7 Ways to Get More Recurring Donors to Give by Bank Account

Growing up in Europe, recurring giving through direct debit — electronic funds transfer (EFT) — was simply a way of life. Monthly gifts came straight from bank accounts, without much thought or friction. Fortunately, that same shift is now taking hold in the U.S.

That change didn’t happen overnight. A few familiar behaviors helped pave the way: 

• Automatic deposits have become the new standard for many organizations and companies, so most people are used to receiving money automatically into their bank accounts. 
• Utilities started converting payments from check to electronic funds transfer, and most people have been paying automatically for years. 
• Subscriptions can be paid automatically from bank accounts. 
• Donors have more access to their bank accounts through banking apps and are much more comfortable using their banks for recurring gifts as a result. 
• In some countries, checks have already been totally phased out (like New Zealand). 
• Checks are starting to go away here as well, but people still want to use those bank accounts. 
• Accepting bank-based payments online has become more common. 
• Most payment providers can offer bank account giving on donation forms online — you as the nonprofit may just have to turn that option on.

Chances are your donors already receive their pay or Social Security income automatically, and already pay their bills and subscriptions the same way. So why not ask them to give recurring gifts from their bank accounts? 

Why EFT Improves Retention — and Lowers Costs

If you can get a donor to initiate a monthly gift via electronic funds transfer, their retention rate can soar. Why? 

Because donors don’t change their bank accounts as often as they change credit cards. Because bank account information does not get compromised as easily as debit or credit cards. And there are no cards to decline or expire. 

Start by calculating the savings and how this benefits your nonprofit and your mission. Bank fees are much lower than credit or debit card fees. That means more money can go directly to your cause. 

Use the savings as an incentive for donors to consider recurring gifts directly from their bank accounts instead of a credit card. Calculate the savings as if everybody started paying automatically and use that in your messaging. For example: “Your gift will go farther.” or “The savings will help more people.”  

7 Practical Ways to Encourage EFT Adoption

Now consider these approaches to encourage donors to start or switch to recurring gifts from their bank accounts.

1. Acquire a New Recurring Donor Via EFT From the Start

If you can make the bank the preselected option on your donation form, that helps a lot. 

2. Create Special Conversion Campaigns

Ask your recurring donors to consider moving from credit or debit cards to bank-based giving. Some organizations do this quarterly, twice a year, or on an ongoing basis when the donor has made their third gift. Use the savings you calculated to make the switch an easy decision for donors. 

3. Use Buck Slips for Check Donors

If your nonprofit still sends check statements or reminders for donors paying by check for their recurring gifts, include the savings and easy-to-switch messaging in that statement. You can also add a URL or QR code, or just ask permission to use this month’s check to get started. 

4. Offer During Upgrade Campaigns

Whether it’s by phone, mail, email, or text, asking existing recurring donors to switch to a bank account-based gifts during an upgrade campaign is a double upgrade. 

5. Offer During Retention/Recapture Campaigns

When you’re reaching out to recurring donors whose payments did not come in, offer the option to restart their gifts via their bank accounts. If you can bring them back paying directly from their bank accounts, you’ll never have to deal with those pesky credit card expirations or changes again. 

6. Add It to Appeal Reply Forms

Appeal reply forms are another opportunity to promote bank account giving, especially in telemarketing campaigns. Make sure that you offer multiple ways for the donor to provide their bank account information. Don’t only ask for a voided or first-month check because not everybody has checks to send anymore. Instead, add the option for donors to write in their bank account information. I’m excited to see this happen more and more. 

7. Add the Option to Your Website

Make switching to electronic funds transfer as easy as possible and help build donor trust. WETA, a public TV station, has had recurring donors for years. Take a look at how this organization keeps the process simple.

Here is the organization’s update form, where the donor can make several changes to their recurring gift, including paying by bank account. 

Bottom line: Keep bank-based givingf top of mind as much as you can, and you’ll grow your number of recurring bank donors. 

Talk to your payment provider or donor database vendor to understand your options. In many cases, you may just have to turn on the electronic funds transfer option. In my experience, simply offering the option encourages donors to choose it. 

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.