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

comicmankev

thanks a lot, didnt really know where to start! They sound like what we need, are there charges for such accounts?

Lorne

No problem, no charges on our account, doesn't get a high rate of interest but the banking is free which is always good!

Savvy_Sue

Most of the banks would probably offer such an account, but some would charge.

Presumably you sometimes have cash to bank as well as cheques (I'm thinking parents paying in cash) so one of the things to think about is where you have a convenient branch?

In a similar situation, I used to use Alliance and Leicester's Clubs and Societies account, which lets you pay in cash and cheques at any Post Office, and you can nominate two PO branches to withdraw cash. It may have changed its name since I was using one!

I also had a High Interest Deposit Account (HIDA) with them, and that was great for transferring money instantly between the two, by phone. They've probably got internet banking by now.

What you might find is that the banks want to see your Constitution or Governing Document or Articles of Association - basically, the document which says "We are the Tiddlers Toddler Club and this is how we manage our affairs ... " If you don't have such a document say and I'll point to where you can get help with that.

They may also want a Resolution passed at a committee meeting saying "We agreed to open an account with the Local Bank. The following will be signatories (usually Chair, Secretary and Treasurer, plus more if you need them) and at least two signatures will be required for all transations." But they will probably give you the wording they need so you can get it minuted right!

Savvy_Sue

MOVING THREADS FOR BETTER RESPONSES

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Small Biz & Charity Organisers board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

I'll merge it into our sticky on banking for charities as well. You might find some other useful stuff over there too.

jkbr

I am currently in the position of needing to set up an account for a not-for-profit live arts organisation in order to be eligible to apply for funding. Although it was originally a collective/group of which I was a founder member, I am currently the only person involved.

I see that this issue has come up a few times here, but has anyone got experience of successfully opening a suitable account with only one signatory?

thanks

Savvy_Sue

I'd say you need to find another signatory. Two reasons: one is the bank will probably want it, and the other is that the funders often ask how many signatories and may not be willing to award if you only have one. After all, if there's only one, what's to stop you running off with the money if they give it to you? Not suggesting you would, of course.

Can you not persuade a fellow artist to help out with this?

jtmwood

Does anyone know the best bank account for a small charity? most of the ones i've seen don't give interest on balances. Some only give interest on balances over £50,000....

fengirl_2

CAF Bank - see their website.

Fourcandles_3

We use LloydsTsb. It's not the best, but it works for us as we can access it through the post office and there are no charges and no rediculous minimum opening balance.

Savvy_Sue

MOVING THREADS FOR BETTER RESPONSES

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Small Biz & Charity Organisers board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

When I get over there, I may well merge it as well, but give me time ...

Until then, we use Unity Trust now, used to be with the Coop, and I used to use Alliance and Leicester which again could be accessed through the Post Office and had a High Interest Deposit Account which let me transfer money instantly by phone.

As always, think about what you need: Unity Trust is OK for us, BUT we rarely need to withdraw or pay in cash. To do that we have to make special arrangements at nearby bank branches (maximum of two). Since we don't have any spectactularly convenient nearby bank branches, it is a pain in the proverbial when I do need cash. If I needed cash regularly, I would personally opt for an account I could operate conveniently over a bank or PO counter.