Charity trustees have experienced poor service from their banks in the last 12 months according to a new survey by the Charity Commission – and it’s simply not good enough, says the organisation’s Chief Exec.
She’s Helen Stephenson, who said: “I’m shocked, but not surprised by these new figures, which offer undeniable evidence of the extent and impact of the appalling service charities receive from some banks.
“It is simply not good enough that volunteer trustees, who are giving of their free time to serve society, are faced with such unnecessary challenges in managing their charities’ money.
“We have worked behind the scenes with banks to improve the service they provide to charities. So far, I have been disappointed with their response. I hope this new research sends a message to the CEOs of high street banks that change is needed now.”
Her comments are based on a survey which found the following, with some charities experiencing more than one problem:
- Four in ten charities had poor service from their bank
- 32% of respondents faced issues when trying to update their charity’s contact details or signatories
- 18% had difficulty trying to open a new bank account
- 15% found it challenging to comply with identity requirements set by their bank
- 14% found it difficult to understand what their bank required of them
- 6% of respondents confirmed that they had experienced account freezes or being blocked out over the past year.
- 7% of respondents reported that their bank had lost their records.
The Charity Commission has renewed its calls for urgent action to be taken by the UK banking sector to improve the service it offers to charities. The regulator says inadequate banking services result in three key concerns:
- Risks to the provision of charitable services, resulting from charities being unable to meet financial obligations, such as paying staff
- Unsafe banking and financial practices, for example the use of trustees’ personal bank accounts to meet financial obligations, a direct contravention of the Commission’s guidance
- Longer-term impact on morale of volunteer trustees – anecdotal evidence demonstrates some trustees have resigned over frustrations around disruptive banking services.
