Best Banks for Nonprofits in July 2024

Managing finances for a nonprofit can be stressful. While necessary, fundraising, handling donations, dispersing funds, and distributing public financial reports can feel like they are keeping you from your main mission.

Nonprofits are not the same as for-profit businesses but perform many of the same functions. We’ve reviewed top business and nonprofit bank accounts that offer low fees and a wide range of features to help nonprofit organizations manage their finances.

Best banks for nonprofits compared

* Monthly maintenance fees are waived if certain account requirements are met

Our recommendations

Best overall: U.S. Bank Nonprofit Business Checking

U.S. Bank is one of the only large national banks offering a nonprofit business checking account, focusing on nonprofit organizations' unique transaction requirements and collection practices. This account offers features designed for nonprofits, including:

• Digital donation collection.
• Fundraising collection options.
• Donor management tools.
• No monthly fees or minimum balance restrictions.
• Access to U.S. Bank loans and lines of credit for nonprofits.

With full-featured support for nonprofit institutions, U.S. Bank’s Nonprofit Business Checking is the best overall banking choice for nonprofits.

Best for in-person banking: Chase Business Complete Banking

The Chase Business Complete Banking account offers a full range of business checking features with the ability to accept digital payments and up to $5,000 in cash deposits per statement cycle. While not a nonprofit-specific account, here are a few helpful features for your nonprofit institution, including:

• Online donation collection.
• Unlimited digital transactions.
• Online bill payment.
• Access to Zelle and other money transfer apps.
• Access to primary and associate debit cards.

Chase has a history of helping nonprofits, with over 800 nonprofit clients globally and over $1 billion in nonprofit financing. And with more than 4,700 branches available, it’s our pick for the best in-person bank for nonprofits.

Best for high-interest checking: LendingClub Tailored Checking

LendingClub offers a business checking account to help nonprofits earn interest on donation deposits. The account pays 1.50% APY on balances up to $100,000 and 0.10% on balances over $100,000. The LendingClub Tailored Checking account includes these features:

• Unlimited transactions.
• Earn interest on all deposits.
• Earn 1% cash back on qualified debit card purchases.
• No monthly fees or minimum balance restrictions.
• Unlimited refunds on ATM fees.

If you want to earn interest on your cash balances, LendingClub is a great option. Just maintain a balance of $500 or more to avoid the $10 monthly maintenance fee.

Best for online banking: Bluevine Business Checking

Bluevine is an online bank offering an attractive APY on checking account balances with no monthly fees or account minimums. Bluevine is currently paying a 2% APY on balances up to $250,000 if you spend at least $500 per month on your account debit card or deposit at least $2,500 per month into the account. Here are a few of the features available with Bluevine Business Checking:

• Unlimited transactions.
• Up to 2% APY on balances up to $250,000 (after meeting criteria).
• No monthly fees, minimum balances, or overdraft fees.
• International payment support.

Bluevine is ideal for nonprofits looking for a full digital checking account. However, cash deposits incur a hefty fee of $4.95 per deposit at Green Dot retail locations, or $1 plus 0.50% of the deposit amount via Allpoint+ ATMs.

Best credit union: United Federal Credit Union Non-profit Checking

United Federal Credit Union’s nonprofit checking account has no fees or minimum balance requirement. It also comes with 1,000 free transactions per month. As a credit union, it operates as a member-owned not-for-profit, so it is uniquely positioned to help other nonprofit organizations. Some features of the account include:

• Mobile payments and deposits.
• Five free foreign ATM transactions per month.
• No fees or minimums.
• Earn interest (dividends) on high balances.
• Free debit card included.

You must be a United Federal Credit Union member to open an account. To join, you must live near a branch in Arkansas, Indiana, Michigan, Nevada, North Carolina, or Ohio, or work or be retired from one of United Federal’s 900 corporate members.

Best for small nonprofits: First Citizens Bank CORE (Nonprofit) Business Checking

First Citizens offers a nonprofit checking account with 100 free transactions per month, no monthly fees, and no minimum balance requirement. Smaller nonprofits with lower transaction requirements can save on fees with this account. Here are a few of the main features:

• 100 free transactions per month.
• $2,500 in free cash and coin deposits per month.
• No monthly maintenance fees.
• May earn interest on checking account balances.

This account may be a good fit if you’re a smaller nonprofit with few monthly transactions. Just be aware of the fees for exceeding the transaction or cash deposit limits. And you’ll need to live in a location supported by First Citizens to open an account in-branch.

Best high-yield savings account: Live Oak Bank High-Yield Business Savings Account

Live Oak Bank offers a high-yield business savings account with 4% APY. Deposits are eligible for Federal Deposit Insurance Corporation (FDIC) insurance up to $10 million with a cash sweep account. Account features include:

• You can open an account online.
• No monthly fees.
• Potential for FDIC insurance up to $10 million.

This account is a great choice if you run a larger nonprofit and want to earn interest on bigger balances. But you’ll want to pair it with a business checking account to handle day-to-day transactions.

Methodology

We reviewed more than a dozen business checking accounts that support nonprofit institutions to find the ones that offer low fees, low minimums, and tools available for nonprofit institutions. The best banks for nonprofits also offer donation collection tools, well-designed mobile apps, and pay interest on deposits. Plus, many offer free transactions for nonprofits of all sizes.

