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Charities: Bank Services

Volume 482: debated on Wednesday 5 November 2008

To ask the Chancellor of the Duchy of Lancaster what assessment has been made of the effects of the Icelandic banking crisis on the investment returns of UK charities in the forthcoming financial year. (233363)

As agreed at a meeting between Ministers and charity representatives on Friday 10 October, the Cabinet Office is working with the Association of Chief Executives of Voluntary Organisations (acevo), the National Council of Voluntary Organisations (NCVO), the Charity Finance Directors Group (CFDG) and the Charities Aid Foundation (CAF) to ascertain the full extent of investment assets affected by the position of the Icelandic Banks.

On 28 October, the Minister for the Third Sector received information from a number of third sector bodies about the effect of the collapse of the Icelandic banks on UK Charities. This includes estimates based on data collected by acevo, the Association of Charitable Foundations, the CDFG, the NCVO, the Scottish Council of Voluntary Organisations and Wales Council for Voluntary Action. This information has identified £86.2 million invested by 46 charities in the Icelandic banks. Background information has been collected for 39 of the 46 charities, including the identification of the individual charities which have been most significantly affected.

We continue to work with third sector partners and HM Treasury to assess the effect on UK charities. As part of this process, we are consolidating our information for a sector-wide summit with NCVO on 24 November.