Finding the right bank can help your nonprofit thrive. 🌳 But with so many different options available, it can be hard to decide which one is the best fit for your organization. Fortunately, we’ve done the research and identified the absolute best banks for nonprofits.
In this comprehensive guide, we’ll walk you through the credit unions, national banks, and online banking platforms that uniquely serve nonprofits. 🏦 Whether you’re looking for no-fee checking, tools to give more financial visibility to your board, or features to simplify bookkeeping, we’ll help you make the right choice for your nonprofit’s needs.
In this article, we’ll cover:
What kind of bank account can a nonprofit organization open?
Though nonprofits are tax-exempt, they still conduct business, employ staff, and pay operating expenses. For this reason, the IRS considers a nonprofit a business entity—and like any other for-profit business, a nonprofit is able to open a business checking account. 🤝
Some banks offer business bank accounts specifically for nonprofits. These nonprofit checking accounts might come with special features, like reduced fees or lower minimum balance requirements. 💰 However, nonprofits can open any kind of business checking account, so even if a bank doesn’t have an account labeled specifically for nonprofits, it’s important to consider all your banking options.
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For example, Relay (that’s us! 👋) is an online business banking platform built to serve the unique needs of small business owners and nonprofits. With Relay, nonprofits can open 20 individual, no-fee business checking accounts and two savings accounts—that means you can organize donations, grants, and your nonprofit reserves across multiple accounts, without worrying about minimum balance requirements or unexpected fees. 💵
3 types of banks for nonprofits
Nonprofit organizations have three main banking options: credit unions, national banks, and online banking platforms. Each has its own advantages and disadvantages, so let’s take a closer look at each.
🏠 Credit unions
Credit unions are member-owned financial institutions that typically offer lower interest rates on loans and higher savings yields than many big banks. 🤑 Plus, credit union accounts usually come with no monthly fees and better customer service options—perfect for nonprofits looking to get more bang for their buck.
✅ A credit union or local community bank might be right for you if...
You need access to a line of credit or loan and want a lower interest rate
Your nonprofit organization is on the smaller side and conducts most or all operations locally
🌎 National banks
National banks—like Chase and Wells Fargo—are larger institutions that have branches spread out across the country, so if you want to visit a bank in person, this could be a great option for your nonprofit. 🤝 Many national banks also offer services like cash management tools and access to foreign currencies, which are great if your nonprofit operates internationally.
✅ A national bank might be right for your nonprofit if...
Your organization’s board of directors is located in different parts of the country or internationally
You have large monthly transactions that require foreign currency exchange
💻 Online banking platforms
Online banking platforms like Relay offer business checking and saving accounts—plus money management features to help nonprofits organize their spending and gain more control over their finances.
Unlike traditional banks, digital banks aren't weighed down by outdated infrastructure and complex processes. That means they can charge fewer fees and offer conveniences like the ability to open your account completely online. It also means online banking platforms can offer greater levels of security, control, and transparency.
For example, traditional banks rarely offer collaboration features—making your executive director responsible for sending your accountant monthly bank statements and check images. This can slow down bookkeeping and reduce visibility around cash flow, which can be disastrous if your nonprofit is faced with an unexpected audit. 😬
Relay helps nonprofits solve this challenge with secure, role-based logins. 👥 Whether it’s your bookkeeper, executive director, or treasurer, you can add users, remove them, and set permissions at the click of a button—no more sharing login credentials between team members.
With secure access to your bank accounts, your financial advisors will be able to get real-time visibility into cash inflows and outflows. As a result, they’ll be able to ensure your books are accurate and audit-ready at all times.
Relay helped nonprofit accountant Ufuoma Ogaga prepare her clients for audits, reduce fraud risks, and increase transparency around cash flow. Read Ufuoma’s story here.
✅ An online banking platform might be right for your nonprofit if...
Your board of directors and volunteers work remotely and are located around the country
You want to securely collaborate with your financial advisors and team
You want to save on unnecessary costs like monthly maintenance fees
You want more control over and visibility into cash inflows and outflows
You desire top-notch customer service without the hassle of going in person to a branch
💡Read more: How safe is online banking?
How to choose a bank for your nonprofit
Sadly, the National Center on Charitable Statistics reports that 30 percent of all nonprofits will close within 10 years of operations. While more fundraising can help nonprofits succeed long-term, it’s also important for these organizations to find the right banking partner. 🔎 Ideally, your banking platform will help you gain greater visibility into cash flow, plan for unexpected expenses, and stay on top of spending. So how do you evaluate your options and choose the best bank for your nonprofit?
