Charity Bank
| File:Charity Bank logo.jpg | |
| Bank, Social Enterprise, Ethical Bank | |
| Industry | Financial Services, charities and social enterprise |
| Founded | 2002 |
| Headquarters | Tonbridge, England, UK |
|
Key people
|
Patrick Crawford, chief executive George Blunden, chairman |
| Products | Savings, loans to charities and social enterprise |
|
Number of employees
|
60 |
| Slogan | A bank for good |
| Website | www.charitybank.org |
Charity Bank is an independent ethical bank with a social purpose. It provides loans to charities and social enterprises on beneficial terms with the support of personal and organisational savers.[1][2]
Every single one of its shareholders is either a charitable trust, foundation or social purpose organisation.[3]
The bank does not operate a staff bonus scheme.[4] The Chairman and board of Charity Bank are unpaid, giving their time voluntarily.[5]
Contents
Mission
Charity Bank was founded in 2002 to provide loans and support to charities and social enterprises.[6] It has a mission to attract share capital from social investors, take deposits from socially conscious individuals and lend solely to social purpose organisations.[7]
Charity loans
Charity Bank only provides loans to charities and social enterprises.[8] It tailors the terms of each loan and fits repayment schedules to suit the needs of each borrower. Its regional managers work with organisations in England, Northern Ireland, Scotland and Wales.[9]
Charity Bank provides loans on beneficial terms:[10]
- Unsecured loans can be for terms of up to five years and, where security is available, Charity Bank can lend up to 25 years.
- It does not seek personal guarantees from trustees or directors other than in exceptional circumstances.
- Early repayment penalties are not charged unless the loan is re-financed through another lender in the first five years.
- In most cases Charity Bank does not incorporate a loan-to-value covenant on its borrowers, so borrowers are not exposed to the risk of adverse movements in property prices.
- Charity Bank does not offer transactional banking and so does not require borrowers to change banks.
In 2012 Charity Bank reported a loan write-off rate of less than 0.5% of its total lending.[11]
As well as assessing the creditworthiness of organisations, Charity Bank prioritises organisations and projects that provide strong social benefits. Charity Bank measures the anticipated social impact of each loan application as part of its lending decision.[12]
In 2013 Charity Bank reported that it had lent over £177 million to more than 1,000 charities and social enterprises that support people and communities across the UK.[13] (£177 million over 11 years, equates to £16 million lending per year to 91 charities and social enterprises)
Ethical ISA and savings
Savers can open term and notice savings accounts, such as an Ethical Cash ISA, and are sent an annual portfolio of all the loans the bank has made. This way savers can see exactly how their money is used.[14]
All savers are invited to meet charities from their local community that have been supported by Charity Bank, as a direct way of sharing the difference their savings make.[15]
Savers are also invited to attend an annual Open Day where they can hear from the organisations supported and speak with Charity Bank Staff and Directors.[16]
Charity Bank's ethical ISA is ranked top of Ethical Consumer's buyers' guide for ethical ISA's.[17] The bank's ethical ISA is also listed as 'most ethical ISA' by MoneySavingExpert.com.[18]
Ethical behaviour
Charity Bank is one of the top 10 ethical companies in the world, according to research carried out by The Good Shopping Guide between September 2014 and May 2015.[19]
The Chairman and board of Charity Bank are unpaid, giving their time voluntarily.[20] Charity Bank does not operate a staff bonus scheme or hard sales targets.[21]
It is the only bank to hold the Social Enterprise Mark because the money saved with it, invested in it and generated through its interest rates are ploughed straight back into supporting the social sector.[22]
Charity Bank is a B Corp. It was the sixth UK business and the first bank in Europe to be certified. B Corps are companies where the interests of employees, communities and the environment rank alongside those of shareholders.[23]
It became a Living Wage employer in July 2014.[24]
Charity Bank gives staff time off to volunteer. All of its staff can spend 50 of their contracted hours volunteering for a charity or community group, as a trustee or in another capacity. In this way, its staff can experience for themselves the kinds of issues that its borrowers face on a daily basis.[25]
In a survey of Charity Bank customers, 99% of respondents said that they would recommend Charity Bank to a friend, indicating unprecedented levels of customer loyalty.[26]
See also
References
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://charitybank.org/charity-loans
- ↑ http://www.charitybank.org/news/charity-bank-clearly-favour-transparency
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.getreading.co.uk/news/business/s/4978_opening_of_new_8216not_for_profit_bank
- ↑ http://www.charitybank.org/ethical-banking-our-vision-mission-and-values
- ↑ http://www.gmcvo.org.uk/node/686
- ↑ http://charitybank.org/charity-loans
- ↑ http://charitybank.org/news/loans-frequently-asked-questions
- ↑ http://www.charitybank.org/sites/default/files/pdf/AR2011-WEBVERSIONlo.pdf
- ↑ http://www.charitybank.org/sites/default/files/pdf/AR2011-WEBVERSIONlo.pdf
- ↑ http://www.charitybank.org/sites/default/files/pdf/Portfolio2013.pdf
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.charitybank-ethicalinvestment.org/
- ↑ http://www.inaise.org/fr/node/245
- ↑ http://www.ethicalconsumer.org/buyersguides/money/cashisas.aspx
- ↑ http://www.moneysavingexpert.com/savings/best-cash-isa
- ↑ http://charitybank.org/news/would-you-bank-with-the-most-ethical-bank-in-the-world
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.charitybank.org/news/charity-bank-clearly-favour-transparency
- ↑ http://charitybank.org/news/charity-bank-is-only-uk-bank-to-be-granted-social-enterprise-mark
- ↑ http://charitybank.org/news/time-to-redefine-success-in-business-57-uk-b-corp-companies-doing-just-that
- ↑ http://charitybank.org/news/a-bank-that-pays-living-wages-not-excessive-bonuses
- ↑ http://charitybank.org/news/13-reasons-why-were-a-bank-for-good
- ↑ http://www.charitybank.org/news/99-charity-bank-customers-would-recommend-it
