Banking support: New toolkit for charities facing banking challenges
Stuart McKay · Posted on: September 30th 2025 · read
Despite repeated calls for reform, UK charities, particularly small and medium-sized ones, continue to face persistent banking issues. Common problems include account freezes, closure of long-held accounts without notice, and unreasonable delays in verifying trustee identities.
These disruptions can significantly affect a charity’s ability to function day to day, from making payments to receiving donations.
According to a survey conducted by the Charity Commission in July 2025, two in five trustees (Research with trustees: 2025 - GOV.UK) reported experiencing some form of banking difficulty within the last year.
In response, the Charity Finance Group (CFG), in collaboration with sector partners, has published a new practical toolkit designed to help charities navigate and resolve these issues. OSCR | New charity banking guide published by the Charity Finance Group
The toolkit includes template letters, escalation routes, and advice on how to handle account closure notices. It also outlines steps trustees can take to ensure their charity’s banking relationships are more beneficial and streamlined for the charity, for example maintaining dual banking options or nominating more than one authorised signatory.
From a governance perspective, this resource provides an excellent opportunity for trustees to assess their current banking arrangements and ensure appropriate risk mitigation strategies are in place. Boards should also establish contingency procedures in the event of unexpected account disruptions such as maintaining reserve funds across multiple platforms or having pre-approved emergency payment protocols.
In the longer term, charities should advocate for sector-wide change by reporting their experiences to both regulators and sector bodies. This will support the ongoing push for a more charity-friendly banking environment. With the right preparation and access to tools like the CFG guide, charities can better protect themselves from the operational risks that financial disruptions pose.
