Hi, Jacob.

 

Yes, of course you can open a choir bank account, although depending on the bank it might have to be a business account rather than a personal account.

 

BUT, you may run into the same thing our community string orchestra did.  We opened an account with the President and Vice-President (me!) as signatories, BUT when our President moved away and we elected a new President, the rules had tightened up and it turned out to be impossible to delete one name from the account and substitute a new name and a new address.  I understand that it's to keep accounts from being highjacked by identity theives, but it's a real drag for small organizations like us!

 

In fact a totally separate personal account might be the smartest way to go for your immediate need, if your Board doesn't mind.  But again, check with your bank (or with several banks).

 

All the best,

John

 

 

Jacob,

 

Good question. Every state has its own unique banking rules so the final say will be with your bank. I don't

see why you can't do this, but I would advise against putting it into an interest bearing account. You, or whomever

sets up the account and will write the checks, will have to give a social security number in lieu of a tax exempt

number. Since you as an individual aren't tax exempt you will have to report whatever interest would be earned.

 

I would suggest you pursue the tax exempt status even though the process might not be competed for this

trip. It has become harder to get tax exempt status as time has gone on, and while it certainly is attainable by any community chorus

who knows what the future holds. I would suggest getting a CPA or attorney to assist you with the paperwork.

 

Good luck!

 

Ron Sayer

National Chair for Community Choirs

American Choral Directors Association

Dear Jacob,

Don’t confuse becoming a non-profit 501(c) (3) organization which is a lengthy and complicated process with registering for a tax ID number (quick and painless.)  You can get a federal ID number by completing an “SS4” form or doing it online at irs.gov and it takes 5 minutes.  The tax ID will stay with the group regardless of who is involved with it.  You were advised correctly to opt for a non-interest bearing account.

 

With said tax id number you can open a bank account in the name of the organization. Bring to the bank with you a one-page sheet that details the articles of the association; something like who the officers are, and which officers have signing authority, and how/when that changes.  You don’t want to be the only signer on the account anyway. Keep it vague on purpose. When officers change, as they will, have your “old” signer sign off and add the new signer.  The simpler you keep it, the easier it will be to make changes.  Ask when you open the account if that will be the case; if not, choose a different bank.

 

Also when you give the bank the mailing address for the organization, make sure to use “c/o Jacob Cook” as the first address line unless the group has its own PO Box. (Don’t just use your own address without c/o.)

 

Good luck with the tour!

In Illinois, where we are located, you need a employer identification number from the IRS before requesting Article of Incorporation with the state & going through the process with the IRS to get set up as a 501(c)3 .Of course, both of these processes require a lot of paperwork, which is another discussion. If you have an EIN #, it will likely make it much easier to set up a bank account.

 Thanks for all the advice and suggestions.  I really appreciate the fact that we can come to this forum, ask any question without fear, and receive worthwhile comments and advice.  IT's great to be a choral professional.