A survey of 280 charities by the Charities Aid Foundation
(CAF) reveals that only a quarter (25%) are certain they
know how much of their funds are protected under the Financial
Services Compensation Scheme (FSCS) should their bank fail.
Over a third (35%) of charities find the scheme is unclear
about the level of protection given to charity funds.
A further third (34%) of respondents neither agreed, nor
disagreed that they were clear about the level of protection
- suggesting that they are also uncertain. Only 32% were
The results come as charities await the response from HM
Treasury to the Treasury Select Committee’s report
on the collapse of the Icelandic Banks.
CAF’s chief executive John Low gave evidence to the
committee and called for a separate depositor class for
This call was endorsed in the Select Committee’s
final report which also called for charities who lost funds
in the collapse of the Icelandic banks to be fully compensated.
Commenting on these findings, John Low said: “Our
research shows that most charities are unclear on where
they stand with the FSCS. There is confusion around the
classification of wholesale and retail depositors, with
charities unsure as to whether they are eligible for compensation
or indeed the levels of compensation offered.
“Last summer we called for a separate depositor class
for charities in order to ensure that the distinct nature
of charitable funds raised and held for public good is fully
taken into account. The banking crisis has caused great
concern for charities, and many of those who lost funds
in the collapse of Icelandic banks have had to scale back