Cover the Cost Program
Thanks for your interest in the cost of donation processing at Paraclete Mission Group!
The Big Picture
Processing donations is an essential task for Paraclete, and for all nonprofit organizations. It is the work of receiving funds, storing them safely, receipting them, and making them available for the ministry purposes of Paraclete. Some of these functions are done by a small Paraclete staff, and others by professional contracted vendors, like banks, accountants, software companies and the U.S. Post Office.
Components of Donation Processing
Processing your donation to Paraclete involves the following parts, all of which have a cost:
- Donation software records your donation and preferences, produces receipts, and keeps a history of your gifts.
- Credit card processors send Paraclete your gift and charge your credit card.
- ACH processors (Automated Clearing House) move money from donor bank accounts to Paraclete’s bank account.
- Paraclete’s bank receives check donations, deposits them and scans them for our accountants.
- Accountants enter the amount of your donation into donation and accounting software, and reconcile those systems with bank records.
- Paraclete staff print and mail receipts, report donations to the appropriate Paraclete associate, and oversee accounting, banking and donation software functions.
- The US Postal service and email systems deliver receipts.
Calculating the Cost of Donation Processing
To derive the cost of donation processing, we add up the annual cost of the above list and divide the total by Paraclete annual gift income. For 2017, donation processing cost 3.69% of all donations. In our Cover the Cost program we offer donors the option of increasing their donation by 3% to help offset these expenses. In some cases, it’s a little short of our actual cost (credit card fees alone are typically this much), but it is a huge help!
Transparency and clarity are our goals. If you have more questions, give us a call. 719.302.2500