This post was last updated on February 22nd, 2024 at 04:44 pm.
With church services canceled due to COVID-19, many churches are struggling to bring in enough revenue to keep running. Especially churches that rely heavily on checks and cash in the Sunday collection plate. These churches need more giving options. The current season of closed doors and social distancing has made it clearer than ever: churches need to have online giving options for their congregants.
Online Giving — Always Valuable
Even in better times, giving donors the ability to give online is well worth it. Online giving makes it easier for a wider range of donors to give more to your church.
According to NP Source’s research on charitable giving, nearly half (49%) of all church giving transactions were made with a credit card, which is the main method for donors giving online. And the proportion of donations coming from online gifts is only growing with time. While overall charitable giving increased 4.2% from 2018 to 2019, giving online increased by 12.1% (Double the Donation: Nonprofit Fundraising Statistics). Churches that aren’t taking advantage of services that provide online giving for churches are leaving a lot of potential revenue untapped.
Online Giving is More Important than Ever
Now that church doors are closing to prevent the spread of the COVID-19 strain of Coronavirus, the need for online donations is much greater. Plate collections are now a non-factor. No one knows for how long. No one knows if or when COVID-19, once it subsides, will make a comeback and restrictions will have to return. Online donation services provide your church with a steady revenue stream when congregants aren’t coming to the church building.
Church leaders may worry about the extra costs of online giving for churches, especially when their church already struggles to pay bills. But, there are very affordable online donation options. And the return on investment for online donations is very high. In their charitable giving resource, NP Source states, “Churches that accept tithing online increase overall donations by 32%.”
That’s under normal circumstances. With the church doors closed and the collection plate gathering dust, the increase is potentially much higher.
Online giving provides more dependable revenue. A church that has a variety of giving options will have a steady stream of income when those options become limited. Also, when people give online with a good software interface, they have the option to set up a bank account or credit card with automatic weekly or monthly withdrawals. So if they miss any services, forget their checkbook, or so on, the donations will still be made unless they discontinue their online giving schedule.
Online gifts also open opportunities for new donors to give from distant locations. From out-of-town congregants to interested donors from other states and abroad, you may be surprised how many potential donors are out there who would be willing to participate in your projects and fundraisers from afar. With the right software software, such donors have the ability to be aware of your organization and contribute to it.
What to Look for in Solutions that Provide Online Giving for Churches
So what online donation solution best meets your church’s needs? Here are some questions to consider in order to choose the best solution:
Does the solution provide giving statements to donors, or integrate with a system that does?
You’ll want to give your donors statements for all their gifts to your church, statements they can use to track their giving progress and do their taxes. To be compliant, the statements should
- provide the dates and amounts of their donations,
- provide the total amount given, and
- include an IRS disclosure to make clear that the donations listed are donations and not payments for a good or service.
Can the solution integrate with your church management software?
Do you have a church management software to track and communicate with your church family? An online giving solution that integrates with that software can bring everything together in one place, so your church office can run smoothly and avoid busywork.
Can the solution integrate with an accounting system?
An integration between your online giving software and your accounting system can save a lot of time. You can avoid entering deposits separately in your accounting software, which can take quite a while and increase the risk of mistakes. A fund accounting system is ideal for tracking dedicated funds and respecting donors’ wishes.
Is there a clear, easy user interface that your donors can use and understand?
If it’s hard for donors to figure out how to donate online, they may just give up. Also, they may give up if they don’t have the options they want (maybe entering their bank account instead of a credit card). Also, make sure your online giving solution makes things easy for them.
Is there a clear, easy user interface that your donors can use and understand?
This is a hugely important feature. Donors need the ability to schedule recurring donations in your online donation software. It makes life easier for them. It makes your revenue stream more steady.
Is the solution secure?
Ask questions and do research about how a prospective online giving system keeps your donors’ information secure. Read their disclosure agreement(s). Make sure the company providing the online giving solution won’t misuse your donors’ information or target them for advertising. Make sure any third parties involved won’t either.
For More Information
We have published two ebooks about donations — listed below. Both talk more about online giving and the important role it can serve in your church’s operations, and both contain a wealth of additional wisdom about church donations.
Our church management software — IconCMO — integrates with two affordable and reliable online giving partners: Vanco Payment Solutions and Bambora. Check them out and see what they can offer to you and your donors.
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