Here’s a quick breakdown of the top factors to consider.
💰 Fees: Maintenance, transaction, overdraft, and ATM fees can add up quickly for a nonprofit. Some banks waive fees if you hold a minimum balance, while others offer completely free checking accounts for nonprofits, so be sure to read the fine print.
💳 Multiple debit cards: Some banks only allow you to have one debit card per account holder, which can make it hard to organize your nonprofit’s spending. It can also be a security risk if you only have one card for dozens of different online and in-person transactions.
📈 Savings APY: It’s a good idea for nonprofits to consider banks with a high annual percentage yield (APY) on savings accounts. A higher APY can help you maximize your cash reserves—especially if you plan to leave money in a savings account for longer periods of time.
💻 Money management features: Accounting integrations, budgeting tools, and other features can help your nonprofit more efficiently manage expenses—and that can help you thrive in the long run.
🔐 Security: 2-factor authentication and role-based logins can help you keep your money safe. If you notice suspicious spending, some banking platforms also allow you to instantly freeze debit cards online—and if you ever discover fraud within your nonprofit, this feature can help you rapidly respond and protect your organization’s financial assets.
🏦 Convenience: Consider how easy it is to manage your nonprofit’s finances with the bank you choose—especially if you have members in different states or countries. Can you access the account from anywhere? How simple is it to deposit cash? Are there any locations or branches nearby?
💵 FDIC insurance: Any banking platform or bank for nonprofits should insure your accounts up to $250,000. However, if your nonprofit has more than $250,000 in deposits you might consider looking for an insured cash sweep program, which will allow you to get multi-million dollar FDIC protection on large deposits.
The 9 best banks for nonprofits in 2023
Now that we have a clear understanding of what to look for when choosing a bank for your nonprofit, let's dive into the best options available in 2023. We've chosen these financial institutions based on their fee structures, convenience, and specialized features that uniquely serve nonprofits.
Let's break down the 9 best banks for nonprofits. ⬇️
Relay
Relay is an online business banking and money management platform. We help nonprofits get clear on cash flow and plan for the future with no-fee business checking and savings accounts. Plus, you can automate savings and earn 1-3% APY* on every dollar.
Relay’s features are built to help nonprofits stay on top of spending and streamline time-consuming financial tasks. From bookkeeping integrations and role-based logins for your accountant 📊👤, to debit card controls that help you manage team spending—Relay is truly designed for nonprofits. 🙌
Plus, Relay offers unparalleled convenience with the ability to open your bank accounts completely online. You can even instantly issue and manage up to 50 virtual or physical debit cards, all from your Relay mobile banking app. 📱
Ultimately, Relay is one of the best online banking platforms for nonprofits. If you’re looking for features to simplify money management and get better visibility into spending and cash flow, Relay could be right for your organization.
Banking Features | |
Monthly account fees | $0 |
Checking accounts | Up to 20 individual business checking accounts |
Savings accounts | Earn 1-3% APY* |
Line of Credit | ❌ |
Debit cards | 50 virtual or physical debit cards |
Money movement features | Unlimited no-fee transactions Free ACH and check deposits Domestic outgoing wires: $5 International outgoing wires: $10 Or with Relay Pro for $30/month, you get: Unlimited outgoing domestic and international wires Same-day ACH transfers Bill pay and accounts payable automation |
Security features | 7 different levels of permissions with secure, role-based logins 2-factor authentication Instantly freeze debit cards online or via mobile app |
Accounting integrations | QuickBooks Online Xero Multiple other financial integrations via Plaid and Yodlee |
Convenience | Open and manage accounts entirely online |
Cash deposits | Deposit or withdraw cash at any AllPoint+ ATM |
FDIC Insurance | ✅ |
Trustpilot rating | 🟢 4.6 (Source) |
Bluevine
Bluevine is a digital banking platform that allows nonprofits to open a high-yield business checking account—you can earn 2.0% APY on balances up to and including $100,000. Bluevine doesn’t charge monthly fees, minimum balance requirements, or overdraft fees. 💰
Bluevine also offers a line of credit for eligible customers, which can be good for nonprofits that struggle with inconsistent cash flow. However, Bluevine has a few downsides like no savings accounts, only 1 business debit card, and steep wire transfer fees.
