A simple guide for organisations in the Voluntary and Community - - PowerPoint PPT Presentation

A simple guide for

• rganisations in the Voluntary

and Community Sector

28/11/2016

It can take several weeks, or even a few months to open a group bank account. Be careful to fill the application form fully, and send all the information that is requested. The bank may still write to request further details before opening an account. Before applying for a community account, check that it:

• Is specifically for community groups, or charities (if your group is a charity).
• Not for businesses. Banks usually charge for business accounts.
• Offers “free banking”. This will make sure you are not charged simply for having the account.

Opening a Club or Society account will require proof that your group is a voluntary, non-profit-making organisation and not a private business. This may be one of the below documents:

• A copy of your group’s Constitution
• Memorandum and Articles of Association (if for a limited company group)
• Confirmation of Charity Registration / Trust deeds (if for a charity group)

Choosing your bank Community group accounts are offered at most high street banks. One option may be to use the bank you personally have an account with, or one with a branch close to you. However, consider future treasurers for whom this may not be an easy option. Ensure the account meets your group’s particular needs. Are the banking methods you want provided; e.g. cheque book, internet banking, debit card and phone banking? Cheques Set your account up to have at least two people required to sign each cheque, or approve withdrawals. Banks usually require two people to sign cheques for a group bank account. Signatories should be people with a good credit rating. Unless they already have an account with that bank they will need to go to the branch in person with:

• Proof of identification; e.g. driving licence
• Proof of address; e.g. utilities bill
• In some cases proof of their financial situation e.g. bank statements

Internet banking and debit cards Banks now offer internet banking and debit cards. Although convenient these do not give the security of a cheque payment that needs two signatories. Your group should set up an internal system ensuring the account is checked regularly and that all internet and card payments are approved by two people. It is the role of the Treasurer to ensure proper financial procedures are in place.

The Co-operative Bank

For community groups the Cooperative Bank Community Directplus Account is recommended, detailed information is available on the below website: http://www.co-operativebank.co.uk/business/community/community-directplus This type of account is:

• For community organisations with an annual income less than £1 million.
• Managed by you either over the counter at Cooperative Bank branches, at any Post Office, by phone, post or online.
• Cheque book, paying in book and debit card provided.
• Free banking
• Easy to switch your direct debits and standing orders over to the Co-op by using their account switching service

Eligibilities for the key parties:

• Aged 18 years +
• Have no CCJ’s, bankruptcy or IVA’s in the last 6 years
• Not missed any repayment of credit in the last 6 months
• Have an organisation address in the UK
• Live in the UK

Your organisation must be one of the following entities to be eligible:

• Registered Charitable Trust or set up with a Trust Deed
• Registered Charity
• Unregistered Charity with an HMRC reference
• Registered under the Industrial & Provident Act / Friendly Society Act
• Registered Community Interest Company
• Voluntary Organisation or Unincorporated Association governed by a set of Rules and Constitution or Aims and Objectives
• A members club with less than £1,000,000 pa credit turnover: cash deposits (notes/coins) of less than £100,000 per annum:

and/or less than 5000 cheques per annum

Other services include:

• Groups can apply for grant of £1,000.
• The opportunity to apply for project funding from the Customer Donation Fund via:

http://www.co-operativebank.co.uk/assets/pdf/bank/business/community/customer-donation-fund-application.pdf

• Protection of funds:
• £75,000 per account limit on protection
• 20 day re-imbursment period for deposit or bank failure
• Further information about compensation: Financial Services Compensation Scheme10th Floor Beaufort House15 St Botolph

Street London EC3A 7QU Tel: 0800 678 1100 or 020 7741 4100 Email: ICT@fscs.org.uk. Web: www.fscs.org.uk

• For further account fund protection information visit:

http://www.co-operativebank.co.uk/assets/pdf/bank/business/currentaccounts/information-exclusions-sheet.pdf Tariff stipulations: The Co-operative Bank will reserve the right to review account tariff for customers whose:

• Credit turnover exceeds £1m per annum
• Who deposit more than £100,000 cash per annum
• Who deposit more than 5,000 cheques per annum

To apply:

• Online:

http://www.co-operativebank.co.uk/assets/pdf/bank/business/community/community-directplus-app.pdf For questions regarding the criteria please call 0800 0282 282 to talk to a HSBC advisor. Calls will be charged.

• By filling in a form and post it to The Co-operative Bank
• Call them on 0800 783 4741.

