Charitable giving in Australia has been higher in 2021 than it has been in the past decade, which is great news for Australian non-profits and charities looking to increase donations!
If your organisation falls under this umbrella, you may also want to consider setting up direct debit payments so people can make recurring donations throughout the year. Read on to learn more about the benefits of a charity payment gateway, as well as how you can set one up using PayChoice.
Direct debits authorise an organisation or company to automatically collect payments from a person’s account when the payments are due.
Direct debits can be used for one-off payments, but they are more often used for paying monthly bills and paying for monthly subscriptions or memberships. They’re quite common in businesses like gyms and service providers, but they can also be used to make recurring donations to charitable organisations.
The process of setting up a direct debit starts by arranging a direct debit authority. This authority allows a service provider to withdraw money from a person’s bank account or to charge a person’s credit card.
The amount of money withdrawn or charged may be fixed or variable. It can also be set to come out on specific dates or at regular intervals (every month, every two weeks, etc.).
If the person doesn’t have enough money in their bank account or enough available credit on their card, they may be charged a fee (from their bank and the service provider facilitating the direct debit).
So when it comes to setting up these kinds of payments for charities, what are the pros and cons? Here are some things to factor in.
All kinds of businesses and organisations can benefit from direct debits. They offer some unique benefits for charities and nonprofits, though, including the following:
Consistent Donations
Direct debits allow donors to consistently make donations to causes they support.
Not only does this make it easier for the donors to contribute without having to remember to make regular payments, but it also provides the organisation with a more consistent income. This sets them up to better fulfil their mission and achieve their goals.
Easy Payment Management
With the help of the right payment gateway, allowing direct debits makes it easier for charities and nonprofits to manage payments and keep track of donations. This simplifies the record keeping process and helps them to ensure all their ducks are in a row, so to speak.
Lower Costs
Direct debits can reduce the cost of fundraising for charities and nonprofits, too. For example, the right payment gateway can lead to lower payment processing costs. This means more money is left over for the charity or nonprofit to do what they set out to do in the first place.
Allowing direct debits can lower costs associated with accounting and payment administration, too. Payment gateways do a lot of the heavy lifting for you, which reduces the need to pay a whole team of accountants, admins, etc.
There are a few cons that charities and nonprofits ought to keep in mind when considering direct debits, too. Here are some essential ones to remember:
Difficulty Choosing a Gateway
There are plenty of payment gateways out there for charities and nonprofits to choose from. This can be overwhelming for some organisations, especially those that are already working with limited teams and don’t have a lot of extra time to research the details of various platforms.
Potential Frustration from Donors
Some donors may be frustrated by the idea of recurring direct debits, especially if that’s the only option a charity offers. Fortunately, direct debits can also be used for one-off donations or purchases. As long as your organisation offers this choice along with recurring payments, you can likely avoid this frustration.
The easiest way to set up direct debits for charities and nonprofits is by using a secure payment gateway. Payment gateways are applications that facilitate a payment from a customer (or donor) to a seller (or charity).
With a little research, you can avoid one of the major challenges of direct debits and start enjoying the benefits sooner. The following tips will help you choose the best payment gateway for your organisation’s needs:
Make sure it’s PCI DSS Compliant: This ensures that donors’ data isn’t vulnerable to hackers
Look for an Australian payment gateway: This helps you to avoid issues with time differences, customer service availability, and the nuances of the Australian market
Look for reliable and flexible customer support: Ideally, you’ll have access to reps via multiple channels (phone, email, chat, etc.)
Choose a gateway that accepts direct debits and credit card payments: This allows for more flexibility and options for your donors
PayChoice is a unique payment gateway that allows you to accept a wide range of payment methods. It comes with options for direct debit, BPAY, credit card payments, and more, all with low fees and access to same-day customer support.
More than 3,000 Australian businesses currently choose PayChoice. If you’re thinking about joining this group, here are the steps you’ll need to take to set up direct debits for your not-for-profit organisation:
Connect with our team: Start by reaching out to our team; someone will get back to you right away to set up your account
Send direct debit requests: Next, you’ll send direct debit requests to your donors; this is a form they’ll need to fill out to allow you to take money from their account
Customize debits: After debits have been authorised, you can customize them based on the amount, frequency, preferred day, etc.
Set up notifications: Next, you can set up notifications to remind donors when direct debits are about to take place
When you choose the right payment gateway, like PayChoice, you can enjoy a simple setup process and start offering direct debits right away.