In many cases, finance teams often lack the technical knowhow to design and implement an efficient and robust process. So ...
Bank Account Guidance for Charities A Reminder!
10 March 2020
The UK’s three independent regulators of charities (Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission for Northern Ireland) are issuing this alert to charities to advise that the regulated financial sector should be used covering circumstances when they receive, hold, move or use money, particularly those charities moving funds internationally.
It’s the regulators’ view that all charities need to have access to and use a bank account in the charity’s name in the regulated banking system. It provides a good audit trail for the receipt and movement of money and that they are discharging their legal duties to keep funds safe and meeting elements of good governance and prudent financial management.
It would raise concern if a charity did not have a bank account in its name and they’d look to remind trustees that other safeguards including appropriate financial controls should be in place and all records and documentation in connection with their use are kept.
There are a variety of bank accounts to choose from that specialise in charities, depending on your charity size and turnover. It’s also advisable to keep things simple and ensure there are appropriate procedures and systems in place to handle the finances.
For more guidance from The Charity Commission, click here