More than one in 10 charities have been debanked or had accounts suspended in the past two years, research reported in the Telegraph has revealed.
The majority of charities – 92pc – have experienced problems with their bank accounts, including changing signatories, visiting branches in person and opening new accounts.
Charity trustees said they were struggling to get clear advice from banks on how to access their services, with 40pc saying they had to complete checks not designed for voluntary organisations. The report continues:
It comes a year after Dame Alison Rose was forced to step down as chief executive of NatWest, after Nigel Farage announced that he had been debanked by Coutts, the private banking company.
Dame Alison resigned after admitting a “serious error of judgement” in discussing the closure of Mr Farage’s accounts with a BBC journalist.
Of the 2,000 charity workers surveyed, 7pc – 140 organisations – said that their accounts had been permanently closed and 12pc said banks had frozen their accounts or cards.
Those operating overseas faced additional challenges, with the fear of debanking causing extra stress for staff, a report by Charity Finance Group and the National Council for Voluntary Organisations (NCVO) found.
Some said they had been “blacklisted”, for activities such as sending money to conflict zones or campaigning for particular causes.
In 2023, a survey of 2,500 charities by the Charities Commission found that 42pc had experienced banking problems, including account freezes and difficulties opening new accounts.
One charity trustee told the report’s authors that: “I found it very difficult to find a bank that would accept our account. [Two banks] both refused. Although they were not explicit about why, it was hinted that our work in Sierra Leone was ‘a problem’.”
In one case in August this year, Barclays was ordered by the Financial Ombudsman Service to pay £400 in compensation and reopen a charity’s bank account after trustees complained that it had been closed unfairly.
The ombudsman said: “The impact of Barclays’ mistake caused significant inconvenience and disruption that needed a lot of extra effort to sort out.”
Saskia Konynenburg, the executive director at NCVO, said: “Today’s findings clearly demonstrate that the banking sector still isn’t meeting the essential needs of charities and voluntary organisations. The sheer level of charity staff and volunteers experiencing significant banking challenges, shows these issues are systemic and require immediate action. Banking is a key need for charities, but retail banking services are not set up with charities in mind.”
Worth reading in full.
