When looking for a bank for your nonprofit, prioritize one that helps you save by offering accounts with no monthly service fees or easy-to-waive fee conditions. Some banks provide specialized accounts and services for nonprofits, which are compatible with a charitable organization’s needs. Others won’t have a dedicated nonprofit account but will provide a basic-tier product with a high transaction limit, waived monthly fees and efficient business tools.
With advanced banking technology, financial technology companies have also made it easy to open an account online. These fintech companies will waive account balance requirements, monthly service fees and initial opening amounts. Additionally, they offer unlimited transactions, which is cost-effective for nonprofit organizations.
We evaluated the nine best banks for nonprofits.
*Truist, U.S. Bank, Bank of America, Capital One, PNC Bank and Wells Fargo are all members of the Federal Deposit Insurance Corp. (FDIC).
**Fintech platforms mentioned above are backed by and FDIC-insured through supporting bank partnerships: Bluevine with Coastal Community Bank, Relay with Evolve Bank & Trust and Thread Bank and Novo with Middlesex Federal Savings.
The table below shows the key features we considered for the best banks for nonprofits.
Our rating: 4.38 out of 5
Truist is our best bank for nonprofits with its offer of unlimited and fee-free cash deposits and no monthly fee under Truist Community Checking, its specialty nonprofit account. You also get a high fee-free transaction limit of 225, free online bill pay and additional fraud security through its Fraud InspectorTM service. The bank has over 2,500 physical locations in Washington, D.C. and 15 states: Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.
With fee-free cash deposits, high transaction limits and no monthly service fee, Truist Community Checking is an excellent account for nonprofits and small community or civic organizations. Compared to other banks’ basic tier accounts, this product has the highest number of free transactions at 225 items. Past this limit, the transaction fee of 35 cents is also lower than other financial institutions.
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Our rating: 4.35 out of 5
Similar to Truist, U.S. Bank offers a specialty nonprofit product, Nonprofit Checking, and this account suits organizations with unique transaction schedules. It does not charge a monthly maintenance fee. You get an annual transaction limit of 1,800 and a cash deposit allowance of $30,000 per year. The bank allows nonprofits to open checking accounts and credit cards without personal guarantors. In addition, it provides donor funding tools and a quick payment service (Everyday Funding) at no additional fee.
U.S. Bank has branches in Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming.
Instead of setting a monthly limit of fee-free transactions and cash deposits, U.S. Bank’s Nonprofit Checking provides an annual limit, which benefits nonprofits with unpredictable transaction activities. This setup is advantageous after a large fundraising drive since you won’t incur excess fees when transacting a large amount as long as you keep within the annual limits. We consider U.S. Bank’s annual limit of transaction and cash deposits as the best for nonprofits that value flexibility.
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Our rating: 4.32 out of 5
Bluevine, a fintech company, is ideal for nonprofits that want to open a fee-free account that generates high interest. It streamlines the account opening process and allows charitable organizations to apply for a checking account online. It offers three business checking options with increasing APY rates and waivable monthly fees for the higher-tier products. Bluevine funds are FDIC-insured up to $3 million from its sweep network bank partnership. For financing, your charitable organization can access an excellent line of credit with low rates.
Although it does not offer a specialty nonprofit account, the Bluevine Standard checking is a great option that provides a high interest rate. Nonprofits can earn a 2.0% APY as long as they receive $2,500 in monthly customer payments or spend at least $500 each month using the Bluevine debit card. Largely fee-free, this provider does not have a minimum balance requirement, monthly fee or opening deposit.
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Our rating: 4.29 out of 5
Bank of America is an established bank with an accessible branch presence in Washington, D.C. and 38 states. Currently, it has no locations in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Vermont, West Virginia, Wisconsin or Wyoming. Nonprofits can earn a welcome bonus of up to $200 when opening a new business checking account and meeting qualifying activity requirements. It also has an excellent tiered rewards program and a starter checking account with one of the highest fee-free cash deposit limits in the banking industry.
We highly recommend the bank for nonprofits that need to deposit cash regularly. The entry-level account, Business Advantage Fundamentals Banking, offers free cash deposits of up to $7,500 monthly. Nonprofits that require higher limits can open the higher-tier Business Advantage Relationship Banking. To access discounts and additional interest rate boosts, you can sign up for the free Preferred Rewards for Business program.
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Our rating: 4.16 out of 5
Relay, a fintech, offers its Relay Standard checking product with no monthly fees, balance requirements and opening deposit. Each nonprofit business can open two savings accounts with a tiered APY of 1% to 3%, depending on balances. Cash deposits are free at Allpoint+ ATMs, and no ATM withdrawal fees are collected. However, you may still get charged for third-party operator fees.
For nonprofit organizations with many team members, Relay allows up to 20 free checking accounts and issues 50 free debit cards, which can help track spending and control expenses. It can help your nonprofit operation run more smoothly through its different account permission levels. Teams can delegate tasks, such as approving and paying bills, performing fund transfers and creating check payments.
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Our rating: 4.15 out of 5
Capital One is an established traditional bank offering two business checking options, Basic Checking and Enhanced Checking, with unlimited and fee-free digital transactions. It offers a full suite of business banking products and services and has around 750 branches in Louisiana, Maryland, New Jersey, New York, Texas, Virginia and Washington, D.C.
