How to Open a Nonprofit Bank Account in Washington

Everything you need to know about nonprofit banking requirements, best banks, and compliance in Washington.

What You Need to Know

Washington is home to approximately 40,000 registered nonprofits, with major concentrations in Seattle, Spokane, Tacoma, and Bellevue. The state's nonprofit landscape spans social services, education, healthcare, faith-based organizations, community development, and the arts.

Washington's nonprofit sector is supported by 158 FDIC-insured banking institutions, giving organizations strong options for their banking needs. The state's tax environment includes: No personal or corporate income tax. Business & Occupation (B&O) tax: rates vary by activity (0.138%–1.75% of gross receipts).

Whether you're launching a new nonprofit or looking to switch to a more cost-effective banking solution, understanding Washington's specific registration requirements and banking landscape is essential for making informed decisions.

Washington Nonprofit Registration Requirements

1. Incorporate with the Washington Secretary of State

File Articles of Incorporation (nonprofit) with WA Secretary of State, Corporations & Charities Division Filing fee: $180. File through the Washington Secretary of State. Include required language for tax-exempt status, including a statement of purpose, dissolution clause, and non-distribution provision.

2. Get Your Federal EIN

Apply for an Employer Identification Number (EIN) from the IRS — free, takes minutes online at IRS EIN application.

3. Apply for Federal 501(c)(3) Status

File IRS Form 1023 (or 1023-EZ for smaller organizations). Processing time: 3-6 months. Fee: $600 (Form 1023) or $275 (Form 1023-EZ).

4. Register for Washington Tax Exemption

Apply to WA Department of Revenue for B&O tax exemption and sales/use tax exemption. Washington has no income tax, so no income tax exemption needed. Must separately qualify for property tax exemption through county assessor.

5. Register for Charitable Solicitation

Register with WA Secretary of State Charities Program if receiving >$50,000 in contributions or using paid fundraisers/employees. Online filing mandatory per WAC 434-120-035. Annual renewal required.

6. Ongoing Reporting Requirements

Annual renewal with WA Secretary of State Charities Program. Financial reporting depends on contribution level. Organizations receiving $750,000+ must include audited financials.

Documents Needed to Open a Nonprofit Bank Account in Washington

•EIN Letter (IRS CP 575 or 147C)
•Articles of Incorporation (filed with Washington Secretary of State)
•Bylaws (signed by board)
•Board Resolution authorizing account opening and naming authorized signers
•Government-issued photo ID for all authorized signers
•501(c)(3) Determination Letter from the IRS (if available — some banks allow you to open while pending)
•Washington-specific requirements: Charitable solicitation registration confirmation; Washington tax exemption certificate (if applicable)

Best Banks for Nonprofits in Washington

1. Holdings (Recommended)

•Monthly fee: $0
•Minimum balance: $0
•APY: 1.75% on all balances (checking + savings)
•FDIC insurance: Up to $3M
•Nonprofit features: Unlimited sub-accounts for program/fund tracking, built-in accounting with auto-categorization, donation tracking
•Why it works for Washington nonprofits: Washington nonprofits managing multiple funding sources can use unlimited sub-accounts to track each grant and program separately. The 1.75% APY ensures your operating reserves are earning real interest instead of sitting idle — every dollar saved on banking fees goes directly to your mission.
•Open an account →

2. WaFd Bank Business Checking

•Monthly fee: $5 (waived with $500 minimum daily balance)
•Minimum to open: $100
•Free transactions: 200/month
•Branches in Washington: 70+
•Best for: Washington businesses wanting a locally-headquartered bank with western US reach

3. Chase Business Complete Banking

•Monthly fee: $15 (waived with $2,000 daily balance)
•Minimum to open: $0
•Free transactions: 100/month
•Branches in Washington: 150+
•Best for: Established businesses needing full-service branch banking and merchant services

4. BECU Business Checking

•Monthly fee: $0
•Minimum to open: $25
•Free transactions: 150/month
•Branches in Washington: 60+
•Best for: Washington businesses wanting the state's largest credit union with low fees

5. Banner Bank Business Checking

•Monthly fee: $8 (waived with $2,500 average daily balance)
•Minimum to open: $100
•Free transactions: 200/month
•Branches in Washington: 80+
•Best for: Washington businesses needing strong commercial lending and advisory

Washington Nonprofit Banking Considerations

State Filing Deadlines

•Charitable solicitation renewal: Check Washington's specific deadline for annual renewal
•IRS Form 990: Due 5 months and 15 days after fiscal year end
•Annual/biennial report: File with the Washington Secretary of State to maintain active status

Sales Tax Exemption

Washington nonprofits with 501(c)(3) status should apply for exemption from the state's sales tax (6.5% state + up to 4% local (10.5% max combined)). Apply through Washington's Department of Revenue or equivalent agency. Once approved, you can make tax-exempt purchases for your organization's exempt purpose.

State-Specific Compliance

•Register with WA Secretary of State Charities Program if receiving >$50,000 in contributions or using paid fundraisers/employees. Online filing mandatory per WAC 434-120-035. Annual renewal required.
•Maintain your corporate registration with the Washington Secretary of State.
•File your IRS Form 990 annually and provide copies to state agencies as required.
•Keep your Washington tax exemption active by maintaining your 501(c)(3) status and filing any required state returns.

Washington Nonprofit Resources

FAQ

Do nonprofits need a separate bank account in Washington?

Yes. While not always legally required, a dedicated nonprofit bank account is essential for maintaining your tax-exempt status, satisfying donor expectations, and meeting Washington reporting requirements. Commingling personal and organizational funds can jeopardize your 501(c)(3) status.

Can a Washington nonprofit use a personal bank account?

Technically possible in early stages, but strongly discouraged. Washington's charitable solicitation requirements expect organizational funds to be held in a dedicated account. Most grantmakers and institutional donors require it.

What fees should Washington nonprofits watch for?

Monthly maintenance fees, minimum balance requirements, transaction limits, and wire transfer fees are the most common hidden costs. Holdings charges $0 for all of these. Traditional banks in Washington typically charge $10-30/month plus per-transaction fees after a limit.

How long does it take to open a nonprofit bank account in Washington?

With Holdings: same day (online application, no branch visit). With traditional banks: typically 1-2 weeks including branch appointments and document review.

Does a Washington nonprofit need 501(c)(3) status to open a bank account?

No. You can open a nonprofit bank account with your EIN and Articles of Incorporation before receiving your 501(c)(3) determination letter. Holdings and most banks allow this.