Northern Rock Foundation
|Registration No.||A company limited by guarantee registered in England and Wales number 3416658, Registered charity number: 1063906|
|Area served||North East and Cumbria|
Northern Rock Foundation is an independent charity and company limited by guarantee in the United Kingdom.
The foundation was formed when the Northern Rock company was floated, with an initial donation of 15% of the share capital and a covenant to donate 5% of the company's annual profit thereafter. In 2006, Northern Rock was the second largest charitable giver in the FTSE 100 after ITV.
In April 1996, when the Building Society was considering demutualisation, plans were announced by the then chairman, Robert Dickinson, for the creation of the foundation. Since the official launch of the foundation in January 1998, it has steadily grown and expanded its activities. The Foundation's work is carried out by a professional staff team of 12 based in Gosforth. Previously in 2007 there had been 25 staff at the foundation. In 2003, along with a new logo and the introduction of new programmes, the Foundation moved to a new building – the renovated Old Chapel in Gosforth. At the end of 2006 the foundation received £28.2 million investment. By the end of 2007 £190 million had been donated to the foundation, by Northern Rock.
Effect of the Northern Rock nationalisation
Nationalisation ended the covenant requiring Northern Rock to remit a share of profits to the Foundation. Instead, for the next three years the Foundation was to receive an annual £15 million payment from Northern Rock, whether it remained publicly owned or returned to the private sector. The Foundation's shares were to be cancelled and compensated in the same way as those of other shareholders. £7.3 million was awarded during the first 10 months of 2008, with an expected further £3.7 million before the end of the year.
Effect of the Northern Rock sale to Virgin Money
Upon the sale to Virgin Money, the deals with the Northern Rock Foundation will be extended to at least 2013, giving Virgin and the Foundation time to agree how they will work together; Virgin also run Virgin Money Giving, another not-for-profit company. In July 2013 Virgin Money donated £500,000 to the foundation to continue its work during that year.
The Northern Rock Foundation aims to tackle disadvantage and improve quality of life in the North East and Cumbria.
Northern Rock Foundation Hall
- "About Us". Northern Rock Foundation. Retrieved 2007-09-16.
- "Northern Rock squeezes out 2 m charity boost". BBC News. 1998-01-28. Retrieved 2007-09-16.
- "Top 10 Corporate Foundations". The Guardian (London). 2007-06-13. Retrieved 2008-02-20.
- "Staff". Northern Rock Foundation. Retrieved 2009-01-05.
- "Northern Rock Foundation slashes wage bill". The Journal. 2009-11-19. Retrieved 2009-11-27.
- "Northern Rock plc". HM Treasury. 2008-02-17. Retrieved 2008-09-26.
- "Grants totalling £2.2 million announced by Northern Rock Foundation". Northern Rock Foundation. October 2008. Retrieved 2008-10-10.
- "Charitable arm of old Northern Rock receives £500,000 boost from Virgin Money". 29 July 2013. Retrieved 6 October 2013.
- "Northern Rock Foundation Hall". Sage Gateshead. Retrieved 6 October 2013.