What Nonprofits Need To Know When Choosing A Bank
A Banking Partner Should Also Support Causes and Facilitate New Relationships
From managing cash flows to navigating tax-exempt regulations, banking plays an important role in the financial well-being of any nonprofit organization, so when a nonprofit is looking to choose a bank there are several factors to consider.
An expert in nonprofit banking needs, Kate Hickman (pictured), senior vice president with Alliance Bank of Arizona, Arizona’s go-to business bank, has helped more than 100 local nonprofits identify and fulfill their banking needs. Hickman has the following tips for nonprofit organizations when selecting a bank:
- Realize That You Don’t Always Need Cash to Secure Credit or a Loan – A common misconception is that as a nonprofit you need cash to secure a loan. The right bank can outline potential alternatives to help secure the funding you need, while recognizing that personal guarantees may not be an option with a nonprofit.
- Be Treated Like a For-Profit Business With Nonprofit Pricing – Nonprofits are in the business of asking for funding 24/7, so even nominal fees can add up and impact the bottom line. It’s imperative that your bank recognizes this and works with you on options to minimize fees, while maximizing earnings and efficiencies.
- Find a Bank That is Relationship-Focused – Because many nonprofits are traditionally deposit-only customers, many banks don’t invest in creating relationships with you like they do with other business clients that can have more complex needs. Make sure the bank you choose values building relationships with nonprofit clients and will take the time to understand your mission and the value that you bring to the community.
- Select a Bank That Supports Your Financial Goals and Your Cause – A bank should be supportive of your business planning needs, and also support your nonprofit’s mission. An ideal bank will also connect your nonprofit with other bank clients that are looking to become involved in the sector you serve.
About Alliance Bank of Arizona
Alliance Bank of Arizona is a division of Western Alliance Bank, Member FDIC, the go-to bank for business in its growing markets. Founded in 2003, Alliance Bank of Arizona offers a full spectrum of deposit, lending, treasury management, international banking and online banking products and services, plus superior service to meet the needs of local businesses. With ten offices in Greater Phoenix, Tucson and Flagstaff, along with Western Alliance Bank’s robust national platform of specialized financial services, the banking division is a valued partner for Arizona’s business, real estate, professional, municipal and nonprofit communities. Western Alliance Bank is the primary subsidiary of Phoenix-based Western Alliance Bancorporation. One of the country’s top-performing banking companies, Western Alliance ranks #2 on the Forbes 2018 “Best Banks in America” list. For more information, visit alliancebankofarizona.com.