What Bank Accounts and Financial Tools do 501(c)(3) Organizations Need?

What is a 501(c)(3) organization and how can a nonprofit obtain that status? What bank accounts and financial tools and accounts do nonprofits need? And why do nonprofits need a board of directors and what goes into serving on one? With nonprofits playing such a vital role in our community and economy, 

In this episode of Financial Cents, Melissa Steimer, CEO of the nonprofit Gabriel’s Angels, joins Pamela Keefe, vice president, nonprofit relationship manager, and Brent Cannon, executive vice president, director of community banking at National Bank of Arizona, to discuss the challenges facing nonprofits today and how the right financial tools and solutions can help nonprofits overcome those challenges.

As Melissa discusses, nonprofits must follow certain regulations – not just to maintain their 501(c)(3) tax exempt status, but to ensure they are providing for their communities – which can make day-to-day business operations tricky. “At the end of the day, a nonprofit does make a profit,” says Melissa. “The biggest difference here is that the profit is not going to shareholders or an owner or other individuals, it’s going back into carrying out the nonprofit’s mission. That’s where the community good comes from.”

And given that the funds a nonprofit generates comes from donations, grants, and other sources that can be seasonal or short-term, it’s all that much more important to have the right tools and board leadership in place. “It’s not just about having a bank account created for nonprofits, it’s also about having fraud prevention tools in place, like Check Positive Pay¹. Having other tools to create efficiencies, like ACH for payroll and vendor payments, and a credit card.”

Financial Cents is hosted by Brent Cannon and features insightful interviews and discussions with bankers at National Bank of Arizona. Based on decades of banking experience, Financial Cents provides the insights you can only get from a friend in the business.

Subscribe from your favorite podcast platform by visiting: https://www.nbarizona.com/financial-cents/.

Interested in learning more about Nonprofit Banking? Learn more about our Nonprofit Banking solutions and connect with a banker here: https://www.nbarizona.com/business/specialty-banking/non-profit-banking/. 

Get involved or donate to Gabriel's Angel's: https://www.gabrielsangels.org/.

 

(1)    Terms, conditions and fees apply. Contact a banker for details.

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