Why should you connect your charity CRM with Direct Debit charity donation software?

What is Direct Debit charity donation software?

Direct Debit charity donation software is a solution that allows your supporters to make regular contributions to your organisation. More specifically, it provides increased control over these donations as the donor can choose the amount they wish to donate, the frequency the payment is made (e.g. monthly), and if they wish to cancel at any time.

Once the Direct Debit is set up, the software then automates these payments on a recurring date chosen by the donor. This therefore ensures a smooth process for supporters by:

• Simplifying the donor experience
• Saving valuable time
• Avoiding payment interruptions

With the software improving the donor experience, it in turn rewards your organisation with predictable donation patterns throughout the year.

How can your charity set up a Direct Debit account?

Before you even consider implementing Direct Debit charity donation software, you must first take certain steps to ensure that your organisation can successfully process Direct Debits, safely, and within the confines of the law.

We strongly advise adhering to the following:

1. Comply with legal, regulatory, and compliance laws

Firstly, ensure that your charity is registered and complies with all relevant legal and regulatory requirements within your jurisdiction. This may include obtaining necessary licenses or approvals where required.

In addition, it’s crucial that your organisation adheres to data protection laws such as GDPR. By doing so, you can safeguard donor information while clearly outlining your privacy policy.

2. Open a dedicated bank account

Contact several banks and ensure that they offer an account that supports Direct Debit transactions. Once you decide on a suitable option, they can then be tasked with handling your donations.

3. Select a Direct Debit provider

Choose a Direct Debit service provider that supports the required functionality in your country.

This essentially boils down to three options, which include:

• Working with BACS directly. With this option, you would need to upload the list of new, amended and closed Direct Debits to BACS, along with all the payments in each collection. This approach can be extensive, as the processes can take up to a week of your time each month.
• Using a third party. A third party will manage the collection process with BACS. However, you will be required to upload new, updated, and closed Direct Debits, while downloading both received and rejected payments. This approach consists of much import/export activity, but saves far more time than working directly with BACS, especially as your third party may handle any donor correspondence for you.
• Implementing an integrated solution. With a solution such as Charity CRM, you will only be required to add new Direct Debits to the system. This is transmitted to the payments solution, where it begins collecting before payments appear. Any adjustments to the Direct Debit will be transmitted to the payments solution to update the next collection. With this approach, there is no manual synching of data which saves a significant amount of time.

At Access, we would advise you to contact several providers rather than make a rushed decision. But, why not start with us? Our payment software offers a flexible solution at a competitive price!

Find out more about our Direct Debit charity donation software

4. Set up an online platform

Set up an online platform that donors can easily access to make donations via a Direct Debit transaction. Most commonly, this can consist of either a website, donation platform, or third-party fundraising platform.

At Access, we offer a charity website builder solution that can host your donation activities, while raising your charity’s profile during the process.

Find out more about our charity website builder software

5. Clearly communicate security measures

Provide your potential donors with peace of mind by outlining the security measures you comply with. Taking this step isn’t a ‘pat on the back’, but rather an effective trust signal that proves your credibility as an organisation, allowing you to gain the trust of your supporters which can then be rewarded via donations.

Top 6 benefits of connecting Direct Debit charity donation software with your charity CRM

While Direct Debit charity donation software can enhance your processes, these benefits cannot be fully experienced unless connected with a charity CRM.

Allowing these two pieces of software to operate in isolation can lead to an unorganised structure that provides limited insight into your supporters – running the risk of approaching those who have already set up a Direct Debit!

Manual synching of the data can overcome some of these issues, but is time consuming, prone to error, and requires a lot of files being exported and imported which is a data security risk, while potentially causing delays to collections.

Instead, synching these platforms with the assistance of a software provider can unlock the holistic view required to fully understand the donor journey of your supporters.

In this section, we focus on 6 core advantages to synching Direct Debit charity donation software with your charity CRM.

1. Reduce your costs

Adopting Direct Debit functionality can help you to reduce costs through two main avenues: administration and transaction fees.

Regarding the former, Direct Debit payments are fully automated, which avoids the need for hiring an administrator to manage these transactions. Once set up, the Direct Debit will be paid on a recurring date until the donor chooses to either amend this or cancel altogether.

Where transaction fees are concerned, processing credit or debit cards generally costs around 2-3% per transaction plus a flat fee on top of this. Instead, Direct Debit payments typically cost less, especially when you consider this method avoids failed transactions.

2. Provide convenience to your donors

Direct Debit charity donation software provides enhanced accessibility for donors as they are able to set up their payments via either desktop or mobile, allowing them to do this on the go or in the comfort of their own home.  

Once the Direct Debit Instruction has been completed, a set donation will be collected on an agreed recurring date. This level of convenience avoids the need for the donor to actively make the transaction each time, subsequently eliminating human error completely.

3. Boost your income

Direct Debit payments help to ensure that failed transactions are avoided. Instead, your organisation would gain recurring payments on a monthly basis without disruption. You can also gain insight into donors who cancel their Direct Debits, which provides an opportunity to reach out to these supporters and uphold retention rates.

In addition, Direct Debit payments can have an option for donors to consent to Gift Aid. This is a game changer, as each donor who agrees to this will have their donation boosted by a further 25%.

4. Improve your forecasting capability

As an organisation, you will no doubt require insight into your monthly income in order to conduct forecast reports and budget where necessary. The beauty of Direct Debit payments is that – subject to donors not cancelling – your donations will remain consistent, allowing you peace of mind and the ability to conduct your forecasting with confidence.

5. Save valuable time

The automation involved with Direct Debit payments can save valuable time for you and your donors. Setting up a Direct Debit not only takes minutes, but once it has been arranged, the donor will not have to revisit it again, unless they wish to amend the arrangement or cancel.

With Charity CRM, the Direct Debits entered into the system will be created once they are submitted. This avoids the synchronisation and uploading of files to the payment solution. Once the new Direct Debit is entered, the payments will then be received at the earliest opportunity.

This automated process can also work to your advantage, as your team will not be required to manage these payments. Instead, they can use this time to focus on the campaigns that matter most to your charity. A win-win all round!

6. Encourage informed decisions

Once a donor sets up a Direct Debit with you, their details will be stored within your charity CRM. This information will include their name, contact details, the donation amount, and the duration it is paid.

These details will therefore provide you with both supporter insight and data visibility to ensure intelligent decisions are made such as approaching either potential donors who are yet to donate, or those who have cancelled their Direct Debit.

Connect your charity CRM with our Direct Debit charity donation solution

At Access, we provide a scalable connector that synchs our charity CRM and Direct Debit charity donation software, making it suitable for organisations of all sizes. Through this solution, not only will it provide a smooth payment process for your donors, but you will also gain key insights that enable you to make informed decisions regarding your donors from the outset.

We appreciate the technical nature of this topic may inspire a myriad of questions. Why not get in touch and speak to us directly? Our experts are available to provide their specialist knowledge and guide you in the right direction.