Charities Encouraged To Move Their Savings To Ethical Provider

3 Lewis-Manning Hospice - CEO Elizabeth Purcell (high res)Leading ethical bank, Charity Bank, has launched a campaign to encourage charities, businesses and individuals to move some of their savings or reserves to an ethical provider.

The Follow the Money campaign is supported by social sector heavyweights including NCVO, NAVCA, Social Enterprise UK, Social Enterprise Mark CIC, Locality, Responsible Finance, Big Society Capital, Barrow Cadbury Trust, ShareAction, CAN, Clinks, the Finance Innovation Lab, Good With Money, The Ethical Company Organisation and Ethical Consumer.

The campaign, launched a decade after the global financial crisis, will see 38 of the charities and social enterprises supported by Charity Bank loans open their doors to showcase how money saved with an ethical provider can have a positive impact on society.

It comes as research*, published by Charity Bank, revealed that 7 in 10 people agree that charities should invest their savings and investments ethically. And more than half (57%) said they prefer to buy from businesses that act ethically.

Charity Bank is now calling on charities, businesses and individuals to question how their savings are currently used. It’s asking them to consider whether that money could go beyond simply earning a fair return and be channelled into the social sector to help make a positive contribution on society.

Edward Siegel, Charity Bank’s Chief Executive, said: “It’s easy to dismiss the possibility of achieving a social return as well as a financial return on your investments but saving ethically offers the chance to do both.

“By channelling money into charities, social enterprises and social businesses, your money is used as a force for good. It empowers these organisations to grow, innovate and build upon the services and support they provide to their beneficiaries.”

Sussex Lantern, which provides support and care to people with disabilities across the South East, recently decided to move its savings of £85,000 from a high street bank to Charity Bank’s same day notice account.

Trustee Gloria Wright said: “The idea of our savings being invested ethically, and the ethos of lending to charities, is very important to us. We don’t have a specific ethical investment policy because we believe that everything you do should be ethical if you are running a charity. As far as I’m concerned behaving ethically should be part of the everyday high standards Sussex Lantern pertains to.”

Lewis-Manning Hospice, which offers free, specialist palliative nursing care to people with a life-limiting illness in Poole, opened a purpose-built hospice to provide both day care and inpatient services, including end-of-life care. The building was funded, in part, by a Charity Bank loan.  

Elizabeth Purcell, Chief Executive Officer of Lewis-Manning, said: “We needed a loan to help with the build and the development, and felt it was important to choose an ethical provider. We wanted to work alongside a bank that has a similar moral and values-based belief system and culture. It would have been difficult to take out a loan from a commercial provider.”

To keep up to date with the Follow the Money tour, visit www.charitybank.org/followthemoney or follow @CharityBank on Twitter.