Opening a Bank Account

Why Open a GLSEN Bank Account? Once your chapter begins to handle dues, contributions, and other forms of revenue the question of a bank account becomes very important. Using a chapter organizer's personal checking account for chapter funds is not a good idea because those deposits may be considered personal income.

How Can My Chapter Open a Bank Account? You do not need to be a 501 (c) 3 organization to have your own non-profit account. You do, however, need a tax-identification number (also called an EIN) for your chapter. Obtaining an EIN requires filing IRS form SS-4 (for more information on obtaining your EIN see "Obtaining Your EIN."

Once you have your EIN you should start looking for a bank to open your account with. Finding a bank with no-fee business checking should be relatively easy in most communities, although it may take some looking. If your chapter is small and will carry a low monthly balance be sure to see if there is a minimum monthly balance and what the fees are if your balance dips below that minimum.

When filling out the bank forms you may be asked if you have a GEN. If you have accredited as a chartered chapter then you received a GEN from GLSEN National. Otherwise, the answer is "no," you are a non-profit, but have no tax umbrella organization. The bank should still be able to open an account for you.

What About a Savings Account? Savings accounts are a good idea if you have money sitting in your checking account that will not be used for a time period. In the interim, you may want to transfer money from your checking account to your savings account to earn some interest.

Writing Checks Many chapters like to have more than one signer required to write checks. This is probably a good idea. However, consider the logistics of this decision: can the two signers meet conveniently in the event a check needs to be written? What happens is one of the signers is on vacation in Tibet for a week and a check needs to be signed?

A Note About Accounting Some down-to-earth accounting tips are outlined in "Accounting for GLSTN Chapters". Chapter organizers should not have to be accountants - they should be organizers. However, it is a very good idea to keep a clean checkbook. Be sure to record all payments and deposits, and balance the account every month as the statement arrives. Maybe you're not this thorough with your personal finances - that's OK - but these are your chapter's finances, and it's important to treat them seriously.