New banking guide urges charities to get more from their bank
25th October 2012
Charity Finance Group (CFG) has joined up with the British Bankers’ Association (BBA) to produce a short guide to support charities with their banking arrangements.
Banking for Charities, which is aimed at the trustees and managers of charities, provides information on key aspects of charity banking including selecting and opening a suitable bank account, understanding fees and charges, and account switching. The guide also aims to help charities better understand their needs and ask the right questions, enabling them to navigate the banking environment more effectively.
While bank accounts are a necessity for most charities, there are a number of factors that charities and trustees may not be aware of when considering their banking arrangements. These are highlighted in the guide and include:
- Is tax relief being claimed on interest paid by a bank or building society?
- What are the bank’s ethical policies?
- Is multiple authorisation available on online or telephone banking?
- Is it worth switching banks – and how easy is this?
Caron Bradshaw, CEO, Charity Finance Group, commented: “Banking is a core activity for every charity and the sector holds a huge amount in banks – approximately £18bn is held in cash deposits. It’s therefore so important charities are getting maximum value from this service, yet it’s sometimes easy to overlook getting the basics right.
“We frequently receive queries from charities about banking and by teaming up with the BBA we have been able to draw on their knowledge to produce a concise, jargon-free and, most importantly, impartial guide charities can use to understand their options.
“We’d like to see banking move from a passive arrangement to one where charities are regularly ensuring they are getting the best service, and the launch of this guide provides a key opportunity to encourage all charities to review their banking arrangements to make sure they are best suited to their needs.”
Anthony Browne, BBA chief executive, said: “The BBA has been delighted to partner with the Charity Finance Group to put together this guide; and we really hope that people who look after charities' finances find it helpful. We know that there are lots of people around the country who work hard – and often for free – to manage the financial affairs of a charity or voluntary organisation. This guide aims to help them navigate the various banking choices on offer and decide the best financial arrangements for their charity.”
- Ends -
Notes to Editors:
1. CFG is the charity that champions best practice in finance management in the voluntary sector. Our training and development programmes enable finance managers to give the essential leadership on finance strategy and management that their charities need. With more than 1,800 members, managing over £21bn, we are uniquely placed to challenge regulation which threatens the effective use of charity funds. For more information, please see www.cfg.org.uk
2. The BBA is the leading trade association for the UK banking and financial services sector. It represents over 200 banking members, which are headquartered in 50 countries and have operations in 180 countries worldwide. The BBA’s member banks collectively provide the full range of banking and financial services and make up the world’s largest international banking centre. www.bba.org.uk
3. Banking for Charities was written by the BBA with input from members of CFG’s Banking Forum, which brings together representatives from the charity and banking sectors.
4. The guide will be available on the CFG and BBA websites from Thursday 25 October 2012. For further information, please contact Melora Jezierska, CFG policy and public affairs officer, at email@example.com or on 020 7250 8348.