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Opening a bank acct


nbkj651

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At the minimum they will require some sort of tax ID. If your Charter Organization is incorporated you should be able to use theirs. It is not a good idea use the social security number of a leader because it can result in tax penalties to both the unit and the person, both of which may have tax problems down the road and suddenly there is a problem for both.

Some banks require also a motion or some documentation of the groups decision on who has access to the account. Another thing you need to decide is where the statements are going to be sent, a PO Box, the Charter Partner or the treasurers home. Again think carefully, people move and sometimes its hard to get them quickly.

 

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Most banks will provide a pre printed corporate resolution regarding signature authority. All you have to do is fill in the blanks.

 

The advice about not using a personal social security number is extremely sound. Don't even think about doing it. If your CO does not have or does not want to share a tax ID take it up with your DE.

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It is fairly easy to generate a tax ID number (go to IRS web site). Our troop has one. It is different than that of the CO. But remember, the troop is NOT a legal identity in and of itself. We have a non-interest bearing account so that we don't have to file any tax forms.

 

As for minimum requirements to open an account - for most banks, it is simply money. The more you have, the fewer "extra" requirements you need to meet!(This message has been edited by acco40)

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I would be very careful about filing for EIN for your unit. Looking at the application you need a group exemption number. Which I could not find a definition or how you get one with out being a 501c3 organization. A scout unit has no legal identity and is not a legal person.

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Our troop has a non-interest-bearing account that only requires a positive balance. I don't know where the tax number came from though - I assume it is from the CO. However, every time I organize a professional meeting, I open an account specific to that meeting. The meeting is the account holder and its lifetime is only a matter of months. But for me it's a convenient way to separate personal from professional funds (especially when the numbers get big on the pro side). I have to shop around for banks that are friendly to these accounts though. The troop has changed banks from time to time, when they changed their policies and required stiff fees for the account. No problem.

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I've been thru this one many times for a venture crew I was a part of.

 

1. Check with the bank you wish to use and they will give you the information that is needed to open an account(Be sure to tell them that you are with a NOT FOR PROFIT group)

 

2. If your CO doesn't have one or won't share it for any reason, contact your council office and ask for a tax exempt letter that is standard from the IRS or Dept of Revenue in your state.

 

3. Any and ALL mail should be directed to your CO as adults leave and hard feelings can happen and they may empty the account just to get back at someone in the unit.

 

4. There should be at least 3 or 4 signers on the account just in case one is not available AND 2 signatures on the checks NO MATTER what. Signers could be COR, CC, Treasurer and 1 MC for your respective unit.

 

Should you have any other questions feel free to email me off.

 

 

Eagle1984

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