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Selecting the right bank is essential for the success and sustainability of any nonprofit organization. The best banks for nonprofits offer specialized services that address the unique financial needs of charitable organizations, such as lower fees, tailored account options, and dedicated support for managing donations and grants.
We will highlight top banking institutions that provide exceptional benefits and resources to help nonprofits manage their finances efficiently. This enables them to focus on their mission and maximize their impact on the community.
>> Use Bluevine’s Bank Account for Nonprofits >>
10 Best Banks for Nonprofits
- Bluevine – Best Banks for Nonprofits Overall
- Lili – Best for One-Person Businesses
- Novo – Best for Low Fees
- American Express – Best for Membership Rewards
- Capital One – Best for Unlimited Transactions
- Bank of America – Best for Traditional Banking
- Axos – Best Full-Service Online Bank
- US Bank – Best for Lending Options
- Oxygen – Best for Freelancers
- Chase – Best for Cash Deposits
Bluevine – Best Banks for Nonprofits Overall
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Bluevine stands out as the top bank for nonprofits due to its suite of financial services tailored to the unique needs of nonprofit organizations. It offers flexible checking accounts with no monthly fees, maintenance fees, NSF fees, or deposit fees, allowing nonprofits to manage funds efficiently without incurring unnecessary costs.
Bluevine also provides up to 2.0% interest on balances up to $250,000 for account holders who spend $500 per month on their debit card or receive $2,500 per month in customer payments. For those seeking higher returns, the Bluevine Plus and Bluevine Premier tiers offer up to 4.25% APY.
This enables nonprofits to earn significant interest on deposits, which can be reinvested into their causes and initiatives, enhancing financial health. Bluevine offers business lines of credit up to $250,000 at competitive rates. There are no fees for opening, maintaining, prepayment, or account closure. The application process is fast and easy, and decisions are often made in under five minutes.
Bluevine’s user-friendly online banking platform ensures straightforward and accessible financial management, allowing nonprofit organizations to focus more on their missions and less on financial administration.
- Extensive ATM network access
- Customizable accounts payable platform
- Enhanced FDIC insurance up to $3 million
- Highly competitive APY on checking accounts
- Minimal fees and no monthly maintenance charges
- No requirements for an opening deposit or minimum balance
- No savings account option
- No physical branch locations
- Charges a fee for cash deposits
- Customer support only available on weekdays
>> Use Bluevine’s Bank Account for Nonprofits >>
Lili – Best for One-Person Businesses
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Lili is an exceptional banking solution designed for one-person businesses, making it ideal for solo-run nonprofit organizations. This mobile banking app offers features that simplify financial management and enhance productivity, such as automatic expense categorization, tax-saving tools, and real-time expense tracking.
These tools are invaluable for efficiently managing donations and operational costs, allowing nonprofit leaders to focus more on their mission rather than administrative tasks.
Lili’s user-friendly interface and mobile accessibility ensure that solo nonprofit entrepreneurs can manage their accounts on the go.
The app provides a Visa business debit card with no hidden fees, and its financial insights and reporting tools offer a clear overview of the organization’s financial health. This flexibility and ease of use make Lili a practical choice for managing both personal and business finances seamlessly.
Moreover, Lili’s standard banking services are free, with no monthly fees, overdraft fees, ATM fees, or minimum balance requirements, which benefits budget-conscious nonprofits.
The Lili Pro option, at $4.99 per month, includes additional benefits such as up to 1% APY on savings accounts and the Automatic Savings feature for effortless fund transfers.
Although Lili offers limited lending options, including a free overdraft of up to $200, its comprehensive suite of banking tools and focus on solo entrepreneurs make it a valuable partner for one-person nonprofit businesses.
- Features a tax optimization tool
- Allows creation and sending of invoices
- Easily separates business and personal transactions
- Operates as a virtual bank through Choice Financial Group
- Doesn’t offer comprehensive lending or merchant services
- Not ideal for larger businesses
>> Use Lili’s Bank Account for Nonprofits >>
Novo – Best for Low Fees
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Novo is the best banking option for nonprofits due to its exceptionally low fees and user-friendly mobile app. It’s ideal for organizations looking to maximize their resources. Read the full Novo review here.
