How to open a Bank Account for your Charity and Non Profit

This guide gives you the tips and tricks to make opening a bank account as easy as possible.

Background:
As many in the sector know, opening a bank account for a charity or nonprofit can be anything but straightforward. Bank staff are often unfamiliar with the process, and it’s not uncommon for trustees to visit a branch three or four times before successfully getting a bank account open. In short, most banks’ support for charities and nonprofits is low.

Community Networks Aotearoa investigated this issue in 2023 — you can read their report here: Banking Issues in the Community Sector.

Opening a bank account for most charities and nonprofits

If your organisation is a trust, incorporated society, and most other types of organisations that can register with Charities Services, you’ll likely need to visit a bank branch (maybe more than once) to get set up.

Most major banks in New Zealand — and some smaller banks and credit unions — offer accounts for charities and non-profits. At the time of writing, First Credit Union is the only one offering a dedicated online sign-up form for non-profits.

When choosing a bank, consider:

• Where your trustees bank personally. If most already bank with, say, ASB, that bank may already have their ID verified, saving time and frustrating trips to a bank branch.
• Branch proximity. If you need to visit a branch, choose one close to the most trustees — it’ll make life easier.

What banks will ask you

Opening a bank account for your organisation is similar to opening one for a business. The bank will want to know:

• Where your money comes from (e.g. donations, grants, membership fees)
• How your organisation is registered (usually, Companies Register, Incorporated Societies Register, or Charitable Trusts Register)
• What you’ll use the account for (e.g. paying staff, receiving grants, making overseas payments)

Every trustee or committee member — officers listed on any register — will need to provide proof of ID and possibly proof of address.

Again, if your trustees already bank with the same bank, it’s often easier to open your organisation’s bank account there. The bank already has their verified ID records, saving a lot of back-and-forth.

More information

Opening a bank account for a charity or non profit isn’t as simple as it should be. Banks really need to step up here. But, with the right preparation you can save your organisation a lot of time and frustration.

Links to more information about non-profit bank accounts:

• ASB Bank
• BNZ non-profit overview - BNZ details on opening an account
• First Credit Union
• Kiwibank
• Westpac Bank

Note: only banks with a dedicated section for charities and non-profits at the time of writing were included above.

Opening a bank account for charities and nonprofits registered as companies

Live like its 2025 and open a bank account on your phone

Wouldn’t it be great if your charity could open its bank account in minutes, entirely from your mobile? That dream can be a reality if your charity or nonprofit is set up as a company on the Companies Register (rather than as a trust or incorporated society).

Why? Because the new fintech service Emerge lets companies open accounts instantly through their app. It pulls your details directly from the Companies Register, guides you through ID verification, and lets you open a bank account complete with physical, Google Wallet, and Apple Pay debit cards.

Emerge has some features we think work really well for charities and non profits:

• Apply online (through their mobile app) and be up and running with a bank account and a PayWave debit card in just minutes.
• Accept donations and payments with a standard NZ bank account number.
• Issue a virtual or physical debit card to anyone in your organisation. You can set limits on cards, making them ideal for issuing to team members with discretionary budgets or volunteers who buy supplies.
• The app allows you to capture photos of receipts associated with the relevant transaction.

There are some things we don't like — Emerge isn’t a full formal bank, and it doesn't yet work with Akahu and Good Numbers — but the ease of setup and of adding new people to the account makes it an excellent option if it suits your structure.

Disclaimer: The above is based on our experience of using Emerge in a charity setting. Good Numbers does not benefit from your use of Emerge.

Understanding the confusing terminology

Banks often use terms that can be confusing if you’re new to the process. Here’s what they mean:

Signatories — Historically, these were the people authorised to sign cheques. Today, it refers to those who can act on behalf of the organisation with the bank — for example, approving payments or making account changes.

Two-to-sign / multi-authorisers — Many charities have rules requiring two people to authorise payments. These people are often the signatories but don’t have to be. For example, with some banks you can have a general manager with access to approve payments but not be a listed signatory on the account.

AML (Anti-Money Laundering) — These are the legal checks that require everyone involved with the account to verify their identity. The rules have tightened over the last decade, so even long-standing customers may need to be re-verified.

KYC (Know Your Customer) — Essentially, AML but with a nicer name.

ID Verification — This is how the bank confirms you are who you say you are. Usually, it involves providing a passport or driver’s licence and a proof of address (such as a bank statement or utility bill from a recognised New Zealand company). The address should match what you give the bank.