The UK’s 204,000 registered charities spend an estimated 12 million hours each year on banking admin, equivalent to over 6,000 full-time people working year-round on nothing else, a new report has revealed.
Yesterday, Charity Finance Group (CFG) published Charity Banking Challenges 2026, the third report in the series following the 2022 and 2024 surveys.
The report shows that while some longstanding concerns have improved, charity banking remains a significant operational challenge for charitable organisations across the UK.
Since the last survey, access to local banking services has substantially deteriorated and is now one of the fastest-growing concerns raised by respondents.
The report says that the recent introduction and rollout of banking hubs and services available at post offices “have slightly mitigated against branch closures”.
However, it adds that “the loss of access to in-person services and knowledgeable banking staff is keenly felt by charities, especially in rural areas”.
Changing mandate is ‘burdensome for individuals’
The latest survey ran from 6 February to 30 April and received 2,416 responses from people across the UK representing a range of roles, sectors and charity sizes.
It says some of the issues that dominated previous surveys, notably around mandates, trustee verification and charity-specific knowledge, appear to be improving.
Some 53% of respondents cited changing signatories on their account mandate as a challenge – the number one issue – down from 75% in 2024.
The report says difficulties changing mandates mean that outdated signatories can remain on bank accounts, “posing a significant risk to the organisation’s financial security”.
“Since trustees serve on a voluntary basis, the time-consuming procedures involved in updating signatories are particularly burdensome for individuals who may also have full-time employment, or caring or other responsibilities which require their time,” it says.
“The length of time taken to enact changes can also be a contributing factor to trustees remaining in role, particularly when this takes months.”
New challenges
The report shows that new challenges have emerged, including rising banking costs, with every respondent reporting experiencing at least one banking challenge.
Some 37% of respondents cited challenges related to fees for banking services such as depositing cash or cheques (2024: 31%).
A similar proportion (35%) reported being charged to hold a bank account, up from 24% in 2024.
Limited access to in-person banking services has hugely increased since 2024, from 4% of respondents expressing this concern then to 31% today.
The report reveals that since the 2024 Charity Banking Challenges survey, nearly 1,000 branches have closed across the UK.
“These issues are particularly apparent for rural charities,” it says.
“In our survey, almost 55% of rural respondents said that in-person banking services were either not very available or not available at all.”
The report notes that alongside financial costs, banking-related challenges have tangible day-to-day impacts on trustees, volunteers and staff.
Regarding volunteers, it says the challenges place “additional pressure on already limited time and capacity” and, in some cases, affect their willingness to continue in their roles.
For instance, among major charities (with incomes higher than £10m), one in 10 said banking challenges had resulted in the loss of trustees or volunteers.
‘Extra unnecessary pressures’
Clare Mills, CFG’s co-chief executive and co-author of the report, said: “Charities take their compliance and governance responsibilities seriously and they know that banking administration matters.
“However, too many charity staff and volunteers are losing time on admin that could and should be going to the people and causes charities exist to serve.
“These lost hours are draining the time and goodwill of volunteers and staff, and extra unnecessary pressures are being created at a time when charities are already operating in a very challenging environment.”
Mills said that where banks, charities, regulators and organisations including CFG have worked together, “some areas of challenge have genuinely improved”.
“We’ll continue to work collaboratively with all parties to understand how we can best tackle the pressures posed by rising bank charges and the lack of in-person banking services.”
