Lesson 8 of 11
EIN and nonprofit banking
A nonprofit needs an EIN before it can apply for exemption or open an account. It is free from the IRS.
EIN
Apply after the state has approved incorporation, so the legal name on the EIN matches the entity. The responsible party is normally a director or officer.
Bank account
Banks typically ask for the filed articles, EIN letter, bylaws, and a board resolution naming authorised signers. Requiring two signatures on larger payments is a simple, effective control.
Set up bookkeeping from the first transaction. Grant funders and the IRS both expect income and expenditure to be traceable by programme.
Want help with the paperwork?
You can incorporate and apply for exemption yourself using the steps in this course. If you would rather have support, Gullia Filing prepares and files your nonprofit incorporation, supplies compliant bylaws and conflict of interest policy, and obtains your EIN.