Unlike many traditional banks that impose various charges, Novo offers a fee-free banking experience with no monthly maintenance fees, no minimum balance requirements, and no hidden costs. This is particularly beneficial for nonprofits, which often operate on tight budgets and rely heavily on donations and grants.
Novo’s easy-to-use mobile app allows users to manage their finances on the go. It facilitates free ACH transfers, bill payments, money transfers, and payroll management. Users can access their banking details and transactions instantly, providing a comprehensive overview of monthly expenditures and income.
Additionally, Novo’s banking services are entirely fee-free, requiring only a $50 opening deposit. The bank refunds all ATM fees and is backed by FDIC insurance through Middlesex Federal Savings, F.A.
However, it’s important to note that Novo doesn’t offer interest on checking account deposits or lending options like loans or business credit cards. The transparency and cost-effectiveness of Novo’s banking services enable nonprofits to allocate more of their funds toward their missions rather than administrative expenses.
This focus on affordability and efficiency makes Novo an excellent choice for nonprofit organizations seeking to minimize financial burdens while optimizing their banking operations.
- Refunds for all ATM fees
- Unlimited transactions without fees for business checking
- Seamless compatibility with third-party software like Shopify and QuickBooks
- Cannot accept cash deposits
- Doesn’t provide lending services
- Lacks availability of lines of credit or loans
>> Use Novo’s Bank Account for Low Banking Fees >>
American Express – Best for Membership Rewards
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American Express is an excellent option for nonprofits looking to maximize their membership rewards. The company’s Membership Rewards program offers valuable points on everyday purchases that can be redeemed for travel, gift cards, or statement credits.
This flexibility allows nonprofits to reinvest rewards into operational costs or special projects, effectively stretching their budgets further.
The generous rewards structure of American Express cards is a key advantage for nonprofits. Many cards offer bonus points on specific categories like office supplies, telecommunications, and travel, common expense areas for nonprofit organizations.
American Express provides a suite of tools and services designed to help nonprofits manage expenses, track spending, and optimize financial operations. These can be particularly useful for nonprofits with limited administrative resources.
American Express also offers Business Checking accounts with no monthly fees, no minimum opening deposit, and no online transaction fees. Users have free access to MoneyPass ATMs, although out-of-network ATM transactions incur a fee.
The account features a competitive APY of 1.30% on balances up to $500,000, ensuring steady growth of nonprofit funds. A standout feature is the integration with Kabbage Funding, offering easy loan approval for lines of credit up to $250,000, even for those with modest credit scores.
This makes it an excellent option for nonprofits needing quick access to funds. With superior customer service, robust rewards, comprehensive financial tools, and exceptional support, American Express is an ideal choice for nonprofits seeking to enhance their financial strategy.
- No minimum balance requirement
- Streamlined application process
- Accessible line of credit with no prepayment penalties
- Doesn’t accept cash deposits
- Mobile check deposits restricted to iOS users
- Only available to American Express customers
>> Use American Express’s Bank Account for Nonprofits >>
Capital One – Best for Unlimited Transactions
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Capital One is an excellent choice for nonprofits needing banking solutions with unlimited transactions. Nonprofits often handle a high volume of transactions, such as donations and grant disbursements, and Capital One’s services accommodate these needs without transaction limits, ensuring smooth financial operations.
Their user-friendly app and comprehensive online banking tools further simplify account management. While Capital One’s business checking accounts are only available in select states and require an in-person branch visit to apply, they offer significant benefits.
The Basic Checking account has a $15 monthly fee, waived with a balance over $2,000, and includes free cash deposits up to $5,000 monthly.
The Unlimited Checking account, with a $35 monthly fee waived with a $25,000 balance, provides unlimited free cash deposits and five free outgoing wire transfers per month. Their highly responsive customer service is another strong feature, providing nonprofits with the support they need.
