Expanded FDIC Insurance for Nonprofit Banking & Fund Safety

Rethinking Nonprofit Banking Safety

For nonprofits, protecting your funds is more than just good management—it’s part of your responsibility to donors, funders, and the communities you serve. Yet, traditional banking insurance can feel limiting. Organizations routinely find themselves bumping against the $250,000 FDIC cap, especially after receiving major donations, handling restricted grant funding, or building reserves for program expansion. Just like your mission serves everyone, your banking solution should serve every dollar—no matter how quickly your finances grow.

That’s why Holdings, built for the unique world of nonprofit finance, has partnered with i3 Bank to offer expanded FDIC insurance on all accounts, protecting your funds up to $3 million. Now, peace of mind is not reserved for the biggest nonprofits or the savviest CFOs. Instead, it’s accessible to every organization—regardless of size, grant portfolio, or internal team structure.

What Is an FDIC Sweep Program—and Why Should Nonprofits Care?

FDIC sweep programs might sound like something for corporations or investment funds. The truth is, sweep programs are designed for anyone—especially nonprofits—who want assurance that every dollar on deposit is protected. Here’s the scoop: rather than making you juggle accounts at multiple banks, a sweep program does that in the background automatically.

When you use Holdings, your operating cash, endowment reserves, or temporarily restricted grant balances are held in your main account. At the end of each business day, funds are swept across a trusted network of FDIC-insured banks, making sure no single bank exceeds the $250,000 insurance limit for your funds. The result? You get expanded coverage, up to $3 million, with all the convenience of a single banking relationship and dashboard.

There’s no manual tracking, no complicated balance transfers, and no need to open extra checking accounts all over town. Just funds protection scaled to fit the ebbs and flows that make nonprofit cash management so challenging—and so vital.

How the Holdings Sweep Program Works for Nonprofits

Let’s translate banking lingo into nonprofit reality. Deposits—whether from an annual gala, multi-year grant, or a partner foundation—start in your Holdings account. Daily, any amount above the core $250,000 is distributed, or “swept,” automatically across a web of partner banks. Each portion sits comfortably under the insurance cap.

From your perspective, it doesn’t matter if you’re holding $260,000 for a lean year, $1.2 million awaiting project rollout, or $2.5 million in a campaign reserve—every dollar is insured to the fullest. And all transactions, reporting, and approvals continue in one system you already know.

The sweep adapts in real time. If you receive a large pledge disbursement, the program allocates that surplus for total protection—no emergency transfers needed. If you need to spend for payroll or programs, withdrawals are just as seamless; your dashboard remains the place to approve, track, and report, no matter where the underlying funds are resting.

Why Expanded FDIC Coverage Matters for Nonprofits

Nonprofits often receive game-changing gifts, grants, or capital campaign installments that push cash well past the FDIC insurance line. Traditional workflows force you into a tough spot: do you put grant or donor-restricted dollars in several banks to stay under the cap, or expose those funds to risk, trusting your bank’s health?

With Holdings, that balancing act ends. Expanded coverage lets you grow operating reserves, accept multi-million-dollar philanthropic gifts, or park unspent grant funds without worrying about insurance limits. When you add the reality of tracking money meant for separate projects or complying with strict federal grant requirements, automated, at-a-glance insurance just makes sense.

A Closer Look at the Nonprofit Benefits of the Holdings Model

Nonprofit finance is full of moving parts, especially if you manage dozens of funds, unrestricted and restricted dollars, or lots of programs under one tax ID. Here’s why Holdings sits at the sweet spot between control and flexibility:

• Your FDIC insurance now scales with your mission. Whether funds pile up after GivingTuesday or trickle in over a pledge campaign, the $3 million cap helps you keep every penny protected.

• Funds earmarked for a housing project, an afterschool program, or unrestricted operations can be segmented virtually—while the sweep program keeps all of your accounts protected, no matter how much sits in each.

• You still see your balances in a single dashboard, complete with clear segmentation by fund or grant, making audits or board reporting a breeze.

No More Chasing Bank Statements Across Town

Many organizations try to “DIY” their way around the FDIC cap by opening accounts at several banks. While this covers insurance limits, it introduces headaches: more paperwork, more statements at audit time, more passwords, and far more opportunities for error.

Holdings changes that paradigm. Once your funds are deposited and identified by purpose—by program, grant, or fiscal sponsor—all the distribution and protection happens in the background. You keep all controls, approvals, and reconciliations under one roof, freeing up time for your finance team to focus on real stewardship.

Instant Access, Real-Time Control

One of the most frustrating aspects of segmenting funds across banks is the loss of flexibility. Suddenly, transferring funds for an urgent program need means moving money across banks, waiting for holds, and redocumenting transfers at audit time.

With Holdings, all movement—within your operating account, between restricted and unrestricted funds, or out to vendors and partners—remains instant. No more waiting for bank business hours or dealing with delayed wires. If your executive director authorizes a transfer after board approval, the funds are already in the right place, fully insured and available.

What About Fees and Minimum Balances?

