Non-Profit Orgs & Savings Account?

Question

I work with a non-profit organization that is trying to raise money for its daily operations and to eventually move into a larger space. My question is are we able to put our funds into an interest bearing savings accounts until we have enough to work with? I believe right now everything is going into a standard checking account that is in the name of the organization. This seems like a bit of a waste when ING can pay 4 or 5% interest and not really tie the money up for a long period of time. Does any one know?

Answer 1

I am the Treasurer for a non-profit group (though not an accountant). Yes, you can put money in an interest-bearing account. However, a busines cannot open an account with ING -- only an individual. (I thought of the same thing and checked with ING as I am a customer of theirs.) I'm not sure if some of the other on-line banks allow business/non-profits to open accounts. Best to go to their websites and check it out.
Good luck with your organization.

Answer 2

Absolutely. As a matter of fact, this is how many non-profits make money (get a huge donation and only spend what you make in interest). You should keep liquid (easily accessible w/ no penalty) only as much money as you truly need and invest the rest or you are essentially wasting money.

Answer 3

Banks will ask for the following: 1. Registration of the Organization with the Securities & Exchange Commission. (For you to be registered with SEC, you've got to have a set of Articles of Organization & Bylaws. Get a sample Constitution at the SEC for sample copies. They have requirements like the Articles of Organization should be written in A4 paper, the list of your set of Officers, etc.) 2. Secretary's Certificate stating the Official Bank Signatories of the organization as prescribed by the Bylaws of the organization 3. Valid Identification Cards of the Signatories

Answer 4

non profit answers your own question, guess what?INTEREST IS PROFIT CANT HAVE IT BOTH WAYS.