Capital One’s checking accounts don’t offer interest, but their savings accounts provide a 0.2% APY. The bank also offers substantial lending options, including small business loans and lines of credit up to $5 million and SBA loans for nonprofits maintaining their checking accounts with the bank.
By choosing Capital One, nonprofits benefit from unlimited transactions, robust banking tools, and excellent customer service, allowing them to focus more on their mission and less on banking constraints.
- Experienced support from a major bank
- Self-service escrow services
- Unlimited checking includes two Basic accounts
- Limited availability across states
- Account applications require a branch visit
- High account balances required to waive fees
>> Use Capital One’s Business Bank Account >>
Bank of America – Best for Traditional Banking
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Bank of America is an excellent choice for traditional banking services for nonprofits. It offers a wide range of financial solutions tailored to their unique needs. Known for stability and reliability, the bank provides various accounts and services to help nonprofits manage their finances efficiently.
Nonprofits benefit from an extensive branch network, advanced online banking tools, and specialized products such as low-fee checking accounts, interest-bearing savings accounts, and cash management services.
Account Options:
- Business Advantage Fundamentals: $16 monthly fee, waivable under specific conditions
- Business Advantage Relationship: $29.95 monthly fee, also waivable
- Savings Account: $10 monthly fee, waivable with a $2,500 minimum daily balance
While the checking accounts don’t offer interest, the business savings account offers a minimal 0.01% APY. The bank also provides various lending options, including business credit cards, secured business loans, and lines of credit, though a minimum credit score of 700 is required.
Bank of America’s strong commitment to corporate social responsibility makes it an attractive partner for nonprofits. The bank engages in community development and offers grant programs and philanthropic initiatives directly benefiting nonprofits.
This supportive partnership, combined with traditional banking services and specialized products, makes Bank of America a dependable choice for nonprofits seeking effective financial management and community engagement.
- Provides payroll services
- Zelle money transfer integration
- Compatible with accounting applications for online account management
- High monthly service fees
- High balances needed to waive fees
- Mobile app usability falls short compared to competitors
>> Check Out Bank of America’s Business Bank Account >>
Axos – Best Full-Service Online Bank
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Axos Bank is the leading full-service online bank for nonprofits, offering a comprehensive suite of financial services tailored for charitable organizations. With a robust digital platform, Axos eliminates the need for physical branch visits, providing a seamless banking experience.
Key features include interest-bearing checking accounts, high-yield savings options, and low fees, such as fee-free checking accounts with no monthly maintenance fees and unlimited ATM fee reimbursements.
Axos excels in cash management solutions, offering advanced online and mobile banking tools. These tools enable nonprofits to set up automatic transfers, monitor account activity in real-time, and generate detailed financial reports.
Their integrated merchant services simplify donation processing, allowing nonprofits to accept and manage donations via credit card, debit card, and ACH payments. Customer support is another strength of Axos, offering dedicated assistance for nonprofit accounts.
The bank’s online-first approach makes it user-friendly for small or digital businesses, including nonprofits. However, the APY is limited to 0.20% for basic checking and 1.01% for interest checking with a minimum balance of $5,000.
Axos offers four main types of business accounts: Basic Business Checking (no monthly fee), Business Interest Checking ($10 monthly fee), Business Savings Account ($5 monthly fee), and Business Premium Savings (no monthly fee).
Interest rates for these accounts range from no APY for basic checking to 1.01% for interest checking and 0.20% for savings accounts.
In terms of lending, Axos partners with Centerstone SBA Lending to provide SBA loans, commercial lines of credit, and term loans, primarily benefiting large corporations.
- Offers a range of interest-bearing accounts
- No monthly fees and unlimited transactions
- Cash deposits can be made at MoneyPass and Allpoint ATMs
- No physical branch locations
- Limited integration options
- APYs aren’t the highest available in the market
>> Check Out Axos’s Business Bank Account >>
US Bank – Best for Lending Options
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US Bank excels in providing specialized lending options tailored to nonprofits’ unique needs, including term loans, lines of credit, and real estate financing.
