Member Article

Northern Rock Foundation to close after 17 years in operation

North East charity, The Northern Rock Foundation, has today announced that it is likely to close after being in operation for 17 years.

A statement released on the Foundation’s website expressed deep regret that insufficient funds had been made available for the charity to continue its work.

Its current grant programmes will close at the end of 2014 as the Foundation will now concentrate on its closure.

Virgin Money offered the Northern Rock Foundation £1 million per year for five years, to be matched by the Foundation raising £3 million per year from the private sector locally, earlier in May this year.

The pair worked together to look at how this could generate income for the Foundation although with existing charitable commitments and links with local funders of other North East businesses, it was concluded that this would not be a viable option.

Trustees are reported to believe that are are no funding routes left to pursue, meaning the Foundation’s work will begin to scale down.

Remaining funds will be used to achieve long term positive impact on the lives of children and young people in the region, as well as support for the development and sustainability of voluntary organisations.

In the meantime, trustees will support the opening of a Youth Zone project in the north east, and will be working with Sir Peter Vardy and the charity Onside Youth Zone, alongside Virgin Money, to achieve this.

Chi Onwurah, MP for Newcastle Central, told ITV: “I’m very sad to see the demise of Northern Rock as a grant giving organisation.

“It has made a remarkable contribution to the North East for many years now and has been a caring, innovative, inclusive and supportive friend to the North East, rooted in our region and working in our region.

“I do however welcome Virgin Money’s commitment to investment in the region.

“Youth services have been devastated by central government funding cuts and housing is consistently the number one issue in my surgeries and post bag, so their support for North East Youth Zones and bringing empty housing back into use is very welcome.

“I am concerned however that the work the Foundation undertook on hard to reach communities, inclusion and refugees will not be replaced and will leave a gap in the region.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →