Reviewing your bank

1. What do you need?

Before you even start looking into which bank will be best for your group, you need to know exactly what you want.

Think carefully about how you operate your finances, and how you might want to manage them in the future. Have a look at your statements to see how you have used your accounts in the past.

Some key considerations will include:

Online/offline:

It's almost inconceivable that any modern not-for-profit organisation would want to operate purely offline these days. Online banking offers not only ease of access, but an inbuilt paper trail, making it easier to track every transaction.

Cheques:

Do you need a chequebook? Or could you get by making payments in cash and online?

Credit:

Do you need credit cards or access to loan finance? What type of credit, how much and how often?

Investments:

If you're just parking money until the bills come in you'll want a short-term investment like a savings account or a short-term deposit. If you've got funds that aren't already committed to a project and aren't needed for your running costs, you have more options. You want to keep your money safe, and you want it to work for you. These two aims are not entirely compatible. You'll need to work out your own organisation's risk appetite.

Payment processing:

Do you need some way of processing incoming funds such as membership fees? What volume of transactions do you need to process per month?

Banking support:

Do you need banking support or use of portable devices during offsite fundraisers? Do you need access to a designated specialist banker? Do you need a bank that offers face-to-face service through a local office?

2. Who can give us the best deal?

You need to try to get the very best banking deal that you can for your organisation, so this question is really important. While it might be tempting just to stay with your existing bank for the sake of ease, doing so could hold you back or cost your group valuable funds.

Check out the not-for-profit banking offer provided by each of the banks (look at the Big Four banks - Commonwealth, NAB, Westpac and ANZ - as well as some of the smaller players in your region).

List your organisation's needs. For each need, and for each bank, ask:

• What does it cost?
• What does it include? (For example, how many free transactions are included with their day-to-day account? What sort of security is provided?) Make some judgements as you go - at the end of each "needs" column, nominate a "winner". This will help you to make a final decision later about which bank is right for your organisation.

3. Who do you trust?

This is a less clear-cut consideration but it's worth thinking about nonetheless. You need to be sure that the bank you go with eventually:

• Understands the needs of the not-for-profit sector in general, and your organisation in particular;
• Is accessible - that it's easy to get the information you want either online, by phone or in person (depending on your preferences);
• Is reliable and unlikely to fail or shut your local branch; and
• Is responsible - values are important to not-for-profit organisations. Don't put your money with an institution you don't respect or don't believe truly believes in community.

4. How easy is it to switch?

Ask prospective banks how easy it is to switch your accounts to them. Ask if they have a switching service that will help to make the transition smoother. Ask how long the process takes, how easy it is to get the forms, and how many people will need to be involved in the process.

Bank assessment chart