I am a board member for a youth football organization. One of our coaches was in a serious car accident and will be out of work for at least six months. We are hosting a Beef and Beer Dinner to raise money for the family. We would like to set up an account separate from the organization's to deposit any cash donations we receive. What type of account should be set up and whose TIN should be used?
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There are really a lot of issues involved in setting up an account like this. Discuss your questions with the bank where the organization keeps its other accounts.
If the amount of money will be substantial, your bank might think it best to establish an account for the benefit of the coach's spouse (assuming he or she is married), and get the spouse's consent to use his or her social security number for tax reporting purposes. You won't be able to obtain a separate TIN for the fund unless a formal trust is established.
We operate a web site for bankers, BankersOnline.com. A few years ago, we published a guide for banks that are asked to open this type of account. Although it's fairly technical and written from the banker's perspective, it might give you an idea of what your bank is likely to be looking for when setting up Disaster Accounts.
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There are really a lot of issues involved in setting up an account like this. Discuss your questions with the bank where the organization keeps its other accounts. 