What you need before you walk into a bank

A nonprofit needs a different kind of bank account than a person does, and the bank will ask for documents that prove your organization exists and is legally registered. You cannot open a nonprofit account with just an idea or a business card. The bank wants to see that your nonprofit is real, that it has tax-exempt status or is working toward it, and that the people signing checks have authority to do so.

Most banks will ask for your Articles of Incorporation (the document filed with your state that creates the nonprofit), your Employer Identification Number (EIN) from the IRS, and a board resolution that names the people allowed to sign on the account. Some banks also want to see your 501(c)(3) information letter from the IRS, which proves you have tax-exempt status. If you do not have that letter yet, many banks will still open an account while you are waiting for it, but they may ask you to provide it later.

The person opening the account must bring a government-issued ID. If you are the executive director or treasurer, that will usually be you, but it can be any board member with signing authority.

Key Takeaways

  • You need your Articles of Incorporation, EIN, and a board resolution naming authorized signers before any bank will open an account.
  • The 501(c)(3) information letter from the IRS is helpful but not always required to open the account; some banks let you provide it later.
  • Different banks have different minimums for nonprofit accounts, ranging from no minimum to several hundred dollars, so calling ahead saves a trip.
  • A nonprofit account is separate from a personal account and requires the organization's tax ID, not a personal Social Security number.
  • The person opening the account must have a government-issued ID and be authorized by the board to sign on behalf of the organization.

Getting your EIN and Articles of Incorporation in order

Your EIN is a nine-digit number the IRS assigns to your nonprofit, similar to a Social Security number for a business. You get it by filing Form SS-4 with the IRS, either online at irs.gov, by phone, or by mail. The online route is fastest—you can have an EIN the same day you explore. You do not need to have filed your Articles of Incorporation first, though most nonprofits do.

Your Articles of Incorporation are filed with your state's Secretary of State office, not the federal government. Each state has its own form and filing fee, usually between $50 and $200. The Articles state your nonprofit's name, address, purpose, and board structure. Once filed and approved by the state, you receive a stamped copy. That stamped copy is what the bank wants to see—not a draft or a photocopy.

If you have not yet filed your Articles, contact your state's Secretary of State office or visit their website; most now let you file online. This step typically takes one to three weeks, depending on how busy the office is.

What a board resolution is and why the bank needs it

A board resolution is a formal document that your board of directors votes on and approves. It names the people who are allowed to sign checks and conduct business on behalf of the nonprofit. The bank uses it to confirm that the person opening the account actually has the authority to do so, and to know who else can sign.

The resolution should list the names and titles of authorized signers—for example, "The Executive Director and Treasurer are authorized to open and manage bank accounts on behalf of [Organization Name]." It should be dated, signed by the board chair or secretary, and include a statement that it was voted on at a board meeting. You do not need a fancy template; a straightforward one-page document works fine, as long as it is dated and signed.

Bring the original or a certified copy to the bank. Some banks will accept a photocopy if it is notarized, but calling ahead to ask what they want saves time.

Choosing a bank and what to expect during the account opening

Not all banks treat nonprofit accounts the same way. Some have dedicated nonprofit banking teams; others handle them like any other business account. Call three or four banks in your area and ask: Do you have nonprofit accounts? What documents do you need? Is there a minimum balance? Are there monthly fees? How many authorized signers can we have?

Larger banks like Bank of America, Wells Fargo, and Chase offer nonprofit accounts in most places, but community banks and credit unions often have lower fees and more flexibility. Some credit unions do not charge monthly fees for nonprofit accounts at all. The differences can add up—a $15 monthly fee costs $180 a year.

When you go in to open the account, bring originals or certified copies of your Articles of Incorporation, your EIN letter from the IRS, the board resolution, and a government-issued ID. The bank will likely ask you to sign signature cards for each authorized signer. They will also ask about the nonprofit's expected monthly deposits and withdrawals, which helps them set up the right account type for you.

The 501(c)(3) information letter and whether you need it now

The 501(c)(3) information letter is the IRS's formal approval that your nonprofit is tax-exempt. You get it by filing Form 1023 (the full process) or Form 1023-EZ (a shorter version for smaller nonprofits) with the IRS. Processing takes anywhere from two weeks to several months, depending on the form and the IRS workload.

Many banks will open a nonprofit account without this letter, as long as you have your Articles of Incorporation and EIN. However, some banks—particularly larger ones—prefer to see it. If you do not have it yet, ask the bank whether they will open the account conditionally and let you provide the letter later, or whether you should wait. There is no penalty for opening an account before you have 501(c)(3) status; you just cannot claim tax-exempt status until the IRS approves it.

If your nonprofit is brand new and you have not yet filed for 501(c)(3) status, you can still open a bank account. Just be clear with the bank about your timeline.

Setting up online banking and managing the account

Once the account is open, ask the bank to set up online banking so you can check balances, transfer money, and read statements. Most banks offer this for free. You will need a username and password, and many require two-factor authentication (a code sent to your phone or email when you log in).

For a nonprofit, it is common to have multiple people with access to online banking but restrict who can actually move money or approve transfers. Ask the bank what controls they offer. Some banks let you set up approval workflows—for example, requiring two signatures on any check over $500, or requiring the treasurer to approve any transfer before it goes through.

Keep your board informed about bank access. Document in your board minutes who has access to the account and what they are allowed to do. This protects both the organization and the individuals involved.

Common reasons banks reject nonprofit account applications

Banks sometimes reject nonprofit applications or ask for more information. The most common reasons are: the Articles of Incorporation are not yet approved by the state, the EIN letter is missing or does not match the organization name on the Articles, or the board resolution does not clearly name authorized signers.

Another reason is a mismatch between the organization's stated purpose and the type of account you are opening. For example, if your Articles say the nonprofit is for education but you are opening a business account, the bank may flag it. Be clear about what the account will be used for.

If a bank rejects you, ask specifically what is missing or incorrect. Often it is a straightforward fix—a typo in the organization name, or a document that needs to be re-certified. Do not assume you cannot bank anywhere; try another bank, particularly a community bank or credit union.

Frequently Asked Questions

Can I use my personal bank account for nonprofit money while I wait for the nonprofit account to open?

Technically you can, but it creates accounting and tax problems later. Money mixed in a personal account is harder to track, and the IRS expects nonprofits to keep finances separate. If you must use a personal account temporarily, document every transaction carefully and move the money to the nonprofit account as soon as it opens. Talk to an accountant about how to record this in your books.

Do I need a 501(c)(3) letter to open the account, or can I get it later?

Most banks will open the account without the 501(c)(3) letter if you have your Articles of Incorporation and EIN. However, some larger banks prefer to see it. Call ahead and ask. If a bank says you must have it, you can either wait for the IRS to approve your process or try a different bank.

What if my board has not met yet to vote on a resolution?

You need to hold a board meeting and vote on the resolution before you open the account. This does not have to be a long meeting—it can be in person, by phone, or by video call. Document that it happened by keeping minutes. The bank will ask to see evidence that the board approved the resolution.

Can one person be the only authorized signer on a nonprofit account?

Yes, though most banks and nonprofit best practices recommend at least two authorized signers for financial oversight. If you have only one signer, the bank will still open the account. You can add more signers later by submitting an updated board resolution.

How long does it take to open a nonprofit bank account once I have all the documents?

If you walk in with all required documents, the bank can usually open the account the same day or within one business day. However, getting all the documents in place first—Articles of Incorporation approved by the state, EIN from the IRS, and a signed board resolution—can take two to four weeks total.