Nonprofits large and small will benefit by using Nacha’s newly updated Nonprofit Toolkit to encourage donations by electronic bank transfer via the ACH Network.
The completely redesigned Toolkit, available to download free at Nacha.org/nonprofits, has everything a charitable or religious organization needs to begin or enhance an electronic bank transfer donation program. It includes a project checklist, case studies, white-labeled donation authorization language, and information on how using electronic bank transfers can move one-time donors to sustaining, recurring donations.
“Sustaining donors are the lifeblood of nonprofits, with research showing they often give more, and for longer periods of time. Electronic bank transfers do a great deal to not only help cultivate but to retain sustainers,” said Brad Smith, Nacha Senior Director, Industry Engagement and Advocacy. “By offering electronic bank transfer as the primary donation option, nonprofits win on many fronts.”
Bank accounts don’t have expiration dates, which reduces the need to ask donors for updated information. Additionally, the low cost of electronic bank transfers means more money going to the mission.
The refreshed Toolkit is the result of Nacha’s industry research into ways of getting nonprofits to make greater use of ACH for donations.
“While the term ‘ACH’ is commonly used in the payments world, we discovered that ‘electronic bank transfer’ is the term that consumers and donor coordinators most commonly associate with actions such as online bill pay and donations,” said Smith.
Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. Nearly 27 billion ACH Network payments were made in 2020, valued at close to $62 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services.