Opening a Bank Account and Receiving Money
Creating a Bank Account: People are looking to donate to groups on the front lines. But because you’re on the front lines, setting up a way to get donations is probably the farthest from your mind. Here is an easy way to set up a bank account, even without an organization:
How to open a bank account for a community occupation.
Many “movements” are receiving money donations, and in many instances it might be useful to have a bank account. If you're going to have an account, it's better to open the account in the name of your group, even if it’s Baltimore Front-line Support, with a handful of people authorized to access the money, then to let one person put the shared funds into a personal account. Here's how you can open a bank account under the Front-line Support name.
· First, someone who's deeply involved in the local effort should go online and obtain an Employer Identification Number (EIN). You need this not to create a full organization for the Occupy effort, but just for banking purposes.
o Who should apply: the person can be anyone who's part of the decision-making process – it doesn't have to be a person who has officially been named a “leader.” The term the IRS uses is “responsible party” and anyone who is participating in your efforts would be qualified to be a responsible party.
o The IRS has an online process to seek an EIN number. It's found by searching for Online EIN or navigating here: https://sa2.www4.irs.gov/modiein/individual/index.jsp
o The first question asks what type of organization you're establishing, and this is the trickiest. Select “View Additional Types” then select Community or Volunteer Group.
o Many of the other questions are easier, so I won't go through each question. It's a short form: you'll need to put a name in, pick an address where mail can be received, and enter the full name and social security number of the person who's filing the online form (Line 7). That person is identifying herself as a member of the group, but isn't becoming fully responsible for everything. This is just a tax id number, not a commitment to accept liability on behalf of the whole movement. Line 8 can be left blank. Line 9, you'll check the box that comes closest to “unincorporated entity” or social group. Line 10, reason for applying: banking purpose (deposit contributions). Line 11: when the occupation started; Line 12: December; Line 14: No; Line 15: n/a; Line 16: Other (social protest or whatever other description seems apt); Line 17: social protest. Line 18: no
o The online system will then immediately generate an EIN, and a letter identifying that number.
· Second, find a community bank or credit union. Go in person with your EIN number, and find out from that institution what other authorization or records you'll need to create to have a number of people authorized to sign checks out of the organizational account.
o You'll need to get some paper authorization from the larger body to appoint these individuals. You can do this without going through the formalities of creating a formal organization, but since banks aren't used to unincorporated associations and collective efforts, it may take a bit of back and forth with a knowledgeable person at the bank to figure it out. Volunteer groups have bank accounts all the time, so this can be done.
o I'd recommend that at least 3-5 people be authorized signatories on the account.
o The bank might offer you an option such as letting one signature be sufficient for checks under a certain dollar amount, and two signatures required for larger checks.