The issues, which are summarised below, can be extremely stressful for Trustees in trying to sort out which unfortunately isn’t always straightforward. NICVA and RCN held two banking roundtable seminars in August and November last year with MLAs and the Charity Commission to hear what issues charities are still having. Worryingly there is now the additional issue of some Trustees using their personal bank accounts to do charity banking.
Our MLAs are also concerned about the banking issues that charities are having and the Assembly’s Finance Committee held an enquiry in 2025. The Minister of Finance also held two roundtables on banking issues and access to cash over the last two years. NICVA and RCN gave evidence to both and we welcome the reports that have been sent to The Treasury which shows that issues are still prevalent and sometimes changing as banks change their eligibility criteria.
NICVA and the Charity Commission for N.Ireland, are active members on the UK-wide *Civil Society Group on Banking Issues which meets fortnightly. This Group then meets with many of the banks via the Charity Finance Group’s Banking Forum to relay issues and hear about developments. Some of the banks have reported that they are investing in new digital mandates but time will only tell if they are compatible for charity trustees to complete.
We recently met with the representative from UK Finance’s NI Committee to see if issues can be resolved locally with the banks. It was a productive meeting with UK Finance agreeing to take forward with one particular bank with a parent bank in England. We also highlighted that the charity registration threshold was imminent and banks need to be aware of it as some banks currently require charities to be registered with the Commission. We also highlighted that banks should user test digital mandates on trustees to ensure they are effective for all their customers given that they banks are expected to ensure good outcomes as par of its Consumer Duty.
The issues
Bank closures and a move to digital have resulted in a lack of client facing bank staff that have knowledge of the voluntary sector legal structures. Having to update the business bank profile digitally has caused issues as the bank uses language that is unfamiliar or inappropriate for charities, and some digital processes are not user friendly eg not explaining why the uploaded documents are not accepted. In many, if not most, cases, the banks’ processes and requirements are designed for businesses, which causes significant problems for voluntary and community organisations.
Issues have also emerged with the banks’ over-zealous approach to prevent fraud, money laundering, and terrorist financing. Some banks are now asking for more detail from charities about their whole board/committee members and not just the account signatories. Each bank has its own specific requirements and processes. If your bank is asking you for information, even if you have already supplied it several times before, please do not ignore it as they could freeze your bank account if you don’t comply with their request or even worse, close your account.
New organisations wanting to open a bank account for the first time have also been left frustrated with the wait time to open an account, sometimes taking several months with High Street banks and/or being refused because they don’t meet the eligibility criteria which isn’t publicised. The introduction of monthly fees on some bank accounts has also left limited options of free banking for charities. Some banks require at least one Trustee to be an existing customer and one bank is requiring all trustees to be existing customers which is almost putting it’s Treasurer’s account out of reach for most charities.
At our recent joint banking seminars with RCN in Belfast and Cookstown we also heard of various issues from increased bank fees to trustees being refused to be eligible to be signatories as well as ongoing issues with the bank mandate and worryingly Trustees using their personal bank accounts to do charity banking.
The Civil Society Group on Banking Issues plans to run the charity banking challenges survey in February to follow up on the survey carried out in 2024. That report illustrates more of the issues and an understanding of how they have arisen Charity Banking Challenges Report 2024 launched | NICVA
What charities and other voluntary led organisations need to do
Keep the bank mandate up to date, some banks require details of all Trustees, so if there are new Trustees or resignations you will need to update your business profile at the bank as well as on the Charity Register. Charitable companies should also ensure that the names of directors are the exact same as those listed on the charity register as some banks will check both registers.
If you are having/have had difficulty with your bank then you should use its complaints process to highlight the issues if they are not being resolved. Some charities have reported on the frustration and anxiety created by trying to get help via a bank’s call centre when their account has been frozen. If you don’t report the problem formally then the bank may not know that there is an issue, as one bank told us, complaints are a good thing!
Please see the following very helpful guide on how to Communicate with your bank Charity Finance Group | Knowledge Hub which also explains some of the terminology that the bank uses.
Much time and effort has been spent to date on highlighting the issues to the key stakeholders and we will continue to work as part of the Civil Society Group to advocate for better banking for voluntary and community organisations.
If you are looking to open a bank account for your organisation then please see NICVA's updated comparison table of bank accounts available to organisations in N.Ireland.
UK Finance has also recently launched its voluntary organisation banking guide which includes a glossary of terms used by the banks and an account finder, however it doesn't include a comparison table or the wait time to open an account.
*Civil Society Group members
NICVA , WCVA, SCVO, NCVO, Charity Finance Group, Muslim Charities Forum, ACRE (Action with Communities in Rural England), NAVCA, Girlguiding, Foundation Scotland.
Charity regulators
Charity Commission for Northern Ireland, Office of the Scottish Charity Regulator, Charity Commission for England and Wales
