What’s up with banks and charities?

You may have seen the headlines over recent months, highlighting the issues some charities have experienced when it comes to banking.

The Charity Commission for England and Wales (CCEW) published a survey last month, which found that 42% of trustees had experienced poor service from their banks in the last 12 months. Other findings included that 18% had difficulty trying to open a new bank account.

While the CCEW survey didn’t cover charities here in Northern Ireland, we at the Commission are already aware that Northern Ireland’s charities are being impacted too. Indeed, as our registered charities know, having a bank account is part of the charity registration process – so what do you do if you simply can’t find a bank willing to open an account for your charity?

Charity trustees are obliged by law to account for the money they raise and the funds they distribute – but what if they simply have nowhere to lodge cash they have raised because they can’t open a bank? Can you imagine the scandal if a well-meaning trustee said they would hold the funds in their own personal account, or if they suggested stashing the money in a cupboard, while they searched for a bank to open an account for them?

Charities are on the front-line of the current cost-of-living crisis, providing vital support to people at this challenging time. Access to banking services that allow charities to carry out their work while managing their funds in an appropriate and transparent way is a non-negotiable.

The Commission, with the other UK charity regulators and representatives from the sector, such as NICVA, and UK Finance (the professional body for the banking sector), are working together to raise awareness of these challenges and trying to find solutions. In November 2023 we issued a joint open letter to the banks making clear there is much more that banks could be doing to make this easier for charities.

You can help too. To get an up-to-date picture of problems that local charities may be experiencing with their bank, NICVA, as part of a UK wide working group, is carrying out a voluntary sector banking challenges survey.

By completing the survey (which closes at noon on Wednesday, 15 May) you will be providing critical evidence calling for the policy and legislative change that will improve access to banking products and services for the third sector.

The survey only takes 10 to 15 minutes but must be completed in one sitting. To complete it, you will need to be very familiar with the day-to-day management of your organisation's bank account(s). Every voice matters so please, ensure yours is heard.

Ann Breslin

Policy and Research Manager

Charity Commission for Northern Ireland