This might not be as obvious as it sounds. If you’re overseeing the day-to-day operation of a non-profit organisation, then the structure is key to choosing or moving to a charity bank account and/or potentially banking online. Registering as a charity, for example, clarifies your legal structure and your bank will need to know this. You can find out if your organisation is a registered charity by checking with your local charity regulator.  

Trade organisation UK Finance’s Voluntary Organisation Banking Guide offers a wealth of information covering the points listed above, as well as choosing the right bank account and day-to-day maintenance. 

Most clubs, societies or charities will at some point have to update their signatories, change mandates, process a new application or be required to authorise payments within a certain timeframe. 

In the past few years, all businesses have been swept up in the digital shift and most are trying to become more present online. This is no exception for charities, who reassessed their own reliance on cash and how people were more likely to be online as a result of the pandemic.

“Society has moved away from cash and many people prefer to pay digitally and carry out transactions online. There’s more demand for cash-free options,” points out Abul Kalam, our Customer Experience and Journey Co-Ordination Manager at the bank. “This can make a big difference when you’re deciding what management system works best for you.” 

It’s worth considering the following points:

• If you’re setting up a charity bank account, you’ll be asked for your charitable status, and potentially the governing document (constitution/memorandum of association) containing setup information and the minutes (notes from the meeting) when signatories or trustees were appointed.
• Remember that organisations will usually need at least three signatories/trustees to ensure smooth operation.
• Establish internal processes and ensure the mandate (official document) is reviewed every three months for online success. If anything changes, such as a trustee leaving, and someone new being added on, inform your bank.

Abul has spoken before about how businesses could improve their digital customers’ experience, covering areas such as digital security and the availability of face-to-face interactions when necessary.

“It can be helpful for trustees or signatories to have a basic knowledge of digital skills so they’re able to log in and authorise payments or manage the account effectively,” says Abul.

“Remember there may be a timeline for agreeing/approving payments so it’s a good idea to ensure that the members/trustees who are doing this are aware of how quickly they need to log in and approve,” he adds. “This isn’t always easy to plan as volunteers may be busy outside the responsibilities of their club or society.”

He advises a careful review of the different payment options available to ensure you’re using the right one. “Some of these, such as CHAPS (a payment system used to guarantee large sums of money) can mean organisations are paying unnecessary fees when they could be making payments digitally for lower sums without that extra fee,” explains Abul.

Taking card payments in person, online or over the phone can be monitored digitally, offering speedy updates on your organisation’s day-to-day transactions.

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