What you need before you start

A nonprofit checking account requires more paperwork than a personal account because banks need to verify that your organization actually exists and is authorized to hold money. You will need your Employer Identification Number (EIN) — a nine-digit tax ID issued by the IRS — and proof that your nonprofit is registered with your state. Most banks also want to see your nonprofit's bylaws and a board resolution authorizing someone to open the account.

If you have not yet received your EIN, you can request one from the IRS for free at irs.gov. The process takes about 15 minutes online, and you receive your number immediately. Some banks will open an account while your EIN application is pending, but they will ask you to provide the number as soon as it arrives.

You will also need to identify who will be authorized signers on the account — typically the executive director, treasurer, or board president. Bring a government-issued photo ID for each person who will sign checks or access the account online.

Key Takeaways

  • You must have an EIN from the IRS before most banks will open a nonprofit checking account, though some banks will let you apply while your EIN is pending.
  • Bring your nonprofit's articles of incorporation or registration certificate, bylaws, and a board resolution authorizing the account opening.
  • Banks typically require at least two authorized signers on a nonprofit account, and both must provide photo ID.
  • Nonprofit accounts often have higher monthly fees than personal accounts, but some banks waive fees for organizations under a certain revenue threshold.
  • The entire process usually takes one to two weeks from the time you submit your documents until the account is active.

Documents the bank will ask for

Banks have a standard checklist for nonprofit accounts. Bring your articles of incorporation or your state registration certificate — whichever your state issued when you registered the nonprofit. This proves the organization is legally recognized. You will also need a copy of your nonprofit's bylaws, which outline how the organization is governed and who has authority to make financial decisions.

Most banks require a board resolution — a formal document signed by board members stating that the board has authorized someone to open a bank account on behalf of the organization. This protects the bank by confirming that the person walking in is actually allowed to represent the nonprofit. Some banks provide a template for this resolution; others accept whatever format your board uses as long as it is dated and signed.

Bring the EIN letter from the IRS, a photo ID for each authorized signer, and the nonprofit's most recent tax return (Form 990-N, 990-EZ, or 990) if you have filed one. If your nonprofit is brand new and has not filed a return yet, the bank will usually accept your articles of incorporation and EIN letter instead.

Where to open the account

You have three main options: a traditional bank, a credit union, or an online bank. Traditional banks like Bank of America, Wells Fargo, and Chase offer nonprofit checking accounts at most branches, though fees and minimum balances vary by location. Call ahead or visit the website to confirm that your local branch handles nonprofit accounts, because not all do.

Credit unions often have lower fees for nonprofits and may waive monthly charges if your organization meets certain criteria — usually a minimum balance or monthly deposit amount. You must be a member of the credit union to open an account, which typically costs nothing or a small one-time fee. Search for credit unions in your area at co-opbanking.org.

Online banks like Lively, Axos, and Novo offer nonprofit checking with no monthly fees and no minimum balance, though they do not have physical branches. If your nonprofit needs to deposit cash or checks frequently, an online bank may be less convenient. Many nonprofits use an online bank for their main account and a local bank branch for deposits.

Fees and account features to compare

Nonprofit checking accounts typically cost more than personal accounts because banks assume higher transaction volume and more complex accounting needs. Monthly maintenance fees range from zero to $25 depending on the bank and account type. Some banks waive the fee if you maintain a minimum balance (often $1,000 to $5,000) or receive a certain amount in monthly deposits.

Compare the cost of checks, wire transfers, and ACH transfers — the electronic payments nonprofits use to pay vendors and receive donations. Some banks charge per transaction; others include a set number of free transactions per month. Ask whether the bank offers online banking and accounting software integration, which can save your bookkeeper time.

Confirm whether the bank allows multiple authorized signers and whether there is a fee to add signers later. Ask about their policy on nonprofit accounts that receive grant funding or government contracts, since some banks flag these as higher-risk and may require additional documentation or monitoring.

The application and approval process

Bring all your documents to the bank in person or submit them online if the bank offers that option. The banker will review your articles of incorporation, bylaws, board resolution, and EIN letter to confirm everything matches. They will take copies of these documents and your photo IDs. The entire in-person visit usually takes 30 to 45 minutes.

The bank will then verify your EIN with the IRS and may contact your nonprofit's address to confirm it is a real location. This verification step typically takes three to five business days. Once the bank confirms everything, they will activate your account and provide you with checks, a debit card, and online banking access.

From the time you submit your documents to the time you can make your first deposit, expect one to two weeks. Some banks are faster; others take longer if they need to verify additional information. Ask the banker for a timeline specific to your bank before you leave.

Setting up online banking and accounting integration

Once your account is open, set up online banking immediately so you can monitor deposits and payments. Most banks offer free online access for nonprofit accounts. You will create a username and password, and the bank will send you a temporary access code via email or text.

If your nonprofit uses accounting software like QuickBooks, Xero, or Wave, connect your bank account to that software so transactions download automatically. This saves your bookkeeper from manually entering every check and deposit. Most banks support this integration at no extra cost, though you may need to authorize the connection through your online banking portal.

Set up alerts for large transactions or low balances so you catch errors or fraud quickly. Ask your bank whether they offer ACH origination, which lets you initiate electronic payments directly from your account — useful for paying contractors or vendors who do not accept checks.

What to do if you are denied

Banks occasionally deny nonprofit accounts if the organization has not completed state registration, if the EIN does not match the organization name, or if there are red flags in the bank's background check. If you are denied, ask the banker in writing why and what you can do to address the issue.

Common fixable problems include a mismatch between the name on your articles of incorporation and the name on your EIN application — contact the IRS to correct this. If your nonprofit is not yet registered with your state, complete that registration before reapplying. If the bank cites concerns about your nonprofit's purpose or funding sources, provide additional documentation explaining your mission and revenue model.

If one bank denies you, try a credit union or a different bank. Credit unions are often more flexible with newer nonprofits, and online banks typically have fewer restrictions. You can also contact your state's nonprofit association or a local nonprofit resource center for guidance on banks that work with organizations like yours.

Frequently Asked Questions

Do I need an EIN if my nonprofit is very small or brand new?

Yes. Banks will not open a nonprofit account without an EIN, even for organizations that have not filed taxes yet. You can request an EIN for free from the IRS at irs.gov, and you receive it immediately. Some banks will let you open an account while your EIN application is in process, but you must provide the number within a few days.

Can one person open a nonprofit checking account, or do I need multiple signers?

Most banks require at least two authorized signers on a nonprofit account as a control measure — this prevents one person from moving money without oversight. However, you can designate two signers and then restrict one of them to view-only access if you prefer. Ask your bank about their specific policy on the number of signers required.

What if my nonprofit does not have bylaws yet?

Create bylaws before opening the account. Bylaws are a written set of rules for how your nonprofit operates, including how the board makes decisions and who has authority over finances. Your state's nonprofit association or a nonprofit legal resource can provide a template. The bylaws do not need to be complex — a simple one-page document signed by your board is usually sufficient for the bank.

Can I use a personal checking account for my nonprofit instead?

Legally, no. Mixing personal and nonprofit money in one account violates the nonprofit's separate legal status and can create tax and liability problems. The IRS expects nonprofits to maintain separate accounts, and banks prohibit this in their account agreements. Open a nonprofit account even if your organization is small.

How long does it take to receive checks after opening the account?

Most banks provide temporary checks or a debit card immediately when you open the account, so you can start making payments right away. Printed checks with your nonprofit's name and address usually arrive within one to two weeks. Ask the banker whether you can order checks directly from the bank or from a third-party printer — third-party checks are often cheaper.