New Accounts: Guidelines for Non-profit Accounts

by Mary Beth Guard, BOL Guru
Guru BIOS

Question: I would like to know more on the guidelines on Non-Profit Accounts such as: Little League Softball Account, Band Booster Account, and John Doe for Sheriff Account.

Answer: Each one of these entities can be rather unique, so one rule of thumb will not apply in every case. On these types of accounts, you'll want to get any documentation you can. Some have a "charter" and bylaws. In the absence of either one of those foundational documents, at the very least, you want them to write out something to specify what the organization is, and who has the power to make decisions about authorized signers. They should apply for a TIN for the organization, even though it is an informal group. You will >
For CIP purposes, you will also need to verify the identity of the person opening the account on behalf of the organization, and for your CIP records, you will need to obtain that person's name, address, DOB and SSN.

The original version appeared in the July/August 2004 edition of the Oklahoma Bankers Association Compliance Informer.

First published on BankersOnline.com 2/14/05