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Charity Bank launches ‘Bank On Us’ campaign

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Charity Bank, the loan and savings bank owned by charities and social purpose organisations, today announced it has lent over £15.2 million to the social sector in the first three months of 2018; more than any previous quarter in its history. Its loan book has now grown by over 120% since the start of 2015.

Charity Bank 'Bank On Us'As part of its pledge to do more to support the social sector, Charity Bank has launched its ‘Bank On Us’ campaign to reduce the costs associated with taking on a new loan and refinancing an existing loan. This follows an announcement in February that it has increased the interest rate paid on its Ethical Easy Access Account.

Patrick Crawford, Chief Executive of Charity Bank, said: “Despite the challenging and uncertain outlook, charities and social enterprises have continued to take on new projects to address social needs. The resulting loan demand from the social sector has continued and shows no sign of slowing.

“Our Bank On Us campaign is part of our pledge to continue to work side-by-side with social sector organisations seeking to use loan finance to make a bigger difference.

“By reducing the costs associated with taking on a new loan and refinancing an existing loan, we aim to give a little extra back to the charities and social enterprises we have the privilege to work with every day as they help the disadvantaged, enrich lives and improve communities.”

Charity Bank’s record growth in the first quarter of 2018 follows three consecutive years of record lending to the social sector. In 2017 Charity Bank lent £34.1 million to organisations within the sector (2016: £27.9m; 2015: £24.7m).

Charity Bank offers loans to small and large charities and social enterprises. Since 2002, it has lent over £215 million to over 650 social sector organisations. It has a social mission which is protected by its charitable objects and its social sector ownership.

One organisation that is benefiting from a Charity Bank loan is the YMCA Downslink Group, a registered charity working across Sussex and Surrey to provide a variety of services and projects to the local communities, with a focus on helping young people who exist on the margins of society to access opportunities.

Chas Walker, CEO of YMCA Downslink Group, explains how its decision to borrow from Charity Bank was influenced by a desire to work with a likeminded organisation with aligned values:

“Over the last year, we’ve reached over 16,000 young people through supported housing, learning and employability projects, counselling services, and more. We refreshed our business plan at the start of 2016 and knew we needed to increase borrowing to implement our overall investment plan for growth. 

“Mainstream banks aren’t always familiar with charity business models whereas the team at Charity Bank were knowledgeable, understanding and supportive of our plans. They not only offered competitive rates but also the knowledge that any interest we paid to them would go towards a wider social mission. It was an easy decision for our board to make.”

Loans offers

If you make a loan enquiry with Charity Bank by 31st August 2018 and sign a loan agreement with Charity Bank on or before 31st December 2018 for a loan of at least £250k, Charity Bank will:

  • charge no arrangement fee (if you are refinancing from another provider); or
  • make a contribution towards legal and professional fees (for new loans)

For full details of Charity Bank’s loan offer, visit www.charitybank.org/BankOnUs.

Charity Bank logo

New ethical easy access account for charities and businesses

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Good Money WeekTo mark Good Money Week (8th to 14th October) Charity Bank, the savings and loans bank with a mission to use money for good, is challenging charities and businesses to consider what their current bank is doing with their money and whether this is aligned with their organisation’s values.

Research commissioned by Charity Bank earlier this year into the attitudes of the public towards various aspects of banking found that 74% of the British public don’t know how their bank is using or investing their savings, whilst 71% would like their bank to make it clearer where their money is invested. In Charity Bank’s experience, there is a growing number of charities and socially-responsible businesses that are concerned about the social and environmental impact of where their savings are invested.

Launched this week, Charity Bank’s Ethical Easy Access Account offers a competitive rate of interest (of 0.50% gross/AER) to organisations looking for same-day access to their deposits. Money saved with Charity Bank is used to provide loans to support the work of charities and social enterprises across the UK. Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.

Justin Hort, Head of Deposit Strategy at Charity Bank, comments: “Moving savings can feel like a big task. However, it’s good practice to regularly review your savings accounts. Whilst the rate of interest often drives savings decisions we also encourage those managing charity or business finances to consider what their current bank is doing with their money.

“Our new Ethical Easy Access Account enables organisations to apply swiftly online, as well as receive personal support from members of our savings team if they wish. Because we are using our savers’ money to fund loans to charities and social enterprises, organisations can ensure their reserves are working for good whilst obtaining a competitive rate of interest.”

