Why Nonprofits Should Utilize EFT

In recent months, we have heard from Donor Advised Funds (DAFs) that they have had trouble getting donations to the nonprofits that need them the most. Despite actions by some states to re-open businesses and re-start economies, many nonprofit staff and volunteers are not regularly meeting in person in an office. Without central headquarters in full operation, some checks mailed to offices are being returned to DAFs that are sending them. In fact, Fidelity Charitable informed us that they had a significant volume of checks returned in the first two months of this crisis.

As nonprofit advocates, we know that many nonprofits are facing severe financial constraints and at this point, any donation helps organizations continue to provide programming and services to the communities who need it the most. In order to ensure that donations get to the nonprofits with speed during this crisis, we are calling on nonprofits to sign up for Electronic Fund Transfers (EFT) from DAFs. EFTs will allow nonprofits to receive donations electronically and minimize the need for mailed checks.

All of us – nonprofits and philanthropy — need to do all we can to ensure money is moving efficiently and rapidly from the grant-maker to the field where it is desperately needed.  This is the time to make sure that nonprofits are doing what they can to speed this process.  This is a simple step nonprofits can take toward that aim.

Learn more about setting up these accounts with the following DAF administrators:

Fidelity Charitable
When you sign your nonprofit up for Electronic Funds Transfer (EFT) from Fidelity Charitable, grants will be directly deposited in your nonprofit’s bank account—no trips to the post office or bank needed. You’ll receive the same donor information as you would with a paper check. Enrollment is easy.

Schwab Charitable
We make it easy for donors to support charities like yours. Sixty-four percent of Schwab Charitable™ clients say they’ve increased their philanthropic giving more than they otherwise would have because they have a donor-advised fund account.

BNY Mellon Charitable Gift Fund
The Gift Fund was established in 2013 to provide donors with a structured means to express their philanthropic values and priorities to family members and the community. Since that time, the Gift Fund as distributed more than $60 million to over 2,000 charities.

Community Foundations
According to the Council on Foundations (COF), community foundations gave an estimated $5.48 billion in 2017 to a variety of nonprofit activities in fields that included the arts and education, health and human services, the environment, and disaster relief. You can use the COF Community Foundation Locator to view a list of community foundations in the United States.

 

Types: Blog
Global Topics: COVID-19 Organizational Sustainability, COVID-19 Response, Voices for Good