Scottish charities face a bleak future since The Lloyd’s TSB Foundation closed its doors to new funding applications, said Chief Executive of the Scottish Council for Voluntary Organisation Martin Sime.
The foundation provided more than £6 million to Scottish charities in 2008, across large established charities and smaller community based projects.
Nearly 1000 charities will lose a major source of income as a result of the foundation’s action.
Funding for the foundation comes from Lloyd’s TSB in the form of 1% of its pre-tax profits. However, the recent financial crisis has reduced the available funds to practically nothing.
“The independence of the Foundation’s Board is very important. Their sensitive work has helped thousands of charities through supporting innovation, small acts of kindness and solidarity which are the hallmark of a civilised country” he said.
Mary Craig, Chief Executive of the foundation said “We remain uncertain as to when we will next receive sufficient money under the terms of our agreement to enable us to continue our grant making activities”
Funding for the foundation comes from Lloyd’s TSB in the form of 1% of its pre-tax profits. However, the recent financial crisis has reduced the available funds to practically nothing.
Lucy McTernan, Deputy Chief of the Scottish Council of Voluntary Organisations said; “This is terrible news which comes at a time when the voluntary sector and charities in Scotland are already experiencing huge funding squeezes such as the loss of cash to the London Olympics and reduced access to European Structural Fund money. Many organisations are struggling to meet the demand for their services which is growing due to the impact of the recession.”
One charity that has suffered because of the losses is the Leith based Edinburgh Community Food Initiative, which works to promote healthier eating. It currently receives a grant from the Lloyd’s TSB foundation.
A representative of the charity said; “we have a funding agreement with Lloy’ds TSB which lasts for three years. We are currently in our first year and Lloyd’s TSB have confirmed that current grant agreements will be honoured.”
“We’re not immediately affected by it, but in the long term it’s a big issue. We have to look for longer term funding all the time and begin transitioning into social enterprising.” he continued.
Although the foundation has stopped taking on new applicants it has not yet closed down for good. Foundation head Mary Craig, said “Lloyds Banking Group has put money on the table to get the Foundation through the next few years until the Group returns to profit.”