The bank’s team of nonprofit banking specialists ensures personalized advice and customized financial solutions, making US Bank a reliable partner for organizations aiming to achieve their goals and enhance their community impact.
This expertise, combined with a commitment to social responsibility, allows US Bank to offer resources beyond traditional banking, such as financial education programs and volunteer support.
Account Options:
- Silver Business Checking: No monthly fee
- Gold Business Checking: $20 monthly fee
- Platinum Business Checking: $30 monthly fee
While US Bank’s checking accounts come with different fee structures, these costs are balanced by the comprehensive services and support provided.
Although US Bank doesn’t offer interest on checking deposits and has modest savings account yields, its diverse lending options, including business credit cards and various loans, make it a strong contender for nonprofits seeking financial flexibility.
Loan options range from up to $250,000 for Quick Online loans to $12.375 million for government-backed loans, catering to various financial needs.
Overall, US Bank’s holistic approach to nonprofit lending, backed by competitive terms and dedicated support, is an excellent choice for organizations looking for effective financial partners.
By offering tailored lending solutions, expert guidance, and a strong commitment to community involvement, US Bank empowers nonprofits to focus on their core missions and maximize their positive impact on society.
- Tailored lending options
- Dedicated specialists for small businesses
- Merchant services specialized for restaurants, retailers, and service providers
- Transaction fees apply
- High penalties for early withdrawals from CDs
- No APY on checking accounts and low APY on savings accounts
>> Check Out US Bank’s Business Bank Account >>
Oxygen – Best for Freelancers
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Oxygen is an ideal banking solution tailored specifically for freelancers in the nonprofit sector. It seamlessly integrates with popular freelancing platforms, enabling efficient financial management.
Freelancers can track earnings, manage expenses, and separate personal and business finances effortlessly. The fee-free structure of the Earth tier, with no fees and up to 0.50% APY on savings, makes it particularly appealing.
Oxygen also provides higher-tier options: Water, Air, and Fire, which cost $19.99, $49.99, and $199.99 annually and offer APYs of 1.00%, 2.00%, and 3.00%, respectively.
In addition to its attractive fee structure and interest rates, Oxygen offers a comprehensive set of financial tools designed to promote financial health and wellness. Budgeting tools, savings goals, and instant transaction notifications help freelancers manage their finances.
This focus on technology and mobile accessibility ensures that freelancers can manage their banking needs from anywhere, making it an excellent choice for those who work remotely or travel frequently.
Oxygen’s mobile app further enhances its appeal by providing features such as cash-back rewards on common business expenses and virtual cards for secure online purchases.
By addressing the specific challenges faced by freelancers in the nonprofit sector, Oxygen empowers them to manage their finances more effectively, allowing them to focus on their work and make a greater impact in their nonprofit endeavors.
- 5% cashback rewards on purchases
- Business savings account offering 1% APY
- Option to create virtual, single-use debit cards
- No lending services are available
- Virtual bank lacks cash deposit capabilities
- Fewer integration capabilities compared to competitors
>> Check Out Oxygen’s Business Banking Options >>
Chase – Best for Cash Deposits
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Chase Bank is an excellent choice for nonprofits, particularly those that frequently handle cash deposits. Nonprofits often rely on cash donations from events and community activities, making a reliable banking partner essential.
Chase offers a suite of tailored services, including an extensive network of branches and ATMs, ensuring easy and convenient cash deposits regardless of location.
Chase’s business checking accounts feature options like a business debit card and cash deposit facilities at their brick-and-mortar locations. While these accounts have monthly maintenance fees, they can be waived with certain minimum balances.
For example, Chase Business Complete Checking requires a $2,000 minimum daily balance to waive the $15 monthly fee. Chase Performance Business Checking has a $30 monthly fee that’s waived with a $35,000 combined average beginning day balance, and Chase Platinum Business Checking charges a $95 monthly fee waived with a $100,000 combined average beginning day balance.
Chase also provides robust lending options, including small business loans and lines of credit, which are beneficial for growth and operational needs. Although Chase Business Checking accounts don’t offer an APY on deposits, nonprofits can still benefit from Chase Business Savings accounts.
