8 Best Banks for Nonprofits in 2022
This article is part of a larger series on Business Banking.
The best banks for nonprofit businesses should offer accounts with easily waivable fees or none at all. These accounts should allow your nonprofit to conduct its monthly banking business at the least expense to your company possible.
Some business checking accounts also offer perks and benefits geared toward nonprofit businesses. While some banks on this list don’t offer specific nonprofit accounts, those are also excellent for nonprofits due to limited fees and outstanding benefits, including interest-earning potential.
Here are the eight best banks for nonprofits:
- Truist: Best overall for nonprofits for no cash deposit fees and most free transactions
- Bank of America: Best for nationwide access to business checking and ongoing rewards
- U.S. Bank: Best for nonprofits with large fundraising events
- Axos Bank: Best digital bank for cash deposits and refunded ATM fees
- Wells Fargo: Best traditional bank for small nonprofits
- PNC Bank: Best for nonprofits that want financial wellness programs for staff
- Bluevine*: Best for earning a high annual percentage yield (APY) with no banking fees
- TIAA Bank: Best for earning interest regardless of account balance
*Bluevine is a business financial technology (fintech) platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Coastal Community Bank.
Best Banks for Nonprofits at a Glance
Provider | Monthly Fee | Transaction Fee | APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit |
|---|---|---|---|---|---|---|
 Community Checking | None | 225 free monthly, then 35 cents per transaction | N/A | Free | $3 per transaction out-of-network plus third-party fees | $100 |
 Fundamentals Business Checking | $16 (waivable) | 200 free monthly, then 45 cents per item | N/A | 30 cents per $100 after $7,500 deposit per month | Free; 17,000-plus ATMs nationwide | $100 |
 Nonprofit Checking Account | None | 1,800 free annually, then 50 cents per item | 0.005% | Up to $300,000 in cash each year | No charge for out-of-network ATMs, but operator fees apply | $100 |
 Basic Business Checking | None | None | N/A | Accepted through MoneyPass and Allpoint ATMs | Refunds all domestic ATM fees | None |
 Initiate Business Checking | $10 (waivable) | 100 free monthly, then 50 cents per item | N/A | 30 cents per $100 after $5,000 deposit per month | Free at in-network ATMs; $2.50 per transaction out-of-network | $25 |
 Non-profit Checking | $5 (waivable) | 150 free monthly, then 50 cents per item | N/A | 25 cents per $100 after $5,000 deposit per month | Free at in-network ATMs; $3 for out-of-network transactions | $100 |
 Business Checking | None | None | 1.5% on qualifying balances up to $100,000 | $4.95 per deposit (Green Dot locations) | Free; MoneyPass ATM locations nationwide | None |
 Non-profit Checking | $14.95 (waivable) | None; 10 free online bill payment per month, then 50 cents each | 0.25% | Cash deposits not accepted | Free in network; ATM fee reimbursements based on account balance | $1,500 |
Truist: Best Overall for No Cash Deposit Fees & Most Free Transactions
Truist
What We Like
- No monthly fees for Community Checking
- Unlimited fee-free cash deposits
- Most free monthly transactions of banks with free transaction limits
What's Missing
- No APY
- Opening deposit required
- Branches in only 15 states and Washington, D.C.
Features
- Free personalized debit card
- Make real-time transfers, deposit checks via mobile, and view account statements online
- Online and mobile banking
- Financial Wellness program for employees
Truist Community Checking Overview
| |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 225 monthly, then 35 cents per transaction |
Automated Clearing House (ACH) Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | $20 for outgoing; $15 for incoming. Other fees may apply. |
International Wire Fees | $35 for outgoing; $20 for incoming. Other fees may apply. |
ATM Fees | Free at Truist ATMs $3 at domestic non-Truist ATMs $5 for international ATMs |
Cash Deposited | Unlimited fee-free cash deposits |
APY | N/A |
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|---|---|
Debit Card | Free debit card |
Physical Checks | Fees vary based on account type and style, $25 discount on first order |
Accounting Software Integrations | Quicken and QuickBooks |
Business Payment Integrations | Truist Merchant Services and Zelle |
Customer Service | (844) 487-8478 Mondays to Fridays, 8 a.m. to 8 p.m. Eastern time Saturdays, 8 a.m. to 5 p.m. ET |
Invoicing Products | N/A |
Other Products Available | Savings, credit cards, lending, and insurance |
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When To Use Truist
Truist is our best overall bank for nonprofit businesses thanks to no cash deposit and monthly fees, and its Community Checking account is geared toward nonprofit businesses. Of all the banks with a limited number of free monthly transactions, Truist allows the most (225 a month) while charging the least for extra transactions (35 cents each). It also offers free online bill pay and easy digital account management.
