Choosing the Right Account for Your Charitable Organization

Running a nonprofit means balancing mission-driven goals with financial responsibility — and the bank you choose plays a major role in that stability. Many nonprofits struggle with high fees, rigid account requirements, and disruptions during staff or board transitions. If you’re searching for local banks with free checking or nonprofit-specific solutions, or simply want to understand your options, you’re not alone.

This guide answers the most common questions small and midsize nonprofits have about choosing the right banking partner, minimizing fees, and keeping financial operations smooth even as teams change.

What Makes a Bank Nonprofit-Friendly?

According to national nonprofit surveys and feedback from organizations such as the National Council of Nonprofits and Charity Navigator, high monthly fees and limited support at large brand banks are major concerns for small and midsize nonprofits.

Many organizations also report issues with fee waivers, slow support, and requirements that account updates must be handled in person.

Local and community-focused banks, including Equity Bank, are often considered more nonprofit-friendly because they offer:

• Lower or customized nonprofit fees
• No minimum deposit or low minimum balance requirements
• More flexible support for nonprofit-specific needs
• Local bankers who understand the nonprofit landscape, from fundraising cycles to grant timing

Community banks also tend to prioritize relationships, not just transactions — a major benefit for nonprofits that rely on responsiveness and consistency.

What Fees Do Large Banks Charge Nonprofits?

National banks commonly charge:

• ~$15 monthly service fees
• Per-item transaction fees beyond a capped limit
• Balance requirements of $2,000–$5,000 to waive fees

These fee structures are typically designed for larger, more cash-stable organizations — not small, community-sized nonprofits that experience seasonal funding cycles and fluctuating balances. By comparison, Equity Bank offers a nonprofit account with a significantly lower minimum balance requirement — just $300 — making banking more accessible for small and midsize organizations. These lower thresholds help nonprofits keep more of their funds focused on programming rather than overhead.

Can a Nonprofit Use a Regular Business Checking Account?

Yes — nonprofits can open standard business checking accounts, but nonprofit-specific accounts may be a better fit.

Community banks like Equity Bank tailor nonprofit checking accounts with fee structures and online tools that support board oversight, staff transitions, and multiple account needs.

Nonprofits shouldn’t be treated like typical businesses — their accounts need flexibility and predictable costs.

Local Banks vs. Credit Unions: Which Is Better for Small Nonprofits?

According to guidance from nonprofit financial management groups such as Nonprofit Quarterly and the National Council of Nonprofits, community banks are generally more cost-effective and easier for small nonprofits to work with. 

They offer:

• Human-centered support
• Faster problem-solving
• Stronger familiarity with local nonprofit environments
• Flexibility to negotiate fees or account structures when needed

Credit unions also offer low fees, but may have limited business tools or online services.

Why You Should Avoid Accounts Tied to Individuals

One of the most common — and riskiest — pitfalls is opening accounts under a single staff member or treasurer. If that person leaves, your nonprofit could face:

• Frozen accounts
• Long delays in re-verifying identity
• Risk of losing access to financial tools
• Administrative gridlock

Instead, the organization should be listed as the account owner, with multiple authorized signers named in your bylaws and meeting minutes.

Opening Multiple Accounts for Programs or Grants

Many nonprofits need separate accounts for things like grant tracking, restricted donations, or project-specific expenses.

Banks do allow this — but some require:

• Separate board resolutions
• Updated meeting minutes naming authorized signers
• In-person verification with government IDs

Local banks streamline this process by maintaining updated documents and providing direct support for each account transition.

How Nonprofits Can Prevent Disruptions During Staff or Board Transitions

This is one of the biggest concerns nonprofits express — and for good reason. A treasurer or executive director change shouldn’t disrupt daily operations.

To keep your nonprofit’s accounts resilient, experts recommend:

• Two-person rule on disbursements (checks, ACH, etc.)
• Maintaining an up-to-date board resolution listing current signers
• Using treasury tools like Positive Pay to prevent fraud
• Pre-approving ACH vendors
• Conducting monthly bank reconciliations
• Updating signer information promptly when leadership changes occur

These steps help avoid delays, security risks, and mismanaged access during inevitable transitions.

Choosing a Banking Partner That Matches Your Mission

Choosing the right bank can make a meaningful difference in your nonprofit’s financial stability. Community banks like Equity Bank offer cost-effective, mission-aligned solutions for nonprofits that need accessible checking, lower fees, and smooth support during transitions. For nonprofits across Kansas, Missouri, Arkansas, Nebraska, and Oklahoma, having a reliable local banking partner can make day-to-day financial management significantly easier.

Whether you’re opening your first account or evaluating a switch from a national bank, a nonprofit-focused banking partner ensures your organization can stay focused on impact. 

To learn more or get started, contact Equity Bank or explore nonprofit checking options on our website.