Banking Solutions
for Nonprofits
101
Four Money Saving Strategies for Nonprofits
with Bank Products
Understanding Bank
Options for
Nonprofit
Organizations
What type of accounts are available for
Nonprofits
• Free Small Business Checking Account
– These types of accounts are designed for small businesses who
have a lower volume of monthly transactions and have basic
banking needs such as online banking and debit cards
• Standard Business Checking Account
– These types of accounts are designed for businesses who have
a higher volume of transactions each month and typically have
needs for the additional business services that a bank might
offer beyond online banking and debit cards
What type of accounts are available for
Nonprofits
• Business Interest Checking Account
– These types of accounts can be GREAT for non-profit
organizations as they allow the business to earn interest on their
working capital which helps to offset fees while providing access
to the additional business services a bank may offer.
• Business Money Market Accounts
– These types of accounts work like a traditional personal Money
Market with minimum balances and transaction limits. They
typically earn a higher rate of interest than a Business Savings
account while providing access to all the additional business
products a bank may offer.
What type of accounts are available for
Nonprofits
• Business Savings Account
– These type of accounts usually have a minimum balance and
transaction limits.
• Premium Business Accounts
– These type of Accounts usually have access to all the additional
Business products a Bank will have.
– They usually earn a higher interest.
– They are bank specific and relationship and/or balance specific.
What type of accounts are available for
Nonprofits
• Business Certificate of Deposit (CD) Accounts
– These type of Accounts are deposits held by the bank for
specific periods of time to earn interest.
– They usually earn a higher interest than a savings account.
– They are bank specific and relationship and/or balance specific.
• Business Investment Accounts
– These type of Accounts are opened by an investment officer and
are not FDIC insured.
– They usually earn a higher interest.
– They are risk based and usually balance specific.
The typical fees associated with accounts
• Free Small Business Checking Accounts
– Fees are usually assessed if transaction limits are exceeded or
balance requirements are not maintained.
• Standard Business Checking Accounts
– These accounts usually have a base monthly fee with additional
fee amounts depending on the transaction activity and services
used.
• Business Interest Checking Accounts
– These accounts usually have a maintenance fee associated with
the required minimum balance and additional fees based on
transactions and services used.
The typical fees associated with accounts
• Business Money Market Accounts
– These accounts usually have fees for services used and fees for
exceeding transaction limits.
• Business Savings Accounts
– Theses accounts usually have fees for exceeding transaction
limits and for not maintaining minimum balances.
The typical fees associated with accounts
• Typical Premium Business Account Fees
– These accounts are bank specific and can have fees
for services used, minimum balances, and fees for
exceeding transaction limits.
• Typical Business Investment Account Fees
– The fees for investment accounts vary depending on
the type of investment and the brokerage company
providing the service.
Add on products that can benefit a Nonprofit
and fees that may accompany them
• Automated Clearing House (ACH) Transactions
– Allows a customer to make electronic payments and
direct deposit of paid employees. Fees are bank
specific.
• Business online banking with Bill Pay
– Allows a customer to view, transfer funds and pay
bills online. Fees are bank specific.
• Remote or Edeposit
– Allows a customer to make check deposits from their
office. Fees are bank specific.
Add on products that can benefit a Nonprofit
and fees that may accompany them
• Positive Pay and Payee Positive Pay
– Allows a customer to reduce check fraud by
registering the checks written with the bank. Fees are
bank specific.
• Mobile Check Deposit
– Allows a customer to deposit a check by taking a
picture of it with your smart phone. Fees are bank
specific.
• Wires
– Allows a customer to send or receive money the
same day. Fees are bank specific.
Add on products that can benefit a Nonprofit
and fees that may accompany them
• Merchant Services
– Allows a customer to accept credit and debit card
transactions. Fees are bank specific.
• Safe Deposit Boxes
– Allows a customer to keep items secured in a location
with restrictive access. Fees are bank specific.
• Night Deposits
– Allows a customer to make deposits at the bank after
hours for credit the next business day. Fees are bank
specific.
Account balance
security for a
Nonprofit
Typical FDIC Coverage
• Every Type of Business Bank Account
– FDIC DEPOSIT INSURANCE COVERAGE LIMITS
are by Account Ownership Category.
– All bank accounts are covered up to $250,000.00 per
customer ownership category.