Cash withdrawals from a Truist ATM are free, while out-of-network charges are $3 domestically and $5 internationally, plus third-party ATM fees. While the merger of SunTrust and BB&T to form Truist should be completed, it’s possible some ATMs may still be branded under one of the former bank names.
The biggest drawback is that Truist is a regional bank located in the east, southeast, and Great Lakes regions of the United States. Truist operates in 15 states and Washington, D.C., and you need to visit a branch to open an account.
Truist accounts must be opened at a branch location, which are located in North Carolina, South Carolina, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana, Texas, New Jersey, Ohio, Pennsylvania, and Washington D.C.
Bank of America: Best for Nationwide Access to Business Checking & Ongoing Rewards
Bank of America
What We Like
- Bonus of up to $500, plus ongoing rewards if qualifications are met
- 200 free transactions per month with basic business checking
- Free digital tools to track business performance
What's Missing
- $100 opening deposit required
- Third-party ATM fees are not reimbursed
- No 24/7 customer service
Features
- View accounts, transfer funds, deposit checks, and pay bills with the mobile app
- Credit card processing and payroll services through ADP
- Cash Flow Monitor®, a cash management tool, lets you connect accounting, analytics, and payroll apps to help you make business decisions
Bank of America FundamentalsTM Business Checking Overview
 | |
|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 200 monthly, then 45 cents per item |
Monthly Fees | $16; waivable if conditions are met |
Domestic Wire Transfer Fees | Fee varies |
International Wire Fees | Fee varies |
ATM Fees | Free access to more than 17,000 ATMs nationwide; $2.50 per transaction on out-of-network ATMs |
Cash Deposited | Up to $7,500 per month free, then 30 cents per $100, per statement cycle |
APY | N/A |
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|---|---|
Debit Card | Free debit card |
Physical Checks | Cost varies depending on the type of checks ordered |
Accounting Software Integrations | QuickBooks, ADP (for payroll services), and TurboTax |
Business Payment Integrations | Business payment solutions, including Zelle® |
Customer Service | Phone and in-branch customer service available during business hours or message through social media direct messages |
Invoicing Products | Merchant services through Expensify and cash flow tools |
Other Products Available | Business Advantage Relationship Banking, business savings, certificates of deposit (CDs), lending products, financial analysis through Merrill financial advisor |
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When To Use Bank of America
While Bank of America doesn’t have a dedicated nonprofit checking account, the bank’s Fundamentals Business Checking is a good choice for a nonprofit. It has waivable monthly fees with up to $7,500 in free cash deposits each month.
While you don’t get as many free transactions as Truist or US Bank, the big advantage Bank of America has is its accounts are available across the US, compared to the other two banks, which are regionally limited. If Bank of America had unlimited free cash deposits, it would likely edge Truist as best overall.
If your nonprofit grows and you need more free transactions or cash deposits each month, you can upgrade to Bank of America’s Business Advantage Relationship Banking. You can compare the two accounts to see which is best for your nonprofit business.
Bank of America also offers outstanding ongoing rewards. You can earn up to $500 cash back with qualifying actions, in addition to cash back and travel rewards through the company’s business credit cards. You can earn 25% to 75% bonus rewards on credit cards and get a 5% to 20% higher interest rate on business advantage savings accounts.
Growing nonprofit businesses can also take advantage of Bank of America’s outstanding business savings, CDs, lending products, and financial analysis through Merrill financial advisors. Bank of America provides everything your business needs as it changes, making it one of the best banks for small businesses.
