Cash held by charities increased by £500m last year, report reveals

Charity Financials Banking Spotlight says the amount of cash from charities held by banks in 2017/18 matched the previous high point of 2012

Banks hold £16.7bn of charity money, says the study
Banks hold £16.7bn of charity money, says the study

Charities had £500m more in cash in the 2017/18 than in the previous financial year, taking the total amount held in banks to £16.7bn, a new report says.

In its Banking Spotlight report, sponsored by Barclays, the charity data website Charity Financials says the amount of money charities held in banks matched the previous high point in 2012.

The report, which is based on analysis of the top 5,000 charities in terms of new assets, income or expenditure, says that charities had largely recovered from a sharp fall in cash reserves to £15.4bn in 2014, experiencing a rise to £16.7bn in 2017/18.

The report says it expects the total cash held by charities to continue growing in the future.

The 25 biggest charities collectively held £3.3bn in cash, the report says, although this was the same level as in the previous year.

The Charities Aid Foundation was the largest cash holder of the charities in the study, the report says, with £941m.

The report says that more than half of charity-bank relationships have lasted at least decade, with 14 per cent having lasted 16 years or more.

Barclays remains the most popular bank for the top 5,000 charities, with a 20.4 per cent market share. NatWest was a close second with 19.98 per cent of those charities banking with it.

Barclays also held the most charitable money, with £3.3bn compared with £3.2bn at NatWest.

Lloyds saw the greatest cash growth in 2017/18, with an increase of £292m. HSBC was the biggest loser, with a fall in cash levels from charities of £114m.

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