Generate Your Invoice with Bank Details Example for NPOs Effortlessly

Invoice with bank details example for NPOs

[Music] hey everyone what's going on this is attorney Audrey Chism with Chism law firm we helped establish individuals start nonprofits that impact the world alright here's another question that I received from you all which is when can you open up a bank account when can your nonprofit open up a bank account alright let's talk about it so you can open up a bank account typically bigots are gonna require two things alright the first is they're going to want to know that your nonprofit has what are called Articles of Incorporation okay so that's the first thing you need are your nonprofit articles and then the second thing you're gonna need is a tax ID number okay and the tax ID number is kind of like the social security number for your nonprofit it basically lets the government know that your nonprofit is a completely separate entity from you okay so that way when the government is reporting you know all that money and donations and income that your nonprofit is getting it doesn't associate all that money with you personally because then that would mean that you personally have to pay taxes on that money and we don't want that to happen right so those are the main two things that you would need your articles filed and your tax ID number but wait there's something else that you definitely need to know okay even though you can't go ahead and open up your bank account with those two things for your nonprofit and start accepting donations we always encourage our clients to wait if you can meaning we want you to wait until you get your actual 501c3 tax-exempt status from the IRS do you have to wait no of course you can you know start it earlier than that but the reason we encourage our clients to wait is because just in case you don't ever move forward and do that and you choose not to apply to get your tax-exempt status etc or maybe you did it on your own or something and it doesn't work out if that's the case the money that you have in that account you could be held personally liable to pay taxes on that money so that means that if you you know open up that GoFundMe account and set up that bank account and you know you raise two hundred and fifty thousand dollars in there and then you're like ah you know what I'll get the tax exempt status later I'm just not gonna apply or or maybe you you know applied yourself and you didn't know what you were doing or or trusted someone else to do it like you know some of our clients have done before they come to us and then that situation doesn't work out you know what then you could be responsible for having a paid on that income because instead of it being treated as a tax-exempt nonprofit organization it may be treated by the IRS it's just a regular corporation okay which means you don't money you know taxes on all that money alright so we don't want that to happen so instead we always advise at our clients you know go ahead and wait until all the paperwork is done everything is filed and approved so then that way you're accepting that money knowing that those donations will be tax-exempt but the good news is is if you've already started doing that you can still reach out to us we're still able to help you out because whenever we file our applications for clients we always request something that's called retroactive exemptions so that's something that we request from the IRS which is requesting that they make sure that all the early donations are still exempt even once we get that approval you know after it takes a few months all right so either way you know we can talk more about it and I'd love to talk more about about it with you so just give us a call at the number on your screen on my team we'd love to hear about your goals we'd love to hear about what you're trying to do to impact the world and how we can help you do it and make sure everything is done the right way all right so give us a call the numbers on the screen or you can you know schedule a free consultation with us and our website our free nonprofit consultation once again we believe in you we want you to make an impact we've helped a lot of people do this and we know we can help you as well all right thanks again for your time - leaving the world better and brighter than we found it have a great day [Music]