APPENDIX 11A
DIRECT PAYMENT FOR NONPROFITS

Illustration of the words “Direct Payment via ACH.”

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 are safe: Unlike a paper check, which passes through many hands, account numbers remain confidential. You can also consult with your financial institution or payroll provider to learn about additional sound business practices to protect sensitive data.

CALCULATE SAVINGS

Exhibit 11A.1 Organizations Benefit with Direct Payment, Saving $1.50 or More per Payment

GET STARTED

Direct Payment via ACH is easy to set up and use. Simply contact your financial institution or service provider to set up the service. Most payment software packages now include Direct Payment as a standard feature.

Once set up, contact your vendors and service providers directly to authorize the regular electronic transfer of funds, and begin promoting Direct Payment as a new giving option to donors and others you receive payments from to help encourage use.

RESOURCES

Use these resources to support Direct Payment implementation in your organization and to promote this payment option to your donors.

  • Sample Content
  • Articles »
  • Press Releases »
  • Social Media »
  • Promotional
  • Fact Sheets »
  • Brochures »
  • Messaging »
  • Videos »
  • Tools
  • Form »
  • Checklist »
  • Case Study »

Note: For the items listed below, navigate to: https://electronicpayments.nacha.org/direct-payment/non-profits/direct-payment-nonprofits#dp-np-resources.

Source: Used by permission of NACHA – The Electronic Payments Association.