NOt for profit Club

Chimera

Hi there guys,

I need some advice.

I started a club last year and we have started to raise money for charities at our events in the past couple of months.

We have been able to give the money directly to charity, but I know that we are goig to have occasions soon when it will be much easier to pay it into a bank account and write a cheque etc.

I also need a bank account for the club funds.. not that we have any at the moment - but hopefully we will soon. These funds will only be used for the club - eg, website, forum, promotional stuff, raffle prizes etc.

SO I need two bank accounts
1. A charity bank account to run a zero balance, with a cheque facility
2. A non-profit club bank account to keep club funds in.

Hopefully soemone can advise on the best one, or best way of doing it.. as I'm going round in circles

Thanks

Nici

Savvy_Sue

I'm not sure why you'd need TWO accounts. What I'd do would be to keep accounts which showed what was due to charity, and what was 'the club's. I don't see anyone wanting to offer you an account which you can run down to zero - nothing in it for them, IYSWIM.

Does that help at all?

Chimera

Thanks..

I only want the two bank accounts to make it easier ...
I was just wondering what the best bank to go for would be ?

ANyone got any idea?

Nici

Savvy_Sue

Depends partly what services you need ... If you regularly want to pay in or withdraw cash, you need a local bank branch. If you don't need to do either of those, you can go for an account you can mostly operate online.

I always used to rate the Alliance and Leicester Clubs and Societies Account, because you could use two nominated Post Offices for withdrawing cash, and pay it in at any PO. They also had a High Interest Deposit Account into and out of which you could transfer funds by phone, instantly. But I haven't needed such an account for a while and I've never been able to work out from their website whether they still offer it or not!

To my mind, having two bank accounts wouldn't make it significantly easier: you'd still have to keep good records. And you'd always have to faff about transferring money into the 'giving' account before you could give it, IYSWIM.

With one account you could easily set up an Excel spreadsheet which would show where money had come from, and what it was earmarked for. Or if you PMed me I could send you an example, probably more complicated than you need but saves you re-inventing the wheel ...

You wouldn't know JUST by looking at your bank statement what you'd got free for giving, true, but if A+L are still doing that a/c you could transfer funds for giving to HIDA. Can't write cheques direct from that a/c though.

Chimera

Thanks Savvy Sue,

Most helpful - yes the spreadsheet would be GREAT - Thanks

I will look into the A & L account now

Savvy_Sue

Chimera wrote: »

Thanks Savvy Sue,

Most helpful - yes the spreadsheet would be GREAT - Thanks

I will look into the A & L account now

You need to send me a PM (personal message) with your email address, please.

Chimera

Thanks sue.. Pm sent

longforgotten

You mention you are a non profit making club. Please be careful to check your turnover as the VAT man will still be expecting you to register with him if your turnover reaches a certain level, currently £61K per year. That level of turnover maybe a long way off for you but you never know the day may come when it will be. I do not know what your club provides but for instance certain entrance fees, providing teas,drinks, food on the premises, all sorts of other income will then become vatable.

Keep an eye on your turnover and discuss this with your accountant

Chimera

Firstly - Thanks sue for the Speadsheet

It gace me a really good idea of what I need to put in etc. I actually stayed up till 4am putting finishing touches to it.

longforgotten - Thanks for the advice. There is no way we will ever reach the tax threshold. We are a costuming club that goes to events/organises events to raise funds for charity. 100 % of donations go to charity. To run this we rely on donations - usually from myself or other members. We are looking at some ways of funding the club better - selling merchandise etc, but I wouldn't think we'd get past a couple of thousand a year at most.

WE are looking to see if we can get some sponsorship from companies etc... To allow to fundraise without spending a fortune on materials etc ourselves. Had anyone done thsi before? or can anyone give any advice on this.

It makes sense, that the more money we can out into the club and resouces the more we can raise at events.

martindow

Abbey is another bank to consider. Free and pays a bit of interest on the balance. You can get a linked savings account with it. Maybe that would solve your 2 accounts problem? One thing to consider is that paying in needs to be done at Abbey branches or by post, so you need to check where your local branches are.

Chimera

Thanks.. have you got a linky... ??

They don't tend to advertise these things very well on their websites...