Choosing the right financial institution for a NFP can be a daunting task, as there are many options around, and they are not created equal. Take a look at some of the questions you should keep in mind when selecting the right bank for you.

1. Who is the bank owned by, and who does it profit?
This first, double pronged question is a big one. For many NFPs find that contributors and benefactors alike prefer that the financial institution they are most closely connected with is local, and offers benefits to the local community. Banks who hire local people, and support local initiatives are often those most closely aligned with an NFPs vision.
2. Can the bank tailor its operations to the needs of the NFP?
An institution suitable for an NFP will be flexible and adaptable to the needs of the organisation. Every NFP is unique, and a bank that understands what will suit, and finds options to meet specific requirements is essential.
3. Does the bank offer reliable payroll options?
Ideally, being able to complete straightforward, routine financial activities such as payroll remotely, accurately and in a timely fashion will remove a lot of work from an NFP and should be a primary consideration for the NFP when choosing a bank.
4. Can the bank connect and individual manager to NFP accounts?
If a bank can dedicate an individual manager to NFP accounts, it will mean that any dealings with the bank are likely to be faster and smoother. That officer will learn about the NFPs needs more deeply, and will become an important quasi-member of the NFP team.
5. As a whole, does the bank operate ethically?
NFPs should choose their banks with ethical lenses firmly in place. In general, NFPs are in the business of social improvement, and should be aiming to take their business to a bank or financial institution that operates with similar goals.

You might like to take a look at the Third Sector’s Ultimate Guide to Banking, which is free, for more suggestions.

It is important that the financial institution that represents your NFP has a good understanding of your organisation’s goals and is in line with your ideals. Choosing the right bank will benefit your NFP and the people you represent.