A non-profit organization will want to open a “business account,” even though the organization isn’t intending on generating revenue. A business account generally expects higher levels of transactions, higher balances, and higher standards of customer care. Before setting up a bank account, the non-profit organization should collect:
- The formation documents for the non-profit organization.
- Documents for the signers on the account.
- Their EIN (“Employer Identification Number”).
The EIN in particular is important. A non-profit organization will not be able to open a business account without one, nor will they be able to hire employees, or get permits and licenses. The EIN is what identifies the non-profit organization to both the bank and the government, and makes it possible for them to track the company’s credit and banking standing.
The organization representatives will then meet with a banking officer, who will organize their documents, and make sure that everything is in order. It will usually only take about an hour or two to open a business bank account, and debit cards and checks will be sent in the mail.