Having multiple banks reduces your vulnerability to administrative FUBAR. It is a fact of life that operating in an unusual fashion in a regulated environment can occasionally cause headaches. When thinking about your org’s cash, losing access to all of it is often qualitatively different to losing access to most of it. Having funds spread across multiple banks, while some overhead applies to set up, leaves you with some redundancy in case of institutional delay.
If you are operating as a non-profit, or a new org that goes through rapid user or revenue growth, the likelihood that you will experience a bureaucracy or ops failure that might restrict access to your cash increases. It’s not high enough to be an overriding concern, but certainly well within the likelihood window of something as catastrophic as a bank failure when considering your options.
An additional point supporting Advice 1:
Having multiple banks reduces your vulnerability to administrative FUBAR. It is a fact of life that operating in an unusual fashion in a regulated environment can occasionally cause headaches. When thinking about your org’s cash, losing access to all of it is often qualitatively different to losing access to most of it. Having funds spread across multiple banks, while some overhead applies to set up, leaves you with some redundancy in case of institutional delay.
If you are operating as a non-profit, or a new org that goes through rapid user or revenue growth, the likelihood that you will experience a bureaucracy or ops failure that might restrict access to your cash increases. It’s not high enough to be an overriding concern, but certainly well within the likelihood window of something as catastrophic as a bank failure when considering your options.