If you run a charitable organization, you’ll need a dedicated bank account to keep track of payments and purchases. Thankfully, all of Canada’s Big Banks offer discounted bank plans for nonprofits and community organizations.
How to get a bank account for a club or nonprofit
Most traditional banks offer community accounts, which are meant for nonprofit organizations. Your organization may not need to be a registered charity as long as it benefits the community in some way like a school, community group, sports club or society.
You can find community accounts in the business banking section of banks’ website. Usually, you’ll need to visit a branch in person to apply.
How to compare bank accounts for clubs, charities and nonprofits
Consider these points when comparing community bank accounts:
- Fees. Startup community groups may not have a lot of money. Look for an account with fees that aren’t burdensome for your group. What are the limits for free cash, coin and cheque deposits? How much do deposits over the limit cost?
- App usability. What do you need to do access online banking? Check user ratings on Google Play or the Apple App Store to see what other customers think about the bank’s app. Is it reliable and easy to use?
- Customer support. Do you get dedicated business account service over the phone and in branches? Do the operating hours coincide with your group’s operating hours (or whenever you’re likely to manage your organization’s finances)?
- Payment processing. Does the bank offer payment processing solutions? If so, what is the cost?
Can’t I just use my personal account?
You and your group are separate entities. To safeguard both, it’s wise to manage your organization’s funds separately. This is practical, as you won’t have to sort through personal and business transactions when tracking your group’s finances or in the event of an audit. And considering that charities must keep financial records for up to 10 years, it’s a good idea to keep things organized for easy reference.
Compare bank accounts for nonprofits and community organizations
Account | Monthly fee | Transactions | Deposits | Other |
---|---|---|---|---|
TD Community Plan | $1.95 | 5 | 15 items, $2,500 cash | Monthly fee rebate with $5,000+ balance, available in CAD and USD |
TD Community Plus Plan | $4.95 | 30 | 30 items, $5,000 cash | Monthly fee rebate with $10,000+ balance, available in CAD and USD |
CIBC Not-for-Profit Operating Account | $4 | 30 | $5,000 cash, $500 coin, 30 cheques | Monthly fee rebate with $5,000+ balance |
Royal Business Community Account | $3.75 | 10 debits, 5 credits | 10 items | Link an eligible RBC Business card to your Petro-Canada card to save 3¢/L |
Scotia Basic Business Account (large charitable organizations) | $10.95 | 50% off (registered charities), 35% off (community groups) | $1-$5 per item | Monthly fee waived with $8,000+ balance, available in CAD and USD |
Scotia Community Account Plan (small charitable organizations) | $3 | 10 | 10 items, $2,500 cash | No deposit fees on payment processing, can get funds the next day with Chase Merchant Services |
BMO Community Account | $2.50 | 20 (including 5 in-branch deposits) | 25 items, $2,500 cash, $250 coin | Monthly fee waived with $5,000+ balance |
Information last verified May 22, 2024.
Lower costs through fintech business bank accounts
How to open a bank account for a club, charity or nonprofit
Once you find the right community account, make sure you fully understand the fees and features. The monthly fee may be waived if you maintain a minimum balance, or charges may change based on the size of your deposits.
Typically, you’ll need to go to a branch in person to open a community account. Be prepared to provide the following:
- Details of your organization like its name, address and purpose.
- Registration documents for your organization.
- Your personal details like your full name and contact information. Also provide the personal information of anyone authorized to access the account.
- Government-issued ID like a non-expired driver’s license, passport or Permanent Resident card.
- Proof of residency like a rental agreement, recent bill or utility statement showing your name and address.
Savings accounts for nonprofits and community organizations
Most banks don’t offer savings accounts designed specifically for nonprofits and community organizations. However, business savings accounts in Canada are almost always free, as banks rely on customers’ funds to function.
This means that you likely won’t have to pay a monthly or annual account maintenance fee for a business savings account with TD, CIBC, RBC, Scotiabank or BMO. But you may be charged for withdrawals and other transactions.
With no physical branches to maintain, digital banks have lower operating costs than traditional banks, which can translate into lower fees and higher high interest savings account rates. If you’re looking for low-cost savings account with competitive rates, check out Tangerine’s business savings accounts.
Frequently asked questions
More guides on Finder
-
RBC Flex Choice Business Account Package review
Learn about the supported transactions, features and fees of the RBC Flex Choice Business Account Package.
-
Best business chequing accounts
Your guide to the best business chequing accounts and how to choose the business bank account that suits your needs.
-
Best business bank accounts for sole proprietorships
If you run your own business, these business bank accounts will make it easy to manage your money
-
Business bank accounts with overdraft protection in Canada
Learn the ins and out of overdraft protection and compare business bank accounts offering this feature.
-
Best business bank accounts for corporations
How to compare business bank accounts for corporations and open an account.
-
Best free business bank accounts in Canada
Compare free business bank accounts in Canada and learn how to select the right account for your business needs.
-
Best business bank accounts in Canada
Explore our top picks for the best business bank accounts in Canada.
-
What vehicle tax deductions can I write off?
Figuring out which auto expenses are tax deductible can get confusing. We’ll help you understand which costs to claim, so you can maximize your business tax benefits.
-
Business savings accounts in Canada
A business savings account is a good alternative for business owners not interested in aggressively investing excess business funds.