Choosing the best bank for nonprofits sets up your nonprofit for long term success. Banks that are specifically geared towards nonprofits, or have a nonprofit offering will fit your organization’s needs better than a regular bank account. Your specific needs around transactions, reporting, fundraising, receipts will be better understood by these banks.
Don’t worry, we’ve made it easy for you to evaluate the different options on the market, just keep reading.
Types of Banks to Consider When Choosing the Best Bank for Nonprofits
When searching for the best bank for nonprofits, it’s important to understand the different types of financial institutions available. Each offers unique advantages depending on your nonprofit’s size, structure, and financial needs.
Digital bank
Digital banking apps are great for convenience. Account setup and maintenance is all done online, and generally without needing to talk to a representative. These banks will not, by definition, have brick and mortar locations or their own ATMs. On the other hand, they are the most savvy and growth oriented, you can count on a constant stream of new features.
Tip: Crowded is a digital bank* tailored specifically to nonprofit organizations, with specific features for multichapter nonprofits, online payment collection, unlimited digital debit cards and embedded fundraising.
Commercial banks
Commercial banks are known for their various amenities and resources they offer. They can offer online banking services, checking and savings accounts, basic investment services, loans, and more. These banks operate branches and ATMs probably in your area as they have a wide footprint. Some even offer specific nonprofit oriented accounts.
Tip: Customer service quality varies with these big banks, check what the reputation of the bank is for support wait times, and how helpful they are.
Local banks
Local banks may not have the national presence or tech-savvy features of larger institutions, but they make up for it with personalized service and strong community ties. If you’re evaluating options for the best bank for your nonprofit, a local bank might be a great fit—especially if they understand and support the nonprofit ecosystem in your area.
Credit unions
Credit unions are local institutions owned by their members. They offer personalized customer service, focusing on the local community and lowering fees and loan rates. Some larger national credit unions have local branches or credit unions that only work with certain affiliations, such as the military or educational institutions. Their product and service offerings will not be as robust as those of a bank. To bank with a credit union, you must qualify as a member.
Key Factors to Consider When Choosing the Best Bank for Nonprofits
1. Experience working with nonprofits
A bank with experience working with nonprofit organizations, or with a specific nonprofit banking product, will be better suited to answer your questions and serve your needs. They may have specialized features for nonprofits and a familiarity with your work. Choosing a bank with a nonprofit specialty will be more efficient and less frustrating. The best bank for nonprofits will offer tailored solutions, efficient onboarding, and informed support.
2. Fee Structures and Account Requirements
Analyze monthly maintenance fees, transaction fees, and minimum balance requirements. Look for banks that offer fee waivers or reduced fees for nonprofits, helping you maximize your financial resources.
3. Transaction and Fund Management Services
Ensure the bank provides efficient transaction processing, including ACH transfers, wire services, and merchant services.Robust fund management tools can assist in budgeting and financial planning.
4. Online Banking and Financial Reporting Tools
Opt for banks offering comprehensive online banking platforms with features like real-time account monitoring, customizable financial reports, and secure data storage. These tools enhance financial transparency and decision-making.
5. Integration with Fundraising and Donation Platforms
The best bank for nonprofits should work seamlessly with your fundraising tools. Look for integrations with:
Crowdfunding platforms
Peer-to-peer fundraising software
Donor CRMs (like Bloomerang, Salesforce, or Kindful)
EFT and payment processors (Stripe, PayPal, etc.)
This streamlines donation tracking, improves donor experience, and reduces the administrative burden on your team.
Crowded | U.S. Bank Nonprofit Business Checking | PNC Non-Profit Checking | Truist Community Checking | Everbank Non-profit checking | |
|---|---|---|---|---|---|
Monthly Fee | $5 | $14.95 | |||
Minimum Balance | $100 | $100 minimum opening deposit | $100 minimum opening deposit | $1,500 minimum opening deposit | |
Multi-chapter nonprofit
features
| Can list the parent organization on a chapter account. | ||||
Digital Account set-up | |||||
Digital officer handovers | |||||
APY | .005% | Up to 2.35% | |||
Free transactions | Unlimited | 150 per month | 150 per month | 225 per month | Unlimited |
Crowded is a dedicated banking* platform for nonprofit groups
We designed Crowded to give nonprofit groups access to modern banking* tools that make spending, collecting, and managing nonprofit money easier and less time-consuming. Because of this, we are constantly adding new features that make money management a more convenient and stress-free experience for group leaders and treasurers. In addition to our digital banking* and financial management tools, Crowded offers quick online account handovers and reporting features that help treasurers track all the information they need for tax-exempt forms in minutes.
Your questions, answered.
What is the best bank for nonprofits?
The best bank for nonprofits depends on your organization’s size, financial needs, and goals. Popular options include community banks, credit unions, and digital banks like Crowded that offer low fees, fundraising tools, and nonprofit-specific features.
Can nonprofits open a business bank account?
Yes. Most banks allow nonprofit organizations to open business bank accounts, provided they have the necessary documentation, including EIN, proof of 501( c )(3) status, and a board resolution authorizing account setup.
What banking features should nonprofits look for?
Key features include:
Low or no monthly fees
Online banking and mobile access
Donation tracking and fundraising integrations
Multi-user access for board members or finance teams
Strong customer support
Why choose a digital bank for your nonprofit?
Digital banks often offer tailored solutions like instant virtual debit cards, automated donation tracking, integrated financial dashboards, and lower fees—making them ideal for nonprofits seeking efficiency and innovation.
How do I switch banks for my nonprofit?
Switching banks involves:
Choosing your new nonprofit-friendly bank
Opening the new account and transferring funds
Updating donors, vendors, and partners with new banking details
Closing the old account after all transactions clear
