How to make the most out of charity cash

Many charities struggle with the age-old dilemma… make the most of the cash donations held on deposit and keeping the cash in a secure place, while keeping the time they spend on savings management to a minimum.

One of our clients is a charitable body who found themselves with £200,000 needing management.

The trustees were keen to ensure the money was looked after for both security and return. They all agreed that finding accounts with an attractive return was time consuming and difficult and that their time was better spent concentrating on charity work. They turned to Dynamic Cash Management for help.

Their existing account with a well-known bank was offering just 0.10% on a balance of £200,000, earning the charity just £200 per annum.

After reviewing their requirements and researching the market, DCM identified that they could be achieving a return of £1,000 per annum after fees, with funds on an easy access basis.

In addition, if they were willing to leave the cash untouched for a year this could have resulted in an increased return of £1,600 per annum after fees.

Figures based on:
Charity rates from the DCM website.
Standard DCM fee of 0.30%