Expert Insights: What nonprofits should consider when looking for a banking partner
Naomi Camargo, VP, Business & Nonprofit Relationship Manager, Columbia Bank
Nonprofits are operating in a moment of both urgency and uncertainty. Funding cycles are shifting, community needs are rising, and organizations are being asked to do more, often with lean teams and complex oversight requirements.
Naomi Camargo, VP, Business & Nonprofit Relationship Manager at Columbia Bank, spends her days working alongside nonprofit leaders across the Pacific Northwest. Her perspective is simple: choosing a banking partner isn’t just about accounts and transactions. It’s about operational stability and mission sustainability.
Below, she shares what nonprofit leaders should consider when evaluating a banking relationship.
Q: What challenges are nonprofits facing right now, and how does that affect their banking needs?
The biggest thing I’m hearing from nonprofit leaders right now is uncertainty around funding, especially grants. Organizations are asking whether previously awarded grants will continue and what future funding sources will look like. Because of that, many teams are building more partnerships in their communities to keep moving their missions forward.
At the same time, they’re trying to retain staff and maintain program momentum. When resources are tight and turnover is high, operational efficiency becomes even more important. That’s where a banking relationship can make a difference – not to replace funding, but to help organizations run more smoothly between funding cycles.
Q: Many nonprofits first ask about sponsorships. What should they actually be looking for in a bank?
A lot of organizations initially want to know if the bank will financially support their programs or a particular event, which is understandable given that development teams are measured on fundraising. But the long-term value of a banking relationship rarely comes down to a one-time check.
Our bigger, more durable impacts come from our ability to help nonprofits improve their systems. If we can help an organization receive donations online, streamline their payment processes, or improve their monthly cash flow management, that often creates far more financial benefit than a sponsorship amount ever could.
The most successful relationships happen when I’m able to speak with both the development team and the finance team since one focuses on fundraising, and the other understands cash flow. At Columbia Bank we sit in the middle helping to connect those vital priorities.
Q: How does Columbia differentiate itself from large banks or smaller institutions?
We’re really at the sweet spot of a community bank that has scale. While large national banks often have robust platforms, they often have limited relationship continuity. Smaller institutions may offer personal service, but they don’t always have the infrastructure that nonprofits need. Our goal is to provide both: responsive bankers and strong operational support behind them.
That matters because nonprofits are constantly navigating change such as new board members, signer updates, restricted accounts and audit requirements. Nonprofits don’t just need one banker – they need a team that can coordinate across demands and keep everything accurate.
One of the most important factors nonprofit organizations should consider is whether their banker has tenure at the institution. A tenured banker understands internal processes and can advocate for the organization when something unique comes up.
Q: Why is nonprofit governance knowledge important in a banking partner?
Nonprofits have compliance expectations that are very different from businesses. Things like restricted funds, separation of duties, and audit preparation need to be handled correctly. For example, setting up separate accounts for different purposes can make audits dramatically cleaner, or making sure the finance officer has access but isn’t a signer preserves internal controls.
We also help reduce risk and prevent fraud. We once received a request to add an account signer that didn’t feel right based on my familiarity with the organization. We paused, confirmed the details, and discovered the executive director’s email had been compromised. Because we knew the organization well, we were able to stop potential fraud before it happened.
That kind of protection only comes from relationship and understanding – not just transactions.
Q: Beyond day-to-day banking, what additional value can a bank provide for a nonprofit?
Strong community bankers can open doors for non-profits, providing connections to a variety of resources. We regularly connect nonprofits with business owners, donors, or even potential board members who care about their mission. I’ve connected organizations to equipment donations and resources simply because we knew both sides.
We also support growth over time. As nonprofits mature, they often need investment reviews, help evaluating investment policies, or guidance on managing reserves. Having those capabilities within the same institution creates continuity instead of forcing them to rebuild relationships elsewhere.
Q: What advice would you give nonprofits when choosing a banking partner?
I always recommend asking three questions: 1) Will my banker stay long enough to understand our organization? 2) Is the institution visibly active in our community? And 3) Is there a full team supporting the relationship?
Nonprofits don’t have excess staff capacity, so they need a banking partner who feels like an extension of their team. When a bank understands an organization’s mission and helps them operate efficiently and safely, it directly supports the work they’re trying to accomplish. When our clients succeed, we feel that success too.
