NACHA Debuts Nonprofit Toolkit to Support Sustaining Donor Programs

Share Article

Research points to opportunity for ACH payments to increase donor retention

News Image
ACH payments are the gold standard for recurring payments, and nonprofits rely on recurring donations.

NACHA—The Electronic Payments Association® today debuted its nonprofit toolkit, designed to help nonprofits grow their sustaining donor programs. The toolkit offers practical tips and resources for leveraging direct withdrawal via ACH – a form of Direct Payment via ACH - to retain donors and sustain contributions.

The new nonprofit toolkit, available on electronicpayments.org, consists of four core pieces:
1.    Case Study – Featuring Capital Public Radio’s “Evergreen” campaign, this case study provides a concrete example of how ACH payments increase donor contributions and retention. The station reports ACH payments are responsible for more than 40 percent of all individual donation dollars, and they retain ACH donors up to 20 percent longer than those using credit cards.
2.    Checklist – Identifying specific steps, this checklist simplifies the process of establishing a sustaining donor program with ACH.
3.    Best Practices – Once established, nonprofits can enhance and grow their sustaining donor programs by increasing ACH payments. This document outlines tried-and-true practices that deliver increased sustainer donations for nonprofits.
4.    Addressing Common Misconceptions – This promotional piece directly addresses and responds to common misconceptions about ACH payments, enabling nonprofits to offer factual responses to donors who may have questions.

“ACH payments are the gold standard for recurring payments, and nonprofits rely on recurring donations,” said Priscilla Holland, Senior Director, Healthcare & Industry Verticals, NACHA. “We designed the toolkit to help support the set up and promotion of direct withdrawal via ACH for sustaining donor programs that ultimately will help the nonprofits achieve their program goals.”

Research demonstrates that ACH payments can improve donor retention. According to early findings from a study commissioned by NACHA, donors who give via ACH donate more frequently than those who donate via other means. One major reason is because donors who use direct withdrawal via ACH can set up their donations to continue automatically until canceled by the donor. In addition to giving more often, direct withdrawal via ACH donors give more, donating more than double compared to donors who give via paper check, credit card or other means.

The research also shows that direct withdrawal via ACH is a payment method donors want to use. Donors cited “familiarity and comfort” and “quick and easy” as the most important factors when choosing their method of payment. Additionally, donors indicated that “the charity receives the donation quickly” and “the method is trustworthy” as additional factors when considering a donation method.

“Currently 82 percent of U.S. workers receive their pay via ACH – commonly known as Direct Deposit – and consumers pay more than 800 bills each month via ACH,” said Holland “Additionally, ACH payments are fast and easy. They can be set up online just as quickly as any other type of payment, and most payments can be received by an organization the next day. ACH transactions are safe and have the least incidence of fraud compared to other payment types. Clearly, ACH payments meet the needs and wants of donors.”

The new content launched today adds to other resources available to nonprofits. For more information on ACH payments or to download the nonprofit toolkit, visit electronicpayments.org.

About NACHA—The Electronic Payments Association
Since 1974, NACHA—The Electronic Payments Association has served as trustee of the ACH Network, managing the development, administration and rules for the payment network that universally connects all 12,000 financial institutions in the U.S by moving money and information directly from one bank account to another. Financial institutions exchanged 25 billion ACH payments valued at $43 trillion in 2016. Through its collaborative, self-governing model, education, and inclusive engagement of ACH Network participants, NACHA facilitates the expansion and diversification of electronic payments, supporting Direct Deposit and Direct Payment via ACH transactions, including ACH credit and debit payments, recurring and one-time payments; government, consumer and business transactions; international payments, and payments plus payment-related information. Through NACHA’s expertise and leadership, the ACH Network is now one of the largest, safest, and most reliable systems in the world, creating value and enabling innovation for all participants. Visit nacha.org for more information.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Kendra Beasley
NACHA - The Electronic Payments Association
+1 (703) 561-3923
Email >
Visit website