CH&NFP: Bank Accounts for charities and Not for Profit groups

Savvy_Sue

Since this board has now been around for a while, I’ve asked the Board Guide if we can have a few stickies, and Bridie has agreed! I was simply going to suggest which ones to ‘stick’, but then I found some of the really early (and I think terribly useful!) ones had disappeared altogether, so I’m starting some new threads with useful links in instead! In some cases I’m just highlighting an original MSE post, but if it contained several useful links, I’m sometimes repeating them for speed and convenience (and in the hope that if old posts are culled again, the links won’t be lost for ever…) And this is with thanks to Pablo Money who got charities a slot on the board originally!

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I have ‘done the banking’ for small charities and Not for Profits (like the school PTA) for more years than I care to remember. Here’s what’s been said earlier: the information may be out of date so if you find better deals please add them!

High interest accounts for charities

Treasurers’ accounts - particularly for groups which aren’t charities

Credit card for charity staff

Note that the groups I've been involved with generally had relatively straightforward banking needs: the one time I worked for a charity which regularly transferred money abroad we paid for the privilege with an account from one of the High Street banks.

8/3/07 - edited to remove a non-working link. Also to say as well as considering the deal on offer from a particular provider, you also need to think about what you need to be able to do - in particular do you need to pay in or withdraw cash? If you don't, then it won't matter if the bank is not geographically convenient - as long as you can pay cheques in by post, and transfer money online.

But if you are running events where you need a cash float in small change, and then need to pay in your (hopefully) huge profit in small change, finding a bank which will let you do this AND which you can get to easily is an important consideration!

Fran

High Peak Info for opening a bank account for Voluntary or Community Group

Savvy_Sue

Fran wrote:

High Peak Info for opening a bank account for Voluntary or Community Group

Thanks Fran, that is an excellent beginner's guide to bank accounts for groups!

Savvy_Sue

I don't know if this is an entirely new 'product' or just that I've only just become aware of it, but here's something from the Coop:

The Co-operative Bank's Community Directplus account is specifically designed to suit the needs of community organisations, charities, voluntary organisations, social enterprises and co-operatives. The low-cost 24-hour telephone, Internet and postal banking service offers free banking, with no charges for cheques, standing orders, direct debits or cash deposits/withdrawals. For every £100 deposited in a Community Directplus account, 10 pence is added to a donation fund which is then made available for customers to apply for.

Anyone interested in applying for a Community Directplus account should ring freephone 0800 783 4741 for an application pack.

Or the website is here.

DemiDee

Do you think that these type of accounts would be applicable for a not for profit run (at present) by just one person, or do they all have to have three signatories?

Savvy_Sue

I'd be very surprised if you could open any of them with just one signatory. Minimum is usually two. But I can't say for certain - I think the reasoning would go that if you are NFP then there should be more than one person involved (best practice, transparency and that kind of stuff), but the only way to be certain is to ask!

ronnie_2

DemiDee wrote:

Do you think that these type of accounts would be applicable for a not for profit run (at present) by just one person, or do they all have to have three signatories?

Hi, for opening a new account on a nfp basis you can have only one signatory if thats what you wish, is it only going to be you that runs the account?

your bank/bsc will possibley ask you why its just going to be one person going on, however if you advise them that others will be coming on in the near future i wouldnt forsee you having problems.

duggie800

I've just been appointed as treasurer to a registered charity. I'm not very happy with our present banking arrangements.

1) Does anyone have any recommendations for a good current account available to a registered charity?

2) I need to pay cash into the account on a weekly basis. Is there an account which:-
a) Pays a good rate of interest on credit balances?
b) Has facilities for paying in cash at (say) the Post Office?

Thanks

gizmoleeds

Who are you currently with?

If I were in your position I would probably look at:

http://www.unity.uk.com/
http://www.co-operativebank.co.uk/

jobbingmusician

We (the charity I run) are currently with the Co-op and aren't that happy. I think Unity are meant to be OK. But what I will be doing in the New Year is contacting the NCVO (National Council for Vol Orgs - we are a member) to see what they recommend. If you want me to pass on info, PM me! :rudolf:

Savvy_Sue

duggie800 wrote:

I've just been appointed as treasurer to a registered charity. I'm not very happy with our present banking arrangements.

1) Does anyone have any recommendations for a good current account available to a registered charity?

2) I need to pay cash into the account on a weekly basis. Is there an account which:-
a) Pays a good rate of interest on credit balances?
b) Has facilities for paying in cash at (say) the Post Office?

Thanks

gizmoleeds wrote:

Who are you currently with?

If I were in your position I would probably look at:

http://www.unity.uk.com/
http://www.co-operativebank.co.uk/

The charity I work for has transferred from the Coop to Unity, and we're quite happy with Unity. BUT although when we first opened the account they SAID we would be able to pay in and withdraw cash at the PO before long, it never happened. So we have had to nominate other local bank branches for this - any branch of any bank will do, but it took a while to set up and for the banks we nominated to 'recognise' us so that the process became simple.

The bank I always found most convenient for paying in and withdrawing cash at the local PO was Alliance and Leicester - you can pay in at any PO, and two people can have a card which allows them to cash a cheque at two different post office branches. But I was using their Clubs and Societies account, don't know if that would be suitable for you or not. What was particularly good was that funds could be transferred easily and quickly from the High Interest Deposit Account to the Current Account.