Best Nonprofit Banking: Holdings vs. Lili Features & Benefits

Choosing the right banking partner has enormous implications for your nonprofit. It impacts how you steward donor dollars, meet grant requirements, empower your team, and ensure every dollar makes the greatest impact. In a rapidly changing financial landscape, two digital platforms often come up—Holdings and Lili. But which truly fits how nonprofits operate?

Let’s dig into a nonprofit-first comparison—with a lens on grants, donations, compliance, and the needs of mission-driven teams ranging from scrappy startup orgs to complex, multi-program organizations.

Banking and Beyond: Why Nonprofits Need More Than Just a Checking Account

Nonprofits don’t have time for hassle or hidden fees. Keeping the lights on and serving your community means navigating limited resources, mountains of receipts, the demands of funders, and (often) a mighty team of one. Rather than cobbling together spreadsheets, receipts, and accounting software, what most organizations need is simple: easy, secure banking that strengthens every aspect of finance ops.

The best platforms offer not just a holding place for your funds, but real tools to segment dollars, support compliance, automate tricky tasks, and reduce risk. The right fit unlocks transparency for your board, makes audit prep less stressful, and protects the trust your donors place in you.

Quick Feature Comparison

What Nonprofits Actually Need from Banking

Every organization has unique needs. But nearly all nonprofits juggle a few key challenges:

• Multiple restricted and unrestricted funding streams: grants, donations, event revenue, etc.

• Compliance and accountability: program-based tracking, documentation, and clean records for audits.

• Real-time visibility: Boards, staff, and auditors expect transparency.

• Simplicity: Many nonprofits have limited or no formal finance staff.

• Separation of duties: Prevent fraud by segmenting roles and access.

• Agile spending: Empower staff and volunteers while reducing risk.

• No waste: Every unnecessary fee erodes mission impact.

With these realities in mind, let’s break down how Holdings and Lili support (or fail) the way nonprofits actually operate.

How Holdings Supports Modern Nonprofits

2% APY on Every Dollar, All the Time

Unlike banks or platforms with tricky, tiered interest, every eligible dollar in every Holdings nonprofit account earns a flat 2% APY. This means grant funds, donations, and unrestricted reserves are always working for you—even as you plan, report, and deploy resources across multiple programs.

No Monthly Fees, Transaction Fees, or Wire/ACH Fees

Nonprofits can’t afford to lose money to “gotcha” fees. Holdings promises no monthly minimums, no transaction charges, no wire fees, and no unexpected costs. This makes budgeting predictable and ensures every cent raised serves your community, not your bank.

Virtual Accounts: Segment Cash by Grant, Program, or Purpose

Need to keep ten grants organized in one place? Virtual accounts enable you to split funds instantly—so restricted, unrestricted, board-designated, and grant-specific dollars stay separated and easy to report on. No more spreadsheets or manual tallying. Just clear, color-coded accounts that match your accounting and reporting structure.

Effortless Expenditure Control: Cards and Permissions

You can issue virtual or physical debit cards for team members, contractors, or volunteers, each connected to the right funding source. Set per-card spending limits, approve transactions in seconds, and track every purchase by grant—no manual sorting, no reimbursement headaches.

Invoicing and Bill Pay—Built In

Submit invoices, pay vendors, and track accounts payable and receivable right within Holdings—with built-in controls for board review or funder documentation. No need to pay extra or integrate a third-party tool.

Ready for Audits: Automatic, Organized Records

Every grant deposit, donation, and transaction is automatically tracked and categorized in real-time. At audit time, simply generate reports filtered by funder, grant, program, or expense type—professional, organized, and always ready for review.

Bookkeeping Services (If You Need Them)

Short-staffed? Holding’s bookkeeping experts can jump in to tidy, reconcile, and document every dollar—so you’re never scrambling at tax time or when the funders’ auditors come calling.

Integrates With Your Existing Accounting

Use QuickBooks, Sage Intacct, or another system? Holdings seamlessly exports or directly syncs with the most popular nonprofit accounting tools. Upgrade your expense controls and team spending without having to change systems.

No Minimums and Fast Setup

Start and grow at your own pace. There are no minimum balances, and onboarding can be completed quickly—even by teams with minimal prior banking experience.

Where Lili Shines…and Where It Falls Short for Nonprofits

Lili was designed first and foremost for freelancers, self-employed small businesses, and side hustlers. Its strengths include a slick mobile interface, integrated tax tools, invoicing, and a basic approach to low-fee digital banking. These features can benefit tiny nonprofit startups (mainly fiscal sponsors or solo founders operating with limited grant funding). However, Lili specifically excludes registered nonprofit organizations from opening accounts. This is a significant limitation: 501(c)(3)s, foundations, and charities are not eligible for Lili.

The plans and pricing work as follows. Lili’s basic account is free, but advanced features like accounting integration, tax prep, and the 3% APY on savings all require paid plans—costing $15–$55/month. Overdraft protection and unlimited invoicing are similarly only available on higher tiers.

