Are there any specialist banks in NI that understand the sector?

Charitable and voluntary organisations often have different needs and requirements to those provided in a traditional bank account.

We ask Amanda Brobyn, Regional Development Manager in Northern Ireland for Unity Trust Bank for some pointers to the most frequently asked questions.

Q: What specialist banks are there in NI that understand the sector?

A: There are a number of banking options available, but it is important to find one that not only understands your organisation, but also understands your own needs. Only you will know what is important to you, but here are some pointers to questions that you might want to ask:

a. Does the bank have a dedicated charity team?
b. Do they offer relationship banking - or are you just a number to a remote call centre operator?
c. What charges do they levy?
d. Are there any penalty charges for going overdrawn?
e. Are there any additional charges for arranging overdrafts?
f. How will they help me move from my existing bank?
g. How will they deal with me when the honeymoon period is over?

Q: What information will we need to provide when we ask to open an account?

A: You will need to complete the application form and provide information on both the organisation and you and your fellow trustees who are going to be signatories to the account. For the organisation you will need to provide a signed and certified copy of your Memorandum & Articles of Association, and your constitution. Some banks request will also require you to provide certified copies of some formal form of identification, proving you are who you say you are.

Q: Once I've opened my account, I need to be sure that only authorised people can access our      funds. How can this be controlled if we use on-line banking?

A: The sort of things you need to look out for are a on-line banking facility that replicates the same security measures that you have for cheques. So you will want to ensure that it allows for a minimum of 2 signatories to approve a payment. Some organisations will want to have different levels of on-line authority or authorisation, such as having the ability for one person to input the information and for two different people to authorise it. You might even want to specify that different levels of authority such as some people having the ability only to view account details, with others having the ability to either authorise or authorise and submit payments.

Q: We suffer constantly from late grant payments, what can we do?

A; Consider looking for a short term, cost-effective funding option. This could include arranging an overdraft or short term loan. Some banks will even provide a loan specifically to tide you over until you receive your grant; in effect a grant bridging facility. If this is a constant reoccurrence, there are some things that you can do keep on top of your finances. These include keeping an up-to-date cash flow forecast so you can plan ahead. You will also need to be efficient with your debtor book, chasing any outstanding invoices on the day that they are due. And as money becomes tighter, be sure that you are only spending on necessities, getting the best from your utility provider and perhaps look at ways of increasing income such as sharing office space.

Q: Our bank is asking for Personal Directors Guarantees for our organisation - is this really necessary?

A; In short, no it isn't. Where there is an appropriate level of security, which is often required for amounts over a certain parameter, all that a bank will need is a first/second charge over that property. In this sector it is rare to have to provide such a personal commitment, so it can be off-putting to board members and trustees to be asked. The moral is choose a bank who understands the sector and it's complexities, and one which will not ask for such personal guarantees.