What You Need Before You Walk Into a Bank

A nonprofit bank account requires more paperwork than a personal account, but the process is straightforward if you have the right documents. Most banks will ask for your EIN (Employer Identification Number), articles of incorporation, bylaws, and proof of your nonprofit status. You'll also need to identify who can sign checks and make withdrawals — typically your board treasurer or executive director.

The bank will want to see that your organization actually exists as a legal entity. This means you must have filed incorporation papers with your state and received confirmation. If you haven't done this yet, you cannot open a nonprofit bank account; you'll need to incorporate first through your state's Secretary of State office.

Some banks specialize in nonprofit accounts and understand the structure better than others. Credit unions, community banks, and larger institutions like Chase and Bank of America all offer nonprofit checking accounts. The features and fees vary — some waive monthly fees for nonprofits, others charge the same as a business account. Call ahead and ask specifically about nonprofit pricing before you visit.

Key Takeaways

  • You must have an EIN from the IRS and state incorporation documents before any bank will open a nonprofit account.
  • Bring your articles of incorporation, bylaws, a board resolution authorizing the account, and photo ID for the person signing the account paperwork.
  • The bank will ask you to name authorized signers — usually two people, so no single person can move large sums without oversight.
  • Nonprofit accounts at different banks have different fee structures; some waive monthly charges while others treat them like business accounts.
  • The entire process typically takes one to two weeks from your first visit to receiving your debit card and checks.

Documents the Bank Will Request

Bring originals or certified copies of your articles of incorporation — the document your state issued when you officially registered your nonprofit. You'll also need your bylaws, which outline how your organization operates, who sits on the board, and how decisions are made. If you don't have bylaws yet, you'll need to create them before opening the account.

The bank will ask for a board resolution authorizing the account. This is a straightforward document signed by your board chair or secretary stating that the board has voted to open a bank account and naming who can sign checks. You can write this yourself or use a template from your state's nonprofit resource center. It doesn't need to be notarized, but it does need to be dated and signed by someone with authority.

Bring a recent IRS information letter or a copy of your 501(c)(3) status if you have it. If you're brand new and haven't received this yet, bring your EIN letter from the IRS instead. You'll also need a photo ID for whoever is signing the account paperwork — usually your treasurer or executive director.

How to Name Authorized Signers

Most banks require at least two authorized signers on a nonprofit account. This is a safeguard: it means one person cannot withdraw large amounts or close the account without another person's approval. You decide who these people are — typically your board treasurer and executive director, or two board members.

The bank will ask each authorized signer to provide a photo ID and sign signature cards. Some banks now do this digitally; others still use paper cards. Make sure everyone you name understands they're being added as a signer and agrees to it. If someone leaves your organization, you'll need to visit the bank and remove them from the account.

You can also set up limited signers — people who can deposit checks or move money up to a certain amount, but cannot close the account or exceed their limit. This is useful if you have a bookkeeper or program director who needs to handle deposits but shouldn't have full access.

What Happens at Your Bank Visit

Call your chosen bank first and ask to speak with someone in business banking or nonprofit services. Tell them you're opening a nonprofit account and ask what documents they need. Some banks have a checklist they'll email you; others will tell you to just bring everything. Bring extra copies of your articles of incorporation and bylaws — the bank may keep originals.

At your visit, the banker will review your documents, verify your EIN with the IRS, and ask about your organization's purpose and expected monthly activity. They'll ask how many checks you write per month, whether you receive donations, and whether you plan to accept credit card payments. Be honest about volume — if you say you'll have $500 a month in activity but then deposit $50,000, the bank may flag the account for fraud review.

You'll sign signature cards for each authorized signer and choose your account type. Most nonprofits use a nonprofit checking account, which may come with a debit card and online banking. Some banks offer a savings account as well, useful if you're building reserves. Ask about fees: monthly maintenance, per-check charges, overdraft fees, and whether the bank waives any of these for nonprofits.

Timeline and What Comes Next

The account usually opens the same day you visit, though some banks take one to three business days to process. You'll receive a temporary debit card when ready or within a few days. Checks typically arrive within one to two weeks. Online banking access is usually available within 24 hours.

Once your account is open, set up your organization's accounting system. Decide whether you'll use accounting software like QuickBooks, Wave (free for nonprofits), or a spreadsheet. Link your bank account to your accounting system so transactions sync automatically. This makes it much easier to track where money came from and where it went — essential for your annual tax filing and for donor reports.

If you plan to receive grants or donations, tell your donors your new account number and routing number. If you're a 501(c)(3), donors may ask for proof of your status before they send money. Keep a copy of your IRS information letter handy to send them.

Fees and Account Features to Compare

Nonprofit accounts vary widely in cost. Some banks waive monthly fees entirely for nonprofits; others charge $10 to $25 per month. A few charge per check or per deposit. Before you open an account, ask the bank for their complete fee schedule in writing.

Compare these features across banks: monthly maintenance fee, per-check charge (if any), per-deposit charge, overdraft fee, wire transfer fee, and ACH transfer fee. Ask whether the bank offers free online banking, mobile deposit (the ability to photograph checks and deposit them from your phone), and whether they provide nonprofit-specific tools like grant tracking or donor reporting.

Some banks offer higher interest rates on nonprofit savings accounts, though rates are currently low across the industry. If you're building reserves, ask what the current rate is. A few banks also offer discounted merchant services — the ability to accept credit card donations — which can save you money if you fundraise online.

If Your Organization Is Brand New

If you haven't incorporated yet, you cannot open a nonprofit bank account. You must first file articles of incorporation with your state's Secretary of State office. This usually costs $50 to $200 and takes one to two weeks. Once you receive your incorporation confirmation, you can explore for an EIN from the IRS (free, takes about 15 minutes online), and then you're ready to open a bank account.

If you're in the process of explore for 501(c)(3) status but haven't received your information letter yet, you can still open a bank account using your EIN letter. The bank will accept this as proof of nonprofit status. Once you receive your 501(c)(3) information, keep a copy in your files and send it to your bank if they ask for it.

If you're operating as an unincorporated nonprofit or a sole proprietorship, you cannot open a nonprofit account. You would need to open a personal or business account instead. This creates tax and liability problems — talk to a nonprofit attorney or your state's nonprofit resource center about incorporating before you open a bank account.

Frequently Asked Questions

Can I open a nonprofit account without a 501(c)(3) status yet?

Yes. You need incorporation and an EIN, but you don't need your 501(c)(3) information letter. The bank will accept your EIN letter as proof of nonprofit status. Once you receive your information letter from the IRS, keep it on file and send a copy to the bank if they request it.

What if my board treasurer can't be a signer because they live out of state?

Most banks allow remote signers now. You can add someone who lives elsewhere as an authorized signer — they'll sign documents electronically or by mail. Call your bank and ask about their process for remote signers before your visit.

Do I need a separate nonprofit account, or can I use a regular business account?

You can use a business account, but nonprofit accounts are usually cheaper and sometimes come with features designed for nonprofits. Call a few banks and compare fees. The difference might be $0 to $300 per year depending on your activity level.

What if the bank asks for a tax ID number and I don't have one yet?

You need an EIN before you open the account. You can get one free from the IRS website (irs.gov) in about 15 minutes. The bank will not open a nonprofit account without one.

Can I change authorized signers later if someone leaves the board?

Yes. Visit the bank with the person who is leaving and the person replacing them. Both will need to sign new signature cards. The bank will remove the old signer and add the new one, usually the same day.