Bluevine might not be the most robust online banking option for nonprofits, but it does offer no-fee and interest-bearing checking. Be sure to compare the pros and cons based on your organization’s unique needs. 🤔
Banking Features | |
Monthly account fees | $0 |
Checking account | 1 checking account + 5 virtual sub-accounts Eligible customers earn 2% interest on business checking if you meet requirements |
Savings accounts | ❌ |
Line of Credit | ✅ |
Debit cards | 1 physical debit card Cashback rewards (if you meet minimum spend requirements) |
Money movement features | Unlimited no-fee transactions Free ACH and check deposits Domestic outgoing wires: $15 International outgoing wires: $25 |
Security features | 2-factor authentication 4 levels of user permissions with role-based logins |
Accounting integrations | QuickBooks Online Plaid enables connections with other financial apps |
Convenience | Open and manage accounts entirely online |
Cash deposits | Deposit and withdraw cash from MoneyPass® ATMs and Green Dot® retail locations |
FDIC Insurance | ✅ |
Trustpilot rating | 🟢 4.1 (Source) |
💡Read more: Bluevine vs. Relay comparison
Novo
Novo is a financial technology company that offers simple business banking services without monthly fees. They offer several perks for nonprofits, including ATM fee reimbursements and 10 virtual sub-accounts to help you manage your cash.
However, unlike most online banks, Novo doesn’t have overdraft protection and you’ll be charged a steep $27 if your account balance isn’t high enough to cover a purchase. Novo also doesn’t offer bill pay features or accounts payable automation.
Ultimately, Novo is a decent option for nonprofits, but it falls short compared to other online banking platforms with more robust features, interest-bearing accounts, and no overdraft fees.
Banking Features | |
Account fees | $0 monthly fees $27 overdraft fee |
Checking account | 1 checking account + 10 virtual reserve accounts (also known as sub-accounts) |
Savings accounts | ❌ |
Line of Credit | ✅ |
Debit cards | 1 physical debit card + 1 virtual debit card |
Money movement features | Unlimited transactions Free ACH and check deposits Domestic and international wires can only be sent through a 3rd party |
Security features | 2-factor authentication Instantly freeze cards online or via mobile app ❌ All added users have full access and account owner privileges |
Accounting integrations | QuickBooks Online Xero 15+ other financial integrations |
Convenience | Open and manage accounts entirely online |
Cash deposits | Use any ATM for withdrawals and Novo reimburses ATM fees Deposit cash by purchasing a money order and using mobile check deposit |
FDIC Insurance | ✅ |
Trustpilot rating | 🟢 4.7 (Source) |
💡Read more: Novo vs. Relay comparison
LendingClub
LendingClub is a financial services company that offers business checking accounts and savings accounts. With a primary focus on lending, LendingClub may be a good choice for nonprofits that are seeking easy access to loans and additional funding options. They also have one of the best high-yield savings accounts available for nonprofits with long-term savings goals. 📈💸
However, LendingClub doesn't offer the accounting integrations that some nonprofits may require for streamlined cash management. Additionally, while the lending focus could be beneficial for some nonprofits, not all organizations need to borrow money and some may desire a more straightforward banking experience.
Banking Features | |
Account fees | $10 monthly maintenance fee unless you keep a minimum balance of $500 |
Checking account | 1 checking account 1.5% APY for eligible customers |
Savings accounts | High-yield savings account 4.5% APY for eligible customers |
Line of Credit | ✅ Small business loans |
Debit cards | 1 physical debit card Mastercard Cashback rewards (if you meet minimum spend requirements) |
Money movement features | Unlimited transactions Free ACH and check deposits Domestic outgoing wires: $18 International outgoing wires: $40 |
Security features | 2-factor authentication ❌Must call to freeze or report missing debit card 4 levels of user permissions with role-based logins |
Accounting integrations | Syncs with QuickBooks Online |
Convenience | Open and manage accounts entirely online |
Cash deposits | Deposit and withdraw cash at ATMs ATM fee reimbursements for out-of-network ATM |
FDIC Insurance | ✅ |
Trustpilot rating | 🟢 4.7 (Source) |
Axos Bank
Axos Bank is one of America’s first digital banks and lenders. They provide a range of financial services but are best known for offering real estate investment loans. 🏢 The main downside of Axos is that their basic business checking account requires a steep opening deposit of $1,000. However, after that, there’s no monthly maintenance fee regardless of your account balance.
For larger nonprofits, Axos might be a good option. Beyond their basic business checking account, Axos also offers the more advanced Analyzed Business Checking, which includes features like customized reporting 📊 and remote deposit capture for large volumes of checks.
