The old adage that looking after the pennies means the pounds will look after themselves is paying dividends for the charitable foundation of the Yorkshire Building Society.

Since being set up in 1998, the foundation has gone from strength to strength, with thousands of donations being made each year to scores of local causes.

The scheme essentially allows society members the option of donating the pennies from the interest they receive to make a huge pot of money.

This month the total raised smashed through the £1 million barrier and in 2007 more than 1,300 local causes had been supported.

The scheme, known as Small Change, Big Difference, also allows members to nominate chosen charities for the scheme, many of which are localised bodies - a great number of which are been based in Bradford. Since its inception, more than 500,000 people have signed up to the scheme.

The fundraising does not stop there for YBS which this week launches its Christmas Fundraising Appeal.

With the help of soap star Wendi Peters, YBS is aiming to raise cash for the Macmillan Cancer Support charity.

Limited edition cuddly toys and festive pin badges are on sale at branches and agencies through the appeal, which runs until New Year's Eve.

All cash raised by the appeal will then be matched pound for pound by the foundation.

Mrs Peters, who played Cilla Battersby-Brown in ITV series Coronation Street, said: "I am thrilled to be involved in the appeal with Macmillan Cancer Support and Yorkshire Building Society. Join me and help us raise £100,000 for families affected by cancer this Christmas."

The charitable foundation has proved hugely popular with customers and more than 90 per cent of the charities it supports are nominated by members.

Louise Neill, of the foundation, said: "One in four society members currently participate in Small Change, Big Difference with this figure growing every day as part of the foundation's Be One In A Million campaign to increase membership.

"As the majority of the foundation's money is generated through this scheme we feel it is only right that society members are invited to have their say in where it goes.

"We are absolutely delighted to have reached the £1 million point in member donations through the scheme. This amount together with the society's support of the charitable foundation has enabled more than 5,000 charities to share £2.5 million. We would like to thank the society's members for supporting the scheme and hope it won't be too long before we reach the next million."

The money raised by the foundation has helped support a plethora of Bradford charities.

In its time cash from its coffers has helped pay for projects as diverse as summer activity programmes for schools, residential homes for the elderly, hostels for the homeless, research into brain tumours and luncheon clubs.

One of the longest relationships the foundation has had with a local charity is with the Bradford Toy Library.

The toy library is a registered charity which provides a free loan service of specialist toys and play equipment to children with special needs. It receives no Government funding and relies on its own fundraising to replenish toy and book stocks for its users.

In October it helped provide a selection of specialist fibre optic sensory toys for children with specials needs, with a £1,600 donation. Alison Alexis, manager at the branch, said: "We are delighted to support Bradford Toy Library by providing new sensory toys.

"Sensory toys and other specialist play items can be quite expensive and are developing all the time.

"Bradford Toy Library provides an invaluable service to families as it offers the most stimulating toys for children without parents having to worry about cost.

"There are plenty of items at the charity so children always have the chance to pick something new and interesting.

"As well as the toy library, the charity also offers a specialist book library with books on many disabilities proving a useful point of resource for parents, family and carers."