Charity Bank Accounts (UK)

Who is this article for?

Anyone needing to set up a bank account for a charity in the UK.

Before setting up your charity, it’s best to open your charity’s bank or building society account, even if you haven’t reached the annual £5,000 income required by the Charities Commission.

Most banks in the UK offer accounts that cater to charities and nonprofits. There are usually no fees in day-to-day transactions, although some banks have a transaction or business turnover limits. In addition, charities do not need to pay tax on the interest accrued by charity bank accounts.

Personal accounts can be used, but it is considered more professional and financially easier to account for funds when you keep your personal and charity separate. A separate account will also make it easier to apply for Gift Aid. In addition, certain banks allow charities to claim an extra amount (25p) for every donation through Gift Aid.

Best Practices for Account Set Up:

Determine what your charity’s needs are in terms of banking.
- Do you want access to a local branch?
- Do you want a savings account, or would a current account suffice?
- Do you need access to mobile banking?
- Do you need access to an ATM via a debit card?
Ensure that the bank is protected by the Financial Services Compensation Scheme (FSCS)
- It would be best to stick with banks or building societies rather than digital banks
Choose signatories who have good credit rankings.
Consider opening an account with a bank where your treasurer or any signatory has an account.
Double-check the eligibility criteria, usually found on the bank’s website. For example, some banks only accept registered charities, while some have paused opening charity and community accounts.
It will also be important to have specific policies or internal regulations in place that showcase your processes to avoid financial crimes (money laundering, terrorism financing, etc.).
- This is particularly important if you engage in activity in countries flagged as ‘risky’.

Typical Requirements to Open an Account

While requirements may vary depending on the bank and the type of account you’re opening, below are the documents that are most commonly asked for in the application process:

Documents that prove the identity and UK address of the assigned signatories (minimum of 2), directors, key officials and other staff. (Original and photocopies)
- Passport, driver’s license, identity card
- Other documents that show a UK address
Governing document or constitution (depending on your charity structure)
Charity Commission number or Company registration number (whichever is applicable)
Letter of Recognition from HMRC
Minutes of the board meeting(s) which:
- States the agreement of opening an account
- States who are appointed as official signatories, key officials

Reference: As of September 2022, UK Banks with Charity Accounts

Many "mobile" or "online" UK banks will or can not accept charity accounts. Even if applying online to a more traditional bank, you may be rejected, as online applications often go through their online division.

Charity Bank

Owned, run and administered by charities
Offers four accounts (both savings and current) for UK-registered charities, trusts or unincorporated associations

Charities Aid Foundation Bank