What you need before you walk into a bank

A nonprofit bank account requires more paperwork than a personal account because the bank needs proof that your organization exists and is legally registered. You will need your Employer Identification Number (EIN) from the IRS, your nonprofit's articles of incorporation or formation documents, and a board resolution authorizing someone to open the account. Some banks also ask for your nonprofit's bylaws and a list of board members with their addresses.

The bank will want to know who has signing authority — which board members or staff can withdraw money and approve transactions. This is different from a personal account because nonprofits are accountable to their boards and donors, so banks treat them as shared accounts with multiple authorized users rather than individual accounts.

Start by gathering these documents before you call or visit: your EIN letter from the IRS, your articles of incorporation, your board resolution (a formal vote that says "we authorize [person's name] to open a bank account on behalf of this organization"), and photo ID for whoever will be the primary contact at the bank.

Key Takeaways

  • You must have an EIN from the IRS before any bank will open a nonprofit account, which you can obtain free online at irs.gov in about 15 minutes.
  • Banks require articles of incorporation, a board resolution, and proof of who has signing authority — not just a personal ID like a regular account.
  • Different banks have different minimums and fees for nonprofit accounts; some waive monthly fees if you maintain a certain balance or meet other conditions.
  • The person opening the account must bring photo ID and be authorized by the board to act on behalf of the organization.
  • The entire process typically takes one to two weeks from the time you submit documents until the account is active and you receive checks or a debit card.

Getting your EIN if you don't have one yet

Your nonprofit must have an EIN — a nine-digit tax ID issued by the IRS — before you can open a bank account. If your organization is already incorporated and recognized as a nonprofit by your state, you can get an EIN immediately and free through the IRS website at irs.gov/ein. You do not need to file for 501(c)(3) status first; the EIN comes before that step.

Go to irs.gov, select "Apply for an EIN Online," and answer questions about your organization's name, address, type of nonprofit, and who will be the responsible party. The IRS issues your EIN on the spot. Print the confirmation page or request it by mail — either way, you have the number immediately and can use it to open a bank account the same day.

If your organization is not yet incorporated, you must file articles of incorporation with your state first. This varies by state but usually costs $50 to $300 and takes one to two weeks. Once the state approves your incorporation, you can apply for the EIN.

What a board resolution is and why banks require it

A board resolution is a formal written record that your board of directors voted to authorize someone to open and manage a bank account on behalf of the organization. It names the specific person or people who can sign checks, approve wire transfers, and make other financial decisions. Banks require this because they need to know that the person walking in is actually authorized to bind the organization to a banking relationship.

The resolution does not need to be fancy. It should state the date of the board meeting, that the board voted unanimously (or by majority), and the names and titles of the people authorized to open and manage the account. Include language like: "The board authorizes [Name], [Title], to open a bank account in the name of [Organization Name] and to serve as the primary contact for all banking matters." Have the board secretary sign and date it, and keep a copy in your organization's records.

If your nonprofit is brand new and has not held a formal board meeting yet, you can hold one specifically to pass this resolution. Document it in writing, have all board members sign, and bring that documentation to the bank. Some banks will accept a resolution signed by the board chair and treasurer alone if your bylaws allow it; ask the bank what they need before you draft the resolution.

Choosing a bank and comparing nonprofit account options

Not all banks offer nonprofit accounts, and those that do have different fee structures and minimums. Call ahead or check the bank's website for "nonprofit banking" or "nonprofit accounts" before you visit. Large national banks like Bank of America, Wells Fargo, and Chase offer nonprofit accounts in most locations. Credit unions and community banks often have lower fees and may waive monthly charges if you maintain a small balance.

Compare what each bank charges: some have no monthly fee for nonprofits, others charge $10 to $25 per month. Ask whether they waive fees if you keep a minimum balance (often $500 to $2,500) or if you set up direct deposit. Ask about check printing costs, wire transfer fees, and whether they offer free online banking and bill pay. Some banks offer a discount or waive fees entirely for nonprofits with 501(c)(3) status, though you can open the account before you have that status.

