October 17, 2019
How to Open a Bank Account for Nonprofits
Finances are vital for a nonprofit’s growth and success. One of the first steps new nonprofits need to take is opening a nonprofit bank account. However, not all banks are right for every nonprofit. It’s important for nonprofits to find the best bank for their needs and mission in order to maximize finances for the cause.
Best Banks for Small Nonprofits
When considering the best banks for small nonprofits, it’s important for nonprofit leaders to conduct extensive research to find the bank that meets their needs the best before even opening a nonprofit bank account. Here are some of the most important things to look for when choosing a bank for your nonprofit:
Having a dedicated contact – Larger, national banks have thousands of customers and not enough resources to give each customer a dedicated contact. Community banks will be able to provide you with a banker who takes the time to get to know your organization and will pick up the phone whenever there’s an issue instead of sending you to a 1-800 number.
Community involvement – As an organization dedicated to a cause, it’s important to find a bank that shares similar values and focuses on improving the communities you live and work in. Banks that are active in their communities and philanthropic will better align with your organization and be mutually beneficial for your community.
Networking/learning opportunities – You don’t want a bank that only offers your nonprofit products and services. Find a bank that provides additional benefits like informative seminars or networking opportunities that will help you grow your organization.
Customized products – Every nonprofit and its banking needs are different. It’s important to find a bank that will be flexible and customize its products and services to your actual needs instead of offering you products you don’t need. This will help save money and simplify your banking.
Low fees and requirements – One of the most important things to ask about when looking for a bank for your nonprofit are fees and account requirements. Many banks charge high fees or have high minimum balance requirements. Find a bank that has no or low fees and little red tape for your organization to work around.
Experience – Nonprofits need bankers who understand their industry and goals. Find a bank that has experience working with nonprofits and bankers who will know what you need to be successful. Bankers can become one of your most trusted advisors and resource, so find a bank that has experience to help you be successful.
Opening a Nonprofit Bank Account
Now that you’ve chosen a bank for your nonprofit, you’ll need to open a bank account. Luckily, with the right banking partner, this will be an easy, straight-forward process. Your banker should handle all of the details. Before you meet, they should give you the list of organizational and personal documents they will need to move forward. From there, they will set up everything else you need.
Once you’ve opened your nonprofit checking accounts, you need to work with your banker to identify other products and services that will be beneficial for your nonprofit. Nonprofit products include ACH, wire transfers, positive pay, remote deposit, merchant services, cash reserve accounts and full FDIC coverage options. All these products can help your organization and staff maximize funds efficiently. Banks that are not flexible with their offerings will not be the most effective for your organization.
When searching for a bank for opening a nonprofit bank account, it’s important for nonprofit leaders to do their research. Choosing the right banking partner for your organization can be vital to its growth and success in accomplishing your mission.
For more information on Revere’s nonprofit banking products and services, contact Joey Chambers at 240.743.7635.
This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied.