Beginning a foundation is a rewarding process for those who form it, and a beneficial thing for the community of people meant to receive the aid of the organization. An essential part of starting a foundation is establishing a bank account in the foundation's name that will act as the vehicle for all financial transactions. Knowing what to expect from the account opening process will make it a smooth event for all involved.
Visit the bank with which you want to establish the account, bringing your legal documentation with you. This should include the documents that show your status as a nonprofit organization, any other paperwork that describes your foundation as an organization, and documentation of your new EIN.
Determine who in the foundation will have signing authority. The organization's treasurer and director are good choices, but also consider any other person who may need to sign checks or have access to the account. The Foundation Center recommends splitting up financial responsibilities among employees so that no one person completes all financial transactions, as this will minimize the risk of misappropriation of funds.
Explain your needs to the personal banker, including the type of account you want -- checking or savings -- and the number of people you wish to be signers. While many checking accounts are prohibited from receiving interest under federal regulations, banking laws do allow qualifying non-profit organizations to receive interest on checking accounts. Ask if the bank offers this type of account for your foundation.
Obtain an Employer Identification Number (EIN). This number will be used for tax purposes for your payroll, as well as a means of identification for the bank opening your account. Use IRS form SS-4 to apply for the EIN.
Decide on the address for the account, and who you wish to receive the statements. The address you give to the personal banker is the address to which your statements will be delivered. Often, it is best if statements go to the director or executive so that he can be apprised of all transactions.
评论