A charity savings account is a specialist financial product that has been designed for use by non-profit organisations. It works in a similar way to standard savings accounts by allowing money to be held securely while potentially earning interest. These accounts differ from personal accounts as they have been set up specifically to meet the needs of charities and voluntary groups with their own specialist features that support transparency, good governance and compliance with charity law.

This article aims to clarify which organisations are eligible to open a charity savings account, as well as the requirements that they will need to meet and some common situations where groups may not be able to qualify. The criteria can vary from one bank or building society to another, so it is always important to check the exact requirements with your chosen provider before you make an application.

Why eligibility matters

Understanding eligibility for charity savings accounts is more than a tick-box exercise. There are three main reasons why banks and building societies set clear rules around who is able to open a charity savings account. The first rule centres around charity law and regulations. This is because accounts can only be opened by organisations that meet the legal definition of a charity or charitable body in order to ensure that funds are used in line with charitable objectives and not for private or commercial purposes.

The second rule is to protect the money of the donors themselves. All donors, funders and grant-making bodies expect charities to hold money in secure, ring-fenced accounts. Eligibility checks are carried out to help ensure that only legitimate organisations with proper governance structures are able to access this type of account.

The third rule relates to bank compliance obligations. All financial institutions are required to carry out due diligence under anti-money laundering (AML) and Know Your Customer (KYC) rules. By restricting eligibility, banks and building societies can ensure that they have sufficient oversight of how funds will be managed and who by.

Eligibility checks are important when it comes to reinforcing public trust. Charities and non-profits rely heavily on reputation in order to generate donations, so having an account that has been vetted by a regulated financial institution can help to demonstrate credibility. A bank-approved savings account can also reassure trustees and beneficiaries that money will be handled responsibly in accordance with the stated charitable purpose. Without these safeguards, there would be greater risks of mismanagement, accidental misuse of funds or even fraud.

Trustees are ultimately responsible for how charitable funds are managed, so it is important to be able to show that the money held by the organisation is stored in a properly regulated account to provide evidence of good governance. This is particularly important during audits, grant applications or when reporting back to regulators.

Who can open a charity savings account?

There are a wide range of charitable and non-profit organisations that banks and building societies will allow to open a charity savings account. Registered charities are the most straightforward applicants as they hold a Charity Commission registration number in England and Wales or equivalent OSCR in Scotland or CCNI in Northern Ireland. Charitable trusts and foundations are also permitted, as these bodies manage funds for charitable purposes and often require savings accounts to hold endowments or distribute grants.

Community Interest Companies (CICs) can open charity savings accounts even though they are not technically charities. Some providers still permit CICs to open charity savings accounts because they exist to deliver community benefit rather than private profit.

Smaller grassroots organisations such as local clubs, societies or associations may also be eligible to open charity savings accounts, especially if they have a constitution or governing document in place.

Schools, religious organisations and sports clubs with charitable status are also eligible to open an account.

These accounts are intended for organisations that exist to serve a charitable or community benefit rather than generate private profit. Banks and building societies will generally consider applications from entities that can demonstrate a clear charitable purpose, a defined governing structure and appropriate oversight. The underlying principle is that funds must be managed in the interests of the cause rather than individuals.

Having a clear charitable purpose is key. Organisations need to be able to demonstrate that their activities align with charitable objectives such as relief of poverty, advancement of education, promotion of health or community development. Where an organisation can demonstrate this through its governing documents or recognise status, it is more likely to be considered eligible.

Typical eligibility requirements

Whilst the types of organisations listed above might qualify for a charity savings account in principle, most banks and building societies will still expect them to meet a number of eligibility requirements before approving an account.

They must be able to provide some form of charity registration details. Where applicable, this will be a Charity Commission registration number or an HMRC charity reference number. They will also want to see a governing document or constitution to demonstrate how the charity is run, what its objectives are, and who is authorised to make financial decisions.

Banks and building societies are likely to want full trustee or signatory details, including names, contact details and proof of identity for everyone who will operate the account. Proof of address and photo ID is usually required for all trustees or authorised signatures to satisfy anti-money laundering regulations.

It is also important to think about how much money will be deposited into the account when it is open. Some banks and building societies will require a minimum opening deposit or ongoing balance, which can vary from as little as £10 up to several thousand pounds.

Providers are also likely to want reassurance that the organisation has internal controls in place. This may mean demonstrating that there are multiple authorised signatures, clear decision-making processes or a formal policy for financial oversight. By asking for this information upfront, providers can reduce the risk of a single individual having sole control over funds, which in turn supports transparency and accountability.

Who may not qualify

Not every organisation will meet the necessary criteria for opening a charity savings account. For-profit businesses will not qualify as these accounts are designed specifically for non-profits only. Commercial companies, even if they support community projects, will usually be directed to a standard business account instead.

Any informal group that does not have a governing document will also not qualify. This is because providers require a constitution or similar document to confirm how the funds are going to be managed, and so a group that does not have this structure in place is not normally eligible.

Organisations that do not meet the provider criteria may not qualify. This can apply even to genuine charities if they do not meet minimum deposit requirements, provide sufficient identification for trustees, or satisfy any other provider-specific conditions.

Checking your organisation’s eligibility

Before you make any application for a charity savings account, it is important to check that your organisation is likely to be eligible. You should therefore put together a simple checklist to make sure that you meet all of the requirements. You should confirm whether your organisation falls into one of the recognised categories and then gather any key documents in advance, including governing paperwork and trustee identification.

It is important that you are realistic about whether your organisation is able to meet any minimum balance or operational requirements set out by the bank or building society, as there is no point opening an account that you will not be able to maintain properly.

You should also make sure that you speak directly to your chosen provider to confirm exactly what their eligibility rules are, as these are likely to vary from one institution to the next. This helps to provide absolute clarity and can avoid any delays in the application process.

Eligibility is not just about meeting current requirements. Organisations should also consider how their needs might evolve. A bank may ask whether the charity anticipates significant growth in income or changes in its structure, and this could affect whether the account remains suitable in the long term. Checking eligibility should therefore be seen as an ongoing responsibility rather than a one-time exercise.

Disclaimer: This article is for information purposes only and does not constitute legal or financial advice. Mansfield Building Society does not provide advice on the suitability of Charity savings accounts. Please consult a qualified professional to ensure any trust account meets the needs of your trust and its beneficiaries.