Chancellor urged to compensate charities hit by Icelandic banking collapse

Acevo, NCVO, CAF and Charity Finance Directors' Group in plea to Alistair Darling

The chief executives of a group of third sector umbrella bodies including Acevo and the NCVO have written to Chancellor Alistair Darling urging him to compensate charities that lost money in the Icelandic banking collapse.  

The heads of chief executives group Acevo, the NCVO, the Charity Finance Directors' Group, the Charities Aid Foundation and a representative from Save our Savings, a group of charities that lost money in the collapse, wrote a joint letter to Darling this week.
The letter welcomed the Treasury Select Committee's recommendation that the Government should compensate in full third sector organisations that lost money in the banking failure.

"It seems reasonable for the Government to compensate those charities affected by the failure of Icelandic banks," the letter says.

The group also asked Darling to "give active consideration" to setting up a separate depositor class for charitable funds under the Financial Services Compensation Scheme, the statutory fund that provides compensation when financial institutions fail.

"Recent events have demonstrated the need to clarify the protection available to charities; creating an opportunity for the Government to now ensure that the unique status of charity funds is recognised and appropriately protected," it says.

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