With a background in education and a fascination with finance, Emily Batdorf writes approachable content for consumers who want to deepen their understanding of personal finance topics. She loves writing about financial foundations—like opening the right bank accounts, building an emergency fund and tackling debt. Her work has been featured on sites including USA Today, MarketWatch, Credible and LendEDU.
Emily Batdorf
With a background in education and a fascination with finance, Emily Batdorf writes approachable content for consumers who want to deepen their understanding of personal finance topics. She loves writing about financial foundations—like opening the right bank accounts, building an emergency fund and tackling debt. Her work has been featured on sites including USA Today, MarketWatch, Credible and LendEDU.
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Fact Checked
Elizabeth Aldrich
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Nonprofit organizations don’t operate in the same way as for-profit businesses. They can qualify for tax-exempt status and must use profits to further their missions. Nonprofits can also have distinct financial needs, and the right bank and bank account can be a crucial part of a nonprofit’s success.
The best banks for nonprofits offer accounts with business-friendly features and few fees. While some banks offer nonprofit-specific accounts, others offer regular business accounts that can serve the needs of these organizations. Account details and annual percentage yields (APYs) are accurate as of February 7, 2024.
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Show Summary
Best Banks For Nonprofits
Best for Money Market Accounts
Axos Bank
Products
Savings, Checking, MMAs, CDs
Fees
Monthly maintenance, wire transfer and stop payment fees; no overdraft or out-of-network ATM fees
ATM Network
91,000+ ATMs nationwide
Learn More
On Axos Bank's Website
Savings, Checking, MMAs, CDs
Monthly maintenance, wire transfer and stop payment fees; no overdraft or out-of-network ATM fees
91,000+ ATMs nationwide
Editor's Take
We ranked Axos Bank as the best bank for nonprofits in part because of its low-fee, interest-bearing Non-Profit Money Market account. The Axos Bank Non-Profit Money Market Account earns 0.20% APY on all balances and includes 25 free transactions per month. It requires a $1,000 minimum opening deposit and has no monthly maintenance fees if you maintain a balance of at least $2,500. As an MMA, this account also comes with check-writing privileges and access to a dedicated relationship manager.
Read our full Axos Bank review.
Pros & Cons
- Unlimited ATM reimbursements
- Free checking and high-yield checking
- Sometimes offers sign-up bonuses for new customers
- Cash sweep program expands FDIC insurance to $200 million
- Optional payroll, merchant and treasury management services
- No physical branch locations
- Savings and CD rates not competitive with top online banks and credit unions
Details
In addition to the Non-Profit Money Market account, Axos Bank offers personal and business checking, savings, CD and money market accounts.
Axos is an online-only bank, and all accounts can be opened online. Customer service is available 24/7 via phone and live chat.
Best for Waiving Monthly Fees
PNC Bank
Products
Checking, savings, CDs, money market accounts
Fees
Waivable monthly services fees of $5 to $7 on most accounts, $3 out-of-network ATM fee
ATM Network
60,000
Checking, savings, CDs, money market accounts
Waivable monthly services fees of $5 to $7 on most accounts, $3 out-of-network ATM fee
60,000
Editor's Take
PNC ranked highly with our experts because its no-frills Non-Profit Checking account offers essential checking features at a low cost. The already low monthly maintenance fee of is only applicable to accounts with balances under $500, and the includes 150 free monthly transactions and $5,000 in free monthly cash deposits. Plus, with full-service banking and branches in dozens of states across the country, PNC might be a good choice for nonprofits that want access to a wide array of banking resources or receive frequent cash deposits.
Read our full PNC Bank review.
Pros & Cons
- Competitive APYs
- A large number of local branches and ATMs
- Full suite of digital banking tools
- Overdraft and out-of-network ATM fees
- Some accounts are only available in select areas
- Most CDs can only be opened in person at a branch
Details
PNC offers personal and business checking and savings accounts, MMAs, and CDs, plus credit cards and loans.
To open an account, call PNC between 8:30 a.m. and 8:00 p.m. ET, Monday through Friday.
Best for Business Checking Options
TD Bank
Products
Checking, savings, CDs, money market accounts
Fees
Waivable monthly services fees, overdraft fee, excess deposits fee
ATM Network
2,600
Checking, savings, CDs, money market accounts
Waivable monthly services fees, overdraft fee, excess deposits fee
2,600
Editor's Take
Though TD Bank doesn’t have a nonprofit-specific account, our experts found that TD’s four business checking accounts offer nonprofits a great selection of options. With this variety of accounts, nonprofits can choose the business checking account that has the fees, features and transaction limits that suit their organizations’ needs at every stage. It’s also worth noting that TD offers specialized treasury and financing services for organizations earning at least $5 million in annual revenue.
