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| DWP meeting today at bascom church -- pastor george |
How to Increase Donations at Your Church & 4 Reasons for Your Church to Have a Merchant Account
(Source: various web blogs)
Accept Debit & Credit Card Donations
A recent study has shown that over 90% of all church donations come from cash and checks in the offering plate yet 43% of people go a week at a time without using cash. This could indicate a missed opportunity. Have you ever wondered how many people attending your Sunday service or church event want to give, but can't? Not because they can't afford to, but because they don't have cash or a check on them.According to CNN Money, 43% of American adults go a week at a time without using cash at all. Instead, they depend on debit and credit cards.
WHAT DOES THIS MEAN FOR YOUR CHURCH?
If you want to modernize your giving options and increase your donations, you should have a credit/debit card donation alternative that people can easily access.According to one estimate, organizations lose up to 80% of consumer impulse transactions if they don't accept credit cards. When you have a special speaker or are supporting a missionary family, it is critical to provide a simple way for your congregation to donate on the spot. When they walk out your doors, their desire to donate is often forgotten.
Pros in Having Your Own Merchant Account
Having your own credit card merchant account has some distinct benefits. They are:- Control – It’s your money coming in and with your own credit card merchant account you get manage the entire process. The relationship between the credit card user and yourself is direct with no intermediary handling the money.
Speed in Receiving Payments – You typically get the money faster than if you used an online giving service or any generic service that aggregates funds. This may just be a couple of days faster, but it is typically faster.
- Transaction Fees May Be Lower - As a non-profit organization, you may be able to negotiate a lower credit card transaction cost than your online giving provider can through their merchant account. However, you need to look at the total cost of your credit card transaction cost plus the cost your online giving provider charges to decide if it truly is a good deal or not.
Your Church’s Name on the Credit Card Statements – Every Merchant Account has one and only one DBA name (stands for “Doing Business As”). This is the name of the business that owns the merchant account. Aggregators can’t work this way. For example, if you buy something from a merchant through PayPal, its “PayPal” that will appear on your credit card receipt, not the merchant’s name.
SUCCESSFUL EXAMPLE:
In the year the church has been accepting cards, their weekly contributions have quadrupled, and have also become more predictable. They have also found that the Church staff saves a great deal of time now, as they no longer have to manually count money or go to the bank to make deposits. In addition, by accepting donations electronically, there is less opportunity for human error in the accounting process for tracking and reporting donations.
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FROM THE 'THINGS WE LEARNED ALONG THE WAY' DEPARTMENT:
David S., new DWP Agent and former manager of credit card processing at Bank of America, shared with the LA folks last week that BofA averages getting around 3-4% in fees from each merchant, when all their hidden charges are added up!
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SERIOUSLY? You're still counting on savings to fund your retirement?
Bankrate's McBride says consumers should see: "The shorter-term CDs will probably only see consistent improvement in the back half of the year, provided the Fed boosts short-term interest rates," McBride says.
McBride expects the average one-year CD yield to rise from 0.27 percent to 0.5 percent by the end of 2015. He expects yields for five-year CDs, currently averaging 0.85 percent, to rise to 1.25 percent during that same period.
However, McBride and Schenk warn that there's a chance the Fed won't raise interest rates if the U.S. economy slows or if the global economy struggles. Then, CD yields will remain low.
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