Russian banks cut charity funding but mainly for sport and culture
Banks cut charity funding by nearly a half
Quarterly reports of credit organisations seen by Russian Business Consulting (RBC) show that during the peak of the coronavirus pandemic in April and May, Russian banks reduced the amount of sponsorship for cultural activities and sport by 43.7%, or six billion roubles. This was due to the cancellation of mass events, the termination of projects and imposition of the self-isolating regime.
Banks spent 6.09 billion roubles on charitable causes between April and June, in contrast to 10.8 billion over the same period last year, said an RBC analyst, Maksim Osadchevo.
Spending by banks on charity also fell by 15.2% compared to the first quarter of the year. By contrast, there are some organisations which have actually increased spending in this area.
According to Natalya Tabolina, a manager working with the Deloitte Financial Institutions Services Group, support for charity in the banking sector is provided by the banks themselves and their clients and employees. The latter can include special contributions to charitable causes and volunteer organisations, as well as using bank cards which have a “charity” cashback facility.
The banks acknowledge that the drop-off in charity funding has mainly been caused by the cancellation of cultural and sporting events which they support.