What is a charity bank account?

Opening a charity bank account is an important step for non-profit organisations. It provides a secure and transparent way of managing donations and ensuring financial accountability.

This guide will explore what a charity bank account is, who it’s designed for and highlight the key benefits of opening one.

Bank accounts for non-profit organisations

A charity bank account is a type of current account that is designed for charities, co-operatives, credit unions and community groups. It helps manage donations, grants and other funds securely.

These accounts often come with features tailored to the unique needs of charities.

Does a charity need its own bank account?

Charities should have their own bank account as it helps you protect your charity’s money and makes sure your charity finances are secure. You will usually need a bank account set up before you register for the Charity Commission.

Can I use a personal bank account for a charity?

Although a charity can use a personal bank account, it is not recommended.

A charity bank account provides clear financial separation between personal and organisational funds. This separation is crucial for maintaining transparency, accountability and legal compliance.

Benefits of a charity bank account

A charity bank account allows you to manage donations and grants to make sure that funds are solely used for the charity’s purposes.

It also simplifies your financial record keeping and auditing. This makes it easier to meet the legal requirements set out by the Charity Commission.

Other benefits include:

• no monthly fees or reduced fees
• multiple signatory options for added security
• discounted services, software or subscriptions
• a variety of banking options to suit your charity’s needs

How to open a bank account for a charity

You can open a charity bank account by applying online. You can do this on behalf of your charity if you are a key individual.

Key individual means any directors, trustees or officers who are responsible for managing the organisation or any authorised users that have been appointed.

To apply online, you often need:

• your personal details
• verification of your identity
• organisation details such as digital copies of governance documents
• financial details such as tax information, expected account turnover and start-up costs
• information about any other key individuals in the organisation

Requirements for setting up a charity bank account

There are often requirements for setting up a charity account depending on which bank you set one up with.

Requirements often include:

• being a registered charity
• a specified amount of credit turnover
• the amount of cash you deposit
• the number of cheques you deposit

To set up a charity bank account at The Co-operative Bank, you need to be a registered charity (exempted charities must provide a letter of authority with their application).

Your account must also not go above any one of the following annual account limits:

• credit turnover more than £2 million
• deposit more than £100,000 in cash
• deposit more than 5,000 cheques

What is the best bank account for a charity?

The best accounts for charities are charity bank accounts as they offer many benefits.

When looking for a charity bank account you should consider:

• the bank’s values
• monthly fees
• account interest rates
• the number of signatories you require
• whether you need online or in-person banking options
• any additional perks that may benefit your charity

Free charity bank accounts

It is important to compare fees and charges when looking for a charity bank account.

Some banks offer reduced fees whereas others are free with no monthly costs. This means you can put more money towards your cause.

The Co-operative Bank’s charity account has no monthly fees and is called the Charity and Community Bank Account account.

Our Charity and Community Bank Account

Our Charity and Community Bank Account is for charities, non-profit organisations and community groups.

Benefits include:

• no monthly service fee
• being eligible to apply for grants from the Customer Donation Fund
• discounted merchant services terminals, free Go Get Paid access and accountancy software integration
• 50% off a Zellar subscription
• multiple signatory options for added security
• online, mobile and in-person banking

Learn more about our Charity and Community Bank Account

More information

For more on setting up a charity bank account, visit:

• GOV.UK: Charity Banking
• The National Council for Voluntary Organisations (NCVO): Banking for charities and voluntary organisations