Financial Management for Nonprofit Organizations, 3rd Edition

APPENDIX 11ADIRECT PAYMENT FOR NONPROFITS

SAVE TIME AND COSTS, AND ADVANCE ORGANIZATIONAL GOALS

Direct Payment via ACH can be used to make and receive payments. With Direct Payment, you can simplify the payment process for your organization and your donors, and free up time, money, and energy to devote to your organization's mission.

INCREASE EFFICIENCIES IN YOUR ORGANIZATION

By implementing Direct Payment in your organization, you can automate your accounts payables by making electronic payments to your vendors and service providers. This can allow for better cash flow management, along with easier reconciliation and reporting.

You also help support environmentally sustainable practices: Electronic payments reduce the use of paper and its impact on the environment.

INCREASE DONATION DOLLARS AND ENCOURAGE CONTINUED GIVING

With Direct Payment, donors can give to your organization directly from their bank accounts. This can reduce the fees your organization pays for card transactions, lessen donor loss due to expired cards, and increase the donation dollars put toward your organization's cause.

Additionally, Direct Payment can help retain donors by encouraging automatic, recurring gifts. Using Direct Payment, your donors set up and control the timing and amount of a regular donation.

KEEP YOUR BUSINESS PAYMENTS AND DONATIONS SECURE

Your Direct Payment transactions ...