U.S. Bank: Best Bank for Nonprofits With Large Fundraising Events
U.S. Bank
What We Like
- 1,800 free transactions per year
- No monthly maintenance fees
- Up to $300,000 free cash deposits annually
What's Missing
- Must talk to a representative to open an account
- Branch locations limited in some areas
- Only available to residents in 26 states
Features
- Send and receive money through the app
- Digital invoicing and payment systems integrated into your online dashboard
- Mobile app to monitor all of your accounts, transfer funds between accounts, and deposit checks online
- Easy integration with overdraft protection or credit card processing services for your business
U.S. Bank Nonprofit Business Checking Overview
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|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Transaction Limit Before Fees | 1,800 annually, then $0.50 per transaction |
ACH Fees | None |
Monthly Fees | None |
Domestic Wire Transfer Fees | $40 for outgoing; $14 for incoming |
International Wire Fees | $75 for outgoing; $15 for incoming |
ATM Fees | No charge for out-of-network ATMs, although operator fees apply |
Cash Deposited | Limited to $300,000 per year |
APY | 0.005% |
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Open an Account |
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|---|---|
Debit Card | Free debit card |
Physical Checks | 50% discount on first check order up to $50 |
Accounting Software Integrations | QuickBooks |
Business Payment Integrations | Business payment solutions, including U.S. Bank payment processing |
Customer Service | Online, phone, in-branch customer service |
Invoicing Products | Digital invoicing and payment systems available |
Other Products Available | Lending products, cash flow products, Gold and Platinum business checking, point-of-sale (POS) solutions |
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When To Use U.S. Bank
U.S. Bank and its nonprofit business checking account are custom-made for nonprofit organizations. It offers up to 1,800 free transactions annually―an average of 150 monthly―and this flexibility helps businesses with irregular transaction schedules, such as nonprofits with large fundraising events a couple of times a year. It also has no monthly fees or minimum balance requirements. You can deposit up to $300,000 in cash for free each year (average of $25,000 a month).
The biggest drawback for U.S. Bank is its regional availability. You must reside in one of 26 states to be eligible for a checking account. If you need a traditional brick-and-mortar checking account and don’t reside in one of the states listed below, you might consider Bank of America or Truist.
An applicant must reside in Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin, or Wyoming to be eligible for checking account.
Axos Bank: Best Digital Bank for Cash Deposits & Refunded ATM Fees
Axos Bank
What We Like
- No monthly fees for basic business checking
- Unlimited ATM fee reimbursements at domestic ATMs
- Interest-bearing checking and savings accounts available
What's Missing
- Fees for outgoing wire transfers after first two
- Fees for interest-bearing checking
- APY on savings is low compared to competitors
Features
- Interest-earning checking account available with up to 1.01% APY on balances less than $50,000
- Business savings available, along with money market and CDs
- SBA loans available
- Mobile and online banking
- Workplace banking for low-fee accounts for your employees
- Cash deposits at MoneyPass or Allpoint ATMs
- All domestic ATM fees reimbursed
- 50 free checks
Axos Bank Basic Business Checking Overview
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | None; up to 60 items per month in Remote Deposit Anywhere |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | First two domestic wires monthly are reimbursed; incoming are free; $15 for outgoing |
International Wire Fees | Incoming are free; $50 for outgoing |
ATM Fees | Unlimited domestic ATM fee reimbursements |
Cash Deposited | Cash deposits via MoneyPass and Allpoint networks |
APY | N/A |
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| |
|---|---|
Debit Card | Visa debit card with enhanced Visa benefits |
Physical Checks | First set of 50 checks free |
Accounting Software Integrations | QuickBooks |
Business Payment Integrations | N/A |
Customer Service | 24/7 customer service at a toll-free number or by email |
Invoicing Products | N/A |
Other Products Available | Interest-earning checking, business savings, money market, CDs, SBA lending, mobile and online banking, workplace banking, low-fee accounts for your employees |
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Open an Account |
When To Use Axos Bank
Just like Bank of America, Axos Bank doesn’t offer a business checking account specifically geared toward nonprofit businesses. However, its Basic Business Checking is a good choice for nonprofit businesses as it has no monthly fees and minimum balance requirements.
Unlike some online-only banks, Axos Bank allows for cash deposits at all MoneyPass and Allpoint ATMs. In addition, all domestic ATM fees are refunded, which makes this account great if you need to handle cash regularly. In addition, with its Remote Deposit Anywhere feature, you can deposit up to 60 items per month.
New checking account signups get up to a $200 bonus. If your nonprofit grows beyond a basic account, Axos Bank also offers Business Interest Checking, an interest-bearing account with up to 1.01% APY for balances of less than $50,000 and 0.20% APY from $50,000 to slightly below $250,000.
