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What should nonprofit organizers look for when comparing banks?

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Quick Answer

Nonprofit organizers should look for banks that have a good reputation among other nonprofit organizations. Getting referrals from nonprofit groups is a good way to find quality financial institutions. Nonprofit organizers should also look for banks that offer strong fraud protections to customers. Convenient access to services and convenient geographic locations are other factors in choosing the right bank.

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Full Answer

Nonprofit organizers should seek banks that offer 24-hour electronic viewing of account activity, which is crucial for spotting and preventing fraudulent activity. Some banks have programs such as Positive Pay, which sends the bank electronic notifications whenever the account holder issues a check. This type of system helps banks to spot fraudulent checks quickly. Remote deposit capture is another fraud protection system that allows organizers to scan checks electronically, and it also gives nonprofits quick access to funds.

Organizers can ask if banks accept large deposits at night, particularly after fundraising events. If this service is available, organizers must consider whether the bank is located in a safe area. Because banks must remove defunct signatories on nonprofit accounts quickly after receiving a request to do so, organizers should ask how often a bank updates this important information. Bank managers should be attentive to nonprofit organization needs and return calls in a timely manner.

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