Opening a bank account for cub scouts

[ColoradoScout]

Hi all,

I’m the new treasurer of a cub scout pack and need to open a new bank account. We currently have an account that we’ve used for years, but for several reasons we’d like to start fresh at a new bank. You need an EIN to get a bank account, and I know the recommendation is for the pack to use the EIN of their chartered org but that is not an option for us (our chartered org “doesn’t want that responsibility”). They told us to get our own EIN, which from my research is the typical plan B in these situations. So, two questions:

What entity type do we choose with the IRS? The closest options are “Non-profit / Tax Exempt” or “Community / volunteer group”. My hunch would be the latter because we’re not technically a non-profit. But, ChatGPT and Google AI specifically said to choose non-profit because we’re chartered with a non-profit, even if they won’t give us their EIN. Was this correct, and ultimately, does it matter? I did call the IRS to ask and they had no idea.

What entity type do we choose with the Secretary of State? We do need to register with them after we get our EIN, but this isn’t clear either. I’ll put the link below. The more straightforward option is “nonprofit corporation”, although there’s also “Unincorporated nonprofit association” that is a more involved and expensive application process. I’ve randomly searched other scout packs in Colorado and they’re all listed as nonprofits, so I’d rather choose the former.

https://www.coloradosos.gov/biz/FileDoc.do

Any ideas? Does it really matter?

Thanks!

 

 

[ShootingSports]

You should have another discussion with your CO rep and include your DE.  Otherwise, contact an attorney/cpa to get the correct answer - Not here with a keyboard advisor

[jcousino]

You are not a free unit you are totally owned by your CO. 

[InquisitiveScouter]

Keyboard Advisor here, lol...

@jcousino is right.  You are "owned" by your CO.  If your CO does not want you to open a bank account, then you have three choices: 1) Don't open a bank account, 2) as @ShootingSports says, find out why your CO "doesn't want the responsibility", and find a way to alleviate their misgivings  or 3) Find a new CO.

Before you pursue any of those, you need to answer a few questions:

A)  How is it that you have a bank account (used for years) when your CO says they don't "want the responsibility"??  Did you inform the CO that you already have a bank account using their EIN?  Which begs the next question...

B) Whose EIN are you actually using for the current account?  Which begs the next question...

C)  Do you have a current signed Annual Unit Charter Agreement??  Your DE is supposed to secure one for you each year, so, as @ShootingSports has said, call your DE to see if they have one.  If the answer is "No", then your DE is not doing his job.  https://www.scouting.org/wp-content/uploads/2025/06/524-95625-Annual-Charter-Agreement.pdf  Get your Chartered Organization Rep on the horn and ask them to get this all important document coordinated and signed post haste.

D)  If you do have a signed Annual Charter Agreement, read para II B.4. "Authorize the unit to open a separate bank account for the Unit using the Charter Organization EIN and provide the Unit with policies and procedures for financial reporting and asset management."  Again, get your COR and DE on the horn, because the CO not allowing you a bank account is a violation of the Agreement.

Recommend you read the whole document for other pertinent responsibilities and understanding of who owns what...

Also, for the Moderators... the OP never showed up on my Unread Content.  Any idea why??

 

 

 

 

Edited April 9 by InquisitiveScouter