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All Posts By

Allison Hunt

Jun 27

The Essential Ingredients of Nonprofit-Friendly Banking

By Sponsor Insight, Uncategorized

By Amandula Anderson, First Vice President & Manager of Nonprofit Services, The National Bank of Indianapolis

Nonprofits manage frequent and varied types of transactions, from donations to payroll, which means that you need easy access to funds. In this area, you want to look for a combination of convenience from modern digital banking tools and a local team that knows your organization and is accessible in the moments that matter most.

Everyone knows I love sweet treats. But if you know anything about baking, you know that measurements are key to creating the right texture and flavor. A proper blend of flour, sugar, butter, and eggs will translate into a good cookie. There are also primary components that lead to the right style of nonprofit banking to feed your success as an organization.

Ease of Access & Digital Tools

Convenience and strong digital capabilities are essential to help your organization remain responsive to donor and operational needs. The right banking partner can work with you to address these factors and determine which transactional tools you need to accomplish your financial goals:

  • Simple onboarding and documentation processes
  • A full suite of online and mobile banking capabilities with real-time account access
  • Remote deposit capture, ACH, and payment portals for efficient donation processing
  • A local team available when you need them plus a local branch presence; not just a call center

Cost Efficiency & Competitive Pricing

Every dollar your organization can save on banking is a dollar you can re-direct to your mission and its impact. The approach is simple: your resources should advance your mission and not be absorbed by fees. Structure your accounts around how your organization actually operates by securing key benefits, such as:

  • Nonprofit-specific checking and depository accounts with competitive fees
  • Ability to earn interest or earnings credit on balances
  • Flexible structures tailored to activity level (from simple to complex organizations)

Governance, Controls & Security

Your organization operates with board oversight, donor expectations, and compliance pressure, so transparency is non-negotiable. You need to protect what has been entrusted to you with financial tools and controls that support strong governance, audit readiness, and donor confidence. Look for the following:

  • Robust fraud mitigation tools including Positive Pay and ACH blocks/filters
  • Secure, permission-based online access for multiple users
  • Systems that support oversight, reporting, and financial transparency

Cash Flow Management Capabilities

Nonprofits face complex cash flow and restricted funding requirements that require more than basic checking accounts. You want a provider to go beyond basic banking by helping you manage the full lifecycle of your funds and even the most complex financial operations, including:

  • Comprehensive treasury capabilities:
    • Receivables (lockbox, remote deposit)
    • Payments (ACH, wires, bill pay)
    • Cash optimization (sweeps, zero-balance accounts)
    • Data & reporting tools
  • Ability to streamline the full cash cycle, from donation to deployment
  • Investment services to support your long-term sustainability

Service Model & Mission Alignment

This is the most important factor, in my professional opinion. It’s priceless to find a partner who understands your mission and not just your balance sheet. This is where you want experience in nonprofit banking by way of:

  • A dedicated nonprofit services team with specialized knowledge
  • Local decision-making and tailored solutions
  • Deep community involvement through board service, volunteering, and financial support and investments

Find a Partner, Not Just a Provider

Ultimately, you want your bank to be invested in the success of our community. While larger banks with a national scope offer scale and standardization, do not overlook locally based institutions that offer programs that may become more meaningful to your organization. Local causes align well with localized support that focuses on relationships, strategy, and your mission.

According to 501c3Center.com, here are the questions you should ask before choosing a bank and opening your accounts:

  • What documents are required to open a nonprofit account?
  • Are there monthly service fees, and can they be waived?
  • Can multiple board members access the account?
  • Is there a dedicated nonprofit team on staff?
  • What fraud protections or alerts are available?
  • Does the bank offer integrations for online donations or accounting tools?

Final Thoughts

There’s not a one-size-fits all recipe when it comes to choosing the best bank for your nonprofit. The answer depends on multiple characteristics including your size, goals, and whether your operations are local or national. Start a conversation with a banking partner. You might just find a solution that’s sweeter than you ever imagined.

Mar 10

Guarding Against Fraud: Business Email Compromise

By Sponsor Insight

Leadership Summary

Business Email Compromise (BEC) is a sophisticated, costly phishing attack that targets employees, 3rd-party contractors, and organizations, often causing millions in losses. Identifying a few “red flags” like a sudden sense of urgency, abnormal financial requests, or inconsistent grammar can help you recognize BEC attempts before they impact your organization.

Top Ways to Protect Against BEC

Strong cybersecurity habits—like multi-factor authentication, continuous vulnerability management, and anti-phishing and account takeover protection for your email system and cloud platforms—are essential in keeping both employees and the entire organization safe from BEC. Each one of these practices can help safeguard your people and prevent critical financial and reputational harm.

Cybercriminals have long exploited our reliance on email for business, and of all cyberattacks, Business Email Compromise stands out as one of the most financially devastating. According to the FBI’s Internet Crime Report, over 21,000 incidents of BEC occurred in 2023, accounting for nearly $3 billion in losses—a figure that only continues to climb. This tactic is particularly damaging because it exploits natural trust and helpfulness, making detection difficult and fund recovery challenging.

BEC attacks are on the rise and becoming more sophisticated, so knowing the signs can help you avoid a costly mistake. Let’s break down how it works, common red flags, and protective measures your organization can adopt.

How BEC Works

BEC attacks are advanced phishing scams where attackers impersonate known senders, leveraging trusted relationships to make their requests appear legitimate. Techniques may include monitoring email activity, impersonating executives, or deploying malware. Often, these attacks involve urgent requests for payments through wire transfers, gift cards, or cryptocurrency, the latter providing an extra layer of anonymity for the attacker.

Key BEC Red Flags to Watch For

Although BEC emails are crafted to appear genuine, here are a few signs that should prompt a second look before taking action:

  1. Urgent language, especially in a crisis.
  2. Confidentiality demands.
  3. Odd timing (e.g., emails at the end of the day).
  4. Changes in sender addresses or unusual payment requests.
  5. Poor grammar, strange tone, or format inconsistencies.
  6. Refusal to communicate outside of email.
  7. New or personal account payment requests.

BEC Prevention: Best Practices for Business Leaders

Below are best practices for avoiding BEC attacks and securing your organization. These are in line with guidance from the Cybersecurity & Infrastructure Security Agency:

  1. Follow Established Procedures: Maintain consistent processes for approving funds and verifying sender information by calling numbers on file, not those in suspicious emails.
  2. Monitor Payment Methods: Add extra verification for large transactions and encourage secure electronic transfers.
  3. Exercise Caution in Communication: Don’t open spam emails, establish company domains for email, and always verify unfamiliar or urgent requests through trusted channels, like in-person conversations, phone calls, or virtual meetings.
  4. Report Phishing Attempts: Use digital signatures or authenticated portals, verify changes in business practices, and always report suspicious emails to your IT security team.
  5. Strengthen Cybersecurity Measures: Use strong, unique passwords and multi-factor authentication across all company accounts.
  6. Respond Quickly: Report incidents immediately to mitigate potential harm.

Staying Vigilant

Cybercrime is constantly evolving, making it essential to stay proactive with cybersecurity defenses. A cybersecurity culture combined with strong preventative measures empowers leaders to protect their organization’s most valuable assets. Connect with us for more guidance on building a resilient cybersecurity foundation that aligns with your organization’s long-term strategy.