Savings and bank accounts for charities
Currently receiving donations? Charitable organisations in Australia can use a dedicated bank account to help manage their funds and receive donations.
Key takeaways
- Some banks offer accounts designed specifically for charities and non-profit organisations.
- These accounts have no or minimal fees and allow multiple people to access the account.
- If your charity has an ABN, you will most likely be able to open a regular business bank account or business savings account.
Accounts for charities and non-profit groups
If you're managing a charity or community group, a bank account designed for charities can help you manage donations, membership fees and other income. These work in the same way as a standard bank account or business account, except they're able to be opened by community groups and charities and give multiple people access to the account.
We've researched some of the options available for charities to open a bank account with a major bank:
- St.George Society Cheque Account – This account is designed for schools, charities, community and sporting groups and government agencies to manage their member donations. There are no monthly account keeping fees.
- NAB Community Fee Saver Account – An everyday transaction account for not-for-profit organisations and community groups. You can link the account to a NAB Business Visa Debit Card to access your money.
- BoQ Everyday Business Account for Not-For-Profits – You can open a BoQ Everyday Business Account and get some extra benefits as a Not-For-Profit customer. You can earn a small amount of interest on your monthly balance, plus link up to 10 Business Visa Debit Cards for free.
- Bendigo Bank Not-For-Profit Everyday Account – Designed for Not-For-Profits, community groups and clubs this account has no account keeping fees and unlimited free branch withdrawals and transactions.
- Beyond Bank Community Account – This is a bank account for non-profits, clubs and charity groups that pays a small amount of interest on the balance and charges no account fees and no transaction fees.
- Westpac Community Solutions Cash Reserve – Designed for not-for-profit organisations looking for a savings account that earns a variable interest rate, and that want access to the funds at any time.
How does a not-for-profit account work?
A not-for-profit account is customised to meet the banking needs of organisations who collect those donations.
These types of savings accounts provide all of the benefits of a typical savings account, but with special features. For instance, they may allow a number of people who are responsible for keeping track of the finances for the not-for-profit group to access the account.
Can I use a personal account for a charity?
Not all banks or financial institutions offer accounts for charities and not-for-profit organisations.
However, a charity's Responsible People have duties to ensure that the charity's financial affairs are managed responsibly. This means ensuring all the funds you collect are managed effectively and responsibly.
Legally, you are not required to open a charity account. However doing so will create a much more professional and streamlined process for managing your accounts and tax obligations.
Note that large charities with revenues of over $1 million must have their accounts audited by an ACNC-approved auditor each year, and in this instance, purpose-created charity accounts are advisable. Charities that earn revenue of less than $250,000 per year do not have to have their accounts audited, and medium-sized organisations (revenue of $250,000 to $1 million per year) can choose to either submit financial records which have been reviewed or audited.
Can charities open a business account?
Yes, some business bank accounts will allow charities and community groups to open an account if they have a registered ABN.
You'll also need to give the charities registered name and address, along with some identification for the people managing the account.
Looking for a business bank account?
See a range of business bank accounts on Finder.
Charity account vs community savings account
Some banks offer what's called a community savings account, sometimes called a charity savings account. This can be confusing, but these aren't actually designed for charities to use.
Instead, these accounts are designed for everyday customers looking for an easy way to donate the interest their account earns to a charity of their choice.
These accounts allow you to choose a charity, then the bank will automatically make donations to the charity from your account each month. When you open a charity bank account and donate all interest to the named charity, no tax is payable on any interest earned.
Bank Accounts for charities and non-profit groups
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseFinder Score for bank accounts
We assess multiple product features for transaction accounts from over 100 providers and assign each product a score out of 10.
Sources
More resources on Finder
Ask a question
More guides on Finder
-
Ubank vs Up: Savings accounts compared
Compare Ubank Save and Up Bank Saver accounts. See rates, features, fees and which suits you best.
-
ING vs Ubank: Savings accounts compared
Compare ING Savings Maximiser and Ubank Save Account. See rates, features, fees and which suits you best.
-
Bendigo Bank Reward Saver Account
Read Finder's review of the Bendigo Bank Reward Saver. Learn how you can earn the maximum bonus interest rate with this account.
-
Virgin Money Grow Saver account
Earn 4.20% p.a. on your savings each month you make at least one deposit and make no more than one withdrawal.
-
Virgin Money Boost Saver (for 18-24 year olds)
The Virgin Money Boost savings account (for 18-24 year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
-
Australian interest rate history
See historical interest rates for savings accounts since January 2012.
-
Compare high interest savings accounts
Kickstart your savings plan with a high interest savings account.
-
Rabobank SMSF PremiumSaver
Rabobank PremiumSaver account is an option worth considering for savers looking to boost their savings balance, offering no ongoing fees, a competitive variable rate and 24/7 online access to your funds.
-
Best savings accounts Australia
See some of the best savings accounts in Australia right now with high interest rates and no fees, plus tips to help you find the best savings account for you.
-
Savings interest calculator
Our range of simple calculators can help you plan your finances and compare potential interest earned.