Are you cutting your expenses in preparation for the New Year? At my house, the Chief Financial Officer, my wife, is going through all our monthly expenses, asking, “Can we eliminate this monthly fee?” We have discovered recurring charges for things we have long stopped using. The fees, while incrementally small each month, do add up. So, occasionally, my wife, our CFO, looks for ways to cut our expenses, giving us more money for the things we like to do.
Given our current economic climate, with inflation rising and a looming recession, it makes sense to look at your church's budget and expenses. What if I could show you a way to cut your expenses while at the same time giving you more money to do the things your church likes to do, like changing lives for eternity? Here is an easy and practical way.
First, look at how many of your donors have set up their giving to be recurring. The greater the percentage of donors giving to your church by recurring giving, the more money you will raise. Recurring givers always give more, partly because their gift shows up in your offering whether they show up or not. I encourage my clients to hold recurring giving pushes at least twice yearly. The best times are in January as people are making resolutions and in May to head off the summer slump in giving.
Here is a simple weekly action plan I am recommending for all my clients this January to increase recurring giving.
- First, encourage all staff and team members to sign up for recurring giving. We cannot teach what we have not modeled. I would encourage all key leaders to make their giving recurring.
- Send a snail mail, email, or text message to your most consistent donors who are not signed up for recurring giving. Start the message with a positive appeal about all the events this year. Thank those donors for their generosity, and invite them to sign up to make their giving recurring.
- Ensure all automated communications, thank you notes, etc., mention recurring giving. Our church partners can personalize the messaging in all our automated email templates.
- Through all communications, from social media to the sanctuary platform, put a positive spin on how recurring giving will help your church’s ministries and missions.
I typically challenge my churches to set the goal of at least a ten percent increase in recurring giving. While seemingly small, that percentage will help you raise and keep more money for more ministry.
Here is an idea to cut your expenses. Find out how many donors give using their credit card rather than ACH. ACH stands for Automated Clearing House. ACH payments refer to the direct fund transfer between two bank accounts. ACH fees are the lowest, and the fees incurred by credit cards are higher, often 1% to 2% higher, depending on the type of card used. While the difference might be only 1% to 2%, that small percentage can add up to hundreds and thousands of dollars saved over time.
I asked our support team to help me illustrate how ACH fees can cut expenses for a typical church. Rates vary depending on the ministry's estimated volume, so exact estimates are difficult. With that in mind, here is their response, “We looked at the processing fees of a few of our larger churches, and the ACH fee percentage averaged about 1.75 percentage points less than the Visa/Master/Discover fee percentage. So, on $100,000.00 in donations made with ACH instead of a credit card, the church would save $1,750.00 in processing fees.” Do the math. Multiplied annually that is $21,000. What could you do with an additional $21K?
One of our goals for all our clients is to see them increase the number of donors using ACH, even though OnlineGiving.org makes less money on ACH transactions. We help churches promote ACH in a couple of ways. The first is to make the default payment method ACH. So, whenever someone goes to set up recurring giving, it asks for their bank account information. A second way we can promote ACH is through a "Smart Display." Anytime a user has selected Credit/Debit as their payment method, a display pops up, letting them know that they can save the ministry money in processing fees by switching to ACH.
If you want to cut your expenses while raising more money for more ministry, there is no easier way than by putting a focus on recurring giving, especially if done through an ACH setup.
We can provide a side-by-side review of what you currently pay your digital giving provider and how OnlineGiving.org compares. We can also show you how focusing on ACH transactions can save you significant amounts. To schedule your review, contact us at (615) 206-4000 or drop us at support@onlinegiving.org.
Does your digital giving provider work to lower your transaction fees? If not, it’s time for a change.
The Stewardship Coach
In preparation for the New Year, what if your church could reduce expenses and raise more for ministry? https://t.co/u2tMB6uoI4 knows the two easiest moves and how to make them. We can help you Cut Expenses and Raise More Money.https://t.co/NACjG4nAjm pic.twitter.com/eSCk80npXJ
— Online Giving (@onlinegivingorg) November 6, 2023
