When I think about the value of a banking relationship, my mind goes back to a story from my own family.

My grandfather was a farmer in Iowa who once had the opportunity to buy a piece of land in Colorado—property that had belonged to my grandmother’s family. On paper, it might not have seemed possible. But because he had a long-standing relationship with his banker—someone who knew his history, integrity, and track record of always repaying loans responsibly—that banker was willing to take a risk that another institution probably wouldn’t have.

The result? My grandfather was able to purchase that land, which has now stayed in our family for generations. That single decision shaped the legacy of our family’s resources and mission.

It’s a powerful reminder: relationships still matter—especially in banking.

The Shift Away from Relationship Banking

In today’s world, many organizations approach banking as a transaction rather than a relationship. Each time they need a loan or open an account, they shop for the best rate or the most convenient branch. But in doing so, they miss out on something far more valuable—the relational equity that comes from being known.

For nonprofits and churches, this kind of relationship can make all the difference. Too often, leaders assume they “don’t need a banker” because they aren’t planning to borrow money. They simply deposit donations at the nearest bank and move on.

But a banking relationship can do so much more than hold deposits—it can educate, advocate, and position your organization for growth.

1. Education and Guidance

A strong banker becomes a part of your financial education team. For example, once your organization holds more than $250,000 in deposits, you’ve exceeded the FDIC insurance limit. A proactive banker will reach out, help you understand your options, and suggest ways to safeguard those funds.

Similarly, when you’re considering borrowing, that same banker can help you understand what financial documentation, ratios, and reserves a bank looks for before extending credit. These insights can help you strengthen your organization’s financial systems long before you ever apply for a loan.

2. Partnership for Growth and Access

Having an established relationship can also open doors when your nonprofit needs financing. I once worked with a church in Iowa that struggled to secure a loan. It wasn’t that they were financially unstable—they simply didn’t have a relationship with a bank that understood their ministry model. In that community, where few new churches had been built in decades, banks were unfamiliar with how to evaluate non-denominational congregations.

That’s where relationship banking matters most. When a banker has taken time to understand your mission, your financial rhythms, and your track record, they’re better equipped to advocate on your behalf when lending decisions are made.

3. Local Impact and Community Investment

Don’t overlook the local impact of a banking relationship. Many banks have community reinvestment initiatives or local grant programs designed to support nonprofits in their area. When you have an active relationship with a local banker, they can connect you with those opportunities.

Even if you never apply for a loan, a bank that knows your mission may find creative ways to partner—sponsoring events, offering volunteer support, or highlighting your organization in community initiatives.

4. Building Trust and Credibility

A banking relationship also strengthens your financial credibility. When your nonprofit is known and trusted by your bank, that trust carries over to auditors, donors, and potential grantors. It’s a subtle but powerful signal of financial stability and stewardship.

Moving Forward with Confidence

At the end of the day, banking relationships aren’t just about convenience—they’re about connection, education, and opportunity.

My grandfather’s story reminds me that legacy and impact often hinge on simple relational decisions. In the same way, the right banking partnership can help your nonprofit build a stronger foundation, make wiser decisions, and access opportunities that purely transactional banking can’t provide.

If your church or nonprofit hasn’t yet built a meaningful relationship with a banker—or if you’re not sure what that relationship should look like—now is the time to start.

Our Fractional CFO Services help churches and nonprofits strengthen financial systems, evaluate banking partnerships, and ensure that your financial decisions align with your mission.

To take your next step, download 5 Steps for Nonprofit Leaders to Thrive—it’s a free resource that will help you build clarity, protect your team, and lead with confidence.

And if your organization is facing a key financial decision—whether it’s opening new accounts, planning for reserves, or preparing for growth—start the conversation at terisaclark.com/you.

I look forward to serving you!