Opening a new bank account can be complicated. This page details what
paperwork you are likely to be asked for, and what non-Jewel steps are
involved in opening a new account or switching accounts. To learn how to
add the new account to Jewel, click
here.
Note: These instructions were provided to Jewel by
the Georgia-Cumberland Conference. State laws and conference policy may
vary, so check with your own conference when necessary.
Someone in your conference office can assist you in obtaining the
documents that the bank will be asking for.
One very important item that you need to be aware of is that when you
fill out any paperwork for the bank, and you are asked for the Legal
Designation of the Church, you need to specify that it is an
"Unincorporated Association" (not a corporation, partnership, trust,
etc.). If you get this wrong, the bank could rightly expect additional
paperwork that does not exist (like bylaws or something from the
Secretary of State). If you get that correct, the paperwork that your
conference will provide should be sufficient.
Please be sure to open the account with your entity's EIN and exact
official name. (The name General Conference of SDA should NOT be on the
bank account in any way).
If the bank has an issue it is generally because a local branch might
not understand how our church is structured or how an unincorporated
association works. They often have to follow very specific document
guidelines. Sometimes it takes higher-ups getting involved and
confirming that the attached documents do satisfy their requirements.
They usually work it out, asking our attorneys any questions they may
have.
The following is what you will need to provide to the bank:
- The GC 501(C)(3) letter from the IRS that shows they are the parent
organization.
- IRS Publication 4573 explaining a group exemption.
- The letter from our Attorneys explaining that organizational
documents are not required to be filed, and ask to be contacted if they
have questions.
- The Notice from the IRS showing your valid tax EIN.
- The Letter from General Counsel showing that the church is under the
GC umbrella. This letter from the GC is the "IRS documentation" the bank
needs! (This seems to go over so many people's heads, so just have them
re-read that last paragraph until they realize they have all needed
documents).
Also, when you open the new account, be sure of the following:
- Start your check numbering with the next sequential number that
follows the last check number used on your old bank account.
- Have your monthly statement on a month-end cut-off date.
- If you plan on purchasing checks, consider all your
options.
- Sign up to get copies of checks with your statement, even if there
is a monthly fee for this service.
- The pastor or any of his family members should not be signers on any
church bank account.
- Ask for auditor or tech support assistance with the transition in
Jewel if you have any doubts whatsoever. It will be much easier for them
and you both if they are involved at the beginning. Asking for help
several months later will complicate the process.
These are the steps in the transition for an existing church that is
moving to a new bank or has had to close an account and open a new one
due to fraud.
- Open the new bank account, using the information above. Deposit
enough in the new account (from the old account) so you have enough to
start paying bills and remittances from the new account, while the
offerings and AdventistGiving deposits build up.
- Decide
what checks you are going to use and order or purchase them as soon
as possible.
- Order deposit slips.
- Contact your conference to change your bank information so they can
start pulling the remittance from the new account.
- If you have any auto draft payments set up, contact the vendor and
change the bank account for withdrawal.
- Contact AdventistGiving with the "Add/Change
info" document so they can start depositing to the new account.
- Create the new bank account in Jewel, with the
assistance of your support person if needed.
- Go to Maintenance / Properties / Accounts tab, and change the Default
Deposit, Checking, and Remittance Accounts as needed.
- Begin using the new account for deposits and payments.
- Wait for the all the checks from the old account to clear and to
make sure the remittance, auto drafts and AdventistGiving are showing up
in the new bank account.
- Once that has happened, close the old account and move
the balance of funds to the new account, both at the bank and in
Jewel.
- Tech support can help you with the last bank rec of the old
account and the first bank rec of the new account if needed.
When a new Mission Group starts to handle their own finances, they
need to set up a new bank account.
- Open the new bank account, using the information at the top of this
page. Begin depositing all offerings into the new bank account.
- Ask the mother church for a check for the offerings they have been
collecting for you. Deposit that check.
- Ask for assistance in entering that check from the mother church, if
necessary, to make sure the offerings are posted correctly.
- Go to Maintenance / Properties / Accounts tab, and ensure that the
Default Deposit, Checking, and Remittance Accounts are set
correctly.
- Decide
what checks you are going to use and order or purchase them as soon
as possible.
- Order deposit slips.
- Contact your conference to record your bank information so they can
start pulling the remittance from the new account.
- Contact AdventistGiving with the "Add/Change
info" document so they can start depositing to the new account.
- Ask for tech support assistance with the first bank rec of the new
account, if needed.
Click
here for more topics related to Edit Accounts
The original version of this page was provided to Jewel by the
Georgia-Cumberland Conference Audit Team. Created by Linda McCabe.