What you need before you walk into a bank
A nonprofit bank account requires more paperwork than a personal account, but the steps are straightforward. You will need your Employer Identification Number (EIN) from the IRS, your nonprofit's articles of incorporation or bylaws, a board resolution authorizing the account, and government-issued ID for the person signing the account. Some banks also ask for your nonprofit's mission statement or a copy of your 501(c)(3) information letter if you have one.
The bank will verify that your organization is real and legally registered. This is why they ask for incorporation documents—they want proof that your nonprofit exists as a legal entity, not just as an idea. If you have not yet received your EIN, you can apply for one online at irs.gov before opening the account; it takes about 15 minutes and you get a number immediately.
Different banks have different requirements, so call ahead. Some require a minimum deposit to open the account; others waive it for nonprofits. A few banks specialize in nonprofit accounts and offer lower fees or free checking. Credit unions sometimes offer better rates than large banks, but they may have membership requirements tied to your nonprofit's mission or location.
Key Takeaways
- You need an EIN from the IRS, articles of incorporation, a board resolution, and a government ID before opening the account.
- The person opening the account must be authorized by your board to do so, and the bank will ask for written proof of that authorization.
- Banks verify your nonprofit's legal status by checking your incorporation documents and EIN, so have those ready before you visit.
- Some banks offer lower fees or free checking for nonprofits, so comparing options can save money on monthly maintenance.
- You can get an EIN online in 15 minutes at irs.gov if you do not have one yet.
Getting your EIN if you do not have one
If your nonprofit is newly formed, you may not have an EIN yet. You can obtain one for free online at irs.gov by going to the IRS EIN Assistant tool. The process takes about 15 minutes, and you receive your number immediately on screen. You do not need to file any tax forms first; the EIN comes before that.
If you prefer not to apply online, you can call the IRS at 1-800-829-4933 and request an EIN over the phone. A representative will ask questions about your organization, verify the information, and issue the number during the call. You can also mail Form SS-4 to the IRS, but this takes several weeks.
Once you have the EIN, write it down and keep it safe. You will use it for the bank account, tax filings, and any time you need to identify your organization to a government agency or vendor.
What the board resolution should say
A board resolution is a formal document in which your board of directors authorizes someone to open and manage the bank account on behalf of the nonprofit. It names the person or people who can sign checks, make deposits, and access the account. The bank will ask to see this document before opening the account.
The resolution does not need to be long or complex. It should state the date, the name of your nonprofit, the names of the authorized signers, and a statement that the board approves the opening of a bank account at a specific bank. It should be signed and dated by the board president or secretary. If you have board meeting minutes from the meeting where this was approved, bring those too—some banks accept minutes instead of a separate resolution.
If your nonprofit is very small or just starting, and you do not have a formal board yet, ask the bank what they will accept. Some banks will work with a single founder or director if you provide a letter stating that you are authorized to act on behalf of the organization.
Documents to bring to the bank
Bring originals or certified copies of your articles of incorporation or certificate of formation. These prove that your nonprofit is legally registered with your state. If you have already received your 501(c)(3) information letter from the IRS, bring that too—it shows the bank that your organization has tax-exempt status. If you do not have it yet, that is fine; the bank can still open the account.
Bring the board resolution authorizing the account opening, signed and dated. Bring your EIN notice from the IRS or a printout of your EIN from the online application. Bring a government-issued ID for the person who will be signing the account—a driver's license or passport works. Some banks also ask for a recent utility bill or lease showing the nonprofit's address to verify location.
Make a checklist before you go and call the bank the day before to confirm you have everything. This prevents a wasted trip and speeds up the process on the day you visit.
Choosing between banks and account types
Large national banks like Bank of America, Wells Fargo, and Chase offer nonprofit accounts, but they often charge monthly maintenance fees. Some waive fees if you maintain a minimum balance, typically $500 to $2,500. Community banks and credit unions often have lower fees or no fees at all for nonprofits, and they may offer better customer service because they work with local organizations regularly.
Before opening an account, compare what each bank charges for monthly maintenance, check deposits, wire transfers, and ACH transfers. Ask whether they offer online banking and whether they charge for that service. Some nonprofits need to accept donations by credit card or set up recurring giving; ask whether the bank can support that or recommend a payment processor.
A few banks specialize in nonprofit banking and offer features like grant management tools or lower rates on merchant services. If your nonprofit processes many donations or has complex financial needs, these specialized banks may be worth the effort to find. Otherwise, a local community bank or credit union is often the simplest choice.
What happens after you open the account
Once the account is open, the bank will issue you checks, a debit card, and online banking access. Set up online banking right away so you can monitor deposits and withdrawals. Many nonprofits use online banking to reconcile their accounts monthly, which helps catch errors or fraud early.
If multiple people need to sign checks or access the account, ask the bank how to add authorized signers. You will need to provide their names, government IDs, and sometimes a new board resolution listing all signers. Some banks limit the number of signers; others do not.
Keep your EIN, articles of incorporation, and board resolution in a safe place. You will need them if you change banks, add signers, or if the IRS or a donor asks to verify your nonprofit's status. Some nonprofits keep these documents in a fireproof safe or with their accountant.
Common reasons banks reject nonprofit accounts
Banks sometimes deny nonprofit accounts if the organization is not properly registered with the state, if the EIN does not match the organization name, or if the person opening the account is not authorized to do so. If the bank rejects your application, ask them specifically why. The reason is usually fixable.
If your articles of incorporation show a different name than the one you are using, update your state registration first. If your EIN was issued to a different entity, contact the IRS to correct it. If the authorized signer is not listed on your board resolution, add them and resubmit. Most banks will reconsider once you fix the problem.
If a bank continues to refuse, try another bank. Some banks are more cautious about nonprofits than others, especially if the nonprofit is brand new or operates in a high-risk industry. A community bank or credit union is often more flexible than a large national bank.
Frequently Asked Questions
Can I open a nonprofit bank account before I have my 501(c)(3) status?
Yes. You need your EIN and state incorporation, but you do not need the 501(c)(3) information letter yet. The bank will open the account based on your nonprofit status with the state. Once you receive your 501(c)(3) letter later, you can show it to the bank, but it is not required to open the account.
What if I am the only person in my nonprofit?
You can still open a nonprofit bank account. You will need to show that you are authorized to act on behalf of the organization. A letter from your board (even if it is just you) stating that you are authorized, along with your articles of incorporation, is usually enough. Call the bank first to ask what they will accept.
Do I need a separate business license to open a nonprofit bank account?
No. Your state incorporation and EIN are sufficient. Some cities or counties require nonprofits to register locally, so check your city or county website. If registration is required, do that before opening the bank account so you have all documents ready.
Can I use a personal bank account for my nonprofit instead?
Legally, no. Mixing personal and nonprofit money creates tax and legal problems. The IRS expects nonprofits to keep separate accounts, and donors may question how their money is being used. A nonprofit bank account is inexpensive and protects both you and the organization.
How long does it take to open a nonprofit bank account?
If you have all your documents ready, the bank can open the account the same day you visit or within one to three business days. If you need to get your EIN or board resolution first, add one to two weeks. Call ahead to confirm the bank's timeline and what documents they need.