Annette Uttley from Voluntary Action Rotherham, a long-standing savings customer, said: “Our aim is to support groups and charities within the Rotherham borough and it’s important to us that every aspect of our work remains in line with our charitable mission. Charity Bank’s reputation and ethos encouraged us to open a deposit account with them in 2010, and its continued positive impact and fantastic customer support have kept us with them ever since.”

Workers at Sandford HydroAt Charity Bank, savers are provided with details of where their money is lent. Sandford Hydro is just one of the places that Charity Bank is helping have an impact. Upon completion, Sandford Hydro will be the largest hydro-electric plant on the Thames, generating approximately 1.6 GWh of clean electricity each year — enough to power around 500 households. Sandford Hydro is the brainchild of local community members, who saw an opportunity to do something good for the environment and to show what can be achieved when a community comes together in this way.

Adriano Figueiredo, Operations Director at Low Carbon Hub, comments: “We approached several banks for funding to help secure the future of Sandford Hydro, but what became clear very quickly was that Charity Bank really cared about our project and wanted to be a part of making it happen. Most commercial banks were singularly focused on the financial side of it, whereas Charity Bank was also interested in the social and environmental impact that our project would create. There was a clear alignment of objectives and we’ve had nothing but support and invaluable help.”

Since 2002, Charity Bank has provided over £195 million of loan finance to support organisations working to enrich and improve society. These loans have facilitated social impact across the UK covering a wide range of sectors. Charity Bank is one of the world’s most ethical companies, according to research carried out by The Good Shopping Guide. It is owned by charitable foundations, trusts and social purpose organisations; its staff do not receive discretionary bonuses. Charity Bank is also the only bank in the UK with the Social Enterprise Mark, recognising its social purpose and social sector ownership.

For more information on Charity Bank’s new Ethical Easy Access Account visit www.charitybank.org or call 01732 441944.

Charity Bank staff celebrate being named among Best for the World in global business honours

Charity Bank named among Best for the World in global business honours

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Charity Bank logoCharity Bank, an ethical bank with a mission to use money for good, has been named among companies that are Best for the World in 2017, selected from more than 2,200 Certified B Corporations.

B Corporations are companies that meet the highest standards of verified overall social and environmental performance, transparency, and accountability, and aspire to use the power of business to solve social and environmental problems.

Charity Bank is recognised as being in the top 10 per cent for two categories: Best for Customers for creating the most positive impact on its customers, and Best for the Long Term for creating an innovative governance structure to protect its mission for the long term. B Corporations scoring in the top 10 per cent set a gold standard for businesses wanting to make a positive difference to the world around them.

Charity Bank made the list thanks to its exceptional practices, social sector ownership and social purpose. When you save with Charity Bank, your money is lent to charities and social enterprises working to create lasting social change in communities across the UK. Charity Bank is entirely owned by charitable foundations, trusts and social purpose organisations and its staff do not receive discretionary bonuses.

Charity Bank is a Social Enterprise Mark holder and became the first bank in Europe and sixth organisation in the UK to become a Certified B Corporation in January 2015. Today, there is a growing community of 150 Certified UK B Corporations committed to redefining success in business.

Jay Coen Gilbert, co-founder of B Lab, said: “Companies like Charity Bank are proving that business can be a force for good for all stakeholders. We’re proud to share their achievement in a meaningful way. Best for the World is the only list of businesses making the greatest positive impact that uses comprehensive, comparable, third-party-validated data about a company’s social and environmental performance.”    

Patrick Crawford, Chief Executive of Charity Bank, said: “We are proud to be recognised as an organisation that seeks to maximise its social impact. These honours evidence how we put our social purpose and customer interests at the heart of our governance and decision- making. We stand with other organisations using business as a tool to build a better world.”

These honours are based on an independent, comprehensive assessment carried out by B Lab, the non-profit governing body of the standards. The full assessment measures a company’s impact on its workers, community, customers and environment. B Lab simultaneously released separate lists recognising Certified B Corporations as Best for the World (overall impact), Best for Customers, Best for the Environment, Best for Community, Best for the Long Term, Best for Workers and Best for the World: Changemakers.

Charity Bank’s loan book exceeds £100 million

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Social Enterprise Mark holder Charity Bank, the ethical bank that uses savings to make loans to charities and social enterprises, today announced that its book of drawn loans has exceeded £100 million for the first time. The bank also shared details of its five most recent loans that helped it to reach this milestone.

Since 2002, Charity Bank has provided over £185 million of loan finance to support more than 850 organisations working to enrich and improve society. These loans have facilitated social impact across the UK covering a wide range of sectors, including arts, community, education, environment, faith, health, housing, regeneration, social care and sports.

