Businesses, charities and individuals across Edinburgh are being encouraged to move their savings to an ethical bank.
Charity Bank’s Follow the Money campaign is calling on businesses, charities and individuals to question how their savings are currently being used. It’s asking them to consider whether their money could go beyond simply earning a fair return and be channelled into the social sector to help create lasting social change.
The campaign has seen One World Shop in Edinburgh and 37 other charities and social enterprises – who have all received loans from Charity Bank – open their doors to showcase how money saved with an ethical provider can have a positive impact on society.
Launched a decade after the global financial crisis, it aims to highlight a different approach to banking and how by saving with an ethical bank, people and organisations can transform their money into a powerful force for good.
It comes as research* published by Charity Bank reveals that 69% of people in Scotland think that charities should invest their savings and investments ethically and 56% prefer to buy from businesses that act ethically.
One World Shop has received three loans from Charity Bank in recent years. This is just one example of how ethical savings can be used to make loan finance available to organisations delivering positive impact to people and communities.
The Edinburgh-based shop sells and promotes fair and ethically traded products from across the globe. The social enterprise received three Charity Bank loans, of £60,000, £10,000 and £25,000 in 2002, 2007 and 2010 respectively, to expand their business.
Rachel Farey, (above) who has been Business Manager at One World Shop for over 20 years, said: “In 2002, we decided to expand into Glasgow and wanted to use the opportunity to really place our work in the public eye. We found a great shop space on the high street and took out a Charity Bank loan to help fit out the shop to a professional standard and it really flourished.
“Charity Bank were helpful from the word ‘go’. I’ve never had better engagement with a bank in my entire life. Throughout the whole process, they really wanted us to focus on what it was we were trying to achieve rather than stress about money. They were simply wonderful.
“Although the Glasgow store has since closed due to an exceptionally high rent increase, Charity Bank has continued to support our growth and the development of our presence in Edinburgh, where we recently opened a newly renovated shop space.
“It’s so important to social enterprises like ours that lenders like Charity Bank exist. We simply wouldn’t have been able to expand in such a way without Charity Bank’s support. I would say to anyone who wants to live more ethically that it’s worth looking at your money carefully. Ask what it is being used for, where it is being invested, is it in something you value? If not, why not invest it somewhere that is transparent, clean and supportive of local communities instead?”
Charity Bank’s recent survey also shows there is an appetite for a more transparent and socially-minded approach to banking and investment. Further findings for Scotland revealed:
- 51% feel their bank doesn’t make it clear how the money they save is being used or where it is invested.
- 57% would like their bank to make it clearer what happens to their money and where it is invested.
- 61% believe businesses should do more to tackle social issues.
- 56% prefer to buy from businesses that can demonstrate similar values to their own.
Edward Siegel, Charity Bank’s Chief Executive, said: “It’s easy to dismiss the possibility of achieving a social return as well as a financial return on your investments but saving ethically offers the chance to do both.
“By channelling money into charities, social enterprises and social businesses, your money is used as a force for good. It enables these organisations to grow, innovate and build upon the services and support they provide to their beneficiaries.
“Our research shows that people in Scotland are keen to associate themselves with organisations that act ethically. Businesses and charities have the power to make a positive impact on society and improve their brand trust and reputation at the same time.”
Charity Bank is an ethical savings and loans bank owned by charitable foundations, trusts and social purpose organisations. It uses its savers money to make loans to charities, social enterprises and social purpose organisations.
Follow the Money, now in its 10th year, gives Charity Bank savers the opportunity to see how their money is being used to support charities and social enterprises. This year’s tour, which started at the beginning of September and concluded on October 5th, visited 38 Charity Bank borrowers.
To keep up to date with the Follow the Money tour and support the campaign, visit www.charitybank.org/
*An online survey of 4,000 adults across the UK carried out between February and March 2018 by Opinium on behalf of Charity Bank.
Pictures: Lucy Hunter
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