as I have mentioned in my previous posts, I have started work as a finance officer for a registered charity. We have excess funds to deposit in a high interest (Yeah I know, what interest!) however the money is currently in a HSBC money market account (int rate .43)my manager tells me that when you inform the bank that we are a charity we don't get the best rate. I asked if it was because the funds were restricted and she stated that it wasn't that, it was because we are a charity? And maybe we could get a better deal as a SME.
I am the treasurer of a small charity and we have had exactly the same problem - most of the reasonable interest rates do not seem to be available to charities. The best we have found is through the Charities Aid Foundation - a Birmingham Midshires Fixed Rate Selector account. It still isnt a great rat but better than the HSBC rate.
Thanks Joanne. I am new to charity rules. I don't get it though, why are charities treated differently? I mean the money goes back in to charitable funds not to share holders or on wage bonuses so what's the deal? Will lookinti that account tomorrow tho ta! Tony.
I don't understand why charities are treated differently either. When I was looking at this recently one bank said that it it had (that week) stopped making the account I was interested in available to charities because it was too popular (!?), although the rate (which was reasonable) continued to be available to companies. I would have thought charities are a safer bet for banks than some companies!
We can't even get a company debit/credit card for our bills account as we are a charity, like above I would say a charity would be a safer bet than most but heyho.
Why would a charity be a safer bet? I have run the finance in a charities before and they are no different to a normal company, just more rules to stick to.
More recently, I know of a charity that had to go into administration as it could not afford to continue. However, I do find it strange that banks gice different accounts and rates to charities, that does not make sense.
Yeah good point on the safer bet thing, was thinking along the lines of the one I work for that seems to have an abundance of money that is banked till required, but point taken. I still don't see why they wont hand over a card though and like you say why they get treated differently.
One of the charities I work for has company credit cards but as well as being registered charity they are also a Ltd Co so maybe that makes a difference.
-- Edited by semsley on Wednesday 14th of July 2010 09:25:00 PM
