Yes, it is possible to open a savings account with a charitible organization as the beneficiary. We run into this all the time, especially with CD's. Many older customers designated a church, etc. as a pay on death beneficiary. The customer will not get any additional FDIC insurance through the POD category, however. After the customer's death, the funds are simply payable to the charitable organization. The organization has no claim to the funds until the customer's death. At that time you will close the account (after receiving proper documentation) and issue a check to the charity. Since the charity doesn't own the funds until the customer dies, there is no need for it to be currently in a business account.
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