foundation £25m of bridging funds over four years. But the offer was conditional on the foundation accepting a cut in the amount it receives from the group in future from 1 per cent to 0.5 per cent of pre-tax profits, the placing of senior bank staff on its board and the ceding to the bank of decisions about where money is spent.
Mary Craig, chief executive of the Lloyds TSB Foundation for Scotland, said the proposal would make the foundation into a marketing arm of the group.
Lucy McTernan, deputy chief executive of the SCVO, said: “Over the past year the Lloyds Banking Group has received billions in government bailout.”
“It is now 43 per cent owned by the taxpayer. The SCVO calls on Gordon Brown to step in to ensure that the Lloyds Banking Group commits to retaining the existing terms and conditions of the Lloyds TSB Foundation”
Since it was established in 1985, over 12,000 awards have been made to charities working with disadvantaged communities and people across Scotland. Although existing commitments will be honoured, communities across Scotland will be hard hit by the closure of the foundation which has provided over £84 million since it started. The Foundation’s ability to continue to support good causes is now under threat, as it relies on a percentage of pre-tax profits from Lloyds Banking Group for its funds. As the Bank has announced that it will make no profit this year, the future of the Foundation is at risk. In these tough economic times, charities, community groups, voluntary organisations and social enterprises need the support of organisations like the Lloyds TSB Foundation more than ever.