Choosing the right bank is an important decision for any nonprofit organization. You need a bank that understands the unique needs of nonprofits and can provide customized solutions to help manage your finances, process donations, pay employees and vendors, and keep overhead costs low.

With so many options out there, how do you decide where to take your nonprofit’s banking? In this guide, we will cover the key factors you need to consider when selecting a Nonprofit Bank for 2024.

You’ll learn about the top banks and credit unions that offer the best products and services to support mission-driven organizations.

Key Takeaways

• It’s important for nonprofits to choose a bank that understands their unique needs, such as 501(c)(3) compliance, managing donations, access to lending, and keeping fees low.

• Top criteria to evaluate when selecting a nonprofit bank include specialized services, low or no account fees, robust digital platforms, lending availability, and local nonprofit banking experts.

• Leading national banks with strong nonprofit banking solutions include Bank of America, PNC, Wells Fargo, BBVA Compass, and Chase. They offer customized lending, cash management tools, integrated payment processing, and more.

• Top credit unions catering specifically to nonprofits include Credit Union for Nonprofits, Beneficial State Bank, Sunrise Banks, and Central Valley Community Bank. They feature no monthly account fees, higher deposit rates, and value-based lending.

• Making the best nonprofit banking decision requires evaluating transaction needs, fee thresholds, levels of personalized service, and preference for digital versus in-person banking.

• Nonprofits should look for banks that can grow with their needs over time and provide fundraising tools, grant opportunities, cash flow guidance, and document management capabilities.

What Makes a Good Nonprofit Bank?

The most important criteria for nonprofit banking include:

• Specialized products and services for 501(c)(3) organizations
• Low or no fees on accounts and transactions
• Robust digital platforms and mobile banking
• Access to lending and lines of credit
• Local relationship managers and bankers
• Customized support for fundraising and donations
• Integrated payment processing solutions

Ideally, you want to find an institution that understands the unique compliance, accounting, and cash flow needs of managing a nonprofit. They should offer flexible solutions to help manage expenses and seamlessly accept tax-deductible donations.

Top Banks for Nonprofits

1. Bank of America

Bank of America is one of the largest banks in the U.S. and offers a full suite of products and services for nonprofits of all sizes. Key benefits include:

• Access to low or no-fee accounts
• Numerous ATM and branch locations
• Custom lending solutions
• Integrated mobile and online banking
• Specialized nonprofit teams and resources
• Tools to help manage fundraising campaigns

As part of its Environmental, Social, and Governance (ESG) efforts, Bank of America provides over $200 million in charitable grants each year. They also donate 2% of after-tax profits to local nonprofits.

2. PNC

PNC stands out for its virtual wallet banking technology that helps streamline financial management. Key benefits include:

• No minimum balance requirements
• Robust mobile features
• Low fees on transactions
• Flexible lines of credit
• Access to impact investments
• Local-based nonprofit bankers

PNC also provides up to $88 million in charitable grants each year to advance its corporate responsibility efforts.

3. Wells Fargo

With over 5,400 branches nationwide, Wells Fargo provides extensive reach for nonprofit banking needs. Benefits include:

• Access to basic business accounts
• Mobile deposit capability
• Ability to accept credit card donations
• Integrated payment processing
• Experienced local bankers

Through the Wells Fargo Foundation and other initiatives, they contribute over $300 million to community projects and nonprofits annually.

4. BBVA Compass

BBVA Compass delivers customizable solutions for nonprofit banking based on your organizational size and needs. Key features include:

• No monthly maintenance fees
• No minimum balance requirements
• Robust digital platforms
• Free domestic wire transfers
• Access to lines of credit

Their corporate giving program also donates over $13 million annually to community programs and projects.

5. Chase for Nonprofits

As one of the largest banks worldwide, Chase Bank offers specialized products and services for nonprofits of all sizes. Key perks include:

• Access to low or no-fee accounts
• Mobile and digital banking
• Integrated payment processing
• Specialized lines of credit

Chase also provides over $200 million in annual charitable investments to address key social and environmental issues aligned with their corporate strategy.