• Accounts not covered by FDIC Insurance
– Stock investments, Bond investments, Mutual funds,
Life insurance policies, Annuities, Municipal
securities, Safe deposit boxes or their contents, U.S.
Treasury bills, bonds or notes.
Products in addition to FDIC coverage to
ensure balances are safe
• Most Banks have additional products to assist
with coverage
– The products can vary dramatically and are
dependent on bank size, structure, and customer
needs.
• Examples of these Products
– Securities, Insured Cash Sweeps Network, Insured
Asset Programs, CDARS Network.
Safety versus interest income gain
• The Board of Directors must decide the risk level
they are comfortable with. Some factors to
consider are:
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–
–
–
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The bank’s safe and sound rating. See Bankrate.com
The objective of the money in question.
Are investments an option for higher interest income?
How long will the money be in the account?
Are there restrictions on the money in the account?
Bank Products
that can earn money
for a Nonprofit
Traditional Products Available
• Interest Bearing Accounts
– The Interest earned is bank dependent, balance
specific, and relationship dependent.
– The Types of accounts are Certificate of
Deposits(CD), Savings, Money Market, interest
bearing Checking and Premium accounts.
Go Green Products Available
• Automated Payment Systems
– These products are offered by larger banks.
– Income is earned when paying your bills through the
system.
– The amount of income earned is bank dependent,
spend dependent with matched vendors, and credit
exposure by the bank
– These systems can integrate into checking accounts
with most banks.
Go Green Products Available
• Purchase or Multicard Systems
– These products are offered by larger banks.
– Income is earned when spending money using the
cards.
– The amount of income earned is bank dependent,
spend dependent, and credit exposure by the bank.
– These systems at some banks can be integrated into
the automated payment systems to generate Income
at a higher percentage.
– These systems can integrate into checking accounts
with most banks.
Go Green Products Available
• Web Based Products or Systems
– These products are bank Dependent and are usually
based on customer needs.
– These products and systems usually need a
merchant account at a bank.
– These systems can integrate into checking accounts
with most banks.
– They are offed by the bank or a partner vendor of the
bank at a reduced cost.
Go Green Products Available
• Examples of these products
– EPNWeb: A total ecommerce company
– USA EPAY: Ecommerce and check
acceptance through the internet
– AUTHORIZE.NET: A total ecommerce
company
Go Green Products Available
• Examples of these products
– Continue to Give: A fundraising company that
partners with banks to offer tools to utilizes
web based, mobile applications, text
applications, crowd funding, and stand alone
kiosks to assist you in fund raising.
Nonprofits can be
Targets for Fraud!!
Protect Yourself!
Tradition Scams
• Check Fraud
– Forgery – Still a common practice. Checks are stolen and IDs
falsified so checks can be cashed at banks.
• Counterfeiting and Alteration
– With modern printers and software Checks can be scanned and
duplicated.
– Checks can also be washed in chemicals that will dissolve the
inked signature and amount.
• Check Cashing rings
– Checks stolen and forged made payable to a group of people
that cash the checks at the same time in different locations to
cover the crime.
Newer High Tech Scams
• Email Attachments
– Opening an attachment from someone you don’t know can infect
your computer with a virus that steals your user names and
passwords. Allowing thieves access to your banking information.
• Hacked Email Accounts
– Hackers assume the identity of a CEO or CFO and direct
subordinates to wire money to someone for a purchase or
assistance. The money is taken immediately out of that account
at the other end.
• Online orders
– Hackers request your routing and checking account info to wire
you money and then hack your account online with other
information they stole elsewhere.
Newer High Tech Scams
• ATM and merchant skimmers
– Thieves put skimmers on ATMs and on merchant machines to
gather information on card numbers and associated PIN
numbers and sell them.
• Retail Store customer information hacks
– Hackers steal customer information from the stores you use and
sell that information.
Reducing Your Risk
• Protect your information
– Paper information is the easiest to steal.
• Statements
• Checks
• Review your accounts
– Assign someone to look at the accounts at least daily to check
activity
– Know what activity is good and recognize unusual activity.
– Have a plan to follow in the event of fraud on your accounts.
– Don’t rely on one individual to do it all.
• Keep your passwords safe and antivirus
software updated
Understanding your
banking will make
you a better steward
of you organizations
Money!
Questions?