|According to the Federal Reserve’s July 2014 Survey on Consumer Finances, 77 percent of the U.S. population holds at least one credit card. What’s more, a 2010 study conducted by Visa® and the Association of Fundraising Professionals found that 36 percent of donors prefer to donate using credit or debit cards. Also, there has been double-digit growth in the number of donations made via credit and debit cards.Is your nonprofit getting a piece of this pie? And if not, should accepting credit cards be a top consideration? For some key points to contemplate, including the pros and cons, keep reading.|
Credit cards: The good and the bad
Donors love the convenient, automatic nature of credit cards. Plus, they cite the ease of use, safety and security as top reasons for this preference. In addition, accepting credit card donations can create an opportunity for recurring contributions and, according to Visa, a loftier donation, too.
But with the good comes the bad, such as set-up fees, merchant account fees, monthly statement fees and transaction fees, just to name a few. Many nonprofits worry that these fees could eat into their donations, and they wonder if it’s worth it. Here are three steps your nonprofit should consider taking to determine just that.
Once you’ve completed these three key steps and you’re ready to accept donations, be sure you promote your new service. If you’re holding a fundraising event or gala, imprint retractable banners and table giveaways, such as sweet treats or after-dinner mints, with your web address and the phrase “Online gifts now accepted.” If you have a physical location where people may be coming in to give, be sure to let them know credit cards are accepted. Imprint the message “Now accepting credit cards for your convenience” on floor stickers or window decals.
Remember, your donors and supporters will appreciate the ease and convenience of being able to donate via credit card. And accepting this method of payment may just help your organization secure some recurring contributions and heftier donations, too.
“Credit Card Ownership Statistics.” Statistic Brain RSS. N.p., 09 Jul. 2014. Web. Retrieved 14 Oct. 2014.
“Weighing the Online Donation Option.” Afpnet.org. N.p., 12 Oct. 2010. Web. Retrieved 14 Oct. 2014.
Fritz, Joanne. “What Do I Need to Know About Credit Cards for Accepting Donations?” About. N.p., n.d. Web. Retrieved 14 Oct. 2014.
Dick, Jason. “5 Factors to Consider with Merchant Services Selection.” A Small Change. N.p., n.d. Web. Retrieved 14 Oct. 2014.