How to Open a Bank Account

Bank Accounts

The University does not provide registered student organizations with bank accounts. In the event that a student organization is in need of opening a bank account, the Yale College Dean’s Office encourages student organizations to open accounts at local banks that do not assess service fees. University funding sources cannot be used to pay banking fees. University addresses may not be used as the permanent banking addresses for student organizations.

If an organization does open or possess a bank account, that organization’s leadership is required to notify the Yale College Dean’s Office and provide it with all requested information.

Employer Identification Number (EIN)

The Federal Tax ID Number (also known as the Employer Identification Number or EIN) is a number used to identify a business or other organization. Student organizations wishing to open a bank account must apply for an Employee Identification Number (EIN). Organizations should not open a checking account using an individual’s social security number. The financial burden of that account then rests with that individual and they become responsible for claiming any interest accrued on that account on their own taxes. They also become responsible for the account if there is a problem with it.

If your organization applies for funding through any university granting body, including the Yale College Dean’s Office, or you do a fundraiser with an outside business like a restaurant, you need a tax ID number to receive money or in-kind donations. You will also need this number to open a bank account. Additionally, obtaining and EIN helps to ensure the IRS will not make any of an organization’s members personally responsible for taxes on revenue that the organization has earned.

1. Go to the IRS’ Apply for an Employer Identification Number (EIN) Online Web site: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-EmployerIdentification-Number-(EIN)-Online

2. Click the APPLY ONLINE NOW link at the bottom of the page.

3. Once you have read the instructions on the page, click the Begin Application button

4. Select the View Additional Types, Including Tax-Exempt and Governmental Organizations option for the “What type of legal structure is applying for an EIN?” question and then click the Continue button.

5. Any of the following options may describe your type of organization: 1) Political Organization; 2) Church-Controlled Organization; 3) Community or Volunteer Group; 4) Social or Savings Club; or 5) Sports Teams (community). Once your selection is made, click on the Continue button.

6. To confirm your selection click the Continue button.

7. Enter your first name, last name, and SSN/ITIN. While the online SS-4 form requires the individual to enter his/her Social Security Number (SSN), it is still the EIN that is used to open a checking account, not any individual’s SSN.

8. Select whether you are an officer or member of the organization or whether you are applying for the EIN as a third party on behalf of the organization and then click the Continue button.

9. Enter the address information for your organization and click the Continue button when you are done.

10. Enter the requested information about your organization and click the Continue button when you are done. Repeat this step for the next screen requesting additional organizational information.

11. Select the Other option for the question “What does your business or organization do?” and click the Continue button.

12. Select the Organization option for the question regarding your business activity and click the Continue button.

13. From the list of organizational activities select the activity that best describes what your organization does and click the Continue button.

14. Select whether you would like to receive your EIN confirmation letter online or by mail and click the Continue button.

15. Once your receive the information, retain it in your student organization files for current and future leadership. You will also need a copy of this form to open an account at the Credit Union

Please note: Applying for an EIN is not the same as applying for nonprofit status with the IRS. If your organization is considering applying for 501(c)3 non-profit status, further information may be found here.