Best Credit Unions for Nonprofits

Along with traditional banks, there are a growing number of credit unions catering to the unique needs of tax-exempt organizations. Benefits of credit union nonprofit banking include:

• Lower fees and higher interest rates on accounts
• Access to affordable financing
• Local decision making
• Personalized service

Some of the best credit unions for nonprofits include:

1. Credit Union for Nonprofits

This aptly named provider is dedicated specifically to nonprofit banking. Eligibility includes 501(c)(3) charities, religious groups, trade associations, social clubs, and more. Key features include:

• No monthly fees or minimums
• Higher saving yields
• Access to meaningful lending
• Cash management tools

Member donations also fund grants supporting social change initiatives.

2. Beneficial State Bank

With a social justice mission, this California-based credit union offers purpose-driven financial services. Nonprofit benefits include:

• No monthly fees on accounts
• Access to affordable loans
• Online and mobile banking
• Local expertise and support

By design, they reinvest profits to improve low-income communities.

3. Sunrise Banks

This Minnesota-based credit union has a strong track record in values-based banking. Nonprofits can take advantage of:

• Low- or no-fee accounts
• Custom lending and lines of credit
• Digital banking and payments
• Experienced client support

Sunrise Banks also provides grants through the Sunrise Banks Foundation and from business line donations.

4. Central Valley Community Bank

This California institution prides itself on being the “Community Bank for Nonprofits.” Benefits include:

• No monthly fees on accounts
• Access to lending and credit
• Cash management tools
• Online account access

Their nonprofit clients span civil rights, environmental, education, arts, and health sectors.

Making the Best Nonprofit Banking Decision

Choosing where to bank your nonprofit funds is an important decision requiring careful evaluation. Take stock of your organizational priorities and banking needs before comparing options.

Key Considerations

• What types of accounts and transaction volumes do you expect?
• What fees can your budget sustain?
• Do you need lending or credit right away?
• How localized or personalized do you need support and service?
• Do you prefer in-person, online, or mobile banking?

Document these organizational needs before talking to any banks or credit unions. Most will allow you to open an account with no upfront fees, minimums, or commitments. You can test drive their digital platforms and support teams before deciding if they are the best fit long term.

Be sure to inquire about the following services and features during your evaluation process:

• Fundraising and donation management tools
• Integrated credit card processing capabilities
• Cash flow analysis reporting
• Account reconciliation support
• Document imaging and storage
• CDFI certification and programs
• Grant opportunities and partnerships

Meeting these banking requirements as a nonprofit ensures you maximize every dollar towards advancing your mission, not just minimizing fees.

Finding a nonprofit bank aligned with your service goals can transform into a lasting relationship. The most successful foundations and charities partner with institutions offering guidance to improve their sustainability, reach, and impact over time through customized solutions.

Managing a mission-driven organization is hard enough without struggling with your bank or finances. Take the time to find a nonprofit banking partner aligned with your goals and committed to your financial success at any budget. Use this guide as a starting point, do your research, ask around for referrals locally, and don’t be afraid to open accounts at a few places before settling down.

The needs of your nonprofit may change over time, but you should never feel locked into a financial institution that isn’t giving you its best. Use the options and advice covered here to find a nonprofit bank equipped to handle your growing future.

Conclusion

Selecting the right banking partner is critical for nonprofit organizations looking to optimize their finances and operate efficiently. This guide covered the key factors to evaluate along with the top national banks and credit unions delivering the best combination of low fees, digital platforms, and customized service.

Use this advice to narrow down your options considering the specialized needs of 501(c)(3) compliance, donations, lending access, and cash flow management. Finding a nonprofit bank that can support your mission over the long term will ensure financial stability even as your budget and programs expand. Reach out to any of the featured institutions to start a conversation and open an account today.

The post Best Banks For Nonprofits In 2024 appeared first on ThemoneyMail.