To open a bank account for your nonprofit, bring the bank four things: your Employer Identification Number, your articles of incorporation, your bylaws, and a board resolution naming who is authorized to sign. Each authorized signer also needs a government-issued photo ID. With those documents in hand, you can walk into most business banking appointments and leave with an account.
The rest is choosing the right bank, setting up controls so the money stays safe, and keeping records the IRS will accept.
Documents the Bank Will Ask For
Your EIN
Every nonprofit needs an Employer Identification Number before a bank will open an account. The EIN is a nine-digit number the IRS assigns for tax filing and reporting, and you apply using IRS Form SS-4.1Internal Revenue Service. About Form SS-4, Application for Employer Identification Number (EIN) The online application on the IRS website issues the number immediately; a paper Form SS-4 by mail or fax also works but takes longer. The bank uses the EIN to report interest, verify tax obligations, and confirm the entity exists in federal databases.
Articles of Incorporation and Bylaws
Your articles of incorporation are what you filed with the state to create the nonprofit. They establish the organization’s name, purpose, and registered agent, and the bank reviews them to confirm the entity is validly formed. The bylaws lay out governance: how the board is elected, how meetings run, what officers exist, and who has authority to act for the organization. Together, these two documents tell the bank who is in charge and what the organization is allowed to do. Bring the most recent versions on file with your state.
IRS Determination Letter (If You Have One)
The IRS issues a determination letter when it approves an application for tax-exempt status under Section 501(c)(3) or another subsection.2Internal Revenue Service. Exempt Organizations Rulings and Determinations Letters Many banks offer fee waivers or reduced-cost account tiers for organizations that can produce this letter.
Here is the wrinkle. IRS processing on 501(c)(3) applications can stretch for months, and a newly incorporated nonprofit is a legal entity regardless of whether the IRS has finished reviewing its exemption. Most banks will open an account without the determination letter as long as you have the EIN, articles, and bylaws. If a banker insists on the letter as an absolute prerequisite, ask for someone more familiar with business accounts or try a different institution.
The Board Resolution and Authorized Signers
The board of directors decides who can access the account, and that decision has to be documented in a formal board resolution. The resolution is a written record of a board vote granting specific people the authority to sign checks, make withdrawals, initiate transfers, and manage online banking. The president and treasurer are typically named, though the board can designate other officers or staff depending on operational needs. The secretary signs the resolution to certify it, and you bring it to the bank with everything else.
Identification for Each Signer
Federal law requires banks to run a Customer Identification Program for every new account. Under the Bank Secrecy Act, the bank must collect at minimum the full legal name, date of birth, residential or business address, and taxpayer identification number (typically a Social Security number) for each individual signer.3eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Each signer needs a government-issued photo ID such as a driver’s license or passport, and the bank verifies the information against federal databases as part of its anti-money-laundering obligations.4Financial Crimes Enforcement Network. Information on Complying with the Customer Due Diligence (CDD) Final Rule
Gather every signer’s identification before the appointment. An expired license, a name mismatch, or an incorrect Social Security number will delay the opening.
Removing Signers Later
Board turnover is inevitable, and a departing member’s banking access needs to be revoked promptly. The process is to pass a new board resolution removing the outgoing signer and, if needed, adding a replacement, then bring the updated resolution to the bank. Some institutions require an in-person visit for signer changes; others handle it through a business banking support line. A former board member who still holds check-writing authority or online access is both a fraud risk and a governance problem, so this cannot wait.
Choosing the Account
Most nonprofits start with a checking account for daily operations: receiving donations, paying vendors, running payroll, and covering program costs. A savings account makes sense once the organization has reserves to set aside. Larger nonprofits sometimes add investment accounts or restricted fund accounts for donor-designated money that cannot be spent on general operations.
