{"id":50831,"date":"2024-11-15T10:58:27","date_gmt":"2024-11-15T10:58:27","guid":{"rendered":"https:\/\/www.elixirr.com\/en-us\/?p=50831"},"modified":"2025-10-30T14:44:58","modified_gmt":"2025-10-30T14:44:58","slug":"how-can-banks-better-support-the-not-for-profit-sector-and-realise-mutual-benefits","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-us\/how-can-banks-better-support-the-not-for-profit-sector-and-realise-mutual-benefits\/","title":{"rendered":"How can banks better support the not-for-profit sector and realize mutual benefits?\u00a0"},"content":{"rendered":"\n<p>Last year, <a href=\"https:\/\/www.civilsociety.co.uk\/news\/banks-criticised-by-regulator-as-42-of-charities-report-experiencing-poor-service.html\">42% of charity trustees<\/a> reported receiving poor customer service from banks. The biggest criticism being that these financial institutions did not understand their specific needs and therefore cannot make accommodations for them. With ever changing and tightening regulation, the question for the banking sector is how can we best support the not-for-profit sector, remain profitable and adhere to regulation?\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The not-for-profit sector faces numerous challenges when it comes to opening and managing their accounts<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Banks often do not understand the unique operating models or legal structures of the not-for-profit sector. As a result, certain founders are facing significant barriers to entry on their initial journey setting up the charity\u2019s finances. These barriers include long and opaque account opening processes not designed for the unique challenges of the sector, as well as minimum account balance requirements.&nbsp;&nbsp;<\/p>\n\n\n\n<p>An example of this are standardized processes that were not designed for the non-standard circumstances of the not-for-profit sector\u2019s unique structure. Standardization makes it difficult for not-for-profit firms to be assessed individually, and does not provide the option to explain why the given options don\u2019t apply to their situation. A specific <a href=\"https:\/\/www.icaew.com\/insights\/viewpoints-on-the-news\/2024\/apr-2024\/charity-banking-obstacles-reach-crisis-point\">example<\/a> would be not having a beneficiary, which by definition is not applicable to charities.&nbsp;<br>&nbsp;<br>Moreover, unexpectedly <a href=\"https:\/\/www.civilsociety.co.uk\/news\/high-street-bank-to-start-charging-some-charity-customers-for-large-cash-exchanges.html\">large transaction fees<\/a> coupled with low <a href=\"https:\/\/www.civilsociety.co.uk\/news\/funders-afraid-of-supporting-smaller-charities-says-charity-leader.html\">cash flow<\/a> mean there is a high chance of being de-banked, forcing trustees to use personal bank accounts for their work, thereby breaching fiduciary duty and regulations. This imposes disproportionate hardship, especially since trustees are often unpaid. These long and frustrating processes place an unnecessary administrative burden on small charities, diverting their time away from serving their communities.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why should banks care about supporting the not-for-profit sector?&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p>As Helen Stephenson, CEO of the Charity Commission, <a href=\"https:\/\/www.civilsociety.co.uk\/news\/banks-criticised-by-regulator-as-42-of-charities-report-experiencing-poor-service.html\">stated<\/a> in 2024, \u201cIt is simply not good enough that volunteer trustees, who are giving of their free time to serve society, are faced with such unnecessary challenges in managing their charities\u2019 money\u201d. Charities play a vital role in delivering services to their local communities and challenges with financial management can cause disruption and service breakage.&nbsp;<\/p>\n\n\n\n<p>Supporting charities aligns with banks&#8217; Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) goals. By providing better services to the not-for-profit sector, banks can make a positive contribution to communities, demonstrate their commitment to societal well-being and improve their reputation in the process.&nbsp;<\/p>\n\n\n\n<p>The reality is banks are facing tightening regulatory compliance measures driving them to reduce their risk. There is also increasing pressure from governments, including inquiries through the <a href=\"https:\/\/committees.parliament.uk\/oralevidence\/14395\/pdf\/\">House of Commons<\/a>, imposing pressure to support small and medium-sized businesses and charities. By proactively addressing these measures, banks can avoid potential regulatory penalties and align with government expectations.&nbsp;<\/p>\n\n\n\n<p>Finally, while supporting the not-for-profit sector might require initial adjustments, it can lead to long-term profitability. Britons gave <a href=\"https:\/\/www.gov.uk\/government\/speeches\/philanthropy-past-present-and-future\">\u00a312.7 billion<\/a> to charity in 2022, according to a Charities Aid Foundation (CAF) estimate. Charities seek banks that understand their unique needs and are more likely to commit to one banking provider for the lifetime of the organization. Building a strong base of charitable clients allows banks to move higher up the non-profit ladder gaining trusts and foundations with higher volumes of income as new clients. The best way to attract charities with large cashflows is by becoming an organization that supports charities effectively.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What solutions can banks implement to support the not-for-profit sector?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>While there is an opportunity for banks to develop specialized financial products for the not-for-profit sector, there are other ways banks can support without major investment in added resources.