Traditional banks often counterbalance business products with tricky fees, minimum balance requirements, or transaction limits. This isn’t just inconvenient for nonprofits—it actively drains resources meant for your mission.

Holdings was built in response to those frustrations. There are no monthly fees, no penalties for dipping below balance minimums, and no charges for standard nonprofit banking needs. Every dollar stays with your organization, earning interest and serving your purpose—no nickel and diming, ever.

Beyond Protection: A Toolkit for Mission-Driven Finance

Expanded FDIC coverage is only the starting point. Holdings surrounds your funds with features that speak directly to nonprofit needs:

• Split your cash automatically by grant, program, or donor restriction—no more color-coding clunky spreadsheets or guessing at segment balances.

• Equip your team, volunteers, or partners with secure, policy-driven debit or virtual cards, keeping spending compliant and within preset boundaries.

• Integrate your account activity with accounting platforms you already use, like Sage Intacct or QuickBooks, without having to revamp your existing chart of accounts.

• Tap into full-service bookkeeping support to catch up on reconciliations, prepare for audits, or clean up delayed month-ends, even if you’re between finance staff.

Empower Every Type of Nonprofit Team

Not every organization has a dedicated CFO. Some have a program manager moonlighting as bookkeeper, while others have a full finance committee reviewing every line item.

Holdings meets you where you are:

• Startup nonprofits can run everything from a single interface, automate approvals, and retire the shoebox of receipts.

• Grassroots organizations managing multi-grant complexity can segment and track without hours of spreadsheet work.

• Larger nonprofits, with formal policies and software, can plug Holdings into their toolkit, using sweep coverage as an extra layer of protection—never a replacement for their accounting backbone.

Security That Matches Your Stewardship Standards

Protecting funds means more than just compliance—it means safeguarding your reputation and your community’s trust. Holdings is designed with nonprofit stewardship in mind, building in advanced security at every layer.

Encryption protocols keep sensitive donor and grant information safe. Multi-factor authentication ensures that only authorized staff can access transaction histories or approve funds movement. Real-time fraud monitoring sniffs out suspicious activity before damage is done, so you can focus energy on mission work—not cybercrime defense.

Frequently Asked Questions—For Mission-First Finance Teams

How do I know my funds are protected with Holdings?

Holdings’ daily sweep, operated in partnership with i3 Bank, ensures each portion of your cash never exceeds FDIC limits at any one institution. No matter how high your balances grow amid a successful campaign or during slow spending months, you remain protected up to the program cap.

Can we access our funds at any time?

Absolutely. Even with funds distributed automatically for protection, your dashboard remains your window to every dollar. Authorize transfers, track program balances, or issue cards—all in real time. No funds are ever “locked up” just because they’re insured.

Is there a catch—do these protections cost extra?

No. In designing Holdings, the focus was always on maximizing resources for nonprofits’ core work. All sweep protections are included with every account, with no hidden fees, surcharges, or expensive minimums.

How do we get set up?

Opening a Holdings account is completely digital. Apply online with your organization’s documents, verify beneficial ownership details, and fund your account with the method that works best for your team. From there, you can begin earning interest and enjoying zero-fee funds protection.

Real-World Scenario: How Holdings Protects a Growing Nonprofit

Imagine your organization just secured a major multi-year grant—$600,000 to be used over three years for a new community initiative. You deposit the check into your Holdings account. Traditional banks would only insure the first $250,000, leaving $350,000 exposed.

With Holdings, all $600,000 is covered. The sweep happens automatically. There is no urgency to open another account, no risk of noncompliance with grantmaker restrictions, and no distraction from important program work.

Over the next year, your balance might grow, especially if capital campaign pledges are received. No matter if the account swells to $2 million during slow project ramp-ups, or cycles down as funds are deployed, every cent remains inside the insurance shield.

Built-In Expense Management with Policy-Driven Controls

Mission-driven teams need to spend confidently—without relying on personal reimbursements or opening the door to policy violations. Holdings’ card program lets you assign virtual or physical cards to staff or volunteers, control spending by vendor or category, and review every transaction with built-in documentation. That means less paperwork, less risk of error, and faster closeout of projects and grants.

Bookkeeping is always simpler when spending is traceable by project, event, or campaign—especially during audits or grant reviews.

Compatible, Not Competitive: Playing Well with Your Existing Systems

If your nonprofit already uses platforms like QuickBooks, Sage Intacct, or another accounting system, Holdings does not force you to change. Instead, your Holdings account exports seamlessly to these platforms—or plugs in via integrations—bringing added layers of control and cash management insight.

Think of Holdings as a modern overlay, enhancing whatever workflows already work for you, not disrupting your hard-won policies and procedures.

Flexible, Transparent Reporting

No more tracking balances piecemeal or reconciling statements from multiple banks. Holdings’ reporting tools let you slice and dice your account activity by fund, donor, grant, or program. Need to show your board how much of that emergency relief grant is left compared to your youth development fund? It’s all there in one click.

Audit prep is likewise simplified: download reports matched to your chart of accounts or grant ledger, and be ready for any review, whether by the board, foundation, or government agency.

