When opening memorial and benefit accounts, we believe it is a best practice to ask the individuals establishing the accounts to obtain separate EINs to avoid a number of potential problems. For example, using a separate EIN with the memorial fund’s name in your account records should help to avoid confusion for IRS reporting and other purposes. It may be helpful to provide these customers instructions for obtaining an EIN, which is a simple and free process and can be done online.

As an aside, we note that certain charitable activities may trigger registration requirements with the Illinois Attorney General’s Charitable Trust Division under the Charitable Trust Act or the Solicitation for Charity Act. However, these laws do not impose any responsibilities on financial institutions holding charitable accounts.

For resources related to our guidance, please see:

• IRS, Publication 559, EIN Instructions (“You can get an EIN by applying online at www.irs.gov (click on “Apply for an Employer ID Number’ under the Tools heading). Generally, if you apply online, you will receive your EIN immediately upon completing the application. You can also apply using Form SS-4, Application for Employer Identification Number. Generally, if you apply by mail, it takes about 4 weeks to get your EIN. See www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-EINs for other ways to apply.”)

• IRS Online EIN Application Assistant (Permitting organizations to apply for EINs as Block/Tenant Associations, Community or Volunteer Groups, Memorial or Scholarship Funds, PTA/PTO or School Organizations, Social or Savings Clubs, Sports Teams and more, under “Additional Types.”)

• Illinois Attorney General, Charitable Organization Registration and Annual Report Forms