Friday, February 8, 2013

How to open a bank account for a Toastmasters Club in India?

Opening a bank account for a non-profit organization is a difficult task in India. However, we have mastered the art of opening a bank account for toastmasters in the last 2 years !

Also read: New Club Chartering Steps involved

It took nearly months for us to open a bank account for a toastmasters club, 2 years ago. It took a few weeks for us to open a bank account for a toastmasters event, 6 months ago. Today, we are able to open a bank account in a week. What are the steps involved in opening a bank account for a non-profit organization? What are the collateral required for opening a bank account for toastmasters clubs in India? This blog post will provide answers for these questions.

You'll have to open a 'trust' account for a non-profit organization in India. Toastmasters clubs come under the non-profit trusts in India.

Here is the list of things that you would need to open a bank account for a toastmasters club:
  1. Club chartering certificate
  2. A document listing the names of the 7 club officers as the official "board members" of the club. It can be signed by the Area or Division Governor in Toastmasters International letter head.
  3. A print out of the club officers roster from the Toastmasters International website (Any club officer should be able to take a print out of the information from Toastmasters International website)
  4. A resolution document that says that the "board members" have passed a resolution to open a bank account for the club and have authorized the Treasurer & President to operate it on behalf of the club and its members.
  5. A small rubber stamp with the name of the club, and the titles of the office bearers who will operate the bank account (For ex., Treasurer & President). It will be used in places where the office bearers will have to sign.
  6. Pictures of the club officers who will operate the account (For ex., Treasurer & President). They both will be the "signatories" for the account. They both will have to sign the cheque / challan to withdraw money from the bank.
  7. Address proof, Identity Proof & PAN card proof for the club officers who will operate the account.
You can fill the bank account opening form, attach the collateral listed above and submit it to the bank manager. You should be able to open the account in about a week's time. Also, make sure that you enable online banking for the bank account. It helps you to login and check the account balance online. This will be very useful when you are collecting membership renewal fees.

Important Note (Updated on 24th May 2017): Banks have become stricter with respect to creating Trust accounts. Federal bank has agreed to partner with Toastmasters in India. They can help you in creating a Trust account for your club. Please refer to the D82 Blog for latest information on the steps involved in creating a bank account in Federal Bank. http://www.d82.org/blog/news/2016-12-easy-open-toastmasters-bank-accounts-india.html (scroll to the bottom of the D82 blog post for the docs to print/use in opening the bank account)


If you have additional information to be added to this blog post, leave a comment and I'll update the blog post to reflect your feedback.
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