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Accepting Payments and Donations via
Electronic Funds Transfer (EFT)

Many companies, charities, non-profit organizations and churches have found that accepting payments and donations via Electronic Funds Transfer (EFT) is not only less expensive, and time consuming but gives a much greater dollar return than conventional old ways of receiving money.

 

A national charity recently offered their donors the opportunity to EFT their monthly and quarterly gifts.

After one full year, fulfillment and renewal rates for EFT donors were excellent. For example, over 97% of the monthly and quarterly pledges made by EFT donors were fulfilled, whereas only 74% of donors who mailed in their donations, fulfilled their pledges. Almost $11,000 pledged was not mailed in by the donors.

In addition the renewal rate for EFT donors was 92%. Only 55% of the donors who elected not to use EFT renewed their pledges the following year. Furthermore, donors who participated in the EFT program, also supported other direct mail appeals during the year.

 

In Canada, 40% of Canadians use EFT to pay bills and contribute to charities. More than 80% of Europeans and over 95% of Japanese use EFT.

 

What is EFT and how does it work? EFT is reliable, confidential and effective electronic payment alternative/convenience to paper checks. When you use EFT, you authorize a company or charity to send a computer generated electronic notice to your bank authorizing them to electronically send a payment or donation of $xx to their bank. So instead of writing a check every month, your financial institution will automatically make the payment from your account on a pre-determined date for you. You will still have an accurate record of your contribution/payment for tax deductions because the payment will be shown on your monthly statement from your financial institution. The statement will indicate the payment date, amount and the name of the organization that received the payment. It’s that simple.

 

EFT saves companies and charities thousands of dollars every year in bulk mailings and fund raisers by collecting smaller dollars on a regular basis and thus giving them a more even, dependable cash flow all year. EFT also saves the company or charity time and money in opening mail, processing paper checks and going to the bank. EFT also saves money when it is used instead of a Credit Card because EFT only charges a few pennies per transaction rather than a percentage of the donation.

 

EFT is far safer than writing a check as an average of 7 people have access to all your banking information i.e., your Bank Name, your Bank’s ABA or routing number, your account number and your name and address. All EFT transactions are transferred via modem, directly from computer to computer in an encrypted format. With Trillions of dollars being moved around the world every year without error.

 

The only information available to the recipient/charity is the same information that’s printed at the bottom of a check. No-one has access to your account balance or any other information about you that is maintained by your bank.

 

EFT can easily be stopped simply by sending a written request to the company or charity if you no longer wish to contribute.

 

All EFT transactions are covered by the Electronic Funds Transfer Act of 1978 and Regulation E.

Many charities and companies are quickly seeing the advantages of EFT and making this convenient and secure service available to their clients.

 

If you would like more information about Electronic Funds Transfer and how it can help your charity or company, phone the Electronic Funds Corporation at: 775-267-0067. 

 

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Churches go high-tech with
automatic funds transfer

(Re-printed from the Reno Gazette Journal with permission)

STAFF AND WIRE REPORTS

You pay your heat, phone and gym mem- bership electronically. Now you can settle your debt to God with an automatic funds transfer, too.

In an effort to enhance donations to the offering plate, hundreds of churches are taking Sunday morning donations automatically out of congregants' bank accounts. "We call it divine accounting,' says Leslee Nestingen, manager of fraternal communications for the Lutheran Brotherhood. that has signed up more than 600 Lutheran churches for automatic funds transfer ser- vices. Catholic, Presbyterian and non denominational churches are experimenting as well.

Holy Cross Lutheran Church in Sparks is considering using the system, said Scott Minky, pastor. The biggest factor in favor of the service is cash flow. "When people go on vacation, they don't think about giving their donations before they leave," he said.

The convenience, however, creates both social and theological dilemmas.

This offering is "at the heart of every Christian worship service," said Terry Parsons, stewardship officer for the Episcopal Church. In a cash less church, "what vehicle do you use to represent peoples gifts?"

Well, stickers, tokens, and index cards. The Lutheran Brotherhood uses turquoise stickers, which church members affix to envelopes to indicate they already have given. The Rev. Bill Bixby of trinity Lutheran Church in Lansdale, Pa., calls these "placebo envelopes."

Other churches use metal tokens or colored cards, decorated with preying hands or mourning doves, that say, "We gave electronically."

Dennis and Susan Packard, members of Bixby's church, like the funds transfer program. But they are grateful for the envelopes. If you don't put something in the plate, "you ma be frowned on, " says Dennis Packard. "We avoid that embarrassment."

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Electronic rental-payment
technology comes to tenants

By Terry Feinberg

Special to the Mercury News

SEVERAL new programs may make it easier for paying rent and reducing the hassle of collection for housing providers.

Electronic Funds Corp. of Carson City, Nev., is providing technology for electronic transfer of funds to enable landlords and property management firms to offer their tenants an automatic payment program. Instead of writing, mailing and wondering if their monthly rent check will arrive on time, tenants can fill out a form once, and the rent payment will automatically be transferred each month from their bank account to the owner's account.

Transactions can only be for a pre-authorized amount, on specified dates. Each month, the payments are processed by the property on software provided by Electronic Funds Corp. and are tracked by the Automated Clearing House (ACH) division of te Federal Reserve Bank. The entire process is governed by the Funds Transfer Act of 1978.

Because of software automation and security encryption, the process could be safer than a written check.

For property owners, in two or three minutes, hundreds of rent payments can be processed, with the funds automatically deposited into the owner's account This will reduce the need for late notices and will dramatically reduce the need for collection efforts.

This story goes on to describe two other unrelated topics. If you have further interest in what they might be, you may contact us by e-mail info@achnetwork.com and we will be happy to forward the entire story to you.

Terry Feinberg is chief executive officer of the Tri-County Apartment Association in Santa Clara County, California. 

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