Ask specifically about ACH transfers (electronic transfers to and from other bank accounts) and whether the bank charges per transaction or offers unlimited transfers. Many nonprofits use ACH to pay vendors and staff, so this matters to your operating costs. Also ask whether the bank requires a minimum number of board members to authorize transactions or whether one authorized person can act alone.

The documents you bring to the bank

Bring originals or certified copies of your articles of incorporation, your board resolution, and your EIN letter from the IRS. Bring photo ID for the person authorized to open the account. Some banks ask for a copy of your nonprofit's bylaws and a list of all board members with their home addresses and phone numbers — call ahead to confirm what your specific bank needs.

If your organization is applying for 501(c)(3) status but does not have it yet, bring a copy of your Form 1023 or Form 1023-EZ application showing it was submitted. Banks understand that nonprofits often open accounts before the IRS approves their tax-exempt status, and they will hold the account open while you wait for approval. Once you receive your 501(c)(3) information letter, send a copy to the bank so they can update your account and apply any fee waivers that come with tax-exempt status.

Do not bring originals of documents you cannot replace. Ask the bank whether they need originals or will accept copies. Most will accept copies of incorporation documents and the board resolution as long as they are clear and legible.

Setting up authorized signers and access controls

When you open the account, the bank will ask you to name which people can sign checks and authorize transactions. This is where your board resolution matters — it tells the bank who you have already authorized. You can name one person, multiple people, or require that two people sign every check (called "dual control" or "dual signature").

Many nonprofits use dual signature for checks over a certain amount — for example, one person can sign checks under $500, but two people must sign anything over $500. This protects the organization from fraud and gives the board confidence that no single person can move large amounts of money without oversight. Discuss this with your board before you go to the bank so you know what structure you want.

The bank will also set up online banking access. Decide whether all authorized signers need online access or just one person. Online access lets you check balances, review transactions, and set up bill pay, but it also means whoever has the password can see all account activity. Some nonprofits restrict online access to the treasurer or executive director and have other board members request reports rather than logging in themselves.

Timeline and what happens after you open the account

Once you submit all documents, the bank typically processes the account within three to five business days. You will receive a welcome packet with your account number, routing number, and temporary debit card or checks. Permanent checks usually arrive within one to two weeks. If you need checks immediately, most banks can print them in-house for a small fee.

After the account opens, the bank may place a hold on deposits for the first 30 days while they verify your organization's legitimacy. This is normal and does not mean anything is wrong. You can still withdraw money and pay bills during this period; the hold just means that if you deposit a check, the bank may not make the funds available immediately.

Once you receive your 501(c)(3) information letter from the IRS, send a copy to the bank. Many banks waive monthly fees for tax-exempt nonprofits, and some offer other perks like free wire transfers or discounted merchant services. Update your account status with the bank so these benefits take effect.

Frequently Asked Questions

Can I open a nonprofit bank account before my organization is incorporated?

No. You must file articles of incorporation with your state and receive approval before any bank will open an account. The bank needs proof that your organization legally exists. Once your state approves your incorporation, you can get an EIN and open the account, usually within a few days.

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

No. You can open a nonprofit account as soon as you are incorporated and have an EIN. 501(c)(3) status from the IRS comes later and is separate from the bank account. Some banks offer fee waivers or other benefits once you have 501(c)(3) status, but it is not required to open the account.

What if I am the only board member?

Most states require nonprofits to have at least two board members, though some allow one. Check your state's nonprofit law. If you have only one board member, that person can still open the account, but the bank may ask for documentation that your state allows single-member boards. A board resolution signed by that one person is sufficient.

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

Legally, no. Mixing personal and nonprofit money violates nonprofit law and can jeopardize your tax-exempt status. The IRS and your state require nonprofits to maintain separate bank accounts. A nonprofit account also protects you personally — it shows that the organization's money is distinct from your own.

How much do I need to deposit to open the account?

This varies by bank. Some nonprofit accounts have no minimum opening deposit, while others require $100 to $500. Call the bank before you visit to ask what they need. Even if there is a minimum, you can usually deposit that amount and then withdraw it immediately after the account opens.