JGP News
A snapshot of some of our most recent work and an insight into some of our ideas on the hot topics and issues that affect the public and not for profit sectors, and how we are responding to them.
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Charities should ‘avoid putting money into high street banks’
It is important for charities to invest their money wisely, an industry expert has reported.
According to James Bevan, investment officer at CCLA, those operating in the third sector could be losing out on millions of pounds each year by placing cash in high street bank accounts.
Instead he stated they should invest in charity-specific financial products, such as the Charities Aid Foundation’s CAF Bank, which offer higher rates of interest.
The officer pointed out that charities have some £30 billion invested into high street accounts, with about two-thirds of this not benefiting from attractive rates, ThirdSector.co.uk reports.
He said: "Charity trustees think high street banks are sensible places to keep money, but they aren’t."
Overall, it was suggested that the third sector is losing out on £400 million per year by opting for high street accounts.
It was also reported that in selecting such product, charities are "paying for services that they don’t need".
Such guidance could help third sector institutions to improve their sustainable efficiencies.
Earlier this month, Toby Eccles, development director for Social Finance, claimed that the creation of the Social Investment Bank will help third sector bodies lobby the government to increase the amount of capital that is available within the sector.
More about sustainable efficiencies.