Read our full TD Bank review.
Pros & Cons
- Full-service bank with many account options to choose from, including student and senior accounts
- 24/7 customer support by phone
- Physical branches, some with weekend hours
- Low APYs on savings accounts, money market accounts and CDs
- Monthly fees for some of its accounts
Details
TD Bank offers personal and business checking, savings, CDs, MMAs, credit cards and loans. All TD business checking accounts include online and mobile banking, mobile deposit and other payment options, overdraft relief, 24/7 customer support, merchant solutions and online accounting. Business checking customers also have access to support from TD Bank Small Business specialists.
Account fees, minimums and cash deposit maximums vary by account. You can open a TD business account online or in person.
Best for In-Branch Banking
Bank of America
Products
Checking, Savings, CDs
Fees
Monthly maintenance, wire transfer, stop payment, out-of-network ATM and overdraft fees
ATM Network
15,000+ ATMs in the U.S.
Checking, Savings, CDs
Monthly maintenance, wire transfer, stop payment, out-of-network ATM and overdraft fees
15,000+ ATMs in the U.S.
Editor's Take
Bank of America ranked highly because it’s a full-service institution with widespread physical locations in 38 states and has all the bells and whistles a nonprofit could need. While accounts charge waivable monthly fees, they come with ample cash management tools and customizable account access for employees. Plus, nonprofits with at least $20,000 in qualifying account balances can access all the benefits of Bank of America’s Preferred Rewards—which include waived fees, rewards bonuses, interest rate discounts and more.
Read our full Bank of America review.
Pros & Cons
- Large national presence with 3,800 financial centers and 15,000 ATMs
- Easily open an account online or at a branch
- Preferred Rewards members enjoy fee waivers and higher rates on deposit accounts
- High monthly maintenance fees
- Interest rates for savings and CD accounts lag behind other banks
- $10 overdraft fee can be charged up to two times daily
- High account balances are required to qualify for Preferred Rewards status
Details
Bank of America charges a $10 overdraft fee per item, up to two times daily. The bank’s lone savings account, Bank of America Advantage Savings, requires a $100 minimum deposit to open and carries an $8 monthly fee, which is waived with a minimum daily balance of $500 or more, an eligible linked Bank of America checking account, enrollment in Preferred Rewards or for anyone under the age of 25.
Bank of America has two business checking accounts (Business Advantage Fundamentals and Business Advantage Relationship Banking), a Business Advantage Savings account and three types of business CDs (Featured CDs, Fixed Term CDs and Flexible CDs). The bank’s business checking and savings accounts all charge monthly maintenance fees that can be waived by maintaining a high balance or, sometimes, becoming a Preferred Rewards for Business member.
Best for Credit Union Banking
Navy Federal Credit Union
Products
Business checking, business money market, business certificates
Fees
Up to $20 monthly service fee on some accounts, $29 overdraft fee, $1 out-of-network ATM fee
ATM Network
30,000
Learn More
Read our Full Review
Business checking, business money market, business certificates
Up to $20 monthly service fee on some accounts, $29 overdraft fee, $1 out-of-network ATM fee
30,000
Editor's Take
Our experts ranked Navy Federal Credit Union highly due to its multiple options for low-fee, interest-bearing business checking accounts: the Navy Federal Credit Union Business Checking, Navy Federal Credit Union Business Plus Checking and Navy Federal Credit Union Business Premium Checking. All three accounts come with unlimited monthly electronic transactions, a major perk for nonprofits making frequent transactions online. Plus, as is common among the best credit unions, fees—including ATM fees—are low compared to those charged by banks.
Read our full Navy Federal Credit Union review.
Pros & Cons
- Free and premium business checking accounts
- Competitive interest on some deposit accounts
- Low transaction fees
- Membership is limited to those with military affiliation and their families
- $250 for sole proprietorships and $255 for all other business entities required to open a business account
- Monthly maintenance fees on some accounts
Details
All three business checking accounts earn dividends, though the interest is negligible on all but the Navy Federal Credit Union Business Premium Checking, which requires a minimum daily balance of $1,500 to earn the stated APY.
