Blog: Banking and the importance of keeping your details up to date

By Erin Gordon, Policy and Research Officer at the Charity Commission for Northern Ireland

Imagine how you would feel if, for apparently no reason, the bank suddenly just closed your charity’s account. How would you react? What would you do? I’m guessing you would call them to find out what exactly was going on.

For some charities, problems like this are more than just an imagined scenario. They are a reality.

Many charities, of all sizes, have – and are – facing challenges opening or maintaining bank accounts. Some accounts, as highlighted above, have been suddenly closed, while some charities have faced problems reactivating dormant accounts or even changing mandates.

The UK’s charity regulators, including the team here at the Charity Commission for Northern Ireland have been working alongside groups such as NICVA to try and resolve these issues. However, while we are working to try and find an answer, there are also a few things you, as a charity trustee, can do too.

1. Ensure the trustees listed on the register of charities is correct and up to date. It is vital to update your trustee names after an AGM, if someone resigns or there is a change for any other reason.
2. Make sure you inform your bank when the trustees change and update your bank mandate. Your bank mandate names the trustees who can manage your charity’s account, including being able to make payments, lodgments or draw down payments. You could lose access to your account if these details are not updated.
3. Make sure you know the legal structure of your charity. If you are not sure, your governing document may give you an idea. The type of governing document a charity adopts will depend on its legal structure. The table below may help you to understand what legal structure your charity is:

Although these steps won’t rule out the chance of your charity having issues with the banks, they may reduce the risk and save your charity a lot of time and stress.

In the meantime, you can be assured that the charity regulators across the UK alongside umbrella bodies are continuing to work to find a solution.