Why does your foundation or association need its own account?

Your foundation (stichting) or association (vereniging) needs its own account because the organisation's money should not be in the name of a board member. Membership fees, donations and grants come in on an account in the name of the foundation or association, so it is clear whose money it is, even when the board changes.

Its own business account also makes accountability easier. Members, donors and grant providers want to see where the money goes. With an account in the name of the organisation, that overview is ready, and nobody has to dig through a treasurer's personal statements.

How does an account for a foundation differ from one for a association?

An account for a foundation differs from an account for a association mainly in who has control over the money. Both open the account in the name of the organisation, but in a foundation everything rests with the board, and in a association the members have the final say.

An account for a foundation

A foundation has no members, only a board. You set it up at the notary and register it with the KVK; you can read how that works under setting up a foundation.

The board decides about the money and is accountable to donors and grant providers. Who fills a place on the board when someone leaves is set out in the articles of association.

An account for a association

A association has members, and the general meeting of members is the highest body. The board manages the account, but the members approve the budget and the annual accounts, often after a check by an audit committee.

For an account, the association must be registered with the KVK. An informal association without registration therefore registers first before it can open an account.

What do you need to open a foundation account?

To open a foundation account, the organisation must be registered with the KVK. The same applies to a association. Because a foundation or association is run by a board, a provider mainly looks at who makes up that board and where the money comes from. So have these details ready:

• KVK number: the organisation is registered, with the current board.

• Passport or driving licence: of the board member who applies, who verifies their identity via the camera.

• Articles of association: these state who may act on behalf of the organisation, and a provider may ask for them.

• UBO details: the people with more than 25% of the votes on an amendment to the articles of association, and otherwise usually the board members.

• Purpose of the organisation: a short explanation of what the foundation or association does and for whom.

• Source of the money: whether the money mainly comes from membership fees, donations or grants.

• Countries you do business with: only if you also use the account for payments abroad.

How do you open an account for your foundation or association?

You open an account for your foundation or association in four steps. You take the first step before the application, and it often determines how smoothly the rest goes:

• Check the KVK registration: see whether the board listed with the KVK is still correct, because a provider relies on those details.

• Start the application: a board member fills in the organisation's details and verifies their identity with a passport or driving licence.

• Have the details checked: the review team checks the organisation and the board and gets in touch if anything is missing.

• Invite the board: you give the other board members their own access and set per person what they are allowed to do.

Who may make payments from the account of your association or foundation?

Who may make payments from the account of your association or foundation follows from the articles of association and the KVK registration. These state, for example, whether the treasurer is authorised to act alone or must sign together with the chair. Carry those arrangements over into the rights per person, with separate access for everyone instead of shared login details. With shared login details, you can no longer see afterwards who made a payment.

Treasurer

The treasurer manages the account and makes the payments. That is why they usually get the broadest rights, within what the articles of association allow. Agree with the board above what amount the treasurer checks a payment with the chair first.

Chair and other board members

The chair and the other board members get their own access, often only to view. That way the whole board has insight into the finances without everyone being able to make payments.

Volunteers

Volunteers who spend money for the organisation get their own card with a limit. They then do not have to pay anything upfront, and the treasurer sees every expense straight away.

Accountant or audit committee

An accountant or audit committee views the account with only the rights needed for the check. That way nobody has to ask for statements when the annual accounts are drawn up or audited.

How do you handle a board change on your foundation's account?

You handle a board change on your foundation's account by first reporting the change to the KVK and then adjusting access. At GoDutch you do the latter yourself in the app, in four steps:

• Record the change: the board decides on the change as the articles of association require.

• Report the change to the KVK: the new board member is registered and the departing one deregistered.

• Add the new board member: you give them their own access with the rights that suit their role.

• Remove the old access: you remove the access and any card of the departing board member.

You do not need to make an appointment or send in forms for this. That way the new board has insight straight away, and a departed board member no longer has access to the organisation's money.

How do you keep money separate per project or fund on your foundation account?

You keep money separate per project or fund on your foundation account with a separate IBAN per purpose. Each purpose gets its own account number within the same account, and you see per purpose what comes in and goes out. This works especially well in these situations:

• Grants: a grant provider wants to see what their contribution was spent on, and with a separate IBAN you provide that accountability without filtering transactions out of one large account.

• Earmarked donations: money that donors give for a specific purpose stays visibly separate from the general budget.

• Fundraising campaigns: a campaign with its own IBAN shows straight away how much has been raised.

• Reserves: money for maintenance, an anniversary or an investment is kept separate, so it does not quietly go on running costs.

For the audit committee, that overview at the end of the year is the biggest advantage: everything is already sorted by purpose.

Why do boards choose a association account at GoDutch?

Boards choose a association account at GoDutch because the account stays with the organisation, even when the people around it change. Each board member has their own access, volunteers pay with their own card and per project you see where the money is.

You notice this most when the treasurer hands over: their successor gets their own access and immediately sees the full history, without a folder of statements having to change hands.