Is It Time to Outsource Donation Processing?
As small nonprofits grow, it’s hard to know when it’s time to move donation processing from an in-house task to a professional caging/lockbox provider. Here are some guidelines to help your nonprofit make the best decision based on your resources.
In today’s nonprofit environment, organizations are faced with challenges of best use of resources to grow their donor base and support their mission. Donation processing is time consuming, requires multiple checks and balances, and must have internal controls to ensure safety of the data. Not to mention as your donor base grows, the need for additional resources also grows.
So, how do you know when your organization should consider outsourcing of donation and payment processing?
Outsourcing allows you to focus on supporting your mission and gain efficiencies. Consider these five questions when you are making this decision:
- Is your current staffing able to turn around received donations within 24-48 hours? Extending processing times beyond this time period could negatively impact marketing and communication efforts with your donors. Donors evaluate organizations by their timeliness, accuracy and security efforts.
- Do you receive calls from donors asking about their donations? The number of incoming calls from donors inquiring why their donation has not been processed due to extended processing times could impact trust with the donor and creates unnecessary constraints on internal resources.
- Is your nonprofit practicing the latest security measures to protect your donor’s confidential data? Outsourcing will add additional security measures. Accuracy is key, and handling of the information securely is vital. In the event your organization experienced a security breach involving payment information, it could not only be costly in fines and penalties, but also be detrimental to your organization’s overall reputation.
- Will your budget allow you to purchase processing equipment and software? Increased cost for equipment and software can be eliminated by outsourcing. Equipment and software costs continue to increase over time and are significant to an organization’s budget. Such resources could be reallocated to areas such as more aggressive donor acquisition and overall engagement efforts.
- Does your staff have time to manage the relationship with the U.S. Postal Service? Challenges with the U.S Postal Service can deplete staff time investigating issues related to mail delivery. While outsourcing does not eliminate this risk, the 3rd party processor will act on your behalf to ensure delivery of your mail.
If your organization is faced with any of the challenges, or perhaps your Board of Directors is asking you how you are addressing concerns related to donation processing and security, seeking a 3rd party can quickly help you gain efficiencies, address concerns with your board, and better yet, help you stay focused on engaging with your donors and support your mission.
If you are considering outsourcing your donation processing, find out how Aegis Processing Solutions can help your nonprofit. Our experienced staff understands the importance of expediency and accuracy. With more than 30 years of experience, the Aegis team can answer any questions you have related to outsourcing donation process.
Lori Read was appointed CEO of the Aegis Premier Solutions suite of companies in 2016. She has more than 27 years of remittance processing, banking, and financial expertise and is a subject matter expert in HIPAA and cybersecurity. Contact us today to learn more about the Aegis suite of services and how we can help you fulfill your mission.