For Nonprofits like churches, research institutes or similar, you’ll be looking for a business bank that meets your organization’s various financial needs and one that protects your finances. Finding a bank that shares your values and gives back to the nonprofit community is one of the most important decisions your organization will make.
Some banks have more experience working with nonprofits, but there are several factors you’ll want to consider when choosing a bank for your organization. Here’s our selection of the best banks to choose when you’re a Nonprofit organization with each offering different features.
The best business bank accounts for Nonprofits
For your Nonprofits person, there are various business bank accounts to take into consideration. Both a local bank account and an online business bank account are options you might be interested in. You may prefer mobile banking if you don’t need to go into a physical branch and don’t need to deposit cash.
We’ve selected a number of banks that offer bank account offers for Nonprofits businesses that meet the needs of the Nonprofits that focus on fees and features.
- Bluevine – Great for no fees, unlimited transactions, high APY & excellent integration with nonprofit financial management software
- Bank of America – Best for traditional banking, nationwide access and ongoing rewards
The various bank accounts presented are a mix of online banks with different features, values and lending abilities. This allows Nonprofits owners to pick a bank that best fits with their needs and requirements.
Bluevine is an online FinTech company that allows Nonprofits businesses to easily set up an online bank account which has no monthly fees, transaction fees or minimum opening deposit and excellent online and mobile banking features.
Incoming and Outgoing ACH fees are zero, which is very attractive for Nonprofits businesses who have many transfers. There are some fees with outgoing wire fee of $15.00, whilst cash deposit fees are charged at $4.95 per deposit, but a superb trade overall product that’s easy to use and offers unlimited transactions.
The annual percentage yield (APY) is a percentage that reflects the amount of money, or interest, you earn on a bank account over one year. To qualify for APY, Bluevine customers must spend $500 a month with their Bluevine Business Debit card or receive $2,500 in payments via ACH, wire transfer, mobile deposit, or from your merchant payment processor to be eligible for the 1.50% APY on balances up to $100,000.
Bank of America
Bank of America is one of the world’s largest financial organizations, a brick and mortar bank serving small businesses with a range of banking, asset management and other services for Nonprofits.
Nonprofits businesses and Nonprofits can sidestep the Bank of America monthly service fees of $16 for the Fundamental or $29.95 for the Relationship checking accounts if they maintain a minimum monthly balance of $5k and $15k respectively.
This selection above is of course not exhaustive for Nonprofits businesses. There are plenty of alternative business banks with different fees, products and services. Nonprofits business owners that wish to have zero fees and up to 20 checking accounts can check out Relay’s offer.
Choosing a bank for Nonprofits businesses?
Finding the bank that best meets your requirements is the first step in selecting the best business bank for your Nonprofits business. Therefore, you must first establish your Nonprofits banking requirements and take into consideration the following:
- Desired payment methods: How do your parishioners and clients pay you (check, cash) Do you offer online payment? What credit card reader do you use?
- Values: As a nonprofit organization, you have a certain set of values that puts your mission ahead of profit. You may benefit from partnering with a bank that shares those values. Ask if the bank branches, and the corporations they are a part of, give back to their communities.
- Experience: You’ll certainly find that if a bank has extensive experience working with nonprofit organizations. Do they understand the major banking needs for nonprofits? They may be able to give you advice on account type selection and where to apportion your funds to save on fees and maximize return.
- Transactions: Business checking accounts often have limits on the number of transactions you can do per month. It can range widely depending on which bank account you choose. Transactions may include deposits, withdrawals, transfers, and more so you’ll want to consider how much you will be moving money around
- Means of payment: Would you like to be able to pay for your business expenses by credit card, check, cash withdrawals or transfers?
- Business accounting: Some software allows your bank such as Bluevine to sync with your Accounting tools
- Fees: Does your nonprofit have shareholders who will be concerned with bank fees? These fees can add up over time and one of the best ways to avoid this is to make sure your bank is upfront about its fees.
- Bank adviser: Few online banks offer this service however it is often included or paid for with traditional banks
- Financing: Online banks may not offer financing solutions such as overdraft or business loans, a feature that is more likely a traditional high-street bank
- Additional services: Insurance and savings
It is essential to take all of the above factors into consideration as well as the fees charged by the business bank to better understand if this is the right bank for your Nonprofit.
Fees for Nonprofits business bank accounts?
The price of a business bank account varies per each bank and their related products and services offered. Online banks offer the most affordable return, with Bluevine charging no monthly, transaction, overdraft or minimum balance fees. They do charge some fees, with a $2.50 charge for using non-MoneyPass ATMs but all-in-all are very competitive.
Other banks charge fees for a wider range of services or particular financing solutions or support from a personal adviser, including $35 monthly fees from Capital One for its Spark Business Unlimited Checking. Fees can be waived on this if certain conditions are met.
What kind of bank account should a nonprofit have?
A nonprofit should have a checking account which the organization’s management can use for depositing receivables and payment of all regular costs. The nonprofit may also wish to avail of other banking products including lending in future.
Do you need a special bank account for a nonprofit?
No, there is not a special type of bank account for nonprofits. To open a bank account for a nonprofit, you’ll need your articles or incorporation, a tax ID number, and a list of officers. Some banks may also require a minimum opening balance or ask for meeting minutes.
Can a 501c3 have a bank account?
A 501c3 is a charitable or non profit organization and yes, these institutions can have a bank account, ideally from a bank that is aligned with your organization’s mission than a national bank or for-profit financial institution.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.