We have had a non-profit inquire about opening an account with the bank. They state they qualify to not file Form 1023 because they meet the required not to file standard: making less than $5000 in gross revenue per year. I have verified this to be a correct statement through the IRS website.

So therefore, they will not have an IRS determination letter. So what would we document their non-profit status with, or would they not be eligible for a non-profit account?

Thanks

It's up to your bank whether it wants to put them in a non-profit account. The only compliance concern would be whether they would qualify for a NOW account if they wanted it. I'd stay away from that because you can't reliably say they fit the definitions in section 204.130 of FRB Regulation D, which does everything in terms of Internal Revenue Code sections dealing with nonprofits.

Thanks John. That is in line with what we thought, and our only non-profit account is a NOW.