Direct Payment for Nonprofits

Save time and costs, and advance organizational goals

Direct Payment 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 account. This can reduce the fees your organization pays for card transactions and donor loss due to expired cards, and increase the donation dollars put towards 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

ORGANIZATIONS BENEFIT WITH DIRECT PAYMENT, SAVING $1.50 OR MORE PER PAYMENT

Visit our calculator for a quick estimate of the savings your business can achieve using Direct 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.


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Sample Content

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FAQs

GENERAL QUESTIONS ABOUT DIRECT PAYMENT VIA ACH

Consumers pay more than 800 million bills each month using Direct Payment via ACH, so many of your donors may already be using it. Direct Payment is a safe and convenient way to pay and gives your members choice, flexibility and control over their payments.
As with any new service, there are initial set-up costs, as well as ongoing costs. These costs will seem small once your organization begins to realize the savings of Direct Payment via ACH, which can save you $1.50 or more per payment versus paper checks.
Organizations of any size can benefit, and should offer Direct Payment. Consumers increasingly expect to be able to pay bills by Direct Payment via ACH.

GETTING STARTED WITH DIRECT PAYMENT VIA ACH

Your organization is required to send a written notice seven days prior to the scheduled date. Many organizations select a specific day of the month, and remind donors that if that date falls on a weekend or holiday, payment will be collected on the first business day following that date.
If the donors signs up for recurring Direct Payment and the amount is for a fixed amount, that is specified in the enrollment process. If the amount varies, you are required to notify the donor prior to the scheduled payment date or a dollar range can be specified in the enrollment process, and the donor can waive the notification. If the donor authorizes you to initiate the Direct Payment on your website, the donor enters the payment amount and notification is typically made to the specified donor email address. If the donor initiates the Direct Payment through his or her online bill payment service, the donors specifies the payment amount in that service.