Key Benefits of Lili (For Small LLCs/Not Nonprofits)

• Flexible mobile-first experience

• Tax categorization and pre-filled forms (on paid tiers)

• Up to $200 in free overdraft coverage for qualifying users (paid plans)

• Early direct deposit access for faster fund availability

• Expense tracking, invoicing, bill pay (with some limitations)

Drawbacks for Nonprofits

• Government-registered nonprofits, foundations, and 501(c)(3) orgs are not eligible for Lili accounts.

• Most features optimized for freelancers or small for-profits, not the unique restrictions and reporting needed in the nonprofit sector.

• No true fund or grant segmentation features—difficult to track multiple restricted grants within a single operating account.

• Advanced functionality requires ongoing paid subscriptions.

• Outgoing wire fees ($15 each) and fees on certain cash deposits.

• No dedicated nonprofit compliance tools or audit readiness features.

Focus on Nonprofit-Specific Needs

Holdings does not require you to “upgrade” or subscribe to unlock nonprofit essentials. This means every organization, from the smallest community startup to the most complex, grant-funded institution, gets every dollar earning 2% APY, with built-in expense controls, unlimited virtual accounts, audit-ready reporting, and team management tools—right out of the box.

Your bookkeeper, program manager, development staff, and board can all have exactly the access and controls they need. And with easy card management (issue or disable with a click), you’re always one step ahead on spend tracking and fraud prevention.

How to Get the Most Out of Holdings for Nonprofits

Holdings was built to reduce friction and let teams focus on impact, not paperwork. Here’s how most nonprofit orgs use the platform to its full potential:

Setting Up and Segmenting Accounts

1. Open your Holdings account with your organization’s EIN and governing documents.

2. Create unlimited virtual accounts for each grant, program, or funding stream.

3. Set naming conventions (e.g., “Grant—Community Health 2025,” “Board-Designated Reserves,” “Unrestricted Donations”).

4. Link or import your accounting and CRM tools for seamless reconciliation.

Issuing Team and Volunteer Cards

1. For each staffer, board member, or volunteer who needs to spend, issue a card (physical or virtual).

2. Assign cards to the right funding source/virtual account.

3. Set custom spend limits for each card (daily, weekly, per grant, etc.).

4. Approve requests and monitor activity with instant mobile alerts.

5. Pause, adjust, or cancel cards at any time if people change roles or leave.

Streamlining Bookkeeping and Audit Prep

1. Every deposit, payment, or transfer is automatically tracked by source.

2. Categorize expenses by program, funder, or grant with a quick click—no spreadsheets or double entry.

3. Generate reports or export clean data for your auditors, board, or funders in seconds.

4. Use Holdings’ bookkeeping team on-demand if you fall behind or need help.

Why Segmenting Funds Matters For Nonprofits

If you’re managing unrestricted donations, multiple program grants, or restricted funds, accuracy isn’t a “nice to have”—it’s mission critical. Grant front-loading, reporting errors, or co-mingling funds can put your tax-exempt status at risk or make funders think twice about your stewardship.

Holdings’ virtual accounts and real-time reporting eliminate these headaches. Instead of waiting until year-end to discover a shortfall or compliance gap, you spot and address issues, in real time, as your programs operate.

The Real Cost of Banking—Transparency Matters

Every fee paid drains dollars from your mission. Many banks advertise “no fees” but layer on transaction, wire, or minimum balance penalties. With Holdings, the promise is simple: no monthly minimums, no surprise fees, and unlimited, free wires and ACH transfers. This means no budgeting stress around fluctuating finance costs.

By contrast, Lili’s true cost varies by plan and usage. You’ll need a paid plan to access much of what nonprofits naturally need—invoicing, advanced reporting, overdraft protection, and interest yields. And outgoing wires incur a $15 fee, while Green Dot cash deposits also cost extra.

Trust and Security: Protecting Donor Dollars

Trust is everything in the nonprofit sector. Holdings protects your funds with FDIC insurance up to $3 million—12 times traditional coverage—and maintains SOC-compliant data protections to keep donor, funder, and client information safe.

In fact, this high level of insurance is designed specifically for organizations who routinely manage large grants, event receipts, or donations above the usual $250,000 threshold.

Who Should Choose Holdings?

Holdings is the best fit for:

• Nonprofits, charities, and social enterprises of all sizes.

• Organizations tracking multiple grants and need robust fund segmentation.

• Teams that want to empower staff spending safely, without reimbursements.

• Orgs who need clean, automated records for compliance, audits, and reporting.

• Even startups or grassroots collectives that currently “bank by shoebox” but want to automate as they grow.

Who Should (or Can) Choose Lili?

Lili is a practical fit only for:

• Solo entrepreneurs, freelancers or side-hustle businesses (not registered nonprofits).