Banking Features | |
Account fees | $0 for basic business checking |
Checking account | One checking account Earn up to 1.01% APR for interest checking accounts |
Savings accounts | Non-profit money market account with 0.20% APY (minimum balance $2,500) |
Line of credit | ✅ Small business loans available |
Debit cards | 1 physical debit card |
Money movement features | Up to 100 free transactions Free ACH and check deposits Domestic outgoing wires: $35 International outgoing wires: $45 |
Security features | 2-factor authentication Freeze cards online or via mobile app ❌No role-based access or user permissions |
Accounting integrations | QuickBooks Online compatible |
Convenience | Open and manage accounts entirely online |
Cash deposits | Deposit and withdraw cash at in-network ATMs Unlimited domestic ATM fee reimbursements |
FDIC Insurance | ✅ Expanded multi-million FDIC coverage available with insured cash sweep program |
Trustpilot rating | 🟠 1.5 (Source) |
US Bank
US Bank is the fifth largest bank in the United States, offering a wide variety of services such as business banking, wealth management, and business loans. US Bank is one of the only banking options on this list that offers a specific Nonprofit Business Checking account.
US Bank is convenient because it gives nonprofits the option to open their account online or in person at a local bank branch. If you need multiple banking services (like credit cards, loans, and investing services), this bank might be a good option for your nonprofit. 🏦
There are a few cons to opening an account with US Bank, including expensive overdraft fees, outgoing international wires, and a lack of online money management features. Be sure to evaluate all your options before making your decision. 🤔
Banking Features | |
Account fees | $0 monthly fees $36 overdraft fee |
Checking account | Nonprofit business checking option $0 |
Savings accounts | Multiple savings account options No fees with $500 minimum balance |
Line of Credit | ✅ |
Debit cards | 1 physical debit card + 1 virtual debit card |
Money movement features | 1,800 free transactions annually Free ACH and check deposits Incoming Wire (Domestic): $20 Outgoing Wire (Domestic): $30 Incoming Wire (International): $25 Outgoing Wire (International): $50 |
Security features | 2-factor authentication Freeze cards online View-only access available for accountant |
Accounting integrations | ❌ |
Convenience | Apply for and manage account online 2,000 branches in 26 states |
Cash deposits | Withdraw and deposit cash for no fee at US Bank ATMs |
FDIC Insurance | ✅ |
Trustpilot rating | 🟠 1.3 (Source) |
Citizens Bank
Citizens Bank is a financial institution with branches in New England, as well as the Mid-Atlantic and the Midwest regions of the United States. If you’re looking for in-person, local customer service, Citizens Bank might be the right bank for your nonprofit. 🏠
The biggest downside to Citizens Bank is that to open an account, you’ll have to visit your local Citizens Bank branch or schedule a phone call with a banker. (Instead of opening your account completely online, like the other options on this list.)
Banking Features | |
Account fees | $0 |
Checking account | Nonprofit business checking account option |
Savings accounts | Money market and regular savings accounts available No fees with $2,500 minimum balance |
Line of Credit | ✅ |
Debit cards | 1 physical debit card |
Money movement features | 200 free transactions per month Free ACH and check deposits Domestic and international wire transfers available for a fee |
Security features | 2-factor authentication Freeze cards online accessOPTIMA offers advanced security features including customizable user permissions |
Accounting integrations | ❌ |
Convenience | Apply for an account online and open by visiting a branch or phone call 1,100 branches in 14 states |
Cash deposits | No-fee cash withdrawals and deposits at in-network ATMs |
FDIC Insurance | ✅ |
Trustpilot rating | 🟠 1.2 (Source) |
Wells Fargo
Large national banks like Wells Fargo are convenient because they typically offer multiple financial products, like business credit cards. Wells Fargo specifically is the largest lender of small business administration (SBA) loans, and though nonprofits may have difficulty accessing this type of loan, they may be able to get an SBA microloan under certain circumstances. Using a bank like Wells Fargo can be helpful if your nonprofit will need to borrow funds in the future. 💰
You’ll find the most Wells Fargo branches in California. In addition, Wells Fargo has branches in 37 states and you probably won’t have trouble finding one in any major US city.
