Comments on: FDIC insured? Check again http://fundraisingcoach.com/2008/09/19/fdic-insured-check-again/ Fundraising seminars & training from The Fundraising Coach, Marc A. Pitman Fri, 11 May 2012 16:49:31 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Marc A. Pitman http://fundraisingcoach.com/2008/09/19/fdic-insured-check-again/comment-page-1/#comment-13921 Marc A. Pitman Fri, 19 Sep 2008 16:08:44 +0000 http://fundraisingcoach.com/2008/09/19/fdic-insured-check-again/#comment-13921 Kate Lee: WOW! Thanks for sharing this. Who would've thought that it all could hinge on a bank employees' not following through? Kate Lee: WOW! Thanks for sharing this.

Who would’ve thought that it all could hinge on a bank employees’ not following through?

]]> By: Kate Lee http://fundraisingcoach.com/2008/09/19/fdic-insured-check-again/comment-page-1/#comment-13920 Kate Lee Fri, 19 Sep 2008 14:33:02 +0000 http://fundraisingcoach.com/2008/09/19/fdic-insured-check-again/#comment-13920 Marc - So very true! Exec. Directors and Boards should be cognizant of how their funds are treated by the FDIC. Dealing with a similar issue with a local nonprofit - they had concerns about the funds deposited at a certain bank that is in headlines this week. The Exec. Director and Finance Committee went to bank to move funds to another bank. They found out that the account executive had not submitted account-signatory paperwork to add the new ExecDir and remove the prior ExecDir. Then the bank refused to even speak with the current ExecDir, despite having the Board Chairman with her. Don't even ask how the bank justifies letting 5 months of checks go thru with unauthorized signatures - we just don't want to go there! Luckily, the former ExecDir left on good terms, and raced back to Atlanta to go to the bank and complete the paperwork in the presence of a bank executive. Lesson learned: ALWAYS check that paperwork is properly completed and submitted - such things should take no more than 48 hours to process. Not having access to your funds is only slightly better than having your funds whisked away due to FDIC rules on maximum-insured-amounts. Marc – So very true! Exec. Directors and Boards should be cognizant of how their funds are treated by the FDIC.

Dealing with a similar issue with a local nonprofit – they had concerns about the funds deposited at a certain bank that is in headlines this week. The Exec. Director and Finance Committee went to bank to move funds to another bank.

They found out that the account executive had not submitted account-signatory paperwork to add the new ExecDir and remove the prior ExecDir. Then the bank refused to even speak with the current ExecDir, despite having the Board Chairman with her.

Don’t even ask how the bank justifies letting 5 months of checks go thru with unauthorized signatures – we just don’t want to go there!

Luckily, the former ExecDir left on good terms, and raced back to Atlanta to go to the bank and complete the paperwork in the presence of a bank executive.

Lesson learned: ALWAYS check that paperwork is properly completed and submitted – such things should take no more than 48 hours to process.

Not having access to your funds is only slightly better than having your funds whisked away due to FDIC rules on maximum-insured-amounts.

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