Charities spend 12 million hours a year on banking admin, warn experts

A Charity Finance Group (CFG) report is warning that charities are collectively spending a total of 12m hours of their time a year on dealing with banking administration.

Its 2026 Charity Banking Report is based on the views of more than 2,4000 charity workers and warns that the “loss of local, in person services” is among their growing concerns.

Small and rural charities are being hit hardest by this, with CFG pointing out that just under 1,000 UK branches have closed over the last year. More than half of rural charities say in person banking is either barely or not available at all.

“The current network of banking hubs (shared spaces offering face-to-face cash and banking services) is growing and could help fill the gap, said CFG, however it urges banks to ensure it is staffed by workers who “understand how charities operate”.

Administrative tasks that are proving time consuming include problems changing signatories on accounts, cited by more than half of charities. However, CFG points out that this is an improving picture with three in four mentioning this as a challenge when asked in 2024.

Its report warns though that the “stress associated with banking was pushing volunteers towards the door, at a time when four in five charities already have a trustee vacancy”.

Increased fees being charged by banks is another fast growing worry among charities.

“Charities take their compliance and governance responsibilities seriously and they know that banking administration matters,” said CFG co-chief executive and co-author of the report Clare Mills.

“However, too many charity staff and volunteers are losing time on admin that could and should be going to the people and causes charities exist to serve.

“These lost hours are draining the time and goodwill of volunteers and staff, and extra unnecessary pressures are being created at a time when charities are already operating in a very challenging environment.

She added: That there is evidence that where charities, regulators and organisations such as CFG have raised concerns “some areas of challenge have genuinely improved”.

“There is still a lot of room for improvement, but we’re confident we can find solutions to many of these problems together,” she said.