Despite some drawbacks, such as monthly fees and a less robust online banking experience compared to competitors, Chase’s strong traditional banking services and expertise in working with nonprofits make it a reliable option for secure cash deposits and comprehensive financial support.
- Strong fraud protection measures
- Accept payments through the Chase mobile app
- Broad international presence with locations globally
- Fees are higher than many competitors
- A high minimum balance is needed to avoid fees
- Unclear APY on savings accounts
>> Use Chase Business Checking Account >>
How to Open a Bank Account for a Nonprofit Organization
Opening a bank account for a nonprofit organization involves several key steps to ensure compliance with legal and financial regulations. Here’s a comprehensive guide to help you through the process:
1. Choose the Right Bank
- Research Banks: Look for banks that offer specialized services for nonprofits, such as reduced fees, nonprofit checking accounts, and financial management tools.
- Compare Offers: Evaluate each bank’s benefits, including online banking options, customer service quality, and proximity to your organization.
2. Gather Required Documentation
- Employer Identification Number (EIN): Obtain an EIN from the IRS if you haven’t already. This acts like a Social Security number for your nonprofit.
- Articles of Incorporation: Provide the bank with your nonprofit’s Articles of Incorporation, proving your organization is legally recognized as a nonprofit entity.
- Bylaws: Some banks may request a copy of your bylaws to understand your organization’s structure and operations.
- Meeting Minutes: Prepare minutes from a board meeting where the decision to open a bank account was made, including authorization for specific individuals to manage the account.
- 501(c)(3) Status: If applicable, provide the bank with your IRS determination letter confirming your nonprofit’s tax-exempt status.
- Identification: Bring government-issued identification for all individuals authorized to access the account.
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3. Visit the Bank
- Schedule an Appointment: Call the bank to schedule an appointment to open the account. This ensures a representative familiar with nonprofit accounts is available to assist you.
- Discuss Account Options: During the meeting, discuss various account options and services tailored for nonprofits. Inquire about fees, interest rates, transaction limits, and additional benefits.
4. Complete the Application
- Fill Out Forms: Complete the bank’s application forms, providing all required information and documentation.
- Signature Cards: Sign the bank’s signature cards, listing all individuals authorized to sign checks and manage the account.
- Deposit Funds: Make an initial deposit to activate the account. Some banks may require a minimum deposit amount.
>> Use Bluevine’s Bank Account for Nonprofits >>
5. Set Up Online Banking
- Register for Online Banking: Set up online banking to manage your account efficiently. This allows for easy monitoring of transactions, electronic fund transfers, and bill payments.
- Secure Access: Ensure only authorized personnel can access the online banking system. Set strong passwords and consider using multi-factor authentication for added security.
6. Maintain Compliance
- Regular Updates: Keep the bank informed of any changes in your organization’s authorized signatories, address, or other relevant information.
- Annual Review: Review your account annually to ensure it still meets your organization’s needs. Update your banking resolution and meeting minutes as necessary.
Tips for Managing Nonprofit Bank Accounts
- Record Keeping: Maintain meticulous records of all financial transactions to ensure transparency and accountability.
- Segregate Funds: Keep your nonprofit’s funds separate from personal or other business accounts to avoid conflicts of interest or legal issues.
- Monitor Expenses: Regularly monitor expenses to ensure they align with your nonprofit’s mission and budget.
By following these steps, your nonprofit can establish a reliable banking relationship, which is crucial for managing funds, receiving donations, and ensuring financial stability.
>> Use Bluevine’s Business Bank Account >>
Frequently Asked Questions
Conclusion
Selecting the best bank for your nonprofit organization is a strategic decision that can significantly impact your operational efficiency and financial health.
By choosing a bank that offers tailored services, lower fees, and dedicated support, nonprofits can better manage their funds, streamline their financial processes, and ultimately enhance their ability to fulfill their mission.
The banks highlighted in this article have demonstrated a commitment to supporting nonprofits, making them excellent choices for any organization looking to optimize its banking experience.
>> Use Bluevine’s Business Bank Account >>
