The proposed phasing out of cheques cuts out a vital channel of income to UK charities, Louise Richards, director of policy and campaigns at the Institute of Fundraising has warned.

With some charities receiving up to 80% of their income through cheque payment, the end of cheques could spell disaster for many charities.

These comments were made by the Institute yesterday as it submitted its response to the Treasury Select Committee on Cheques.

It is feared that the phasing out of cheques is a foregone conclusion by the Payments Council.

The Institute’s response states that the imminent abolition of the cheque guarantee card in June 2011 supports this view.

This will make cheques unusable for face-to-face transactions and will lead to an increasing number of retailers refusing to accept payment by cheque.


Louise Richards commented: “Banks may use the abolition of the cheque guarantee system to say that fewer people are using cheques, as no retailer will take them. But this doesn’t mean that there’s less demand for cheques, rather that a decision has been taken away from consumers and charity donors.”

Institute Organisational members such as Worldwide Volunteering and Fight for Sight have both expressed concern over the proposed abolition of the cheque, as has the Royal School of Church Music.

Whilst the Payments Council has held a number of workshops around the UK, consulted with the sector and commissioned its own research, no viable cheque alternatives have been presented.

Nor has there been any evidence to show that the proposed abolition of cheques will bring any advantages other than delivering cost savings to banks.

The IoF noted that more than six million over 65s don’t have internet access, and so value the cheque as a means of giving to charity.

Furthermore, cheques enable charities to recruit and retain supporters.

Often, receiving a cheque is the first point of contact with a person, who charities can then build a relationship with.

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