Recession and low interest rates force charities to raid reserves, says CAF bank

Poll shows 45 per cent of charity customers have dipped in

Low interest rates have forced almost half of charities to dip into their reserves, according to a poll by social lender CAF Bank.

In an online survey of 280 respondents, 45 per cent said the recession had caused them to draw on their reserves. Thirty-three per cent said they had not yet been forced to do so, and 21 per cent said they were unsure or unwilling to answer.

The poll was carried out in the first two weeks of May with CAF Bank charity customers. Forty-two per cent of respondents agreed or strongly agreed that reduced income from low interest rates was affecting their ability to deliver services. Thirty-eight per cent of respondents disagreed with the statement and 20 per cent said they did not know.

Peter Mitchell, chief executive of CAF Bank, said: "Interest rates have plummeted as the Bank of England has waged war on recession and the plight of savers and pensioners has been well documented. Our survey reveals that charities are the latest innocent victims of the financial crisis and the vital services they deliver are being impacted by historically low interest rates."

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