30/04/2024
Charity regulators write an open letter to UK banks
In November 2023, the CEOs of charity regulatory authorities in England and Wales, Scotland, and Northern Ireland penned a collective letter. Their aim was to bring attention to the challenges faced by charities and articulate the repercussions for both the organisations themselves and the individuals or causes they support. They appealed to banks to streamline their services, allowing charities to operate without encountering severe governance hurdles.
The letter highlighted several challenges, including a decline in bespoke banking services, instances of administrative delays, and feedback indicating that online banking systems do not align with the operational needs of charities.
To tackle these pressing issues, the CEOs urgently urge banks to undertake specific actions:
- Streamline the process for establishing a charity bank account, recognising the mutual interest in safeguarding donated funds and aiding charities in prioritising the needs of the beneficiaries.
- Create thorough training resources for bank employees to deepen their comprehension of charity frameworks and governance systems, thereby mitigating delays stemming from misunderstandings.
In the letter the CEOs of the regulators state: ‘There is little more that we as regulators can do. The action needed can only happen with support and leadership from UK banks.’
Guidance: Letter to Chief Executives of UK Banks – GOV.UK (www.gov.uk)
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