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Welp, it’s that time of year when our thoughts turn to autumn leaves, pumpkin spice, Halloween candy and next year’s budget!
Wait, what?
Yup, the fall season in church communities is often a time when stewardship of finances and giving campaigns start to ramp up.
As church councils and budget committees begin planning for the next year of programming, they will need to make an appeal to their congregation for their giving estimates.
Planning and pledging is only half the battle. The other half is how you are to collect those pledges.
In these days of virtual worship, where in-person gathering has been halted or reduced, it is more important than ever to have an online, electronic means of receiving tithes and offerings.
Fortunately, there is no shortage of options in the online giving space.
Unfortunately….there is no shortage of options in the online giving space! We know..it is very confusing!
We’re going to break this down for you and hopefully clear a path so you can make some informed choices.
The first thing to understand and come to grips with is that there will be a “cost” incurred somewhere along the way.
Sometimes (usually) the cost is to the church, sometimes to the donor. It is essentially the ‘cost of doing business’ in this manner and covers bank processing and administrative fees.
You are paying for the security and convenience of electronic funds transfer, emphasis on “security”. This is not an area where you want to skimp.
Broadly, there are two fee models; each with pros and cons.
- Monthly/annual flat fee for an unlimited amount of transactions
- Fee based on transactions, charged as a percentage of the total donation.
Monthly/Annual Fee model
Pros: paying a flat fee no matter how many donations you receive can be a huge advantage if you’re a faith community that receives A LOT of donations each month. This means, in most cases, your church will receive every penny of the donation given!
Cons: fewer monthly donations on this model may not be worth it for you. With the help of your financial folks you may want to analyze how many donations you have received electronically in the last 6 months or so in order to evaluate if this is a viable option for you.
If this model appeals to you but cost is a deterrent, you can try to lovingly encourage your congregation to give electronically and of course – make it as easy as possible!
Perhaps consider offering a short video or tutorial session on how to use the platform to help put them at ease.
A major provider of this model is RebelGive.com. They offer the flexibility of paying monthly or annually (with a 20% discount). For credit card donations, there is a low 1.9% fee but that can be covered by the donor.
For smaller churches, at the time of this writing, they offer a “scholarship program” to help offset the fees for the first year; contact them, tell them a bit of your story and negotiate!
SecureGive.com is another option with a wider variety of monthly tiered plans that include extra features, such as kiosks and text giving.
Transaction based fee model
Pros: no or low monthly or set up fees.
May be able to be integrated with your Church Management System (ChMS)
Cons: Transaction fees will increase as donations increase;
The higher the donation, the higher the processing fee.
As this is the more common model, there are a lot of companies in this space such as:
Monthly fees vary on many of these platforms based on the features needed, but most are nominal. What is important to evaluate here is the per transaction fee which typically ranges from 2.5% to as much as 3.10% with a per transaction fee on top of that. This fee can range from .25 cents to .40 cents.
As you might imagine, these fees can quickly pile up if you have a large online giving oriented congregation.
PayPal and Stripe
These are 2 completely secular options and not typically associated with online giving for churches. Both PayPal and Stripe offer discounted transaction rates (2.2%+.30 per transaction) for non profits with the requirement to submit your 501(c)(3) documentation. As of this writing, PayPal cannot be customized for your church brand but Stripe can be.
With most of these services, credit card transactions will incur a higher fee than ACH (automatic clearing house) transactions; which is basically like writing a check; a direct transfer between your bank and the church.
Mobile Giving
We highly recommend using a service that has an easy to use mobile giving component. Integration with social media apps is a super bonus!
As mobile apps such as Venmo and CashApp are becoming ubiquitous for transferring funds, this type of convenience is becoming an expected standard.
If there is one area of digital ministry that you want people to seamlessly engage with, it is tithing!
In these days of COVID, some vendors are offering this component as a free add on.
Research!
Research the company behind the service. Check out the bottom area of their website, look for an ‘About Us’ link or some identifying info. Make sure they have been around awhile and if possible find some independent testimonials or reviews about them. Keep in mind that though these companies are ‘for profit’, their values should align with your ministry. Once established, this is a relationship you will want to maintain for a while; as switching providers becomes disruptive to your congregation.
Negotiate!
Before signing on with any service, have a conversation with sales; remember there are people behind the screens and if the company is reputable, they should have no problem hopping on a phone call with you to discuss fees or walk through a demo. If you’re a smaller church don’t be shy about trying to negotiate a smaller processing fee. Doesn’t hurt to try! Have about 6 months of giving data available for a solid negotiating position.
Educate!
Once you have selected or even changed vendors, another challenge begins. Change can be hard and new ways of doing things can be uncomfortable. That’s why it is vital to educate your congregation on the benefits of online giving, stressing the benefit to them in convenience and no hassle set up. Along with your stewardship campaign, consider offering to set up tutorials in person, certainly online; record a short video demonstrating the process in short, easily manageable steps. Perhaps set up virtual “office hours” after your weekly online worship for your financial or tech folks to offer one on one or group sessions. Peace of mind in this area will pay dividends to your members and your church!
That’s It!
Online giving is another facet of your digital ministry outreach.
And with all of these online giving options available, you should be able to find one that fits your community’s needs and goals.
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