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Transferring Windfalls to Charity
Information for customers
Newcastle Building Society is committed to remaining a mutual building society and wants to protect its members from any disruption to its business caused by speculators.
In order to achieve this, all new customers opening share accounts, as part of the account opening process, agree to assign to the Community Foundation any windfall benefits which they may become entitled to on a future conversion or takeover of the Society. The Community Foundation is one of the leading community foundations in the UK serving Tyne & Wear and Northumberland.
This agreement will last for the first five years of membership, after which it will no longer apply.
What do we mean by windfall benefits?
A “windfall benefit” may be paid to a member of the Society in the event of a transfer the whole of our business to another company during a conversion or takeover transaction (this would mean we would no longer be a “mutual” organisation).
What do we mean by assigning benefits?
To assign windfall benefits means that you agree they will be automatically transferred to the Community Foundation, instead of being received by you as an individual.
What does this mean for new members?
All new members opening a savings account agree, as part of the account opening process, to assign any potential windfall benefits to charity for a period of five years. This is specifically set out within the application forms, and is also contained within the Savings General Conditions. This does not affect new members applying for a mortgage.
What does this mean for existing members?
If you were a member of the Society on 1 April 1999 and have continued to be a member since that date, the scheme does not affect you. If you have opened an account after 1 April 1999, the charitable foundation scheme may apply to you. The agreement lasts for the first five years of membership, after which it will no longer affect you.
How can I get more information?
If you need more information please ask at your local branch or telephone our Customer Contact Centre on 0345 734 4345. Lines are open from 8am to 6pm, Monday to Friday.