What technology investments should nonprofits consider given changes in online payments?
Payments
Asked by Question Bot03/Nov/20131 answer
1 Answer
F
Faisal Khan
Answered 03/Nov/2013
I'm not sure if this would answer your question with respect to donor management or account, but as a Non-Profit organization, payments and payment systems would have no preferential bearing on how you receive and channel the money received via donors.
However, what you can very well look into is how to reduce the financial charges associated with your incoming donations. As an example, if you are accepting donations via credit/debit cards, you're paying 2.5+% or more as the processing fees. This can add up when your donations add up.
To reduce such charges, many Not-for-Profit organizations are pushing for donors to make payments via more economical alternatives. Such options are ACH (eCheck) or using systems like Vemno or Dwolla.
By utilizing say Venmo or Dwolla or ACH, you will be paying a flat (read fixed) fees for each transactions, regardless of the Dollar amount associated with it.
As a crude example, fi someone pays you US$ 1,000, an ACH charge could be US$ 0.75 per transaction, compare this to say 3.0% a credit card processor may charge, which would equate to US$ 30.00 - so considerable savings there.
Looking into alternative payment solutions would definitely help you retain more of what is donated to you.
See also:
I have no affiliations with these companies.
However, what you can very well look into is how to reduce the financial charges associated with your incoming donations. As an example, if you are accepting donations via credit/debit cards, you're paying 2.5+% or more as the processing fees. This can add up when your donations add up.
To reduce such charges, many Not-for-Profit organizations are pushing for donors to make payments via more economical alternatives. Such options are ACH (eCheck) or using systems like Vemno or Dwolla.
By utilizing say Venmo or Dwolla or ACH, you will be paying a flat (read fixed) fees for each transactions, regardless of the Dollar amount associated with it.
As a crude example, fi someone pays you US$ 1,000, an ACH charge could be US$ 0.75 per transaction, compare this to say 3.0% a credit card processor may charge, which would equate to US$ 30.00 - so considerable savings there.
Looking into alternative payment solutions would definitely help you retain more of what is donated to you.
See also:
- Venmo (www.venmo.com)
- Dwolla (www.dwolla.com)
- As an example for an ACH processor - see www.achq.com
I have no affiliations with these companies.