Opening a Booster Club Bank Account: Documents and Signers

Why the Club Needs Its Own Account

A booster club’s money belongs to the club, not to the parents who raise it or the school it supports.

• Not a personal account. Money in a parent’s account looks like that parent’s money to the bank, the IRS, and creditors. If the parent dies, divorces, or is sued, the club’s funds can be caught up in it, and the parent has to prove which dollars belong to the club.
• Not a school account. The FCMAT student body accounting manual, written for California districts, states that booster clubs and other school-connected organizations are separate legal entities whose funds should be deposited into the organization’s own bank account, not commingled with student body or district accounts.
• Not a personal payment app. A personal payment app account is a personal account. See Accepting Online Payments.

What the Bank Will Ask For

Requirements differ by bank, so the treasurer calls ahead and asks for the bank’s list for nonprofit business accounts. Most banks ask for some or all of these:

The control person requirement comes from the federal customer due diligence rule (31 CFR 1010.230). A nonprofit corporation that has filed its organizational documents with the state is subject only to the “control prong,” which means the bank identifies a single individual with significant responsibility to manage the club, such as the president or treasurer. Nonprofits do not have owners, so the ownership questions on the bank’s form do not apply.

Choosing a Bank

The treasurer compares two or three local banks or credit unions using the same questions:

1. What are the monthly fees and minimum balance for a nonprofit account, and are any waived for nonprofits?
2. Are there fees or limits on cash and coin deposits? (Important for concession stands and gate receipts.)
3. Can online banking give a board member view-only access without signing authority?
4. Can online transfers and bill payments require approval by a second user?
5. Can the account be opened without a debit card?
6. Will statements go to two people, or to an address other than the treasurer’s?
7. Is there a branch or night deposit box near the school?

Deposit insurance also matters for clubs with large balances. The Federal Deposit Insurance Corporation (FDIC) insures $250,000 per depositor, per FDIC-insured bank, for each account ownership category, and treats corporation, partnership, and unincorporated association accounts as their own ownership category.

Signers and Dual Control

The board names the signers by resolution. Practical rules:

• At least two signers, preferably three. Typically the president and treasurer, with the vice president as a backup so a signer is always available.
• No two signers from the same household. Spouses, partners, or relatives cannot meaningfully check each other.
• Dual signatures on checks. The bylaws or financial policy requires two signatures on every check, or on every check above a set amount. A bank may process a check with one signature even when the club’s policy requires two, so the club enforces the rule through its own review, not only through the bank.
• No debit cards, or tight limits. A debit card lets one person spend without a second approval. If a card is unavoidable, the board sets a low limit and requires receipts for every charge.
• A non-signer reviews every statement. Each month, someone who cannot sign (often the secretary or a board member) receives the statement directly or has view-only online access, and reviews it against the treasurer’s report.
• The treasurer does not reconcile alone. The treasurer reconciles; the reviewer initials. See Internal Controls for Booster Clubs.

Sample Board Resolution

The secretary records a resolution like this in the minutes and gives a signed copy to the bank. Banks often have their own resolution form, which the club completes instead.

RESOLVED, that the [legal name of club] open a checking account at [bank name] under Employer Identification NumberEINEmployer Identification Number: the nine-digit federal tax identification number the IRS assigns to the club. The club needs it to open a bank account, apply for 501(c)(3) status, and file its annual return.All terms [EIN]; that the following officers are authorized signers on the account: [president name], [treasurer name], and [vice president name]; that two authorized signatures are required on all checks [or: on all checks over $___]; that no debit cards shall be issued on the account; that [secretary name], who is not a signer, shall receive monthly statements and view-only online access; and that the secretary is authorized to certify this resolution to the bank.

Opening Day Step by Step

1. Hold a board meeting that approves the bank, the signers, and the resolution, and record it in the minutesMinutesThe official record of what a meeting decided, not a transcript of what people said. The secretary takes them, the next meeting approves them, and the club keeps them permanently.All terms.
2. Call the bank to confirm its document list and whether all signers must attend.
3. Bring the EINEINEmployer Identification Number: the nine-digit federal tax identification number the IRS assigns to the club. The club needs it to open a bank account, apply for 501(c)(3) status, and file its annual return.All terms letter, filed articles, bylaws, certified resolution, and each signer’s photo ID.
4. Open the account in the club’s exact legal name and EIN.
5. Decline a debit card, or set the limit the board approved.
6. Set up online banking: transaction rights for signers, view-only for the reviewer, and dual approval for transfers where available.
7. Order checks that print “two signaturesDual signaturesThe control that requires two authorized officers, not related to each other and not living in the same household, to approve every check and electronic payment.All terms required” if the bank offers it, as a visible reminder.
8. Make the first deposit with two people present and keep the deposit slip.
9. File copies of all account documents in the club’s permanent records.

When Signers Change

Signers change with every election, and the transition is a common point of failure. The new board adopts a resolution naming the new signers, and the outgoing and incoming officers visit the bank together to remove former officers and add new ones the same day. The departing treasurer returns checkbooks, deposit bags, keys, and any cards, and online access for former officers is removed. If the president was the IRS “responsible party,” the club files Form 8822-B within 60 days of the change. See Booster Club Officer Transition.