What are small charities telling us about their banking services? Isaac Bristol, CFG's Policy Officer, crunches the data and shares initial insights from the 2026 Charity Banking Survey.
This month, we've been reflecting on the positive impact of small charities, the challenges they face, and how they can find the support they need to thrive. And this year, Small Charity Week coincided with our preparations for publishing the 2026 Charity Banking Report in July.
Based on more than 2,400 responses from across the sector, the Charity Banking Report will build on our 2024 findings and provide fresh insight into the barriers charities face when interacting with banks and financial services. Early findings suggest that small charities, in particular, continue to face significant and growing challenges.
Banking barriers
Our latest data shows that banking challenges remain widespread among small charities (defined here as those with an income under £1m). In many cases, these difficulties have increased significantly since our last survey.
One of the most striking findings is the difficulty charities face in managing account signatories. Over half (53.6%) of small charity respondents reported challenges with adding or removing signatories – a huge increase of +36.5 percentage points since 2024.
For volunteer-led organisations, where trustees and treasurers may change frequently, this creates a serious administrative burden and can delay essential financial processes.
The cost of banking is another growing concern. More than a third of respondents said they were:
- Charged for banking services such as cash or cheque handling (38.6%)
- Charged for maintaining their account (35.2%)
Both figures represent substantial increases since 2024, raising questions about affordability for organisations operating on tight budgets.
Access to banking services is also becoming more difficult. Nearly a third (32%) of small charities highlighted limited access due to factors such as branch closures – an issue that has seen one of the sharpest increases since our previous report.
At the same time, digital barriers persist:
- 8% reported difficulties accessing online banking
- 8% struggled to set up dual signatories
- 5% reported difficulty opening a bank account
Together, these findings point to a system that is not yet working effectively for many small charities.
The human impact behind the statistics
Feedback from small charities highlights the real-world consequences of these challenges. Respondents spoke of branch closures leaving them without face-to-face support, difficulties paying in cash or cheques, and the complexity of moving services online.
For very small organisations, these barriers can be particularly challenging. Some reported travelling long distances to reach a bank branch, while others said they had delayed setting up online banking because the process felt too complicated to tackle alongside other responsibilities.
When these banking processes fail, charities can experience delays in accessing funds, increased administrative workload, and financial risk, all of which can be damaging to their organisation and the communities they support.
Looking ahead to the 2026 report
The upcoming 2026 Charity Banking Report will explore these issues in more depth and set out recommendations for improving banking services for charities.
While there has been progress in some areas, the initial findings from this year’s survey suggest that systemic issues remain and in some cases are intensifying.
Small charities, which often lack dedicated finance teams, must be able to access banking services that are fit for purpose and we will continue working with banks, regulators and the wider sector to drive meaningful change.
Supporting small charities
Beyond Small Charity Week and our work to improve banking services, CFG offers a range of ongoing support tailored to smaller organisations:
- Helplines and expert support, providing direct access to advice on HR, accounting and tax, recruitment and more.
- Discounted membership rates for small charities, ensuring affordable access to resources, training and networks.
- Guidance and tools designed specifically for organisations with limited capacity and volunteer-led teams.
These services are designed to reduce the administrative burden on charities, freeing up time and energy to focus on what matters most: delivering for their beneficiaries.
A collective effort
Small charities play a vital role in society, but they cannot tackle society's challenges alone. Improving charity banking requires continued collaboration between the sector, financial institutions and regulators.
With the 2026 Charity Banking Report launching in July, we look forward to sharing further insights, and continuing to work towards a banking system that truly supports charities of all sizes.
Look out for the full results of our 2026 Charity Banking Survey, coming soon!