• For-profit small businesses who want a modern, mobile-only banking experience.

• Professionals with very simple money flows and minimal need to meet grant or audit requirements.

It’s vital to note: Registered nonprofits, 501(c)(3)s, foundations, and charities are not eligible for Lili. If your organization is in the nonprofit sector, Holdings is purpose-built for you—while Lili’s policies will exclude you.

Flexibility and Integration—Meet You Where You Are

Holdings isn’t your competitor with your existing accounting software. Instead, it’s a flexible partner. Connect your existing QuickBooks or Sage Intacct instance—or simply export data to share with your bookkeeper or auditor. Whether you need the platform as an all-in-one hub or a powerful add-on, Holdings puts you in full control.

For those without formal accounting systems, Holdings offers a complete, integrated solution. No extra subscriptions or logins required—just one simple place where you can see and manage every dollar.

Making the Switch—What Nonprofits Should Consider

If your organization is considering a change in banking or a fresh start, here are a few simple ways Holdings supports the transition:

• Easy, no-fee sign-up with quick document verification.

• Organizational onboarding resources (for both tech beginners and advanced finance teams).

• Option to migrate all accounts or keep Holdings as a sidecar for specific grants, events, or programs.

• Quick import/export options for transaction data.

Comparing Holdings to Other Top Business Banks

If you’re researching best-in-class solutions, Holdings stands out against big-name banks and other digital platforms. Traditional banks often:

• Require minimum balances

• Limit the number of free transactions or accounts

• Charge monthly/hidden fees

• Offer little support for nonprofit compliance, grant management, or team spending controls

Other digital banks may look appealing on the surface but lack team expense control, true fund segmentation, or clean nonprofit-ready reporting. Holdings was built from the ground up for mission-driven organizations.

The Reporting Advantage: No More Spreadsheet Headaches

Manual grant tracking and spreadsheet-based expense reports drain valuable time and open the door to costly errors. Holdings automates reporting, organizes spending by program or grant, and makes audit requests a breeze—helping your team focus on what matters most.

Funder asks for a report sorted by grant, vendor, or purchase date? Just a couple of clicks instead of hours of manual entry.

Empowering Lean and Growing Teams Alike

Whether you’re processing a few hundred dollars in annual donations, managing a major multi-year government grant, or handling rapid growth, Holdings is built to scale with you. Issue cards as needed, organize funds as you expand, and add bookkeeping support when your reporting complexity grows. No need to change systems just because your nonprofit changes shape.

Team Spend—Without Reimbursement Hassles

Your staff and volunteers shouldn’t need to cover expenses out of pocket and wait for reimbursement. Holdings virtual and debit cards make controlled, transparent spending easy and efficient—just set the rules, know every transaction is tracked, and say goodbye to the back-and-forth of receipts and spreadsheets.

Ready for a Modern Nonprofit’s Demands

Nonprofits today are expected to operate with the same level of transparency, agility, and efficiency as their for-profit peers—except, often, with less funding and fewer hands.

Holdings delivers banking, expense management, bookkeeping, and team spending controls in one (no-fee) platform so you can keep your focus on impact, not admin. Your auditors, board, staff, and funders will thank you.

Instructions: Getting Started With Holdings

If you're ready to modernize how your nonprofit manages money, here's how to begin:

1. Gather your nonprofit’s EIN, incorporation documents, and checking account info.

2. Sign up through the Holdings website or app, following on-screen verification.

3. Customize your virtual accounts to replicate your grant, program, and fund structures.

4. Assign permissions for staff, volunteers, and board members as needed.

5. Issue cards, set spending rules by function or project, and connect your accounting system (if desired).

6. Upload any historical data or spreadsheets if you want a “clean slate.”

7. Begin tracking, approving, and reporting on every dollar with Holdings.

8. Reach out to Holdings’ onboarding support for hands-on assistance at any step.

The Verdict: Nonprofit-Focused, Built for Those Who Give Back

If your organization is passionate about maximizing impact, reducing admin burden, and ensuring every donor or grant dollar reaches its intended target, Holdings stands alone. With sector-leading 2% APY on all balances, no-fee and no-minimum policies, virtual accounts for true grant/P&L segmentation, and the ability to empower your team while staying fully compliant, Holdings was built specifically for the realities—and the vision—of nonprofit life.

Lili offers solid tools for freelancers and small businesses, but it simply isn’t available to registered nonprofits. Put simply: if you’re a mission-driven, legally organized nonprofit that needs security, control, flexibility, and real audit-ready reporting, Holdings is your solution.

Ready to Take the Next Step?

Explore how Holdings can transform your finances—whether you’re ready for an all-in-one migration or just want to try out virtual accounts or team debit cards. The support team is ready to answer questions and help you get started today.

With Holdings, nonprofit dollars go further. Reporting is simpler. Compliance isn’t scary. And your mission is always at the center of every financial choice. That’s the modern way nonprofits bank.