Required Resolutions For Nonprofit Accounts
by Mary Beth Guard, BOL Guru
Question: Our deposit platform system generates two resolutions when we open a
nonprofit corporation account. A corporate resolution and a nonprofit organization resolution. Would both resolutions need to be signed or is the corporate resolution sufficient? There is no difference in the wording on the resolutions other than the statement that is it a corporation under state law or a nonprofit organization under state
law.
I would think that the corporate resolution would be sufficient.
Answer: If the entity opening the account is a standard corporation (which is for-profit, as opposed to nonprofit), you would use the corporate resolution. If the entity is a nonprofit organization (even if it is incorporated), you would want to use the nonprofit organization resolution in order to document for your records that this customer would be eligible for a NOW account.
The original version appeared in the October 2002 edition of the Oklahoma Bankers Association Compliance Informer.
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