Savings that support your social mission

Justin Hort, Head of Savings at Charity Bank, calls on charities and social enterprises to save with a bank that supports the social sector. 

At Charity Bank, we recently ran our Follow the Money campaign, encouraging charities, businesses and individuals to move some of their savings or reserves to an ethical provider as part of their fundraising strategy. The campaign reminded people that savings do not exist in a vacuum – they have real-world impact.

In the search for high returns, banks invest and lend their savers’ money around the globe. Sometimes money may be used in ways that are destructive, against your mission and values. Charity savings could be invested in fossil fuels, support the gambling industry or the production of tobacco or weapons.

The campaign called on charities, businesses and individuals to move some of their reserves to an ethical provider where their money may be channelled into the social sector, whilst earning a financial return.

The public want to know where their money goes

While there are some well publicised examples of charities unwittingly investing their reserves in ways that contradict their mission, there are also a growing number of charities and social enterprises that deliberately invest in ways that support their values and make a positive contribution to society.

This is part of a wider shift within the sector, with a growing number of organisations moving away from commercial offerings, instead looking to procure services from within the social sector.

The public is increasingly demanding more from both businesses and charities and are using their spending power to support those that act ethically. Research we recently carried out revealed that 7 in 10 people think charities should invest their savings and investments ethically. And more than half (57%) said they prefer to buy from businesses that act ethically.

Put your money to work whilst earning a return

It’s easy to dismiss the possibility of achieving a social return as well as a financial one on your investments but saving ethically offers the chance to do both. Responsible finance providers like Charity Bank demonstrate that doing good and making sound business decisions as part of your financial strategy are not mutually exclusive.

By moving your money to an ethical home, as well as earning a competitive return, your money can become a force for good in the social sector. And not only could you increase your charity’s impact, you could improve its brand trust and reputation at the same time. In the case of Charity Bank, your savings could support homeless adults, help maintain a valuable community hub or provide specialist care to people with a life-limiting illness.

Charities supporting charities

The existence of ethical banks like Charity Bank allows charities and social enterprises to borrow at reasonable rates with a bank who understands the sector, helping them to innovate, grow and become sustainable.

By putting your money where your values are and choosing to bank ethically, you’re not only ensuring that your investments remain in line with your own charity’s mission but are also empowering other charities to make a greater impact.

Further Information

Charity Bank’s Follow the Money campaign showed how money saved with them is being used to support charities and social enterprises. Launched a decade after the global financial crisis, the campaign saw 38 of the charities and social enterprises supported by Charity Bank loans open their doors to showcase how money saved with an ethical provider can have a positive impact on society.

Find out more about our Trusted Supplier Charity Bank.