It also offers business savings, money market accounts, CDs, Small Business Administration (SBA) lending, and mobile and online banking. You also have a workplace banking option to offer low-fee accounts to your employees. It’s an excellent option for nonprofit businesses looking for a digital-only, full-service bank.
Wells Fargo: Best Traditional Bank for Small Nonprofits
Wells Fargo
What We Like
- Designed for small nonprofits
- Large branch network in much of the US
- Access to more than 12,000 ATMs
What's Missing
- Requires an opening deposit
- Only 100 free monthly transactions
Features
- Add your business logo to debit card and checks
- Deposit checks, pay bills, and view balances through the mobile app
- Online and mobile banking
- Fraud protection controls
- Features merchant services, including POS solutions
Wells Fargo Initiate Business Checking Overview
| |
|---|---|
Required Opening Deposit | $25 |
Required Balance Minimum | None |
Required Balance Minimum to Waive Monthly Fee | $500 |
Transaction Limit Before Fees | 100 monthly, then 50 cents per transaction |
ACH Fees | None |
Monthly Fee | $10 |
Domestic Wire Transfer Fees | $30 for outgoing; $15 for incoming |
International Wire Fees | $45 for outgoing; $16 for incoming |
ATM Fees | Free at 12,000-plus ATMs nationwide; $2.50 per out-of-network transaction |
Cash Deposited | Up to $5,000 free per month, then $0.30 per $100 per statement cycle |
APY | N/A |
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|---|---|
Debit Card | Free debit card |
Physical Checks | Price varies depending on check quantity, style, and design |
Payroll Software Integrations | RUN Powered by ADP® |
Business Payment Integrations | POS: Clover Mini, Clover Flex, Clover Go, Clover Apps, and Clover |
Customer Service | Hotline: (800) 225-5935 Mondays to Saturdays, 7 a.m. to 11 p.m. Eastern time Sundays, 9 a.m. to 10 p.m. ET |
Invoicing Products | Ecommerce and virtual terminal/digital invoicing: Authorize.net |
Other Products Available | Business savings, CDs, lending, credit cards, and merchant services |
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Open an Account |
When To Use Wells Fargo
Wells Fargo and its Initiate Business Checking is a good choice for nonprofit businesses. It offers low-cost banking for smaller nonprofits that don’t have many monthly transactions.
As long as you have a minimum daily balance of at least $500, the $10 monthly fee is waived. However, you’re limited to just 100 free monthly transactions, and excess transactions are 50 cents each. So, if you have a nonprofit business that exceeds 100 monthly transactions regularly, you should consider Bank of America or Truist instead.
With more than 4,500 branches and 12,000 ATMs nationwide, Wells Fargo’s biggest advantage is accessibility. It’s also a full-service bank with business savings, CDs, business lending products, credit cards, and merchant services. It even offers 24/7 fraud monitoring and zero-liability debit card protection.
PNC Bank: Best Nonprofits That Want Financial Wellness Programs for Staff
PNC Bank
What We Like
- Easy-to-waive monthly fee
- 150 free transactions each month
- Designed specifically for nonprofit organizations
What's Missing
- No APY offered on checking balances
- Banking limited to 28 states and Washington, D.C.
- Expensive wire fees
Features
- Online and mobile banking with bill pay
- Free PNC WorkPlace Banking for Employees financial wellness program for your employees
- Free Visa debit card with cash back rewards
- Deposit checks, pay bills, and view balances through the mobile app
- Online and mobile banking
- No setup fee for overdraft protection
- Integrates with QuickBooks, Xero, Intacct, and NetSuite
- Features PNC Merchant Services®, including ecommerce and in-person solutions
- Cash Flow Insight® tools help manage cash flow
PNC Bank Non-Profit Checking Overview
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|---|---|
Required Opening Deposit | $100 |
Required Balance Minimum | None |
Required Balance Minimum to Waive Monthly Fee | $500 |
Transaction Limit Before Fees | 150 monthly, then $0.50 per transaction |
ACH Fees | None |
Monthly Fee | $5 |
Domestic Wire Transfer Fees | Up to $13 incoming; up to $90 outgoing |
International Wire Fees | $20 incoming; up to $125 outgoing |
ATM Fees | $3 for out-of-network ATMs, although operator fees apply; free access to more than 19,000 ATMs nationwide |
Cash Deposited | $5,000 monthly, then 25 cents per $100 deposited |
APY | N/A |
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Open an Account |
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|---|---|
Debit Card | Free Visa business debit card |
Physical Checks | Free Visa business debit card |
Accounting Software Integrations | QuickBooks, Xero, Intacct, and NetSuite |
Payroll Software Integrations | QuickBooks Online Payroll, ADP Payroll, and Paychex |
Business Payment Integrations | PNC Merchant Services®, Clover Go, Clover Flex, Clover Mini, and Clover Station |
Customer Service | Hotline: (877) 287-2654 Monday to Friday, 7 a.m. to 10 p.m. ET Saturday to Sunday, 8 a.m. to 5 p.m. ET |
Invoicing Products | Cash Flow Insight® |
Other Products Available | Business credit cards, business lending, and merchant services |
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Open an Account |
When To Use PNC Bank
PNC Bank’s biggest perk with its Non-Profit Checking is access to financial wellness tools, including webinars and seminars. This can be made available to your employees through PNC WorkPlace Banking for Employees, a program that they have to sign up for.
