Having a neighborhood bank account takes several steps and can greatly benefit your neighborhood association. It offers convenience, allowing your association to easily receive funds, pay for neighborhood projects, and in some cases the process of opening a neighborhood bank account can even make you eligible for grant funding.
To open a neighborhood bank account you will need two things: an approved copy of your neighborhood association’s Articles of Incorporation and an Employee Identification Number (EIN) (also an eligibility requirement for the Mayor’s Neighborhood Grant).
- Write your neighborhood’s Articles of Incorporation. A template can be downloaded here. To complete the template, you will need a few pieces of information:
- The name and address of a registered agent.
- An address to be listed as a principal office.
- The names and addresses of your director(s).
- Your neighborhood association’s mission statement.
- The name, address and signature of the incorporator.
- File your association’s Articles of Incorporation with the Nebraska Secretary of State at https://www.nebraska.gov/apps-sos-edocs/. You will need a credit card and will cost $17 ($10 plus $5 per page plus a $2 filing fee). Approval or denial of your Articles of Incorporation will usually take 1-2 business days.
- Once your association’s Articles of Incorporation have been processed and approved, you can apply for your EIN at https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers and clicking the “Apply for EIN online” link. To complete this online form, keep in mind
- The information you provide must match the information in your Articles of Incorporation.
- A Social Security Number (SSN), Individual Tax Identification Number (ITIN) or an EIN is not applicable.
- The type of entity should be listed as “Other nonprofit organization” and should be specified as a “Neighborhood Association”.
- The reason for applying should be listed as “Banking purpose” and should be specified as “Eligibility for grant funding”.
- Upon completion of the online application, you will receive your neighborhood association’s EIN.
- You are now ready to open up your neighborhood’s bank account. Remember, when opening your neighborhood association’s bank account, you will need
- An approved copy of your neighborhood’s Articles of Incorporation.
- Your neighborhood association’s EIN.
Some Definitions and Notes
Employer Identification Number (EIN) – A Tax ID issued by the IRS.
Registered Agent – a responsible party who is registered in the same state in which the business entity was established and who is designated to receive service of process notices, correspondence from the Secretary of State and other official notifications. It may be a director of the corporation or the incorporator.
Principle Office – can be the same as the address of the Registered Agent or one of the directors.
Director(s) – there is no requirement for the number of director(s).
Incorporator – the person who creates the corporate existence by signing and filing the Articles of Incorporation. It may be a director or the corporation or the registered agent. There is no requirement for the number of incorporators.