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

midge61

Hi

I wonder if someone could tell me whther the banks do a credit check on the people that whish to be signatories on the account.
I am one of two volunteers that run two local fresh food co-ops and at present we have a Co-operative account but it is difficult to get money out as there is no local branch. I want to find an account with a local bank if poss as i don't like holding cash in the house between co-op days so need something that I deposit into and then withdraw a week later.
We do have some surplus but only a couple of hundred so not too bothered about interest.
I had looked at an account with Britannia BS but they require you to have £100 there at all times and we can't guarentee this.
All help gratefully recieved.

Savvy_Sue

Does the Coop not let you pay in and withdraw cash at your local Post Office? I know it did when our charity banked with them. Of course now we have no local Post Office but it's still closer than the nearest bank branch.

midge61

We can pay in cheques but that's complicated with the amount of forms you have to fill in and we may only have 2 every so often. Can't get cash unless we go to a local branch which is not an option.

I just need to know if the banks do a credit check so I know what to expect really.
Also i read earlier that you may need a constitution or other paperwork. How difficult is that to do?

Savvy_Sue

Right, I'm not sure about the credit check. They definitely check that you are who you say you are: what that involves varies from bank to bank, and I know initially we had to get passports verified by a professional person for all our signatories and send off photocopies.

Constitution: some banks require it, others may just ask for a minute of a meeting. I find we're usually signing to say that "At a meeting of the X group it was agreed to appoint such and such a bank to be the group's bankers" and then later on "At a meeting etc it was agreed that any two of the chair, secretary, treasurer or other authorised committee member may sign cheques on behalf of the X group." I don't think we've ever been asked to produce the minute book itself.

Because I think bank policies vary I'd suggest going and asking local ones what they would do. For you, paying in cash is important so finding banks where you can do that is key.

Sounds like the Coop have changed their policies since we banked with them, I think they used to make a special arrangement with our local post office but it did work very well.

midge61

Thanks very much for the help.

moneypooh

Our PTA is relatively new and we want to set up our own bank account to make our fundraising easier.

Any advice on which one is better?

We are not a charity as we haven't reached the £5K limit.

many thanks

fengirl_2

Go for a (local?) building society which will pay you interest on everything. As soon as you become a registered charity, switch to CAF Bank.

Savvy_Sue

Agree to go for local, and to find one paying interest: bear in mind that you need the convenience of paying cash in after fundraising events etc. Also bear in mind that you need to withdraw cash in coins BEFORE such events.

I always used Alliance and Leicester because I could withdraw and pay in at my local Post Office (and there was nothing else local). Had a High Interest Deposit Account and could make instant transfers by phone. It worked for me.

I'll come back later and point you to a thread on the Small Biz & Charity Organisers board which may be useful to you.

elektra-2007

We used Co-op and you can do it online just because it was very convient i think you can pay in at the post office as well.

Savvy_Sue

elektra-2007 wrote: »

We used Co-op and you can do it online just because it was very convient i think you can pay in at the post office as well.

You certainly used to be able to do that.