Charities like other businesses require banks to provide them with current accounts and in many cases supply loans or be the holders of their savings.
Banks lend money to all different types of businesses, from large corporations, public institutions and even the occasional country. They also invest money in companies and corporations on behalf of businesses including charities, and individuals through investment funds, ISAs and pension funds.
Banks use the money they make from customers to make more money by investing in companies and institutions. There are very few prohibitions as to where a bank can loan or invest its money.
As a charity it is important to be aware of your bank’s lending policy, and especially whether this contradicts your charity’s mission and aims. For example, a bank’s investment in fossil fuels would contradict the aims of an environment charity, and could be against those of health, education and poverty charities because of the effects climate change could have on these areas.