Reader Reply

Issue 12 - Charity Matters

A selection of responses to Carole Bishop question about getting a bank card when the bank accounts cheques require two signatures.

Q. Carole Bishop

Dear Sir,

Having acquired some useful information regarding banking for charities some months ago from your readers, I wonder if anyone can help me with the following.

We have two bank accounts, both of which require two signatures for cheques. We therefore can't have a bank card. There are occasions when ordering goods over the phone or online for the charity when I have to use my personal debit card and claim the money back from the charity account. I don't like having to do this, and wonder what other small charities do in these circumstances.

Yours sincerely,
Carole Bishop,
Pundarika UK

A.

1. John Buekett

In reply to Carole Bishop, I think she should continue to use her own card and claim back the expenditure. But she should use a credit card, not a debit card as there is some possible recompense from credit card companies if the goods or services are faulty.

It is possible to get a corporate credit card but I strongly advise against this as they can be abused.

Regards
John Buekett

2. C.A. Whittal

Dear Sir,

July issue, Carole Bishop was asking about Bank Accounts.

Lloyds TSB have given me a Debit Card for my Youth Club and we have a cheque book as well requiring 2 signatures. As most large shops have stopped using cheques, it made it difficult acquiring things for the pantomime last Dec and I asked and got it without any problem.

C.A. Whittal

3. Julie Young

To Carole Bishop

As the Branch Manager of a local branch of a charity, I had the same problem, two signatures for cheques on both the branch's bank accounts. We use the Yorkshire Bank, and I now have a debit card against the current account, in the Branch Chairman's name.

Hope this helps.

Julie Young

4. D McNulty

To Carole Bishop, Pundarika UK – Apply for a company credit card from your company’s bank and then any purchases can be made over the internet or from local sources without any problem. Like any other credit card you will be sent a statement every month. The only difference from a personal credit card is that the payment to the bank will be by direct debit.

D McNulty

5. Michael Jones

Dear Sir

Reply to Carole Bishop query about payment for goods over the phone.

We have set up a Barclaycard Company Credit card with 3 cards going to various trustworthy staff in the charity. Each person who has the card has a sole signature and can pay for goods over the phone but all the transactions are are summarised and notified to the charity on a monthly basis. The card holder has to produce receipts for all the items purchased or have a very good reason why they do not; otherwise they themselves have to pay for the items bought.

Michael Jones

6. Steve Herron-Thompson

In answer to question 2 from Carol Bishop, we are in a not to dissimilar situation. We approached our bank, I don’t want to give the name as it may embarrass them when I say that, as usual, they really were helpful and we worded through the situation. After agreement of the trustees our charity has three charge cards for the senior officers. These spend most of their time in the safe, there is an annual charge for them but they free us to use the internet for purchases all you have to watch is they don’t increase your credit limit for you.

Thanks
Steve Herron-Thompson

7. Chris Woolls

Reply to Carole Bishop - we had this problem in our charity. We resolved it by obtaining a company Barclaycard. Your bank should be able to advise on an appropriate card. Monthly purchases end up being authorised (after the event) by the usual 2 signatories.

Chris Woolls
Cara Trust

8. Dilys Griffiths

My reply to Carole Bishop - we have a LLoyds Treasurer's account which doesn't give much interest but is classed along with business accounts and so we could if we chose to go to the interest charged expense have a debit card on the account. I believe a number of the main banks including the Co-op do the same.

Best wishes,
Dilys Griffiths
Secretary to the CfCTrust.

9. Angus Cleaver

For Carole Bishop

If your Trustees agree, you can take out a normal credit card in the name of the charity. The Trustees can set the credit limit.

Angus Cleaver
The Cleaford Christian Trust