Report reveals charities' cash in banks

Britain’s top 5,000 charities are sitting on £17.4 billion worth of cash in the bank, according to a new report.

Charity Banking Spotlight reveals the sum is 6% up from last year and a 22% rise on four years ago.

Charities Aid Foundation is the top cash rich charity in the UK holding £959.9m – alongside £493m in asset investments.

To be included in the top 5,000 charities organisations must rather have an annual income of more than £1.6m, annual expenditure of more than £1.56m, or total funds or net assets worth more than £3.2m.

Charities will continually need to reflect on their mobile payment strategies

David McHattie head of Barclays charities team said there has been a resilience amongst the sector and this is something expected to continue through 2015 and the next few years.

He added: “We’re also seeing the sector evolve to embrace mobile payments and we expect this to be a growth area for the sector over the coming years.

“Charities will continually need to reflect on their mobile payment strategies so that they can benefit from donors who are choosing this as their preferred donation channel.”

The report also examines which banks are used by these 5,000 charities: 21% bank with NatWest and 20.1% with Barclays. CAF holds the seventh-highest share, with 5.7% of the 5,000.

Forty-three per cent of the 5,000 charities have remained with the same bank for a decade or more, and just under one in five have been with their current bank for three years or fewer.