What you need before you walk into a bank
A nonprofit bank account requires more paperwork than a personal account because the bank needs to verify that your organization actually exists and is authorized to hold money. You will need your Employer Identification Number (EIN) from the IRS, your nonprofit's legal formation documents, and proof that your organization is registered with your state. The bank will also ask for the names and identification of the people authorized to sign on the account — usually board members or officers.
Start by getting your EIN if you do not have one. You can request it free from the IRS at irs.gov, either online (immediate confirmation) or by mail (takes about four weeks). You do not need to wait for a physical letter; the online confirmation is enough for most banks. If your nonprofit is brand new and not yet formally incorporated or registered, you will need to complete that step first — the bank will not open an account for an organization that does not legally exist.
Gather your state registration documents. This is usually your Articles of Incorporation (if you are a corporation) or your Certificate of Formation (if you are an LLC). Some states call this document something different, so check your state's Secretary of State website to confirm what you need. You will also need a board resolution or bylaws showing who has authority to open and manage the account.
Key Takeaways
- You must have an EIN from the IRS and proof that your nonprofit is registered with your state before any bank will open an account.
- Bring your Articles of Incorporation or Certificate of Formation, a board resolution authorizing the account, and government-issued ID for each authorized signer.
- Different banks have different minimums and fees for nonprofit accounts, so call ahead to ask what they require and what they charge.
- The account setup usually takes one to two weeks after you submit all documents, though some banks can open it the same day if everything is in order.
- You will need to designate which board members or officers can sign checks and approve transfers, and the bank will require their signatures on file.
Which documents the bank will ask for
Banks have a standard checklist for nonprofit accounts. Bring your EIN letter or online confirmation, your state incorporation or formation documents, and a board resolution that authorizes the opening of the account and names the people who can sign on it. The resolution does not need to be fancy — it just needs to state that the board voted to open a bank account and lists the authorized signers by name and title.
You will also need government-issued photo identification for every person who will have signing authority on the account. This is usually a driver's license or passport. Some banks will also ask for a recent utility bill or lease showing the nonprofit's address. If your organization is very new, the bank may ask for additional proof that it is actually operating — such as meeting minutes, a list of board members, or documentation of your mission.
If your nonprofit is a fiscal sponsor for other organizations or handles money on behalf of other groups, tell the bank this upfront. Some banks will require separate accounts or additional documentation. If you plan to receive grants or government funding, mention that too — some funders have specific banking requirements that the bank needs to know about.
How to choose between banks and account types
Not all banks offer nonprofit accounts, and those that do often have different minimums and fee structures. Call or visit the bank's website to ask whether they have a nonprofit checking account, what the minimum balance is, what monthly fees they charge, and whether they waive fees for nonprofits under a certain size. Some banks offer free or low-cost accounts for nonprofits; others charge the same as they do for business accounts.
Ask about check printing costs, wire transfer fees, and whether the bank offers online banking and mobile deposits. If your nonprofit receives a lot of small donations, ask whether the bank has a low-cost way to deposit checks or cash. Some banks offer better rates for nonprofits that maintain a certain balance or meet other conditions. Compare at least two or three banks before deciding.
Consider whether you want a checking account only or a combination of checking and savings. Most nonprofits start with checking, but a savings account can be useful if you are building reserves or setting aside money for a specific project. Ask whether the bank offers any nonprofit-specific services like grant accounting or donor reporting tools — some do, though these are usually add-ons.
The step-by-step process at the bank
Once you have gathered your documents, call the bank and ask to speak with someone who handles nonprofit accounts. Some banks have a dedicated nonprofit banking team; others handle them through their business banking department. Ask whether you can set up an appointment or whether you can do it by mail or online. Many banks now allow nonprofits to start the process online and then come in to sign documents.
If you are going in person, bring all your documents plus a list of the authorized signers with their titles and contact information. The bank will verify your EIN with the IRS, check your state registration, and confirm that the people signing the account resolution are actually authorized to do so. This verification usually takes a few days. Once everything checks out, the bank will have all authorized signers come in to sign the account agreement and signature cards.
After signatures are collected, the account is usually open within one to two business days. The bank will issue you checks, debit cards, and online banking access. Ask for a copy of the account agreement and the signature card for your records. Keep these documents in your nonprofit's files — you will need them if you ever need to prove who is authorized to access the account.
What happens if your nonprofit is very new or has no board yet
If you have just incorporated and do not yet have a formal board, most banks will still open an account, but they will ask for a board resolution signed by whoever is authorized to act on behalf of the nonprofit. This might be the founder, the executive director, or whoever your bylaws say can make decisions. The bank wants to know that there is at least one person with clear authority to manage the money.
If your nonprofit is so new that you have not yet held a board meeting, you can create a board resolution retroactively and have it signed by the people who are supposed to be on the board. The resolution does not have to be dated the day you open the account — it can be dated earlier. Just make sure it is signed by everyone who is supposed to be authorized.
Some banks will ask for a copy of your bylaws to confirm who has authority. If you do not have formal bylaws yet, you can write a simple one-page document that states who the board members are and who can sign checks. This does not have to be perfect — the bank just needs to see that there is some structure in place.
Ongoing requirements and what can go wrong
Once the account is open, the bank may ask you to update your information every few years or if there are changes to your board or authorized signers. Some banks send a certification form asking you to confirm that the people on file are still authorized. Fill this out and return it promptly — if you do not, the bank may freeze the account or require new signatures before allowing withdrawals.
If a board member or authorized signer leaves, notify the bank immediately and have the remaining authorized signers sign a new resolution removing that person and, if needed, adding a replacement. Do not just assume the person's access will expire on its own — the bank will still allow them to sign checks or access the account unless you formally remove them.
Keep your EIN and state registration current. If your nonprofit's registration lapses or your EIN is revoked, the bank may close the account or restrict access to it. Nonprofits are required to renew their registration with the state periodically (usually every one to three years, depending on the state) and to file annual tax forms with the IRS even if they owe no taxes. Missing these deadlines can cause problems with your bank account.
Frequently Asked Questions
Can I open a nonprofit bank account before my nonprofit is officially incorporated?
No. The bank will verify that your nonprofit is registered with your state before opening the account. You must complete incorporation or formation first. This usually takes one to four weeks depending on your state. You can start the process while you are waiting for incorporation to be finalized, but the account will not actually open until the bank confirms your registration.
What if I am the only person in my nonprofit right now?
You can still open an account. You will be the sole authorized signer. However, most nonprofits are required to have a board, even if it is small. Check your state's nonprofit laws to see what the minimum board size is. If you are required to have a board but do not yet have one, you will need to recruit at least one other person before the bank will open the account.
Do I need a separate nonprofit account, or can I use a regular business account?
You can use a business account if the bank does not offer a nonprofit account, but a nonprofit account is better because it is often cheaper and the bank understands the specific needs of nonprofits. Some funders and grant programs also require that nonprofit money be held in an account registered as nonprofit. Ask the bank whether they have a nonprofit option before settling for a business account.
How long does it take to open a nonprofit bank account?
If you have all your documents ready and the bank can verify everything quickly, you might have an account within one to two business days. More commonly, it takes one to two weeks because the bank needs time to verify your EIN and state registration. If there are any issues with your documents or if the bank needs additional information, it can take longer.
What if the bank asks for more information than what I have?
Ask the bank specifically what they need and why. Some banks have stricter requirements than others, especially if your nonprofit is brand new or if you are opening the account remotely. If the bank's requirements seem unreasonable, you can try a different bank. Credit unions and smaller community banks sometimes have simpler processes than large national banks.