Yes, but you need an EIN and legal structure first

You can open a checking account for your charity, but the bank will not let you do it under just a name. You need a federal Employer Identification Number (EIN) — a nine-digit tax ID issued by the IRS — and proof that your organization is legally registered as a nonprofit, charitable trust, or other recognized entity in your state.

The bank will ask for these documents before you sign anything. If you have neither yet, you will need to set up your legal structure and get your EIN before you walk into the bank or start an account online.

Most charities and nonprofits use a business checking account rather than a personal one, because it keeps your money separate from personal funds, makes record-keeping simpler for taxes, and shows donors and the IRS that you are handling money professionally.

Key Takeaways

  • You must have an EIN from the IRS and proof of legal nonprofit status before any bank will open an account in your charity's name.
  • The IRS issues an EIN for free in minutes online at irs.gov, or you can request one by mail or phone if you do not have internet access.
  • Your state requires you to register your nonprofit or charitable organization before the IRS will issue an EIN, so check your state's Secretary of State office first.
  • Banks typically ask for your EIN, articles of incorporation or trust documents, bylaws, and a board resolution authorizing the account before opening it.
  • A nonprofit checking account usually has lower or no monthly fees compared to business accounts, but you will need to show the bank your tax-exempt status letter from the IRS.

Getting an EIN from the IRS

An EIN is free and takes about 15 minutes to get online. Go to irs.gov, find the EIN application tool, and answer questions about your organization — its name, address, type of entity (nonprofit corporation, charitable trust, etc.), and what it does. The IRS will issue your EIN immediately on screen, and you can print it or save it as a PDF.

If you cannot apply online, you can call the IRS at 1-800-829-4933 (Monday through Friday, 7 a.m. to 10 p.m. your local time) and request an EIN over the phone. They will ask the same questions and give you the number right away. You can also mail Form SS-4 to the IRS, but that takes two to four weeks.

Before you apply for an EIN, make sure your state has already registered your nonprofit. The IRS will ask for your state registration number or the date you registered. If you have not registered yet, do that first through your state's Secretary of State office — the process and timeline vary by state, but most take one to two weeks.

What the bank will ask for

When you are ready to open the account, bring or upload these documents:

  • Your EIN letter from the IRS (the printout or PDF you got when you applied)
  • Articles of incorporation, articles of organization, or trust documents showing your nonprofit is legally registered in your state
  • Bylaws or operating agreement for your organization
  • A board resolution authorizing someone to open the account and sign checks (some banks require this; others do not)
  • Photo ID of the person opening the account
  • Your organization's address and phone number

If your nonprofit has already received a tax-exempt status letter from the IRS (Form 501(c)(3) information letter or equivalent), bring that too. Banks often waive fees or offer better terms for tax-exempt organizations, so showing this letter can save you money on monthly charges.

Some banks will let you start the process online and upload documents through their website. Others require you to visit a branch in person. Call the bank ahead of time to ask which documents they need and whether you can do it online or must come in.

Nonprofit checking accounts versus business accounts

Most banks offer a nonprofit checking account separate from their standard business account. Nonprofit accounts typically have no monthly fee, no minimum balance requirement, or a much lower one than business accounts. Some banks waive fees entirely for organizations with 501(c)(3) status.

A standard business account, by contrast, may charge $10 to $30 per month and require a minimum balance of $500 to $2,500. If your nonprofit is very small or just starting, a nonprofit account will cost you less.

Ask the bank whether they offer a nonprofit rate and what you need to show to get it. Usually it is your EIN and tax-exempt letter. If the bank does not have a nonprofit product, a regular business account is your next option — it is still separate from your personal finances and will work for your charity's money.

Registering your nonprofit in your state first

Before you contact the IRS or a bank, you need to register your nonprofit with your state. This step is required in every state and must happen before the IRS will issue an EIN.

Go to your state's Secretary of State website (search "[your state] Secretary of State nonprofit registration") and look for the nonprofit incorporation or registration process. You will file articles of incorporation or articles of organization, pay a filing fee (usually $50 to $150), and wait for approval.

Most states process nonprofit registrations in one to three weeks, though some are faster. A few states let you file online and get approval the same day. Once your state approves your registration, you will receive a confirmation letter or certificate — keep this, because you will need it to apply for your EIN and to open a bank account.

Who signs checks and manages the account

Decide now who will have access to the account. Most nonprofits require at least two people to sign checks — usually the treasurer and the executive director or board president — to prevent fraud and keep money secure. Some nonprofits require two signatures on every check; others allow one person to sign checks under a certain amount and require two for larger amounts.

When you open the account, the bank will ask you to name the authorized signers. You will need to provide their names, titles, and photo IDs. If you want to change signers later, you will need to submit a new board resolution and updated paperwork to the bank.

Keep your board records clear about who is authorized to sign and under what conditions. This protects your nonprofit and makes it easier to audit your finances later.

Online banking and debit cards for nonprofits

Most nonprofit checking accounts come with online banking, so you can check your balance, transfer money, and pay bills from your computer or phone. Some banks also offer nonprofit debit cards, which can be useful if your organization needs to pay for supplies or travel.

If you want a debit card, ask the bank whether they issue them for nonprofit accounts and whether there is a fee. Some banks include one free card; others charge $5 to $15 per card. You can usually order additional cards for staff members who need them, though the bank may require board approval or a signed authorization form.

Online banking is free at most banks, but confirm this when you open the account. Some smaller banks charge a small monthly fee for online access, though this is rare.

Frequently Asked Questions

Do I need 501(c)(3) status to open a nonprofit checking account?

No. You need an EIN and proof that your nonprofit is registered with your state. The 501(c)(3) tax-exempt letter from the IRS is helpful because it can get you lower fees, but it is not required to open the account. You can open the account now and apply for 501(c)(3) status later if you want it.

How long does it take to open a nonprofit checking account?

If you already have your EIN and state registration, opening the account takes one to five business days. If you need to register with your state first, add one to three weeks for that step. If you also need an EIN, add 15 minutes (online) or a few days (by mail).

Can I use my personal checking account for my charity instead?

Legally, yes, but it is a bad idea. Mixing personal and charity money makes taxes harder, confuses donors, and can raise red flags with the IRS if you ever apply for tax-exempt status. A separate nonprofit checking account is inexpensive and protects both you and your organization.

What if my bank does not offer nonprofit accounts?

Use their standard business checking account instead. It will cost a bit more in monthly fees, but it still keeps your charity's money separate from your personal finances. You can also shop around — credit unions and smaller regional banks often have better nonprofit rates than large national banks.

Do I need a board resolution to open the account?

Some banks require one; others do not. A board resolution is a formal document signed by board members that authorizes specific people to open and manage the account. Call your bank before you apply to ask whether they need it. If they do, your board can pass one at a meeting and you can bring it with your other documents.