Opening a bank account for a non-profit association can be challenging, but it is essential for managing the association's finances. This guide provides step-by-step instructions on where and how to open a bank account, the required documents, and additional resources to help you succeed.
Why Does Your Association Need a Bank Account?
A bank account ensures transparency and security for your association’s finances. It allows you to:
- Receive membership fees, donations, and grants.
- Pay for expenses like event costs or office supplies.
- Keep track of all financial transactions.
- Comply with Finnish legal and financial requirements.
Table of contents
How to open a bank account as an association?
Step 1: Prepare Your Association’s Documents
Before visiting a bank, gather the following essential documents:
- Association Registration Certificate: Proof that your association is registered with the Finnish Patent and Registration Office (PRH).
You can order the certificate from PRH: 🔗Order documents from the Finnish Register of Associations - Organization rules : The official rules approved during registration.
- Minutes of the meetings:
- Signed minutes of the Annual General meeting detailing the election of the Board of Directors
- Signed minutes of the board meeting, where the decision to open the account has been made and specify who will have access to the account. Mention their names and roles (e.g., treasurer, chairperson).
- Identification Documents: All authorized signatories must bring valid IDs (e.g., passport or Finnish ID card).
- Tax Identification Number or business ID (🔗Y-tunnus): If your association has applied for one. It is a code given to businesses and organizations by the PRH or the Tax Administration. It consists of seven digits, a dash and a control mark, for example 1234567-8.
Each bank can ask for more or less information.
Note: If your association is newly registered, the process may take longer. Ensure all paperwork is complete and clear.
Step 2: Choosing a Bank
Not all banks in Finland offer services to non-profit associations. However, the following banks are known to provide accounts for associations:
- OP Financial Group (Osuuspankki):
- OP often asks for all the documents listed above and may require an explanation of your association’s purpose and activities.
- More information: 🔗Banking of registered associations
- Nordea:
- Nordea requires detailed documentation and may ask for additional clarifications.
- More information: 🔗How to open services for a new customer that is an association
- Danske Bank:
- Danske Bank offers services for associations but may have specific requirements based on the size and nature of the organization.
- More information: 🔗Services for national associations, organizations and foundations (in Finnish)
- Aktia:
- Aktia is another option. They require the standard set of documents and may ask for additional explanations.
- More information: 🔗Association banking affairs (in Finnish)
- Holvi:
- Holvi is an online banking service tailored for associations and small businesses. It provides features like expense tracking, invoicing, and digital receipts.
- More information: 🔗Holvi for associations
Step 3: Applying for a Bank Account
- Appointment: Book a meeting to discuss your needs. Prepare all mandatory documents in advance.
- Verification: The bank will review your documents and verify your association’s details.
- Signatories: Ensure all authorized individuals are present or have signed the necessary forms and have brought valid IDs.
- Fees: Some banks charge an opening and/or a monthly fee for maintaining a non-profit account.
Tips to Overcome Challenges
- Clear Communication: Explain your association’s purpose clearly. Banks may hesitate to open accounts for organizations with unclear activities.
- Alternative Solutions: If traditional banks decline your application, consider contacting smaller local banks or online banking services.
By following these steps and using the listed resources, your association will be better prepared to open a bank account and manage its finances efficiently.
