The abolition of cheques, feared to be a
foregone conclusion, could spell disaster for UK charities, says
the Institute of Fundraising.
In its response to the Treasury Select
Committee on the proposed phasing out of cheques scheduled for
2018, the Institute of Fundraising claims the imminent abolition of
the cheque guarantee card in June 2011 is proof the Payments
Council see the phasing out of cheques as a foregone
conclusion.
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It is argued the abolition of the cheque
guarantee card will make cheques unusable for face-to-face
transactions and will lead to an increasing number of retailers
refusing to accept the payment method.
“Banks may use the abolition of the cheque
guarantee system to say that fewer people are using cheques, as no
retailer will take them,” said Louise Richards, director of policy
and campaigns at the Institute of Fundraising.
“But this doesn’t mean that there’s less
demand for cheques, rather that a decision has been taken away from
consumers and charity donors.”
The proposed cheque phasing plans are said to
risk cutting off a vital channel of income to UK charities as some
charities are believed to receive up to 80% of their income through
cheque payments.
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By GlobalDataInstitute Organisational members such as
Worldwide Volunteering Fight for Sight and the Royal School of
Church Music are all said to have expressed concern over the
proposed abolition of the cheque.
