Open a Bank Account
Once you have the Employer Identification Number (EIN), the next step is to open a bank account for the organization. The bank account is used to manage the organization’s finances, including receiving donations, paying bills, and tracking expenses. Having a separate bank account for the organization is important for maintaining good financial records and ensuring that the organization’s funds are kept separate from personal funds.
Tasks
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Choose a bank: The first step in opening a bank account is to choose a bank that meets the needs of the organization. Consider factors such as location, fees, services, and online banking options. New fintech banking platforms like BlueVine offer online business checking accounts with no monthly fees, no minimum balance requirements, no transaction fees, and you can generally open them without a 501(c)(3) determination letter. This allows you to start managing your organization’s finances right away, rather than waiting for the IRS to approve your tax-exempt status. However, these platforms may not offer all the services of traditional banks, such as in-person customer service or physical branches and may require a bit more technical know-how to use. Larger, more traditional banks may offer a wider range of services but may have higher fees and more stringent requirements. For example, US Bank offers a business checking account tailored to nonprofits with no monthly maintenance fees and no minimum balance requirements. However, you will need your 501(c)(3) determination letter to qualify for this account.
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Gather required documents: Once you have chosen a bank, you will need to gather the required documents to open the account. This may include the organization’s EIN, articles of incorporation, bylaws, and other documents that prove the organization’s existence and legal status. In some cases, you may also need to provide identification documents for the organization’s officers or directors, along with your 501(c)(3) determination letter.
Cost
- None