Is the Price Right? Three Questions to Ask Your Workplace Giving Vendor

August 17, 2017 Benevity, Inc

It’s a reality. Every transaction has a cost. It costs real money for charities to process donation payments, issue tax receipts, record and manage donor information, protect themselves from fraud and so on. Understanding how vendors incorporate various costs into their services—and pass them onto their customers and charities—can be complex. But grasping and communicating these issues is crucial to the success of your workplace giving program.

It is critical that you have a clear understanding of what your vendor’s pricing model covers—and what it doesn’t. Before you make your buying decision, Benevity suggests that you ask your vendor the following three questions:

  1. Is their business model improving the landscape? Ensure that the technology you purchase and the company you work with is making things better for donors and charities by providing more support, adding efficiency and accuracy, and scaling intelligently. Confirm that it will engage all your employees worldwide by seamlessly supporting charities in all countries where your company has operations.
     
  2. Does the vendor use one or more third-party payment processors? If so, does the third party charge a fee to charities and, if so, how much? Many vendors do not manage the disbursements themselves because they don’t have the scale, foundational technology or expertise to do it. So, they outsource it to organizations like Network for Good, the United Way, CanadaHelps or Ammado, who all charge fees for disbursement.
     
  3. How do they disburse funds to charities? You want to know that your employees’ donations, and your
    company’s matches, are making it to the charity in a timely, efficient, cost-effective way. Electronic funds transfer/automatic clearing house (EFT/ACH) is the most efficient, accurate and cost-effective way for charities to receive funds. Funds that are consumed by inefficient processes, like  payment by check, are better spent supporting the important work of the charities, not wasteful administrative costs. For comparison, Benevity distributes more than 80% of donation dollars to charities electronically.

 

Still have questions about your workplace giving solution? Request a demo.

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