When you’re a nonprofit, you have a lot to consider, like 501-( c ) ( 3 ) status, taxes, making tight budgets work, getting donations, running a board of directors… the list goes on! The last thing on your mind is likely what to consider when you’re thinking about banks.
Of course, there’s a bank on every corner in Massachusetts so maybe you just pick one, but perhaps there’s also special considerations to be made in regards to where you will keep your funds and manage transactions.
Here are some things to look for:
- FDIC/DIF deposit protection. Is the bank a member of the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF)? Nonprofits should have the assurance that their deposits are protected no matter what. With this dual level of protection, the first $250,000 is insured by the FDIC and deposits above that are insured by the DIF.
- Commercial Checking with money market rates. It’s important for you to maximize your savings, even in your spend account. Look at banks that offer competitive interest rates that could increase with balances and specifically for a commercial checking account. Keeping a separate commercial checking account will also help with reporting in the future, so save yourself a headache.
- Reduced fees. What nonprofit doesn’t operate with a tight budget? Fees can be tough to decipher but it’s worth doing your homework and seeing what fees you might be paying for certain accounts. Keeping them to a minimum allows you more availability for funding!
- Good Citizenship. Does the bank you have a relationship with have a charitable foundation of it’s own? Does it give back to the community, encourage employees to volunteer or sit on a board of directors? This is often overlooked as banking is traditionally a transactional relationship but if they also manage a charitable foundation and support employee involvement with nonprofits, you they have a similar mindset.
- Prioritized Relationship-Building. A bank that treats nonprofits with the same great customer service they offer their big commercial clients is important. Having a bank that checks in on you, takes a vested interest in your work and progress and having a personal relationship with your banker.
As part our commitment to nonprofits, Avidia is proud to be the Gold sponsor of the MNN Conference on October 16, 2019 in Framingham. We look forward to joining more than 650 nonprofit and business leaders to learn, share, and network. Register today to attend!
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