Retaining Donors: Who doesn’t want more of that?

It can be discouraging to realize that your donors want to continue to give to your cause, but have found it difficult to do so-they give once and have every intention of giving again, but it slips their mind which creates an unintentional lost opportunity.

So, how does one prevent this? Of course, the answer is recurring giving. With recurring giving, all the emphasis is placed on credit cards and nothing is wrong with that. However, it’s not the only way to encourage recurring giving. Let’s look at another.

The Effect of ACH Payments on Donor Retention


A case study was recently done on the benefits of using Direct Payment via ACH for donor retention. This study was undertaken by the National Automated Clearing House Association (NACHA). Their purpose is to increase awareness and understanding of the value of using ACH payments in the not-for-profit giving cycle.

“Industry research clearly shows that the contributions of sustaining donors, or those that give on a recurring basis, are worth more than those from traditional donors over the life of the giving,” said Janet O. Estep, NACHA president/CEO. “In addition to donating more frequently and at higher amounts than traditional givers, sustainers continue to give for many years providing for consistent and predictable cash flows and a loyal and committed donor base. Organizations that leverage Direct Payment via ACH for sustained giving can reduce resources spent on fundraising and devote more effort to what matters most, their mission.”

Case in point: Capitol Public Radio, based in Sacramento, California, reveals how a leveraged ACH campaign sustained its donor program. According to CapRadio, 40% of all individual donation dollars can be attributed to ACH. Not only that, but they are retained for 20% longer that those that use credit or debit cards.

Organizations depending on credit cards for donations have experienced declines and loss of donors because of credit card expiration dates or data breaches requiring card replacement. Donors are far less likely to change their bank accounts as they are the credit cards they use. Also, recurring ACH payments are just as easy to set up online as any other type of payment. Donors are used to this type of transaction since they probably use the bill pay programs offered by their bank, have their paychecks directly deposited into their accounts, or pay recurring bills such as health clubs via ACH.

“ACH payments can be a powerful tool for charitable organizations of all sizes and types,” says Estep. “It is our hope to enhance awareness and understanding of this payment method as it will go a long way in advancing the invaluable work of our nation’s charitable organizations.”

Is Direct Payment via ACH right for your organization?


The answer should be yes. It’s easy, sustainable, proven to work and is readily accepted by your donors.

Here at Paperless Transactions Corporation, we have 20 years experience in ACH payments. We can help your organization take advantage of this valuable tool by using our advanced and secure ACH software, E-Chex. Once you have set up your donor in the E-Chex system, you can forget about it. Our software will automatically initiate a debit against their bank account on the specified date and for the amount requested. When the item has cleared, it is transmitted to your account. Nothing is required of the donor and nothing is required of your organization to sustain this giving cycle. Bank accounts, giving amounts and giving dates are easily changed if needed. The easier it is for your donor to give, the easier it is for you to meet your mission’s goals.

To learn more about how Paperless can help your organization, request a demo today!

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