FOUNDATION of Light founder Sir Bob Murray CBE has praised the support of the city’s ruling cabinet for money that he says will ensure thousands of people continue to benefit from its lifechanging work.

The Foundation has been backed by almost £1m of support – including a £240,000 one-off grant approved by Sunderland’s Cabinet earlier this week – which will fill a deficit in its finances left by additional costs associated with building its award-winning Beacon of Light facility, used by almost 7,000 people every week.

The Foundation, which turns 20 next year, supports hundreds of thousands of people each year to tackle some of the region’s biggest community challenges such as obesity, unemployment, poor mental health, social isolation and anti-social behaviour.

Sir Bob says the one-off donation – which Sunderland’s Labour Cabinet approved on Tuesday – will put the charity in a positive position, allowing it to emerge from the COVID-19 crisis on the front foot, and look forward to a sustainable future.

The council stepped in after it was revealed that the charity had experienced challenges with its revenue budgets for operations over the last year. The foundation faced a £1m black-hole, and though it had managed to raise money from donations made by private individuals, it hadn’t been able to plug the gap in its finances to get on a firmer footing to move forward.

Sir Bob, who set up the Foundation in 2001, said: “We are incredibly grateful to those who have supported us, not least the council who have backed us since day one.

“The Foundation does amazing work across Sunderland, and this support will ensure the people we help can look forward to that, despite the challenges that the pandemic has presented to charities of all kinds.”

“With so many people in region facing unemployment, mental health challenges or being cut off from their communities, charities matter now more than ever before but funding streams are uncertain. Our programmes are designed to support and compliment a range of frontline public services, helping to tackle some of our communities’ biggest challenges.

“It is imperative that we are able to continue to provide our critical services to Sunderland residents and this award will go towards a number of vital programmes, ensuring that together we are protecting and supporting those who need it most.”

The Foundation’s business plan had predicted a break-even position by year three (to August 2021). However, the year one set up costs were underestimated, which led to a financial loss in the year ended 31 August 2019 for the Foundation of Light Group. Labour’s Cabinet stepped in and committed council budget to the charity, after concerns that the Foundation would no longer be able to sustain its current programme of work, which does so much to support vulnerable people across the city.

As well as its work delivered at the Beacon, the Foundation provides significant social benefits to the city through its programmes of local sports and education activities run in the community, with every £1 invested in the charity saving £29 in the public purse across health and social services facilities.

Councillor Graeme Miller, leader of Sunderland City Council and the city’s Labour Group, said: “The Foundation is an absolute asset to Sunderland, delivering so much good and supporting people – in particular young people – to achieve more. We are clear – we must protect it.

“The one-off injection of cash will ensure that the charity can emerge from a period of national crisis on the best footing possible, able to deliver services and support that has helped so many people in the city and that it will continue to deliver its incredible work for future generations. We cannot afford – particularly as we come through such a devastating period – to leave such an important charity to wither.”

The council has been involved with the Foundation of Light since it was set up, and was a key supporter of its Beacon of Light facility, which has become a focal point for the charity’s community work.

As well as its work delivered at the Beacon, the Foundation provides significant social benefits to the city through its programmes of local sports and education activities run in the community.

The one-off grant will assist in ensuring the ongoing financial sustainability of the charity, so that it is better able to meet its business plan targets through to August 2021, which will deliver significant social benefits for Sunderland residents, as well as giving the Foundation greater security in meeting the challenges arising from COVID-19.

Cllr Miller added: “Charities have been particularly hard-hit by the COVID-19 crisis, and we have done a great deal of work as a council to channel support to our charity, voluntary and community sector. We must ensure that the amazing organisations that do so much to improve the life chances of our residents have the best chance of survival long into the future, and this is about just that for the Foundation of Light, a charity that our residents have taken to their heart.”

In 2018, the award-winning £20m Beacon of Light facility opened, with the council contributing circa £3m in return for specific use and advertising rights in respect of the facility. The building brought to life the vision of providing high-quality sports and education activities to the whole community.

As a result of the financial losses in the charity’s first year, the Foundation had to rely on its reserves to fund it until the end of December 2019 and a match funding campaign was launched earlier this year, raising £500,000 in private donations from individuals who have strong connections to the city.