Compare fee structures before you commit. Monthly maintenance fees on basic business checking range from $0 to roughly $30, and some banks waive the fee entirely for verified nonprofits. Others waive it if the account maintains a minimum average balance, which can range from $1,000 to $25,000 depending on the tier. The opening deposit typically falls between $0 and $100. Ask about transaction limits: some low-fee accounts cap free transactions per month, and a nonprofit that processes many small donations can hit the ceiling quickly.
Digital features matter. Look for mobile check deposit, online bill pay, ACH capability, and real-time transaction alerts.
What Happens at the Appointment
Traditional banks usually require an in-person appointment with a business banker. You sign the account agreement, submit your organizational documents, and complete signature cards that establish each signer’s identity on file. Online-only institutions run the same process through a secure portal where you upload digital copies.
The opening deposit generally falls between nothing and $100. A founder can make the deposit with a personal check or transfer, though the organization should reimburse the founder if the bylaws or board resolution require it. Once the bank has your paperwork and deposit, it verifies the EIN against IRS records and reviews the documents. Some banks finish in one to two business days; others take longer, particularly for newly formed entities. You will receive a routing number and account number for receiving donations and making payments, and debit cards are mailed to the organization’s address on file.
Controls to Put in Place Once the Account Is Open
Opening the account is the easy part. Keeping the money safe from fraud, theft, and honest mistakes takes internal controls, and this is where small nonprofits often fall short. A single bookkeeper with unchecked access to every financial function is how embezzlement happens.
Separate Who Does What
The person who authorizes a payment should not be the same person who processes it, and neither of them should reconcile the bank statement. For an organization where one or two staff members handle everything, this feels impossible, but even a volunteer board member reviewing monthly bank statements adds a critical layer of oversight. If staffing truly prevents separation, an outside bookkeeper handling reconciliations means no single person controls the entire financial pipeline.
Require Two Signatures on Larger Checks
Requiring two signatures on checks above a set dollar amount stops any one person from unilaterally moving large sums. The board sets the threshold in a written policy. Common thresholds run from $500 to $5,000 depending on the organization’s budget. It costs nothing to implement.
Review the Statement Every Month
Someone other than the person who records transactions should review the bank statement every month. The reviewer looks for unfamiliar payees, round-dollar withdrawals (a common sign of fraud), and transactions that do not match approved expenditures. The treasurer or a finance committee member usually takes this on. The review does not need to be long, but it needs to happen consistently.
Recordkeeping That Keeps You in Good Standing
The IRS requires every tax-exempt organization to keep books and records documenting the sources of all receipts and expenditures reported on its annual return.5Internal Revenue Service. EO Operational Requirements – Recordkeeping Requirements for Exempt Organizations Even organizations filing the short-form annual notice (Form 990-N) have to maintain records showing what activities they conducted, what income they received, and what expenses they incurred. These records must be available for IRS inspection.
The most immediate risk is not an audit; it is automatic revocation. If a nonprofit fails to file its annual return (Form 990, 990-EZ, or 990-N) for three consecutive years, the IRS automatically revokes its tax-exempt status.6Internal Revenue Service. Automatic Revocation of Exemption After revocation, the organization owes federal income tax on its revenue, donors can no longer deduct their contributions, and the organization comes off the IRS’s public list of exempt entities. Reinstatement means filing a new application and paying the fees again. A well-maintained bank account with clear transaction records makes annual filing straightforward.
If You Are Not Ready to Open Your Own Account
Not every group with a charitable mission needs its own bank account right away. Fiscal sponsorship lets an unincorporated project or a newly formed group operate under the tax-exempt umbrella of an established 501(c)(3). The sponsor receives donations on the project’s behalf, those donations are tax-deductible for the donor because they flow through the sponsor’s exempt status, and the sponsor disburses funds to cover the project’s expenses.
The tradeoff is less financial autonomy. The sponsor controls the funds and typically charges an administrative fee, often 5% to 10% of donations received. Once the project grows enough to justify its own infrastructure, it can incorporate, apply for its own 501(c)(3) status, and open an account of its own.