Charity Bank, the UK's first not-for-profit bank, today announced a £100,000 equity investment from The Vodafone UK Foundation. This investment makes Vodafone's charitable foundation the first major corporate foundation from outside the financial sector to become a shareholder in Charity Bank. The capital investment will help to boost Charity Bank's capacity to provide affordable loans to hundreds of charities and groups from disadvantaged communities across the UK.
Charity Bank - the UK's first fully regulated bank that is also a registered charity - celebrates its third anniversary this month. Since the launch of its pilot fund, it has provided affordable loans of over £30 million to some 380 charitable organisations that do not have easy access to mainstream lending. This enables them to become financially stronger and to deliver programmes when and where they are most needed. With capital from trusts and foundations, Charity Bank can raise deposits from people and organisations that want to help communities, while preserving their savings and earning interest.
Community Wise is a thriving centre in Eastbourne, Sussex, providing a range of activities for all members of the community, young and old alike. A £100,000 loan from Charity Bank enabled the charity to purchase the freehold of the community centre from its previous owner, the YWCA. Bolton Nursery in Cumbria was one of the first beneficiaries under the Plunkett Foundation Rural Revival Programme. Set up in 2003 it has developed a full day care nursery to meet local childcare needs with loans from Charity Bank.
The Vodafone UK Foundation's investment to Charity Bank boosts Charity Bank's paid up share capital towards £5 million. Equity investment such as that being made by The Foundation is key to the sustainability of Charity Bank because it allows it to raise significantly larger sums of deposits for on-lending to charities and community groups.
Charity Bank Chief Executive, Malcolm Hayday, said: 'We have been aware of Vodafone's community commitment for some time from loans we have made where the Foundation has also provided support. We are thrilled that we can now develop a closer relationship and that The Vodafone UK Foundation recognises the value of the pioneering work that Charity Bank is doing providing affordable finance to charities and community groups across the UK. This investment allows The Foundation's funds to go further because it is a capital investment that can leverage significantly more in deposits from private citizens. This means that the funds invested will benefit communities many times over rather than a one off gift."
'The Vodafone UK Foundation prides itself in not simply writing cheques for charities. We aim to invest and support charitable and community projects with the potential to lead to long-lasting change. The support for Charity Bank is another way of achieving that aim," said Sarah Shillito of The Vodafone UK Foundation.
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For further information, please contact:
Mark Howland, Charity Bank
01732 520029
mhowland@charitybank.org
Ally Stevens, Vodafone UK
For media enquiries, please call 07000 500 100
For general enquiries, please call +44 (0)1635 33251
press.office@vodafone.com
Notes to editors
About Charity Bank
Charity Bank is the UK’s first bank that is regulated by the Financial Services Authority and is also a registered charity (no. 1091648). It was publicly launched in October 2002.
Charity Bank - the UK's first not-for-profit bank - is funded by deposits from people and organisations that want to help communities, while preserving their savings and earning interest.
Charity Bank uses these savings deposits to provide affordable loans - currently to the value of £19.6 million - to charitable organisations that do not have easy access to mainstream lending. This enables them to become financially stronger and to deliver programmes when they are most needed. Charity Bank uses any profits it makes to help keep the costs of these loans low and make loan finance a truly affordable option for charitable organisations.
Since the launch of Charity Bank’s pilot loan fund, Investors in Society, more than £30 million of loans have been agreed for more than 380 enterprising charities and community groups, unlocking over £100 million of finance for voluntary and community activity.
- Charity Bank has brokered some £30 million of loan facilities into the commercial banking sector.
- Existing Charity Bank shareholders are: Charities Aid Foundation; Baring Foundation; Esmée Fairbairn Foundation; MB Trust; NCVO; Northern Rock Foundation; Nuffield Foundation; Phillips Trust; Serve All Trust and Tudor Trust.
- For more information about loans or savings accounts with Charity Bank, please call 01732 520 029 or visit www.charitybank.org.
At the end of 2003, a consortium led by Charity Bank was appointed by HM Treasury to manage Futurebuilders, a new voluntary and community sector £125 million investment fund.
In October 2004, Barclays Bank became the first bank shareholder in Charity Bank following a £500,000 equity investment in the bank.
Charity Bank is an independent member of the Charities Aid Foundation family. It is backed by a range of financial institutions, charities and individuals, including Barclays Bank, Bank of Scotland, Nat West and Deutsche Bank, Tudor Trust, the Serve All Trust, Northern Rock Foundation, Esmée Fairbairn Foundation, NCVO, Monument Trust, Beatrice Laing Charitable Trust, the Nuffield Foundation and CAF itself. The Co-operative Bank is Charity Bank's banker.
About The Vodafone UK Foundation
The Vodafone UK Foundation is a registered charity. It is one of 19 local country Foundations funded by The Vodafone Group Foundation and also receives donations from Vodafone UK Limited.
The Vodafone UK Foundation helps excluded 16-25 year olds in the UK to live fuller lives, primarily by increasing their access to information and opportunities through mobile technology-based solutions. It also supports local communities in areas where Vodafone has a significant physical presence and Vodafone employees who are involved in community activities.
Wherever possible The Vodafone UK Foundation provides charity partners with a range of resources in addition to financial support.
The Vodafone UK Foundation was presented with a PerCent standard logo in the 2003/04 Business in the Community Giving List Report. Vodafone Group was ranked 50 in 2005 The Sunday Times/Business in the Community Companies That Count survey.
Further information can be found on www.vodafoneukfoundation.org.