To open a business account with Navy Federal Credit Union, you must first become a member. You’re eligible to join if you are:
- An active-duty service member of the U.S. armed forces
- A retired service member or veteran
- A spouse, child or other immediate family member of an active duty, retired or veteran service member
- An eligible Department of Defense civilian
There’s a $5 minimum deposit to open the Navy Federal Credit Union Share Savings Account . That’s separate from the minimum deposit required to open a business checking, money market or certificate account.
Summary: Best Banks For Nonprofits
Methodology
To create this list, Forbes Advisor analyzed 159 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 29 data points within the categories of fees, account variety, access, customer experience, digital experience, business features, minimums, deposit and transaction limits, APY, and whether or not it offered accounts exclusively for nonprofits.
The following is the weighting assigned to each category:
- Fees: 15%
- Account variety: 10%
- Branch and ATM access: 10%
- Customer experience: 10%
- Digital experience: 15%
- Business features: 10%
- Minimums: 10%
- Limits: 10%
- APY: 5%
- Exclusive to nonprofits: 5%
Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, branch access, merchant services, integrations, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, transaction limits, cash deposit limits, minimum deposit requirements and minimum balance requirements.
Financial Institutions with accounts offering no or very low fees scored the highest, as did those offering low minimum requirements, high transaction limits, and high customer service and digital experience scores. To appear on this list, the institution must be nationally available.
What Type of Bank Account Should a Nonprofit Have?
The best bank accounts for nonprofits depend on the needs of your organization. But generally, a checking account or other accessible account—like a money market account (MMA)—is a good fit.
A nonprofit organization needs a bank account that can handle its daily transactions, like receiving donations and paying bills. However, some nonprofits will have additional needs. For example, if your nonprofit receives a lot of cash donations or payments, you should open a bank account that accepts cash deposits and makes it convenient for you to make deposits.
A savings account or money market account could benefit nonprofit organizations that want or need to maintain a separate cash reserve while earning interest on it. Yet these accounts can have monthly withdrawal limits, so having a primary checking account for daily money management is the priority.
Why Should You Have a Bank Account for Your Nonprofit?
Any business—nonprofit or for-profit—needs a bank account to help keep its finances in order. Even though nonprofit organizations don’t operate for profit, they still receive and spend money in their day-to-day operations. They need to pay bills, vendors and employees, as well as buy supplies and equipment. Nonprofits also need to be able to receive payments and donations while saving and reinvesting excess funds.
In addition to the practical standpoint of managing cash, a bank account is crucial for keeping money organized and accounted for. Detailed record-keeping is critical when it comes to maintaining tax-exempt status.
How To Open a Nonprofit Bank Account
Opening a nonprofit bank account is similar to opening a personal bank account. But you’ll need extra documentation and information when opening any kind of business bank account. To open a nonprofit bank account, you’ll typically need some or all of the following:
- Identification for account owners and authorized signers
- Tax identification number
- Articles of Incorporation
- DBA certificate
- IRS documentation of 501(c)(3) status
- Bylaws that state the powers of officers
- Recent meeting minutes
Before opening an account, check with your financial institution to make sure you have all the required documentation. You’ll also need to make your initial deposit via cash, check or an external bank account—your bank may only accept certain types of deposits, so see what your bank allows.
Depending on the bank, you may be able to complete the application and fund the account online, over the phone or in person.
Find The Best Banks Of 2024
How Much Money Can a Nonprofit Have in the Bank?
There is no specific limit to the amount of money a nonprofit can have in the bank. However, there are some guidelines.
In general, nonprofits are advised to keep three to six months’ worth of operating expenses in the bank. Some sources suggest having up to two years’ worth, though this isn’t always reasonable or practical.
More important than the amount of money a nonprofit can have in the bank is what the organization does with the funds. Because nonprofit organizations are tax-exempt, they can’t pay out profits to individual shareholders. Any profits earned must further serve the organization’s mission. Otherwise, the nonprofit could lose tax-exempt status.
How Many Bank Accounts Should a Nonprofit Have?
The right number of bank accounts for a nonprofit depends on the organization and its needs. Any nonprofit organization should have at least one bank account—likely a checking account—to handle daily cash management. This account should be equipped to handle the organization’s regular transactions, like making and receiving payments.
Additional accounts may be helpful for certain organizations and business needs. For instance, if a nonprofit organization has funds to set aside for long-term goals, it may be wise to open an interest-bearing savings account or investment account. A second account may also become necessary if an organization’s primary account balance exceeds the FDIC’s coverage limits.