More about best banks for nonprofits

How to choose a bank account for a nonprofit

To find the best bank account for your nonprofit, you’ll first want to evaluate its financial needs. Most nonprofits function similarly to a business, collecting revenue (donations), distributing funds, and making purchases that keep the organization operating.

A business bank account is typically the best fit for most nonprofit organizations. These accounts offer cash flow insight, merchant services for collecting donations, and connected debit cards and checkbooks for making required purchases and expenses.

To choose a business bank account that works best, you’ll want to review how much you have in monthly deposits, the types of monthly transactions you have (and how many), and what features you require (such as donation collection, mobile deposit, etc.). This will help narrow down the choices.

What type of bank account should a nonprofit have?

Most nonprofits will benefit from having a business bank account. These accounts are designed to handle incoming deposits, track purchases, and cash flow, and connect to accounting software for tax and reporting purposes. Business bank accounts are of various sizes and features, so it’s a good idea to review your nonprofit banking needs before choosing one.

Benefits of opening a bank account for your nonprofit

Opening a dedicated bank account for your nonprofit is a good idea in most cases. Here is why:

Helps you stay organized

Having your nonprofit funds run through a single account will help you organize and manage funds more effectively. Plus, most bank accounts for nonprofits can connect to accounting software to give you financial insights into how your organization is operating.\

Better reporting

The IRS requires public disclosure of financial statements from all registered tax-exempt organizations. A dedicated bank account helps you stay “above board, " making transparent reporting much easier. This will help keep your tax-exempt status and comply with IRS regulations.

Cash flow management

If your nonprofit has multiple accounts, it can be hard to keep track of cash flow. Having a dedicated nonprofit bank account allows you to centralize all donation and spending activity, giving you insights into the organization's monthly and annual cash flow.

Key considerations while choosing a nonprofit bank account

Choosing a nonprofit bank account can help set your organization up for success. Here are a few things to consider :

Transaction limits

Many business and nonprofit bank accounts have transaction limits. Finding an account that offers enough transactions to fit your organization’s needs is important, as it can save you a lot of money in the long run.

Fees

Most business bank accounts charge transaction processing fees, maintenance fees, and other charges. Reviewing the account fee schedule to ensure you understand how it will impact your nonprofit funds is critical. Our top picks for nonprofit bank accounts come with very low costs and ways to avoid monthly maintenance fees.

Digital banking features

If you’re looking to easily manage your nonprofit bank account, a suite of digital banking features is necessary. From online donation collection to mobile deposits to online bill pay, digital banking can make managing your organization's funds a breeze. Make sure any bank account you are considering has the features needed to simplify the finances for your nonprofit.

Customer service

Before choosing a bank account, ensure you can get a hold of a human being at the financial institution you are considering. Nonprofits of all sizes occasionally have questions or issues with their finances, and being able to reach a customer service representative can be a lifesaver. Be sure to review customer service hours and contact methods.

Alternative banking options for nonprofits

While business bank accounts typically fit the bill for most nonprofits, your organization might benefit from a more specific account. Here are a few alternative banking options for nonprofits:

Local credit union: A local credit union may offer more personalized service for your nonprofit based on your area. Also, establishing a local banking relationship may help with funding or other needs in the future.

Regional bank: Medium-sized banks may offer more specific account types ideal for nonprofits, including tools tailored to nonprofit donation management and tracking.

Community Development Financial Institutions (CDFI): CDFIs are designed to serve the local community's needs and may be a great fit for your nonprofit. They aim to help underserved communities, which may be in line with your mission and goals.

TIME Stamp: Choose a bank that understands the needs of nonprofits

Finding a bank that understands the specific needs of a nonprofit and offers services and tools to help manage finances can make your job much easier. It’s important to assess the organization’s needs before choosing a bank. Also, review any fees associated with the account to ensure you don’t pay more than you should.

Frequently asked questions (FAQs)

What is the best bank for a charity account?

Several bank accounts are ideal for charities, including U.S. Bank’s Nonprofit account or United Federal Credit Union Non-profit Checking account. These accounts are designed to help handle donations, have no monthly fees, and cater to nonprofit organizations. The best bank account for your charity depends on your banking needs, monthly transaction amount, and whether or not you’d like to earn interest on balances.

What is the best bank for churches?

The best bank for a church depends on the church's size, banking needs, and how you plan to manage donations throughout the year. Several business banking accounts, such as the Chase Complete Business Banking account, might fit the bill.

However, U.S. Bank may be the best choice if you want a nonprofit-specific account. The U.S. Bank Nonprofit Business Checking account provides donation management tools and access to additional funding options, and churches can benefit from the wide range of services. Also, there are no annual fees.

What should you consider when selecting a nonprofit bank?

When choosing a bank for your nonprofit, consider your banking needs (donation collection, ATM access, funding, etc.) and the size of your organization. Many banks offer a limited number of free transactions, but the fees can be heavy if you exceed this amount.

We recommend banks that support your nonprofit at its current size but have services that can grow with your organization. Remember to always review the potential fees before signing up for an account.