TSB

For bank accounts that are tailor-made for small, non-profit making organisations with a turnover below £50,000, the TSB Treasurers’ Account is recommended. Information can be found via the following website: http://www.tsb.co.uk/business/accounts/treasurer-account/ This type of account is:

• Suitable for clubs, charities, church finances and societies
• Not-for-profit organisations with a turnover greater than £50,000 are placed onto a Business Extra tariff. To look at other

available options visit the comparison page: http://www.tsb.co.uk/business/accounts/compare-business-tariffs/

• Free day-to-day banking when you're in credit by transaction of: cash, cheques, standing orders and direct debit.
• Unlimited deposits and withdrawals
• Experienced relationship manager to support you
• Second signatory required on the account
• No minimum deposit required to open an account

When you apply you need to confirm:

• You are a director or trustee; aged 18+
• You require the account for organisation use and give Information about your club/charity/society
• You have read the Terms and Conditions
• Consent for a credit check

TSB need to understand the nature of the organisation you are planning to start in order to offer the best service. One of TSB business planning tools or your business plan will be useful to go through questions identified.

Information likely to be requested by TSB includes:

• What your organisation does
• The reason for opening the account and how it will be used
• Your anticipated activity, e.g. whether you will be using cash/cheques, and the likely volumes
• Who your expected customers will be and where they trade
• Organisation plans, projections, reports and accounts
• Source of funds to set up your organisation
• If your organisation is incorporated a Companies House search will be carried out

Other services include:

• Is covered by the Financial Services Compensation Scheme (FSCS), an eligible depositor is entitled to claim up to

£75,000.

• Additional services such as BACS, direct debit and bulk payments to pay suppliers or wages and salaries, may be
• charged. Details of these services and charges can be provided by your relationship manager.

TSB is community supportive, and welcomes nearly 500 new local charity partners:

• Charities are selected from over 25,000 nominations from local people
• TSB and its customers have donated in excess of £1million since the programme launched in February 2015.

To apply:

• Call 0345 835 3865.

Lines are open 7am to 8pm, Monday to Friday (excluding Bank Holidays), 9am to 2pm, Saturday

• Or apply online via:

https://secure.form.tsb.co.uk/business/bca_apply.asp

HSBC Bank plc

For bank accounts suitable for clubs, societies and charities with an annual turnover under £100k operating not for profit and churches (and

• ther places of worship), executors and administrators The Community Account, a current account offering free banking is recommended.

Information can be found on the following website: http://www.business.hsbc.uk/en-gb/everyday-banking/business-accounts/other-business-accounts/charity-banking-community- account?DCSext.nav=tabordion This type of account:

• Gives a choice of ways to bank:
• Cash, Cheques or bank drafts:
• You can’t deposit over £250 in coin in a single transaction. Generally you can deposit up to £20,000
• Internal Transfer (between your HSBC current account and your HSBC savings or credit card account)
• Currency Account Transfer (between your HSBC accounts in other currencies)
• Electronic payments including direct debit payments or standing orders (from other people or businesses to you)
• Free Audit Letter of Certificate of Balance

You will need to provide some organisation details, including:

• Contact details, including phone or email and full organisation address, including postcode
• Companies House registration number (for limited companies and partnerships)
• Your estimation of turnover

Also HSBC will need some personal details from you, plus any partners or directors:

• Full name and date of birth
• Contact phone number, email address and current personal address (also previous address if resided than 3 years)
• Account number (for applicants already banking with HSBC)
• Details of your debit/credit cards
• A credit and fraud check is also carried out as part of the application process.

HSBC will require to see one item from each of the following two lists (for you and any other beneficial owners and/or principal controllers). Current identity document:

• Your passport
• Your UK driving licence: photocard or old paper style
• Your national Identity Card

Proof of your current address via:

• Bank/building society statement/passbook
• Utility bill (e.g. electricity, gas or water) showing proof of payment
• Local authority or council tax bill valid for the current year

Other services:

• You will not be liable to fraudulent losses if you tell HSBC about unauthorised payments within 13 months.
• Help is available:
• Ask 'Andrew' the HSBC online assistant.
• Give HSBC a call (from 8am to 10pm every day) on: 03457 60 60 60
• Chat with HSBC online

What needs to be in place before applying for a Community Account?

• You will need to meet the HSBC eligibility criteria. HSBC will let you know what these are before you apply for an account.
• You and anyone else as signatory will need to fill out a Mandate.

To apply:

• By phone 0800 731 8904
• In branch
• Online:

https://www.business.hsbc.co.uk/1/2/DA_APP?productType=UCIJL&ES_STATE_RESET=true

Price list comparison of community bank services, November 2016

£0.00 £5.00 £10.00 £15.00 £20.00 £25.00 £30.00 CO-OP HSBC TSB

• The income in the Rotherham Voluntary and Community Sector amounts to £61

million, this requires secure storage and accurate transfer.

• There are over 1300 organisations who contribute to this turnover, of which most

require a bank account to conform to the legislation relevant to there structure.

• 34% of the sector have reserves totalling less than 1 month’s expenditure and the

combined not for profit nature of the sector means that funds are in constant flow.

• Banking records are external and accurately monitored thus ensuring any claims of

fraud can be legitimately investigated.

• Banks offer the chance of compensation when funds have been fraudulently

removed, usually up to £75,000 for charitable organisations.

• If your organisation require a grant or loan then a bank account is essential to

successfully apply and received the funds.

Any questions