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.
Compare bank accounts for nonprofits and community organizations
This information is current as of April 12, 2023.
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 USD
TD Community Plus Plan
$4.95
30
30 items, $5,000 cash
Monthly fee rebate with $10,000+ balance
Available in 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 Plan
(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 USD
Scotia Community Account Plan
(small charitable organizations)
$3
10
10 items, $2,500 cash
Up to $5,000 Overdraft Protection (interest applies, requires credit approval)
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
Lower costs through fintech business bank accounts
1 - 5 of 5
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.
To open a business bank account for a community group or nonprofit, you'll likely need to visit a local bank branch in person. Assuming you bring the right ID and documents, you'll probably be able to open an account in 1 visit.
It's wise to keep your personal and nonprofit banking separate, as this makes it easy to track your organization's finances for accounting or auditing purposes. It also makes it easier to demonstrate to donors that their funds are being handled appropriately.
You can use your group's debit card outside Canada, but banks typically charge foreign transaction fees and add a small fee to the exchange rate when converting currencies.
Most Canadian banks don't have a limit to the amount you can hold in a community account. But your transaction fees may change depending on your balance, and some banks will waive your monthly fee with a minimum balance.
If your bank is insured by the Canada Deposit Insurance Corporation (CDIC), then your community account deposits are insured. Whether this counts as part of your personal account coverage or as separately coverage depends on whether your business structure is legally separate from yourself (i.e. corporations) or not (i.e. sole proprietorships).
Stacie Hurst is an editor at Finder, specializing in a wide range of topics including stock trading, money transfers, loans, banking products, online shopping and streaming. She has a Bachelor of Arts in Psychology and Writing, and she completed one year of law school in the United States before deciding to pursue a career in the publishing industry. When not working, Stacie can usually be found watching K-dramas or playing games with her friends and family.
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