# Give charity bank accounts automatic compensation, urges CAF

- Link: https://fundraising.co.uk/2009/04/15/give-charity-bank-accounts-automatic-compensation-urges-caf/
- Published: 2009-04-15T07:59:33+01:00
- Author: Howard Lake

The Charities Aid Foundation (CAF) has strongly urged that charitable organisations
should be classified as a separate depositor class which would automatically be 
eligible for compensation, thereby protecting charitable funds against losses such
as those incurred by the [collapse of the Icelandic banks](http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/402/402.pdf
)
last October. CAF has made the recommendation as part of its formal response to 
the Financial Services Authority’s Consultation on the Financial Services Compensation
Scheme (FSCS) Reform. In February this year CAF set out its case that charities 
and their services should not be placed in jeopardy because of the failure of the
banking system when it gave evidence to the Treasury Select Committee. Commenting
on the consultation paper John Low, Chief Executive of CAF said: “The proposed reforms
do not go far enough and charities should automatically be eligible for compensation.
The immense social cost resulting from the withdrawal of charitable services is 
not an acceptable price of bank failure.” http://www.cafonline.org/pdf/CAF%20-%20response%
20to%20FSA%20consultation%20on%20FSCS%20reform.pdf

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