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 ready. Most banks will ask for your EIN (Employer Identification Number), your articles of incorporation or bylaws, a board resolution authorizing the account, and ID from the person signing the account agreement. Some banks also want a list of authorized signers and proof of your nonprofit status.

The EIN is the first thing to get if you don't have one. You can request it free from the IRS at irs.gov or by phone at 1-800-829-4933. The process takes about 15 minutes by phone, or you can apply online and receive your number immediately. You don't need to wait for 501(c)(3) status to get an EIN — you can open a bank account with just the EIN and your articles of incorporation.

Your articles of incorporation (or certificate of incorporation) are the document you filed with your state to legally create the nonprofit. If you don't have a copy, your state's Secretary of State office can provide one. Bylaws are your organization's internal rules — they don't have to be filed with the state, but banks often want to see them to confirm how decisions are made and who can sign checks.

Key Takeaways

  • You need an EIN from the IRS, your articles of incorporation, and a board resolution before most banks will open an account.
  • You do not need 501(c)(3) tax-exempt status to open a bank account — an EIN and articles of incorporation are enough.
  • Different banks have different requirements for authorized signers and documentation, so call ahead to ask what they need.
  • A board resolution is a formal vote by your board that authorizes someone to open the account and sign on behalf of the organization.
  • Some banks offer nonprofit-specific accounts with lower fees or higher interest on savings, so compare options before choosing.

The board resolution and who can sign

A board resolution is a formal decision made by your board of directors that authorizes someone to open and manage the bank account. It doesn't have to be long or complicated. The resolution should state that the board votes to open an account at a specific bank, and it should name the person or people authorized to sign checks and make decisions about the account.

You can write this yourself or use a template — many nonprofit resources online provide examples. The resolution should be dated, signed by the board president or secretary, and kept in your nonprofit's records. Bring a copy to the bank. If your board hasn't met yet, you can hold a meeting in person or by phone, take a vote, and document it in writing.

Banks will ask who can sign checks and withdraw money. Most nonprofits require two signatures on checks over a certain amount (often $5,000 or $10,000) to prevent fraud. You can set this up during account opening, or you can change it later. The people you name as signers will need to provide ID and sign signature cards at the bank.

Documents to bring to the bank

Gather these items before you visit or call a bank:

  • Your EIN (or the IRS letter confirming it)
  • Articles of incorporation or certificate of incorporation
  • Bylaws (if the bank requests them)
  • Board resolution authorizing the account
  • Photo ID for each person who will sign the account agreement
  • A list of authorized signers with their titles
  • Proof of your nonprofit status (if you have 501(c)(3) approval, bring the IRS letter)

Call the bank's business account line before you go in and ask what they specifically need. Requirements vary — some banks want a completed nonprofit account application form, others want a letter from your board, and some have their own template for the resolution. Asking ahead saves a trip back home for a missing document.

Which banks offer nonprofit accounts

Most large banks (Chase, Bank of America, Wells Fargo, Citibank) offer nonprofit checking accounts, though fees and features vary. Credit unions often have lower fees for nonprofits and may not charge monthly maintenance fees at all. Community banks and smaller regional banks sometimes specialize in nonprofit banking and offer perks like higher interest rates on savings or waived wire transfer fees.

Compare what each bank charges for monthly maintenance, per-check fees, wire transfers, and ACH transactions. Some banks waive fees if you maintain a minimum balance (often $1,000 to $5,000). If your nonprofit receives many small donations or makes frequent transfers, those per-transaction fees add up quickly.

Ask whether the bank offers nonprofit-specific features like donation processing, grant accounting tools, or integration with nonprofit accounting software like QuickBooks. Some banks have relationships with payment processors that give nonprofits discounted rates on credit card processing for donations.

Opening the account remotely or in person

Many banks now allow you to start a nonprofit account application online, but you will likely need to visit a branch or have a video call to verify documents and sign the account agreement. Some banks mail you the paperwork to sign and return, though this takes longer.

If you open in person, bring all the documents listed above and plan for 30 to 60 minutes. The bank will verify your EIN, review your articles and resolution, check ID for signers, and have you sign signature cards. They will give you a temporary debit card or checks, and your account number will be active the same day or within one business day.

If you open by video or mail, the timeline is usually three to five business days from the time you submit all documents. Ask the bank for a timeline when you start the application.

What happens after the account opens

Once your account is open, you can deposit checks and make transfers. Your bank will provide you with checks, a debit card, and online banking access. Set up online bill pay if you plan to pay vendors or contractors electronically.

Keep your board resolution and the bank's account authorization documents in your nonprofit's records. If you change authorized signers or add new ones, you will need to file a new resolution and signature card with the bank — don't just tell them verbally.

If you later receive 501(c)(3) tax-exempt status from the IRS, bring the approval letter to the bank. Some banks will reclassify your account to a tax-exempt nonprofit account, which may lower your fees or change your interest rate.

Common reasons banks reject nonprofit accounts

Banks may decline to open an account if your articles of incorporation are missing or incomplete, if your EIN doesn't match your organization's name, or if your board resolution is unsigned or undated. Make sure your EIN application and articles use the exact same legal name for your nonprofit.

Some banks have policies against opening accounts for nonprofits that are very new (less than a few months old) or that don't yet have a board in place. If this happens, ask whether you can reapply once you have held a board meeting or once the organization has been registered for a certain period.

Banks also run background checks on authorized signers. If someone has a history of fraud or unpaid debts, the bank may refuse to let them sign on the account. In that case, you can name different signers or ask the person to provide a written explanation.

Frequently Asked Questions

Do I need 501(c)(3) status to open a nonprofit bank account?

No. You need an EIN and articles of incorporation filed with your state. 501(c)(3) status from the IRS is separate and takes several months to receive. You can open and use a nonprofit bank account while your tax-exempt status is pending.

What if my nonprofit doesn't have a board yet?

You need at least one board member to sign the account agreement and the board resolution. If you are the sole founder, you can be the board president and authorize yourself to open the account. Hold a formal meeting (even if it's just you), document the decision in writing, and sign and date it.

Can I use my personal bank account for nonprofit money?

Legally, no. Mixing personal and nonprofit funds can create tax and legal problems for you and the organization. A separate nonprofit account keeps finances clear and makes accounting and audits much easier. It also protects you personally if the nonprofit is sued.

How much money do I need to open an account?

Most nonprofit accounts require an opening deposit of $0 to $500, depending on the bank. Some banks waive the opening deposit if you set up direct deposit or automatic transfers. Ask the bank about their minimum opening deposit when you call.

What if I need to add or remove signers later?

You will need to hold a board meeting, vote to change the authorized signers, and file a new board resolution with the bank. Bring the resolution and new signature cards to the bank, and they will update your account. Don't remove someone's signing authority without documenting it formally.