One downside of Wells Fargo is that to open a business checking account, you’ll most likely have to go to a branch in person alongside any of the nonprofit’s owners, partners, or key board members. 🏦💵
Banking Features | |
Account fees | $10, waivable with minimum balance |
Checking account | 1 checking account |
Savings accounts | 1 savings account |
Line of Credit | ✅ |
Debit cards | 1 physical debit card per account |
Money movement features | 100 free monthly transactions Domestic outgoing wires: $30 International outgoing wires: $45 Up to $5,000 in free cash deposits monthly |
Security features | 2-factor authentication Freeze cards online View-only access available for accountant |
Accounting integrations | ❌ |
Convenience | Apply for an account online and finish opening in person at a branch 8,000+ branches in 37 states |
Cash deposits | No-fee deposits and withdrawals at in-network ATMs |
FDIC Insurance | ✅ |
Trustpilot rating | 🟠 1.2 (Source) |
PNC Bank
PNC Bank is another large national bank with a wide range of financial services. PNC’s nonprofit banking account offers free monthly maintenance with a minimum balance, plus the ability to set up 2 checking accounts for different purposes. If you maintain a minimum balance of $5,000 or more, you can earn interest on the funds in your checking account.
PNC has a unique program for nonprofits called Outsourced Nonprofit Investment Management. If your nonprofit needs to manage assets and risks or has an investment portfolio, PNC can help you manage related tasks and even act as your “chief investment officer.” 📈💸
However, PNC shares some of the cons of the other national banks listed in this article—like having to visit a branch in person for certain banking services. If you don’t need PNC’s nonprofit investment program, you might benefit from one of the more convenient online banking solutions on this list.
Banking Feature | |
Account fees | $10, or free with $500 minimum balance |
Checking account | 2 checking accounts in what they call a “Virtual Wallet” |
Savings accounts | 1 savings account with competitive rates |
Line of Credit | ✅ Offers multiple types of business loans |
Debit cards | 1 Visa debit card |
Money movement features | Up to 150 transactions per month Check deposit: $1.50 Domestic outgoing wire: $25 via online banking International outgoing wire: $40 via online banking |
Security features | 2-factor authentication Freeze cards online View-only access available for accountant |
Accounting integrations | ❌ |
Convenience | Apply for an account online 2,500 branches in 28 states |
Cash deposits | Withdraw and deposit cash with no ATM fees |
FDIC Insurance | ✅ |
Trustpilot rating | 🟠 1.3 (Source) |
🏆 Verdict: What’s the best bank account for nonprofits?
Choosing the best bank account for your nonprofit will depend on your organization’s specific needs and goals. If you’re looking to streamline financial operations, improve visibility into cash flow and spending, and conveniently handle your banking tasks online, Relay might just be the perfect fit for your business banking needs. 🙌
Relay is an online business banking and money management platform that offers no-fee checking and savings accounts. 💸 Whether your goal is to grow your savings or simplify nonprofit budgeting, Relay can help.
Here’s why nonprofits love banking with Relay:
✅ Open 20 individual checking accounts: Organize income, expenses, and cash reserves with multiple checking accounts. You can create individual accounts to set aside grants, budget for day-to-day operating expenses, and beyond.
✅ No account fees or minimum balances: With no monthly fees, overdraft fees, or minimum balance requirements, Relay helps nonprofits avoid unnecessary costs.
✅ Automated savings: Relay helps you add more breathing room to your budget with automatic savings. Plus, you’ll earn 1-3% APY1 on every dollar.
✅ Entirely online banking: Open checking and savings accounts, issue debit cards, and send and receive payments completely online—no in-person branch visits required.
✅ Your money, protected: Feel safe knowing your money is protected by FDIC insurance. Plus, all debit cards are covered by the Visa® Zero Liability Protection Policy.
✅ 50 virtual or physical debit cards: Create new debit cards for specific projects and expenses, and get instant access to virtual debit cards for online and mobile payments.
✅ Built for teams: Relay lets you set debit card spending limits and receive detailed data for all team spending. You can also invite your accountant, assistant, and other team members to Relay with secure, role-based logins.
✅ Streamlined bookkeeping: Relay allows you to sync detailed banking data directly into QuickBooks Online or Xero, making bookkeeping a breeze.
If you’re ready to bank with Relay, you can make the switch in 3 easy steps: open your account (completely online), transfer deposits, and move your payments. Plus, with our in-app switching tool, you won’t have to worry about leaving any transactions behind.
To get started with Relay for nonprofits, sign up here. 😎
Banking Built for Business Owners
No account fees or minimums; 20 checking accounts; 2 savings accounts with 1.00%-3.00% APY; 50 virtual + physical debit cards. Open account 100% online.
Learn more
