Financial Access for Nonprofits: Results of an Empirical Study, with Policy Recommendations

The Charity & Security Network report on Financial Access for U.S. Nonprofits is the first ever empirical study on the de-risking phenomenon as it relates to nonprofits in the US. Financial access difficulties faced by nonprofits include delays in wire transfers, requests for unusual additional documentation, increased fees, account closures and account refusals.
Among the major findings:
• Two-thirds of all US nonprofits that work abroad are having financial access difficulties
• Delays in wire transfers, which can last up to several months, are the most common problem, affecting 37% of nonprofits
• 15% of nonprofits report having these problems constantly or regularly
• One-third of NPOs have experienced fee increases, and 26% have faced additional, unusual documentation requests
• Transfers to all parts of the globe are impacted; the problem is not limited to conflict zones or  fragile and failing states
• NPOs, categorically treated as high-risk, are sometimes forced to move money through less transparent, traceable, and safe channels as a result of delays in wire transfers and requests for additional documentation. When money cannot be transmitted in a timely manner, 42% of nonprofits report that they carry cash.