{"id":1531,"date":"2017-02-11T06:50:53","date_gmt":"2017-02-11T11:50:53","guid":{"rendered":"https:\/\/charityandsecurity.org\/?p=1531"},"modified":"2019-10-09T06:57:30","modified_gmt":"2019-10-09T10:57:30","slug":"finaccessreport","status":"publish","type":"post","link":"https:\/\/charityandsecurity.org\/csn-reports\/finaccessreport\/","title":{"rendered":"C&SN Report on Financial Access for U.S. Nonprofits Reveals Broad Scope of Problem"},"content":{"rendered":"
The scope and prevalence of challenges that U.S.-based nonprofits face in accessing financial services are far more vast than previously understood, according to a comprehensive report released today by the Charity & Security Network.<\/p>\n
Two-thirds of U.S.-based nonprofit organizations (NPOs) working abroad are facing problems accessing financial services, the report finds. These include delays in wire transfers, requests for unusual additional documentation, increased fees, account closures and account refusals.<\/p>\n
The report,\u00a0Financial Access for U.S. Nonprofits<\/a>,<\/em><\/strong>\u00a0is based on the first-ever empirical study of the global phenomenon known as \u201cderisking,\u201d as it relates to U.S.-based NPOs. Derisking refers to financial institutions terminating or restricting business relationships to avoid rather than manage risk. The report also reflects information from a number of focus group sessions and interviews with stakeholders over the last year. It outlines and analyses the scope, frequency, and prevalence of various financial access problems, including account refusals and closures, delayed wire transfers, unusual additional documentation requests and fee increases.<\/p>\n Among the major findings:<\/p>\n \u201cThe details here are frankly disturbing. We are undermining the networks that support development and that hold the world together. Most policymakers in Washington have no idea how bad this is,\u201d said Brian Atwood, Senior Fellow, Watson Institute for International and Public Affairs, Brown University, and former Director of the U.S. Agency for International Development.<\/p>\n These challenges have made it difficult for nonprofits to access the financial services necessary to provide life-saving aid to people in global hot spots where the need is greatest. For example, one NPO was prevented from sending immediate relief to the persecuted Rohingya minority in Myanmar, in the midst of a dire humanitarian crisis. Timely transmittal of those funds might have saved lives, the charity\u2019s director explained. In another case, two clinics for Syrian refugees, one in Saida and another Akkar, were forced to close because they could not get funds to the clinics.<\/p>\n Because nonprofits contribute to peace and security around the world, \u201cfinding a solution to the problem should be a priority for the U.S. government,\u201d said Kay Guinane, director of the Charity & Security Network.<\/p>\n Regulators are tasked with ensuring the safety and security of the banking system,\u201d explained Scott Paul, senior humanitarian policy advisor at Oxfam America. \u201cIn doing so, they impose steep penalties for undercompliance but none for overcompliance.\u201d<\/p>\n <\/p>\n Download the full report<\/a>\u00a0*<\/strong><\/p>\n Download the Executive Summary<\/a><\/strong><\/p>\n View the Press Release<\/a><\/strong><\/p>\n View a webcast of the Feb. 7, 2017 report launch event at the Center for Strategic and International Studies<\/a><\/strong><\/p>\n <\/p>\n <\/a>Download individual report chapters:\u00a0<\/strong><\/p>\n Introduction and Chapter 1 – Methodology<\/strong><\/a><\/p>\n Chapter 2 – The Context for NPO Financial Access Problems<\/strong><\/a><\/p>\n Chapter 3 – Derisking: Complications and Consequences<\/strong><\/a><\/p>\n Chapter 4 – Survey Results and Data Analysis<\/a>\u00a0*<\/strong><\/p>\n Chapter 5 – Regulators and Policymakers<\/strong><\/a><\/p>\n Chapter 6 – Financial Institutions<\/strong><\/a><\/p>\n Chapter 7 – Nonprofit Organizations<\/strong><\/a><\/p>\n Chapter 8 – Observations<\/strong><\/a><\/p>\n Chapter 9 – Options and Recommendations – and Concluding Thoughts<\/strong><\/a><\/p>\n Appendices<\/strong><\/a><\/p>\n ______________________________________<\/strong><\/p>\n\n