What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
Giving Compass' Take:
• Electronic Fund Transfers (EFTs) can help nonprofit organizations who are in need of donations and minimize the need for mailed checks.
• How can donors call attention to EFTs to help the plight of nonprofits during this time?
• Read more on how to help nonprofits during COVID-19.
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.
Read the full article about EFTs from Independent Sector.