FDIC Rules

-
I've been asked today what are the rules governing FDIC deposits. With today's news on the failure of the bailout bill, it's a smart practice for businesses, nonprofits and individuals to take a look at their bank accounts. The FDIC has a handy calculator called "Edie" that you can enter all of your bank account information and it will tell you whether you are covered or not.

If entering your information online makes you nervous, a couple of rules to remember for business FDIC coverage:

  • FDIC offers coverage of $100,000 per person, per entity
  • LLC's and Corporations are separate entities
  • A sole-proprietorship is not a separate entity so business accounts and personal accounts are added together and only insured to $100,000
  • A corporation or LLC with several accounts at the same bank is only insured to the $100,000 on all the accounts together.

This information is by no means comprehensive. I am not an attorney or accountant. I just wanted to give some preliminary guidance. If your organization has close to $100,000 in combined deposits at a bank it's wise to consult your accountant and consider opening up another account at a different bank.

Comments

Post a Comment

Popular posts from this blog

Catherine Rohr's Excellent Argument for Hiring Ex-Offenders

-
I was excited to see Catherine Rohr's essay "Why You Should Hire Ex-Cons" in Inc today. She makes a wonderful case that I hope many employers will read. I've long hoped the case for ex-offender employment would start getting a wider audience. As I've written before, employers need not fear hiring ex-offenders. They provide a excellent source of dedicated workers desiring to move beyond the mistakes of their past. And while you are at it, check out the great work Rohr's organization Defy Ventures is  doing in NYC. Many business owners have overlooked a great source of untapped talent: former inmates. Many former drug dealers and gang leaders have skills and attributes you value most in employees, including charisma, resourcefulness, resilience, a willingness to take calculated risks, and strong management skills.  " Why You Should Hire Ex-Cons ," Catherine Rohr in Inc , June 25, 2012 Read rest of the story here .  
Read more

The Accidental Janitorial Company: Freedom Cleaning Services

-
Sometimes opportunity finds you. In 2003, Cherry Hills Community Church called Baby Bud's Director Dianne Sager with a question. The recovery organization that had been cleaning their facility had just closed and Cherry Hills needed a new partner. Would Baby Bud's be interested in cleaning the school at Cherry Hills? Normally a retail baby store would think twice about committing to a job completely unrelated to its core business. But Dianne had 20 years of experience managing a janitorial company prior to Baby Buds. She saw this as a new opportunity to employ more single moms. Within a couple of weeks, Baby Bud's added five single moms for a cleaning crew and Freedom Cleaning Services was born. Within a year, the business had grown to employ ten women with several other churches and commercial businesses as clients. One of the challenges to any business start-up is maintaining the focus on your core business when other opportunities arise. Sometimes it's good to pur
Read more

Thomas Merton on Work

-
The requirements of a work to be done can be understood as the will of God. If I am supposed to hoe a garden or make a table, then I will be obeying God if I am true to the task I am performing. To do the work carefully and well, with love and respect for the nature of my task and with due attention to its purpose, is to unite myself to God's will in my work. In this way I become his instrument.  Thomas Merton, New Seeds of Contemplation , Location 357-65
Read more