What is a bank mandate and how does it work?
A banking mandate is the document that tells the bank who can access your charity’s account, what they are allowed to do, and how payments must be approved. For example, your charity might require two people to approve any payment, so the money is kept safe.
The charity's trustees are ultimately responsible because they oversee the charity’s finances. The signatories are the people the trustees approve to make payments or manage the account day-to-day. In some charities, all those signatories are trustees; in others, they may include senior paid staff.
This helps protect the charity’s funds. Banks and regulators want to see good internal controls. That usually means things like two people authorising a payment and clear rules about who can view statements, use online banking, or make changes to the account. It reduces the risk of mistakes or misuse.
When someone new is added to the mandate, the bank has to carry out Know Your Customer (KYC) checks. If your charity adds or removes someone, that person usually has to provide proof of identity, proof of address, and documents showing the charity is genuine, such as its registration details, constitution, or minutes from a trustee meeting confirming the appointment.
The mandate should always be kept up to date. If someone resigns or a new person takes over, the charity should update it straight away. If it is not kept current, the bank might freeze payments or restrict access to the account, which could create real problems for the charity’s work.
In practice, the trustees need to decide and vote upon who the signatories will be, what approval levels are needed (who can spend how much and on what), and then make sure the bank has the right documents. Once those decisions are made, the charity can complete the bank’s forms and provide the identification and governance documents. This helps ensure that the charity’s money is handled safely and transparently.
Many charities have three mandated signatories, of which two are needed to sign. Some of the Charity Commission guidance mentions having three to five. The controls and authorisation of spend via the trustee Board is vitally important in ensuring the charity is within its object and the law. If there is a problem the whole Board should have knowledge of it and ensure that it's being dealt with.
Some links that might help
CAF Bank – Five practical tips to follow when setting up a charity bank account
Charity Excellence – Community and charity bank accounts
NCVO – Banking for charities
NICVA – Charity bank account challenges update 2026
Small Charity Finance – Banking for Charities
GOV.UK – Charity banking guidance
CAF Bank – Seven tips to maintain a charity bank account
UK Finance – Voluntary organisation banking guide checklist
UK Finance – Maintaining your account
UK Finance – Voluntary organisation banking guide
