Barclays to start charging 'thousands' of charities for its banking services

26 Nov 2018 News

Barclays is to start charging "thousands" of charities and community groups for its accountancy services after conducting a review.

The bank offers community accountancy services, including making and receiving payments, for free to charities with an annual turnover of less than £100,000.

But the bank has reviewed its service and found that thousands of organisations it provided free services to have increased their income to above the threshold and are no longer eligible.

The Times reported today that an estmated 5,000 not-for-profit organisations will be affected.

A spokesperson for Barclays said its turnover limit was introduced in the 1990s and that it has offered discounts to charity customers now being charged following the review if they have been with the bank for more than a year.

They said the bank offers free community accountancy services to 135,000 not-for-profit and community organisations.

They said: "In line with other banks and in order to allow this free service to be focused on smaller charities and clubs where it can have the most benefit, free services are provided for organisations with a ceiling of £100,000 for annual turnover."

 

Lloyds Banking Group offers a similar free banking service, although its turnover limit is £50,000.

Charities told to shop around

 

Caron Bradshaw, chief executive of Charity Finance Group, advised charities to "shop around" to find the best community accountancy service for them.

 

She said: "Different banks offer different levels of service and charities and community groups should not be afraid to shop around for the best deal for their organisations. 


“Often charities, particularly small ones, will stay with the same bank sometimes because it is the bank the treasurer uses for their personal banking.

 

"We encourage charities to look at the relationship in the round - fees may be a small price to pay for great relationship management or for access to branches.

 

"However if a bank isn’t meeting the needs of the charity, trustees should be prepared to move their business.”

 

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