| Company type | Social enterprise |
|---|---|
| Industry | Finance |
| Founded | 2008 |
| Headquarters | , |
Key people | Patrick Crawford (CEO) |
| Products | Financial services |
| Revenue | £170.2 million (2017)[1] |
| £111.7 million (2017)[1] | |
| £81.3 million (2017)[1] | |
| Website | www |
Charity Bank is a financial services company operating in the United Kingdom, which provides retail savings products, specialist mortgage products, mortgage administration services and credit analysis.
Charity Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and the Financial Conduct Authority in the United Kingdom.[2]
specialises in supporting charities and social enterprises.[3] has had its headquarters in Tonbridge since 2005[3] Our goal is to more than triple our lending to social sector organisations across the country to around £250 million over the next five years The loans help organisations buy property, develop social housing or community facilities and fund social projects.
When an organisation pays back its loan, the money is used to lend to another organisation working to benefit society.
Set up in 2002, the bank says its loan book has grown by 120 per cent since the start of 2015 it lent £15.2m to the charity sector in the first three months of 2018, compared with £34.1m during the whole of 2017 More than £215m has been lent by Charity Bank to more than 650 organisations since it was launched,[4]
Charity Bank plans to use the £14.5m of fresh capital from Big Society Capital it will receive to increase its annual lending from £55m last year to £250m by the end of 2018.[2] At the end of last year, Charity Bank had collected £87.5m in deposits from savers using its cash individual savings accounts, and loaned £185m to more than 1,000 charities and charitable organisations[2] Founded 12 years ago as a spinout from the Charities Aid Foundation, the bank pays no bonuses to its 49 employees and its directors work for free. It aims to raise an extra £10m of funding, on top of the money[2] low level of bad debts – only 0.4 per cent on its total loan book it still made a loss last year and is not expected to return to profit until 2016[2]
Charity Bank has expanded its range of charity deposit accounts with its new Ethical Easy Access Account. The account offers a rate of 0.50% gross/AER to charities looking for same-day access to their deposits. Accounts can be applied for online. It is an easy access account and not a current account, so does not include, for example, a debit card. The bank is the only one in the UK with the Social Enterprise Mark. This recognises its social purpose and social sector ownership. Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme .[5]
During 2017 it lent £34.1m, up from £27.9 the previous year and £24.7m in 2015. In total it has lent more than £215m to around 650 social sector organisations since 2002.[6]
Charity Bank’s loan book exceeds £100 million Loan book almost doubles in 2 ½ years Charity Bank announces its five most recent loans At the start of 2015 we had a loan book of £52.2 million; two and half years later our loan book has almost doubled Since 2002, Charity Bank has provided over £185 million of loan finance to support more than 850 organisations working to enrich and improve society. These loans have facilitated social impact across the UK covering a wide range of sectors, including arts, community, education, environment, faith, health, housing, regeneration, social care and sports.[7]
Registered Office: The Charity Bank Limited, Fosse House, 182 High Street, Tonbridge, Kent TN9 1BE. Authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority No. 207701. Member of the Financial Services Compensation Scheme (FSCS). Company registered in England and Wales No. 4330018.
Charity Bank commissioned Opinium to research the attitudes of the general public towards various aspects of banking. This research found that: 74% of the British public don’t know how the money they save in their bank is being used or invested; 71% would like their bank to make it clearer where their money is invested; 56% would like to be an offered an ethical option when choosing a savings account; and 61% would consider opening a savings account that paid a fair rate of interest and lent money to charities and other good causes.[8]
History edit
The company was established with
The Charity Bank, whose regional director in Wales is Ian Courtney, was set up in 2002 following a successful pilot from the Charities Aid Foundation. the bank was authorised by the FSA to set up as a deposit taking bank with a balance sheet of £6.5m to lend to smaller charities and social enterprises. “We have had a loss rate of less than 0.5%, from more than 1,000 loans and having approved more than £180m of lending. This is also against the back drop of the adverse economic cycle since 2008.” in order to meet new and more stringent capital requirements imposed on banking institutions, it also took the decision to give up its charitable status. which was supported by the Charities Commission. The Charity Bank’s average loan size is £300,000, but can go up to £2m. Mr Crawford said: “We are willing to go down to £50,000 and I think we need to think hard about the basis that we could either reduce that level or work with others to make it possible.” we also provide what we call investor readiness advice. It’s the term the sector uses to get advice to smaller charities and social enterprises around how they become credit worthy and put themselves in a position to borrow from us or other lenders[9]
Caroline Mason realised her friend and fellow banker Geoff Burnand was feeling the same unease, they got together to found Investing for Good in 2005. It has gone from a backroom business to advising on £25m of investments, sealing partnerships with the likes of Standard Chartered, and this year merging with Charity Bank, which has pioneered lending to charities and social enterprises. As the merger with Charity Bank is completed this month Sep 2010[10]
References edit
- ^ a b c "Preliniary Results 2017" (PDF). Charter Court Financial Services. Retrieved 22 March 2018.
- ^ a b c d e Arnold, Martin (1 April 2014). "Charity Bank to get £14.5m investment from Big Society Capital". Financial Times. Retrieved 15 May 2018.
- ^ a b Walker, James (26 February 2015). "Charity Bank, based in Tonbridge High Street, announced it will relocate to a bigger office in the town". kentonline. Retrieved 15 May 2018.
- ^ Kay, Liam (9 April 2018). "Charity Bank posts record loan growth". thirdsector.co.uk. Retrieved 15 May 2018.
- ^ Lake, Howard (8 October 2017). "Charity Bank introduces easy access bank account for charities". fundraising.co.uk. Retrieved 15 May 2018.
- ^ Lepper, Joe. "Charity Bank reveals record growth". 10 April 2018. Retrieved 16 May 2018.
- ^ "Charity Bank's loan book exceeds £100 million". 5 July 2017. socialenterprise.org.uk. Retrieved 16 May 2018.
- ^ "Campaign to get people to transfer their Cash ISA to an ethical provider". socialenterprise.org.uk. Retrieved 16 May 2018.
- ^ Barry, Sion (25 February 2014). "Charity Bank has lending for good causes at its heart". walesonline. Retrieved 16 May 2018.
- ^ Allen, Katie (3 September 2010). "Interview Caroline Mason, chief operating officer Charity Bank". The Guardian. Retrieved 16 May 2018.
External links edit
/Category:Financial services companies of the United Kingdom /Category:Companies based in Tonbridge