Increasing numbers of charities are outsourcing their cash management to professional organisations, according to charity investment managers.
Managers are saying that more charities are asking them to provide cash management services in order to ensure their cash is held in the most appropriate area at any given time.
Kate Rogers, client director at investment management company Schroders, said that outsourcing by the charities was motivated by risk-aversion rather than profit.
"We've recently seen charities become more focused on the credit-worthiness of the institutions they invest in," she said. "That's down partly to a more cautious approach after the Icelandic banking collapse. Investigating credit-worthiness takes a lot of time and it's difficult to manage, so more people are outsourcing it."
John Kelly, head of client investment at investment house CCLA, said he had also seen an increase in the number of charities choosing to outsource their cash management.
He said charities had started to look for higher rates on their cash a year ago, but many had moved away from holding money with organisations paying high interest rates because they wanted greater security.
"People have looked at what has been happening in Greece, Spain and Portugal, and decided that they want more safety," he said.