High-Yield Earnings on Every Dollar

Nonprofits shouldn’t have to choose between security and stewardship. Holdings pays you, with competitive interest rates on your balances. Whether you keep operating reserves, save for future program expenses, or simply park cash between giving seasons, your funds aren’t sitting idle—they’re generating value for your work.

Again, every dollar is protected and earning, never whittled away by maintenance fees or other bank penalties.

Immediate Impact for Lean or Growing Teams

Holdings was built to serve the full spectrum of nonprofit organizations. Newer groups can start with one program and a handful of volunteers, confident that their first grant is protected. Established nonprofits, meanwhile, can deploy sophisticated controls, manage multiple programs, or operate in partnership with fiscal agents—all within the same transparent, secure platform.

No matter how your operations change, your banking relationship is ready to scale—and your funds stay secure.

Transparent, Mission-Driven Fee Structure

Budgeting is always a top concern in nonprofit management. Holdings’ zero-fee commitment means no surprise expenses draining your unrestricted dollars or diminishing the impact of that hard-fought government grant. No monthly account fees, no minimum balance charges, no transfer penalties—just straightforward, mission-ready banking.

Integrated Bookkeeping and Audit Support

If you’re running without a full finance team, or need help catching up, Holdings offers bookkeeping support drawn from nonprofit experience. Bring your books up to date, ensure clean audits, and always stay grant-ready, even through staff transitions or rapid growth.

Advanced Security: More Than Just a Buzzword

Every organization, regardless of size, needs the reassurance of robust security. Holdings brings nonprofit-friendly cyber protections with enterprise-grade multi-factor authentication, fraud monitoring that actually understands nonprofit transaction patterns, and continuous updates for evolving threats.

Your donors trust you to steward their gifts—Holdings protects you so you can deliver on that promise.

Onboarding Designed for Nonprofits

You shouldn’t need a finance degree to get started. Apply online in minutes, complete simple compliance steps to verify your organization, and start moving funds as soon as you’re approved. The onboarding team is available to answer questions about eligibility, program segmentation, or integrating your existing accounting software.

More Nonprofit Relevant Banking Terms—Made Simple

• Deposit account: Your organization’s home base for managing cash flow, grants, and program spend.

• Interest rate / APY: The extra earnings on your bank balance.

• ACH transfer: Affordable, quick deposits from funders, payroll, or event income.

• Invoice: Request for payment, whether for grant reimbursement or major donor pledges.

• Accounts payable: Money owed to vendors, partners, or consultants on your projects.

• Authentication: Security checks to protect your accounts from unauthorized activity.

• Fraud protection: Safeguards that detect and block scams or theft before money is lost.

• Mobile banking: Manage your funds from board meeting to volunteer event.

• Certificate of Deposit (CD): A savings vehicle for longer-term, restricted funds.

• Debit/credit cards: Tools to manage everyday expenses, safely and within policy.

• Beneficial ownership: Who runs and controls your nonprofit’s finances—handled easily in Holdings’ setup process.

• Regulatory compliance: Meeting all state and federal rules for transparency and good stewardship.

• Encryption: Keeping sensitive donor, client, and staff data secure.

Get Started—A Banking Relationship That Understands Nonprofits

Opening a Holdings account is simple. Collect the usual documents, complete guided compliance verification, and fund your account by wire, ACH, check, or transfer. Set up your segments—by grant, program, or donor—and invite team members with the roles they need.

Start earning interest, enjoying expanded coverage, and using world-class tools to make your financial stewardship easier than ever.

Supporting Resources To Empower Your Mission

Holdings believes every nonprofit deserves clear guidance and helpful tools. That’s why you have access to a suite of nonprofit-specific resources, whether you’re in startup mode or prepping a major audit:

• Step-by-step onboarding guides for new organizations or established nonprofits

• Playbooks to maximize FDIC insurance without adding work for your finance staff

• Templates to map roles and permissions for your team or board

• Fee transparency charts highlighting where other banks can nickel and dime you—and how Holdings avoids it

• Integration walk-throughs for QuickBooks, Yodlee, and Sage Intacct

• Internal controls checklists designed for lean, high-impact nonprofit operations

• Practical tutorials for managing multiple segments, funds, or programs

• Security best practices tailored for nonprofit needs

Built for All Kinds of Nonprofits

No two nonprofit journeys are the same. Holdings is already trusted by organizations working in education, healthcare, direct service, advocacy, and faith-based initiatives. Whether you’re running capital campaigns or managing grant cycles, your funds stay organized, protected, and fully in your control.

Final Thoughts: Protecting Your Organization’s Future

Nonprofit work is never static. Needs change, staff come and go, and funding ebbs and flows. What should never change is the safety and stewardship of your resources.

Holdings, with expanded FDIC insurance through i3 Bank, offers a solution tailored to nonprofit realities—zero fees, high interest, full-service support, and seamless integration with the tools you already use. Focus on your mission, not banking risk, and let your finances fuel your impact with confidence.

Join Holdings to experience banking that keeps up with your mission, safeguards every donor dollar, and ensures your daily focus is exactly where it should be—on serving your community.