New Fees Hit Non-Profits Hard
In a surprising turn of events, the Middlesbrough Disabled Supporters Association (MDSA24) has expressed its dissatisfaction with new banking fees imposed by Lloyds Bank. The non-profit organization, dedicated to enhancing the experience of disabled football fans, has recently learned that their previously fee-free account will now incur a monthly charge of £4.35, alongside higher transaction fees.
Funds Diverted from Essential Services
Monty Towers, a member of MDSA24, articulated the group’s frustration, noting that the funds allocated for banking fees could instead support vital initiatives such as upgrading facilities, acquiring a new minibus, or enabling a disabled fan to attend significant events. ‘Every penny counts, and it’s disheartening to see it go to bank fees instead of our community projects,’ Towers remarked.
Bank’s Response and Community Impact
In defense of the fee changes, a spokesperson for Lloyds Bank stated that the new account still offers a 50% discount compared to standard business accounts. However, Towers countered this by highlighting the disproportionate burden placed on small organizations like MDSA24, which relies on limited volunteer support and funding.
Transition to a Community Account
Paul Johnston, the interim treasurer of MDSA24, shared that the group was notified in March about the transition to a ‘community account’ set to take effect in mid-May. He emphasized the challenges faced in switching banks, as the process can be time-consuming and complex for small organizations.
Financial Strain on Volunteer Groups
Johnston expressed disappointment regarding the new charges, as the organization operates with a tight budget. He pointed out that the planned annual membership fee of £5 for members over 21 would only generate around £1,000 if they reached their target of 200 members. ‘Our goal is to invest in our community, not to funnel money into banking fees,’ he stated.
Political Support for MDSA24
The plight of MDSA24 has garnered attention in the political arena, with Labour MP Luke Myer voicing his concerns in the House of Commons. He underscored the essential work the organization does for disabled fans, expressing solidarity with their fight against the financial pressures imposed by increased banking costs.
A Call for Fair Treatment
While Lloyds Bank asserts that the fee adjustments align with market standards and that they provided notice of the changes, many within the community argue that such fees disproportionately affect non-profit organizations. As MDSA24 continues its mission to support disabled football fans, the call for fair treatment from financial institutions remains a pressing concern.
As organizations like MDSA24 navigate these challenges, their fight for equity in banking practices serves as a reminder of the broader implications of financial policies on community-driven initiatives.
