The Institute of Fundraising is launching a campaign to highlight the importance of cheques to charities following a proposal to phase out the payment form.

The Institute has also criticised the Payments Council for not consulting widely enough on the proposal to abolish cheques by 2018. The Institute will be arguing that many charities are reliant on income donated via cheque and have “real concerns” that abandoning cheques could result in some donors stopping giving altogether.

Director of policy and campaigns at the Institute, Louise Richards said that the move "has seemingly been designed entirely as a cost-cutting measure for the banks".

"We believe there has been scant consideration of the disastrous effect this could have on charitable income," she said.

The Institute is also encouraging its members to express their individual concern to the Payments Council.