Patrick Crawford, Chief Executive of Charity Bank, said: “At the start of 2015 we had a loan book of £52.2 million; two and half years later our loan book has almost doubled. Our growth provides further evidence of how more charities and social enterprises are using loan finance to help them deliver their missions.”

“We continue to be inspired by the charities and social enterprises we have the privilege to work with every day as they help the disadvantaged, enrich lives and improve communities. These organisations are the real heroes and it is our role and privilege to be here to support what they do.” 

The five loans that most recently helped Charity Bank grow its loan book to £100 million:

Elderpark Housing Association

Operating in the Govan area of Glasgow that has experienced significant challenges since the decline of its shipbuilding industry, Elderpark Housing Association is a not-for-profit organisation that aims to improve the quality of social housing available for local people. Currently providing 1,265 rental units, a loan from Charity Bank will enable Elderpark to refurbish 29 more units.

Glossopdale Furniture Project

Since 1997, Glossopdale Furniture Project has been providing good-quality household items at affordable prices to local people on low incomes. All furniture is donated with some being restored or built out of reclaimed material on site, so the project also contributes to recycling and reducing waste locally. A Charity Bank loan will assist with the purchase of a new shop in Glossop.

Hudswell Community Charity

With property and rental prices increasing in the Yorkshire Dales village of Hudswell, many local people with low income can no longer afford to live there. Hudswell Community Charity currently manages three houses in the village. With the help of a Charity Bank loan, the charity is building three more affordable homes, which will be rented to those most in need in the community.

YMCA Black Country Group

From accommodation and childcare provision to employment and health services, the YMCA Black Country Group provides a whole range of opportunities and support networks to help young people from across the Black Country build strong foundations for a better life. A loan from Charity Bank allowed the charity to consolidate its loans on terms that were better suited to its plans for the future.

Stretham & Wilburton Community Land Trust

The two East Cambridge parishes of Stretham and Wilburton came together in 2012 both to address the affordable housing crisis in the area that was resulting in local people and workers having to move away, and to give local people a voice in the development of their community. A Charity Bank loan has enabled the purchase of eight housing units, which will offer housing for 16 persons at below market rent.

Charity Bank’s Loan Portfolio Report for 2017/18 provides many more examples of social sector organisations using loan finance to help them deliver their missions.

Charity Bank: a bank for good

Big Society Capital invests a further £2.5 million in Charity Bank

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Charity Bank announces strong start to the year as Big Society Capital invests a further £2.5 million

Big Society Capital has invested £2.5 million in the share capital of Social Enterprise Mark holder Charity Bank and has committed in principle to invest a further £2.5 millionon or before 1st December 2017. This will complete Big Society Capital’s pledge in March 2014 to invest up to £14.5 million in ordinary shares of Charity Bank.

Charity Bank, the ethical bank that uses savings to make loans to charities and social enterprises, has lent over £180 million since 2002. Charity Bank is run for the sector and owned by the sector, as all of its shareholders are charitable trusts, foundations and social purpose organisations. This further investment from Big Society Capital will allow it to make more loans to social sector organisations in the coming years.

This investment is made as Charity Bank experiences continued growth. Charity Bank has had a strong start to the year with £28 million of new loan approvals in the first five months of 2017. This continues the momentum since Big Society Capital’s initial investment in 2014, with the loan book growing by over 25% per year in the two years to 31st December 2016.

George Blunden, Chairman of Charity Bank, says: “These further injections of capital from Big Society Capital will enable us to meet the growing demand for loans from charities and social enterprises.”

“Share capital is vital to our mission. It underpins the bank and enables us to leverage our savers’ money. An investment in Charity Bank creates a multiple effect – for every £1 of share capital invested we can lend £8 to help create lasting social change in our communities.”

“When Big Society Capital pledged its original investment, we said that we hoped it would be the first of a small number of significant new investors over the next five to ten years. The Mercers Charitable Foundation invested a further £1 million in 2015 and the Barrow Cadbury Trust invested £250,000 in 2016.”

“We are inviting other charitable trusts, foundations and social purpose organisations to invest in our share capital and join with us in using the tools of finance to create a better society for all.”

Anna Shiel, Head of Origination of Big Society Capital says: “Big Society Capital’s investment in Charity Bank plays an important role in making capital available to small and medium sized charities. Over 850 loans have now been made to organisations totalling more than £180m. These loans have helped support people all around the UK, with 97% of organisations saying it has contributed to achieving their mission and 68% saying the loan helped them to expand their services. Upon the completion of our investment, we look forward to seeing more people and communities supported by their work.”

