Jul 17, 2023 10:30:00 AM | Financial Goals Bridging the Gap: How Non-Profit Organizations can Benefit from Local Banking Relationships

Non-profit organizations (NPOs) play a vital role in improving the quality of life for community members, but approximately 30% of them cease to exist after 10 years largely due to a thin budget and limited resources. 

So how do you ensure your nonprofit not only survives, but thrives for years to come? The answer: don’t go it alone. Partnering with other organizations, such as a community bank, can give your nonprofit the support it needs to reach and maintain financial stability.

Understanding Nonprofit Financial Needs

NPOs managers need strategies and solutions that ensure financial management is aligned with business objectives. Some of these services include:

  • Budgeting for variable income: Nonprofits acquire funds from various sources, including donations, fundraising campaigns, and investment incomes. You'll need bank accounts and budgeting tools that can help you track your income and expenses, as well as manage your money better. This can help your nonprofit budget survive fluctuations in income.
  • Grant management: Grants form a significant portion of your NPO's revenue sources. However, the more grants you win, the more difficult it becomes to track the different reporting requirements and procedures. Manage various donations to budget effectively and record funds appropriately.
  • Project-specific funding: NPOs also receive funds from various sources to finance specific projects. Therefore, they must have an accounting structure that provides accurate and complete information about all transactions related to each project-specific funding.
  • Cash flow management: Cash flow is essential to a nonprofit's strategic planning, daily operations, and survival. Knowing how cash moves in and out of your organization can help ensure you always have cash to pay your expenses. Additionally, managing cash flow helps organizations prepare for cash surpluses and deficits by monitoring trends and projecting the organization's cash flow. 

The Benefits of Local Banking Relationships

Corporate banks often lack banking services and tools that support the growth of nonprofits. They are often reluctant to offer financial assistance and fail to provide prompt, reliable customer service. That makes it more challenging for non-profits to achieve meaningful growth.

Local banks offer reliable, flexible, and diverse services for nonprofits to meet the above financial needs. They contribute meaningfully to your organization's financial management, sustainability, and long-term growth. Here are the benefits of banking with community banks.

  • Personalized service: Community banks have similar values as nonprofits and a commitment to giving back to the community. These banks can often provide a more personalized experience compared to larger corporate banks.
  • Community understanding: Local banks operate in the same community as nonprofits. They are more focused on local interests and have a deep understanding of the community and its needs, allowing them to provide appropriate financial advice and solutions.
  • Accessibility: The staff at community banks are approachable and accessible, ensuring better operations than larger institutions.
  • Support in times of crisis: Community banks also offer quick responses and flexible solutions for nonprofits facing financial difficulties.

Community banks are invaluable to the growth of nonprofits. They design and deliver financial solutions to help nonprofits maximize their impact. By partnering with a community bank, a nonprofit can mitigate challenges and develop a comprehensive business strategy that ensures effective financial management.

Get Started with a Local Bank that Can Push Your Non-Profit Forward

Unlike other businesses, a nonprofit's main goal is providing community-based services — not profit. Local banks have a strong community focus and offer banking and lending services that align with this mission to help nonprofits face every challenge.

Valliance Bank is a trusted partner for nonprofits seeking to achieve their missions effectively and efficiently. We provide tailored banking solutions and business support products that can help you grow and achieve your mission, including: 

  • Lower fees: We understand your financial situation and are ready to help you save money. Our services are tailored to minimize fees and maximize returns.
  • Tailored loans: We provide flexible loan offers and other financing to help nonprofits reach that next milestone. Our experts will help you find an appropriate loan structure for your situation.
  • Specialized accounts: With us, you'll have access to business accounts tailored to help your organization build savings, access credit, and process payments and donations.

We also offer comprehensive digital solutions that help streamline your operations. NPOs that partner with us can access mobile banking, bill pay, e-statements, and other online banking tools. Valliance Bank seeks to be an all-in-one community bank for nonprofits seeking creative financial and banking solutions. Together, we can make a real impact on the projects that better the community.

With us,  you'll have a banking partner that understands the unique aspects of nonprofits and is dedicated to supporting community organizations like yours.


Ready to feel valued and achieve long-term sustainability? Visit our branch in Oklahoma or Texas, or contact us today to make an appointment and learn more about our offerings for non-profit organizations.