As the financial world and government regulations continue to change, another wheel has turned, sending local non profit organizations scrambling.
Many Crown Heights non profit organizations found themselves the next victims of an ongoing, and rapidly deteriorating problem. No banks are willing to allow non profits to bank with them.
Apple Bank, which has a conveniently located branch on Eastern Parkway and Albany Ave, has recently closed down accounts to multiple vital community non profits.
The issue would not be so bad if not for other banks refusing these organizations new accounts.
The reason behind the change in policy stems from the fact that banks make no money off of these non profits.
As non profits are chronically short on funds, and are a revolving door for monies in and out, the cost of up-keeping these accounts are high on the banks.
Increasingly, as the government cracks down on shady non profits, the audits and paperwork on the banks have become prohibitive. To fix the issue, most private banks are simply no longer banking for non profits.
Crown Heights community organizations affected include Mikvahs and Tzedakah organizations, vital for the community.
One Crown Heights organization told CrownHeights.info that the issue will become a major problem in a few years, potentially crippling many community organizations.