As long as you have an average monthly collected balance of $500, the monthly maintenance fee of $5 is waived, and PNC waives the monthly maintenance fee for the first three months regardless of balance. You get up to $5,000 in free cash deposits each month and up to 150 free transactions.
PNC Bank also offers business credit cards, business lending products, and merchant services to businesses that need them.
While geographically limited like Truist and U.S. Bank, PNC bank is more widely available than both of those banks. Branches are available in 28 states and Washington, D.C. If your nonprofit business is located in one of the areas listed below, you can get an account with PNC.
PNC Bank branches are located in Alabama, Arizona, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.
Bluevine: Best for a High APY With No Banking Fees
Bluevine
What We Like
- Interest-earning checking with 1.5% APY on balances of $100,000 or less
- Integrates with QuickBooks
- Excellent line of credit product
What's Missing
- No savings, money market, and CD accounts
- No physical branch locations
- No customer service on weekends
Features
- No monthly maintenance fee
- No minimum balance requirement
- Free debit card and two free checkbook orders per year
- Integrates with QuickBooks, Xero, Stripe, PayPal, and Expensify
- Live customer support from dedicated professionals
- Line of credit available
Bluevine Business Checking Overview
| |
|---|---|
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
ACH Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | $15 for outgoing; incoming are free |
International Wire Fees | $15 for outgoing; incoming are free |
ATM Fees | Free at MoneyPass locations nationally; $2.50 plus operator fees for non-network ATM use |
Cash Deposited | $4.95 fee per transaction, available through Green Dot retail locations |
APY | 1.5% on balances of up to $100,000, once qualifications are met |
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Open an Account |
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|---|---|
Debit Card | Free debit card, mailed within 10 business days of application approval |
Physical Checks | Two free checkbook orders per year |
Accounting Software Integrations | QuickBooks and Xero |
Business Payment Integrations | Stripe, PayPal, and Expensify |
Customer Service | Live customer support from dedicated professionals |
Invoicing Products | N/A |
Other Products Available | Line of credit |
Review | |
Open an Account |
*Bluevine is a business fintech platform backed by FDIC-insured Coastal Community Bank.
When To Use Bluevine
Bluevine doesn’t offer a specific nonprofit checking account and doesn’t have all of the banking products as some of its competitors on this list. However, it features an outstanding business checking product and the best small business line of credit.
It’s a digital-only bank that provides a high-yield, interest-bearing checking account. You can earn 1.5% APY on balances up to $100,000 with Bluevine business checking as long as you either spend $500 monthly with the debit card or receive $2,500 in customer payments in a month. The interest earnings make Bluevine one of our leading small business checking accounts available.
It also provides two free checkbook orders per year. There are no monthly and transaction fees, and it requires no minimum opening deposit and minimum balance. It also provides great software integrations.
However, nonprofits that handle cash regularly may want to consider another option. Cash deposits with Bluevine cost you $4.95 per transaction and can only be done at a Green Dot retail location. Also, it charges $2.50 for out-of-network ATM withdrawals in addition to third-party fees.
