Nonprofit Business Checking

Finding the right bank account for your nonprofit is important to ensure you are making the best use of your organization's dollars. First and foremost, you'll want to have a checking account specifically for your nonprofit to keep the money for the organization separate. Not only is this helpful when it comes to accounting and record-keeping, but a separate account is a best practice for tax and legal purposes as well.

As mentioned above, many financial institutions offer specific nonprofit business checking accounts so that may be a great option to review first. An account designed for nonprofits usually has perks like earning interest, lower or no fees and more to make your money go further as you work toward your organization's mission.

In addition to a checking account, your nonprofit may want to explore savings vehicles like a traditional savings account, certificates of deposit or ICS/CDARs for larger dollar amounts. Talk to your local banker about your goals, priorities and funding needs to find the accounts and banking tools best suited for your needs.

There is essentially no limit on the amount of money a nonprofit can have in a bank account. However, it's helpful to discuss the average balance you plan to maintain in a nonprofit business checking account with your banker. Depending on the inflow or outflow of cash you expect over the course of the year, you may want to consider additional banking tools or accounts to maximize the earnings on your dollars.

For example, you could set up an automatic sweep from your nonprofit's operating account when it hits a specific balance into a savings or Money Market account that earns more interest. That's just one example of how you can structure your financial accounts to make your money work harder for the organization. Your banker is a great resource and can pull in experts from other areas of the Bank, including Treasury Management, as needed.

Your nonprofit is constantly adapting to address the needs of your community. When was the last time you reviewed your nonprofit business accounts to ensure the best return and most efficient cash flow?

We’ll conduct a free, no-obligation cost analysis on your nonprofit business checking account. Our business accounts and Treasury Management Services may be a better fit for your business, so we dare you to compare. Contact a Treasury Management Consultant to begin your analysis.

Please bring the following items with you to open your nonprofit business checking account:

• Legal documents for your nonprofit
• Tax ID number
• A list of who you would like to add to the account as authorized signers and a plan for how those signatures will be obtained

Being prepared with this information will help speed up the account opening process. To schedule an appointment to open a new nonprofit business checking account, contact your local Merchants Bank branch.