Patrick Crawford, Chief Executive of Charity Bank, says: “The stable quality and growing size of our loan book demonstrate that loans can be an important and effective tool for social sector organisations seeking to make a bigger difference to the world around them.”

“In the face of a shifting political, social and economic outlook, one thing is certain: the social sector will continue to play a vital role in addressing the needs of communities across the UK. At Charity Bank, we have the resource and capacity to play our part. We are here to help charities and social enterprises adapt, take advantage of new opportunities and create a better world.”

A team from Linklaters led by Aisling Zarraga and Rebecca Rigby acted on a pro-bono basis for Charity Bank, supporting its General Counsel in advising the Board on Big Society Capital’s investment. Linklaters has contributed over 1,000 hours of specialist legal advice to Charity Bank over the past four years.

The most rewarding ISA in the world?

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The British public wants banks to lend to organisations and projects that benefit society, but most people do not know what happens to their savings while they are deposited with their bank.

This is one of the findings of a new piece of research conducted by Social Enterprise Mark holder Charity Bank, the ethical bank with a mission to use money for good, as it launches its campaign and film to persuade the public to transfer their Cash ISA to an ethical provider.

Charity Bank commissioned Opinium to research the attitudes of the general public towards various aspects of banking. This research found that:

  • 74% of the British public don’t know how the money they save in their bank is being used or invested;
  • 71% would like their bank to make it clearer where their money is invested;
  • 56% would like to be an offered an ethical option when choosing a savings account; and
  • 61% would consider opening a savings account that paid a fair rate of interest and lent money to charities and other good causes.

Patrick Crawford, Charity Bank’s Chief Executive, said, “People don’t know what banks do with their money but the findings tell us that there is an appetite to find out and that people would like their savings to be used for good causes.

“Wherever it’s invested, money takes a journey. This might be around the globe, around the big banks or on the stock markets. Sometimes it does good along the way; sometimes it doesn’t.

“When you open a Cash ISA with Charity Bank, we give you a fair rate of interest, whilst making sure your money takes a shorter journey. It spends less time travelling and is invested directly in charities and projects that benefit people across the UK.

“At Charity Bank we are transparent about the organisations to which we lend, sharing stories of change and social impact data from the charities and social enterprises that we support. This is why we think our ISA might just be the most rewarding Cash ISA in the world.”

Details of Charity Bank’s Ethical 33-Day Notice Cash ISA:

  • 0.90% Gross/AER;
  • Up to £15,240 a year (2016/17 tax year allowance) can be saved;
  • Open to transfers-in from current ISA managers;
  • Minimum opening balance of £250;
  • 33-day notice period; and
  • Available to UK residents aged 16 and over.

For full details visit the campaign page.

Charity Bank: a bank for good

Free loan webinar for charities and social enterprises

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Social Enterprise Mark holder Charity Bank is holding a free 45-minute webinar on 14th May 2016, designed for trustees and senior managers of charities and social enterprises considering loan finance,or for those who simply want to learn more.

The webinar will cover:

  • evaluating if loans are right for your organisation
  • the pros and cons of loan finance
  • how trustees can evaluate the risks of loan finance
  • how loans can help you grow your income and improve your sustainability
  • what lenders look for and how to deal with lenders
  • insights from Coast & Vale Community Action and other social sector borrowers
  • an opportunity for you to ask questions

The webinar will be hosted by Charity Bank and loan recipient Coast & Vale Community Action (CAVCA). Together they are well positioned to answer your questions on charity loans.

Charity Bank webinarSign up now

The webinar is on Thursday 14th July 2016 from 11am to 11.45am. Please click here to register.

Places are limited and will be allocated on a first come, first served basis.

Speakers

Jeremy Ince is a Charity Bank Regional Manager. In addition to his work with Charity Bank, he is a trustee of a major youth charity in Yorkshire. As such he is acutely aware of the funding challenges and opportunities that charities face.

Mel Bonney-Kane is CEO of Coast & Vale Community Action, an infrastructure organisation involved in the facilitation of a thriving and sustainable voluntary, community and social enterprise sector across the Ryedale District and Scarborough Borough of North Yorkshire.

 

 

About Charity Bank

Charity Bank is a bank for good, owned by charities and social purpose organisations. It lends to charities, social enterprises and other organisations with a social purpose.