We are looking to do our next community event by holding a drive to benefit a local nonprofit organization. We want to allow bank customers the opportunity to donate, in the form of personal hygiene/care items or money. Is there a problem/concern with customers donating money towards this drive? We’d deposit any funds donated to a special GL, then purchase needed items for the organization.

What sort of concerns might you have. There is nothing overtly wrong with it. Many banks do not interject themselves into the middle of a fund raiser as it is too difficult to choose which one to support and when you start telling others no when they make a similar request, who actually is the impartial judge in the organization to make that call.

Just not something our FI has done prior, as far as allowing customers to participate and give monetary donations if they choose. Normally these drives are more internal with participation from staff only

Randy raises a good point, as always. That aside, as long as you confirm the accounting side of it, I don't see any issues.

If marketing makes in-branch flyers for this and it mention the bank’s name and states we are partnering with this organization… would this warrant “Member FDIC” on it??

If the flyers are in branch, then they technically wouldn't need Member FDIC. However, it doesn't hurt to add it, and we add it to pretty much everything, other than NDIP, just to be on the safe side.

Could you use this opportunity for the local nonprofit to open an account at your FI? Not sure if that's a conflict of interest or not; I'm sure someone will have a more expert opinion. Then the funds could be directly deposited into their account, versus a bank GL.

Would you create a special GL for the funds? Or is there a "general" GL funds these would go to? How do you plan to keep track of financial donations?