TIAA Bank: Best for Earning Interest Regardless of Account Balance
TIAA Bank
What We Like
- Earn an ongoing APY on any balance
- Bank completely online
- Overdraft protection
What's Missing
- Minimum balance of $5,000 to waive monthly fee
- Opening deposit of $1,500
- Only nine branches in Florida
Features
- Also offers business money market and CD accounts
- Remote deposit available for nonprofits needing to deposit a lot of checks
- Merchant services available
TIAA Bank Non-profit Checking Overview
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|---|---|
Required Opening Deposit | $1,500 |
Required Balance Minimum | None |
Required Balance Minimum to Waive Monthly Fee | $5,000 average daily balance (ADB) |
Transaction Limit Before Fees | None on overall transactions; 10 free online bill payments monthly, then 50 cents each |
ACH Fees | None |
Monthly Fee | $14.95 |
Domestic Wire Transfer Fees | $25 for outgoing; incoming are free |
International Wire Fees | $35 for outgoing; incoming are free |
ATM Fees | Free at 80,000-plus ATMs nationwide ATM fee reimbursement:
|
Cash Deposited | Cash deposits not accepted |
APY | 0.25% (check current rates) |
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|---|---|
Debit Card | Free Visa debit card |
Physical Checks | Varies depending on style |
Accounting Software Integrations | QuickBooks |
Business Payment Integrations | Payment solutions provided by Elavon, Inc. |
Customer Service | Hotline: 1-866-371-3831, opt 5 Mondays to Fridays, 8 AM to 5 PM ET |
Invoicing Products | N/A |
Other Products Available | CDs, money market accounts |
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Open an Account |
When To Use TIAA Bank
If you want to earn interest with your business checking regardless of account balance, TIAA Bank is a great choice. Its Non-profit Checking earns interest from the first dollar with no cap on earnings. However, this account can be pricey. You need at least $1,500 to open an account, and you must keep a minimum balance of $5,000 to waive the $14.95 monthly fee. If you can meet these thresholds easily, the account is one of the best on this list.
TIAA Bank reimburses ATM fees based on the balance of your account. If you have less than $5,000, it refunds up to $15 a month in fees. If you have $5,000 or more, reimbursements are unlimited.
One drawback to TIAA is its limited locations, with just nine branches located in Florida. Otherwise, it’s an online-only bank. If you don’t have access to one of those branches, you cannot make cash deposits, so nonprofits that handle cash regularly should choose another option from this list.
How We Evaluated the Best Banks for Nonprofits
We understand that nonprofit organizations desire banking with as few fees as possible. To choose the best banks for nonprofits, we looked for institutions that provided accounts specific to nonprofit organizations and prioritized banking fees, accessibility, and features like bill pay and lending. If an institution didn’t offer a nonprofit-specific account, we looked at how their products and services stacked up compared to others with a specific account.
When To Use a Local Bank or Credit Union
The benefit of choosing a local bank or credit union over a traditional or online bank is the ability to build a local relationship. Nonprofits often find it easier to go to local credit unions and community banks for sponsorships, grants, and donations.
In some cases, banks will determine their donation decisions by whether that nonprofit is a customer or not. If a solid community relationship is more important to you than having a large bank network, a local bank or credit union is the best option.
What You Need To Open a Business Bank Account
Each provider on this list may require different documents to open a business bank account. Generally, you’ll need:
- Employer identification number (EIN) or Social Security number if you’re a sole proprietor
- Fictitious business name certificate or doing-business-as (DBA) certificate
- Business formation documents
- Organization documents, including your ownership agreements
- Business licenses
- Government-issued photo ID, such as a passport or driver’s license
Frequently Asked Questions
How to choose a bank for your nonprofit?
When considering a bank for your nonprofit business, you need to find one with limited fees. This includes both monthly fees and fees incurred for transactions and cash deposits.
What type of bank account is best for a nonprofit organization?
Generally, you should choose a business checking account geared specifically toward nonprofit businesses. Not only will these accounts have limited fees, but the banks often offer guidance and perks that can help your nonprofit.
Do nonprofits need a special bank account?
While many banks offer specific business checking accounts for nonprofit businesses, it isn’t required that you choose these accounts. Any small business checking account, which charges limited fees and provides excellent support for your nonprofit, will work.
Bottom Line
When choosing a business checking account for your nonprofit business, get one with limited fees and great business support. Accounts should be free or have easy-to-waive monthly fees. In addition, if your business handles cash regularly, the account should allow for free cash deposits. Some banks also offer perks and support geared specifically toward nonprofit organizations. Consider each bank and its strengths and choose the one that best meets the needs of your nonprofit.