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Firstly, collaborating with non-profits to upskill their staff and volunteers in the unique financial challenges they will face as well as the skills and tools they will need to establish in order to overcome them. This can be delivered through one-to-one advisory, group training sessions or even virtual webinars.&nbsp;<\/p>\n\n\n\n<p>This training can be further subsidised by banks by providing dedicated resources to support charities, such as templates, educational materials and application assistance. Offering specialist tax advisory services, reporting templates and tools can simplify compliance and ensure efficient submissions, reducing hassle for both parties.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How we can help<\/strong>&nbsp;<\/h2>\n\n\n\n<p>By understanding and accommodating the needs of the not-for-profit sector, banks can fulfill their CSR commitments, enhance their reputation, comply with government and regulatory pressures and achieve long-term profitability.&nbsp;<\/p>\n\n\n\n<p>At Elixirr, we have extensive experience supporting clients in both the charity and financial services sectors for over 15 years. This includes working with an organization that provides banking services to charities globally, as well as a number of foundation arms for charities. This experience enables us to understand their specific needs and offer tailored solutions with the additional skills and expertise to implement them effectively.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Last year, 42% of charity trustees reported receiving poor customer service from banks. The biggest criticism being that these financial institutions did not understand their specific needs and therefore cannot&hellip;<\/p>\n","protected":false},"author":6,"featured_media":50842,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"[]"},"categories":[116],"tags":[95,151],"related_service":[],"related_industry":[55,42],"class_list":["post-50831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-banking","tag-not-for-profit"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How can banks better support the not-for-profit sector and realise mutual benefits?\u00a0 - Elixirr - USA<\/title>\n<meta name=\"description\" content=\"While there is an opportunity for banks to develop specialised financial products 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18.6374 33.6111 18.3543 33.4454C17.7167 33.0759 17.3203 32.3585 17.3203 31.5797V15.8189C17.3203 15.0379 17.7167 14.3227 18.3543 13.9531C18.6442 13.7827 18.9735 13.6951 19.3078 13.6994C19.6421 13.7037 19.9692 13.7998 20.2548 13.9776L33.4237 22.0406C33.6981 22.2166 33.9244 22.461 34.0812 22.751C34.238 23.0409 34.3203 23.3668 34.3203 23.6982C34.3203 24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span>            <\/div>\n                        <\/figure>\n        <div class=\"wp-component-card__content edwp-row-load\">\n                                    <p class=\"wp-component-card__eyebrow\">\n                Articles            <\/p>\n                <a href='https:\/\/www.elixirr.com\/en-us\/how-can-banks-better-support-the-not-for-profit-sector-and-realise-mutual-benefits\/' class='wp-component-card__title'>\n            <h2>\n                How can banks better support the not-for-profit sector and realize mutual benefits?\u00a0\n            <\/h2>\n        <\/a>                                    <div class=\"wp-component-card__description\">\n                    Last year, 42% of charity trustees reported receiving poor customer service from banks. The biggest criticism being that these financial institutions did not understand their specific needs and therefore cannot&hellip;                <\/div>\n                                                    <div class=\"wp-component-card__meta\">\n                                            <p class=\"wp-component-card__date\">\n                            15 November 2024                        <\/p>\n                                                                <div class=\"wp-component-card__terms\">\n                                                                                                                                                    <div class=\"wp-component-tags edwp-component\">\n                        <div class=\"wp-component-tags__tag\">\n                Charities            <\/div>\n                                <div class=\"wp-component-tags__tag\">\n                Financial Services            <\/div>\n                <\/div>\n                        <\/div>\n                                    <\/div>\n                                                    <div class=\"wp-component-card__button-wrapper\">\n                    <button class=\"btn btn--link arrow wp-component-card__button\">\n                                                                            Read more                                                                            <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span>                                            <\/button>\n                <\/div>\n                                            <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/50831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/comments?post=50831"}],"version-history":[{"count":1,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/50831\/revisions"}],"predecessor-version":[{"id":56413,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/50831\/revisions\/56413"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media\/50842"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media?parent=50831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/categories?post=50831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/tags?post=50831"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_service?post=50831"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_industry?post=50831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}