Toolbox: Nonprofits Require Strong, Experienced Local Banking Partner

Filed Under: Banking, Toolbox Articles

Cape Cod is home to hundreds of nonprofit organizations serving the unique needs of our communities and their vulnerable populations, each making invaluable contributions to quality-of-life in the region.

Raising funds to sustain nonprofits and enable them to fulfill their mission is no easy task and is a major responsibility of the organization’s leadership and Board of Directors.  An even more critical fiduciary responsibility is to ensure the funds are safe and secure within a respected and reputable bank, and wisely invested to generate a favorable return.

That’s why it is crucial that nonprofits conduct due diligence when selecting a banking partner to protect their assets and provide financial advice.

First and foremost, it is very important to consider a local bank with already strong ties to the community’s nonprofit sector.  These banks are more invested in the community and acutely aware of the challenges facing nonprofits that are addressing important issues affecting local residents. Nonprofits are fortunate that here on the Cape and South Shore there are several banking institutions that fit the bill. 

Recent unsettling events in the U.S. banking industry – while not reflective of systemic issues — also underscore the importance for nonprofits to partner with banks that offer 100% deposit insurance, regardless of balance. The Federal Depositors Insurance Corporation (FDIC) protects deposit accounts up to $250,000, but in Massachusetts some banks have an additional safeguard available – the Depositors Insurance Fund (DIF), a private industry-sponsored insurance company. The DIF protects all deposits above the FDIC insurance amount, guaranteeing that all funds entrusted to participating savings and cooperative banks are safe and sound. It is imperative that local nonprofits verify that the bank they partner with offers both FDIC and DIF coverage. 

At The Cooperative Bank of Cape Cod, we value the important work nonprofits undertake in our communities and appreciate the trust that so many have placed in our bank to safeguard and grow their assets. 

To meet the evolving needs of nonprofits of all sizes, The Coop developed CommunityFirst, a customized suite of banking products and services for charitable organizations.  CommunityFirst products offer nonprofits full FDIC and DIF insurance protection and competitive interest rates for money market, savings and certificate of deposit accounts, along with free mobile banking, bill pay and debit Mastercard. CommunityFirst products are available to all nonprofit organizations that qualify for tax-exempt status under IRS Code Section 501. Additional information can be found here.

Glenn Fitzgerald is Assistant Vice President, Small Business Relationship Manager at The Cooperative Bank of Cape Cod. He can be reached at