Save our cheques
February 2010
Charities voice their concerns over plans to eradicate the cheque
The Institute of Fundraising (IOF) is to lobby the Payments Council to ensure proper consultation with charities that will be affected by the planned elimination of cheques by 2018.
Cheques will be phased out by 31 October 2018 after being described as in ‘terminal decline’ (see previous Caritas news story 'Balancing the books'), however, to many non-profits that receive a substantial amount of their income this way the move has come as something of a surprise and without suitable discussion.
‘There has been insufficient consultation on this move, which has seemingly been designed entirely as a cost-cutting measure for the banks,’ said Louise Richards, director of policy and campaigns at the IOF, who is to attend a meeting with the Payments Council next month. ‘We believe there has been scant consideration of the disastrous effect this could have on charitable income,’ she said.
Richards is to air the opinions and concerns of IOF members with the Payments Council – urging them not to begin the phasing out of cheques any earlier than 2018 and to ensure a viable alternative is found. Of particular concern is that banks may be given the green light to start the process early. She hopes to raise awareness that many charities, some of whom who rely on an elderly supporter base, or those with disabilities, receive more than 70 per cent of their income via cheque.
Cancer Research UK is keen for the issue to be re-examined - it receives around 90 per cent of the one-off donations given offline by cheque. Richard Taylor, executive director of fundraising and supporter marketing at the charity, said: ‘We're anxious that there are currently few alternative ways to give for those who are not used to managing their money online. We want to see a concerted effort to find solutions which work for everyone.’
Institute of Fundraising members are being encouraged to get involved in the campaign and to contact the Payments Council directly to express their view.
The first cheque was written 350 years ago; the Payments Council has said there should be ‘no scenario’ for using this method of payment by 2018.
Author: Claire Shropshall
Claire Shropshall is the editorial assistant for Charity Funding Report, Caritas, and Codicil magazines. Claire has a BA in English Literature and Philosophy from Birmingham University and a Postgraduate Certificate in Periodical Journalism from London College of Communication. She previously worked in Central America as a voluntary reporter for an English-language newspaper.
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