We included Capital One in our list of the best banks for nonprofit organizations since you can perform free and unlimited digital transactions, including mobile deposits, ACH transfers and online bill payments. With a business checking account, no opening deposit is required. You also get a monthly cash deposit allowance of $5,000 under its basic tier. Nonprofits needing unlimited fee-free cash deposits can open a higher-tier account. Additionally, you can use over 70,000 Capital One, Allpoint and MoneyPass ATMs for free.
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Our rating: 4.08 out of 5Â
PNC Bank is among the top 10 banks in the U.S. in terms of assets. Its wide range of banking products includes a nonprofit checking account. The opening deposit is $100, with a waivable monthly fee of $5. You get 150 fee-free transactions, which include deposits, deposited items, paid items, and ACH credits and debits. A cash deposit allowance of $5,000 is also provided each month.
It has over 2,500 branches in Washington, D.C. and 28 states: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.
With its own digital platform, PNC Bank is focused on providing nonprofits with transparency through an integrated and secure online portal where donors can submit their transactions and check reports. The bank offers philanthropic services through educational resources, specifically webinars and market events. Additionally, a dedicated planned giving team is ready to assist in managing the nonprofits’ investment and administrative needs. Tailored nonprofit finance solutions are also available.
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Our rating: 4.07 out of 5
Wells Fargo is a full-service bank with three regular business checking account options with waivable fees. The bank stands out by offering robust philanthropic services, even if it does not have a specialty account for nonprofits. You can open its basic account, Initiate Business Checking, which requires an initial deposit of $25. You get a monthly transaction allowance of 100 and fee-free cash deposits up to $5,000. The monthly fee of $10 is waivable.
The bank has a huge branch presence in Washington, D.C. and 36 states. It has no branches in Hawaii, Indiana, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Ohio, Oklahoma, Rhode Island, Vermont and West Virginia.
Nonprofits can rely on Wells Fargo to support their charitable goals. It offers philanthropic services, which include creating lifetime giving programs and managing the daily transactions of large-scale foundations or nonprofit organizations. Bank specialists are available to assist in your mission by managing public charity endowments and planned giving programs. In addition, the bank offers investment solutions, custom reports, administrative support for programs, consultations and guidance on fundraising and planned giving.
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Our rating: 3.85 out of 5
Novo is a fintech company dedicated to helping small businesses receive payments faster, send international payments at a low fee, create invoices and access financing through Novo Funding. It does not charge ATM fees and reimburses third-party operator surcharges up to $7 each month. It also allows customized sending of invoices for free and has integrations with QuickBooks, Xero, Wise, Stripe, Square and PayPal.
Nonprofits often receive donations from sponsors, and through the Novo Boost feature, you can get faster payouts through Stripe. Instead of accessing payments within days, you can receive them within hours. Charitable organizations needing to pay independent contractors and vendors for special civic projects abroad can perform international payments at a low fee through Novo’s partnership with Wise.
The Novo Business Checking account has no monthly fee, opening deposit and minimum balance requirement. Transactions are unlimited, and cash can be deposited through money orders.
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We looked at the following factors when evaluating the best banks for nonprofits:
We identified the best banks for nonprofits by reviewing the bank’s available specialty nonprofit checking products and services. We also considered the bank’s fee structure, specifically the monthly fee, opening balance, required balance requirements and ATM fees. We took APY, monthly transaction and cash deposit allowances, ease of account opening, availability of branches and existing business banking products into account as well.
SEE: Download TechRepublic Premium’s List of 10 Must-Read Books on Fintech
Nonprofits should consider opening a business checking account to make business payments on behalf of the organization and track their transactions and debit card purchases. Based on our evaluation, Truist Community Checking stood out as the best bank account for a nonprofit for its fee-free cash deposits, high transaction limits and no monthly service fee.
Owing to the special needs of nonprofits, you will want to pick a bank that provides excellent business accounts that offer the least fees, more fee-free transactions, high interest rates, efficient banking tools and nonprofit-focused services.
Yes. Wells Fargo earned a spot in our roundup of the best banks for nonprofit organizations since it offers convenient accessibility with many branches in several states. It also aids nonprofits by providing philanthropic services, which include administrative support for nonprofit programs and customized banking solutions.
Browsing through Reddit, here are some opinions I read about the best banks for nonprofits:
Many users recommended opening a nonprofit account at a local bank or credit union, which makes it easy to build a business relationship. They mentioned that services from small local banks are reliable and consistent. Wise and Melio were recommended for organizations needing to make international wire transfers.
However, others advised against choosing local financial institutions and suggested that nonprofits pick established ones with a good reputation. They said that larger national banks have better features, such as mobile deposit functionality and accessible branches and ATMs. There’s also a lower risk of being merged with another bank.
Meanwhile, some were against opening an account with big banks due to the fees. A Reddit user in the nonprofit community even shared an unfortunate experience with a big bank and has since transferred to a regional bank, where one can quickly contact a branch manager. Others also said to choose based on a banker’s professionalism, nonprofit expertise and friendliness.
Fintechs were also mentioned, given their technology and available services, but some found their customer service lacking and feared an eventual shutdown. Another Reddit user in the nonprofit community also stated they have an account at a large bank as a backup.
This article was reviewed by our banking expert Tricia Jones.
