Why it is Important
All organisations are required to open a bank or building society account. There are a number of different accounts, or combinations of accounts, to suit the needs of every group. The most useful form of account is a Treasurer’s Account. Treasurer’s accounts are operated through a cheque book and a book of pay-in slips. These accounts are operated at branch level or through internet banking and are intended for clubs and societies. The account will provide access to very basic services such as a small level of interest, the ability to set up standing orders and to pay utilities etc by direct debit.
To open an account, banks may require a copy of the constitution, copy of the minute of the meeting which established the organisation’s committee and elected its office bearers. All accounts of the group should be in the name of the organisation. One of the most frequent reasons for funding application being refused is that the name of the organisation is not the same on the constitution and the bank statement!
All accounts opened by the organisation should have at least three signatories. This should ensure that the organisation can always manage to arrange for cheque payments regardless of holidays etc. Any two of the three being empowered to sign a cheque on behalf of the organisation. Normally, the signatories will be the Treasurer and other committee members.
All organisations are required to open a bank or building society account. There are a number of different accounts, or combinations of accounts, to suit the needs of every group. The most useful form of account is a Treasurer’s Account. Treasurer’s accounts are operated through a cheque book and a book of pay-in slips. These accounts are operated at branch level or through internet banking and are intended for clubs and societies. The account will provide access to very basic services such as a small level of interest, the ability to set up standing orders and to pay utilities etc by direct debit.
To open an account, banks may require a copy of the constitution, copy of the minute of the meeting which established the organisation’s committee and elected its office bearers. All accounts of the group should be in the name of the organisation. One of the most frequent reasons for funding application being refused is that the name of the organisation is not the same on the constitution and the bank statement!
All accounts opened by the organisation should have at least three signatories. This should ensure that the organisation can always manage to arrange for cheque payments regardless of holidays etc. Any two of the three being empowered to sign a cheque on behalf of the organisation. Normally, the signatories will be the Treasurer and other committee members.
Key points
- Write a short paragraph outlining the key ‘learning/communication points’
- Choose a current account which offers the services your organisation needs, e.g. a local branch, internet banking, direct debits etc.
- Ask questions about processes – how do you change a signatory, does it take a long time?
- Be aware of any charges e.g. if you go into an overdraft
- Ask about interest rates
- Check if your account offers online dual authorisation. To protect against fraud, any internet or card payments should be approved by two people for additional security and fraud prevention.
- Some accounts require high minimum deposits, so may be of no use to very small organisations.
Links for more information
SCVO, Scottish Council for Voluntary Organisations
Bank accounts overview
https://scvo.org.uk/support/running-your-organisation/finance-business-management/bank-accounts
OSCR, Office of the Scottish Charity Regulator
Guidance from the British Banking Association
https://www.oscr.org.uk/media/2147/2016-03-09-ae265_banking_charities_volorg_scotland_feb16.pdf
SCVO, Scottish Council for Voluntary Organisations
Bank accounts overview
https://scvo.org.uk/support/running-your-organisation/finance-business-management/bank-accounts
OSCR, Office of the Scottish Charity Regulator
Guidance from the British Banking Association
https://www.oscr.org.uk/media/2147/2016-03-09-ae265_banking_charities_volorg_scotland_feb16.pdf
