Can Accounts Be Styled 2 Different Ways?

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Question:

When we have a non-profit organization our bank titles it like "Jane Doe D/B/A as Girl Scouts Troop 55" and uses Jane's Social Security number. Where I worked at before titled accounts in the form "Girl Scout Troop 55" and used their own tax number. Can accounts be styled two different ways?

Answer:

Most national organizations, like Girl Scouts, have one or more EINs (the local or state council may have its own), and local troops generally operate under the control of the regional, state or national organization. It would be unusual for an individual to be operating a Scout troop independently. I suggest you do an internet search for Girl Scouts and your state to determine whom to contact for information. You may learn that the regional or state office has specific requirements regarding bank accounts and can confirm or deny that the individual asking to open an account has the authority to do so.

Unincorporated clubs and associations (a book club or bowling league, for example) are more likely to be groups of individuals operating without a charter and you may have to treat the individuals opening such accounts as your customers under CIP regulations. Even in these cases, though, it's better to require the group to obtain an EIN and provide it to the bank.

First published on BankersOnline.com 8/6/12