Chapter Banking - NIGP Chapter Resources

Tips for Opening/Maintaining Chapter Bank Account

Payment Terms IconTypes of Accounts

  • Checking (some commercial checking)
  • Money Market
  • Credit Card attached to the account
  • Debit Card attached to checking account

What to ask the bank?

  • Can I open a non profit business account?
  • Does the bank offer special incentives for non-profit entities?
  • What paperwork do you need to show that we are a non-profit?
  • Is there a minimum balance on the account?
  • Are there fees for the account?
  • Are there transaction limits?
  • Can the account use a debt card?
  • Is internet banking available?
  • How many signatures do we need on the account?
  • How do we change authorized signatures every year?
  • What is the policy on checks written to the chapter that bounce?
  • What is required to close the account?

Important Information to Keep in Mind

  • Select a bank that has branches in your entire chapter area (Remember your treasure may change every year and you want a bank that will be common to the chapter not just the treasurer)
  • The bank will require an employer identification number (EIN), which can be obtained from the IRS with Form SS-4
  • Make sure you monitor your account regularly
  • It is not a good idea to have the same person who signs the check to also reconcile the bank statements
  • Make sure you understand the procedure to change names and signatures on the accounts.
  • Have a signature policy (i.e. have one signature for $500 or less and two signatures for anything over $500)
  • Consider having three signatures on the account instead of just two. Can alleviate problems when one signatory is unavailable.
  • If you open a CD do not put into an individuals name. Put it in the name of the chapter.
  • Have an annual audit on the chapter funds. (either by third company or chapter members that are not on the finance committee)
  • How do we change authorized signatures every year?
  • What is the policy on checks written to the chapter that bounce?
  • What is required to close the account?
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