Check processing machines limit overhead costs of fundraising
Nonprofit fundraising is often a sensitive issue, but cash and check scanners can help organizations avoid upsetting their donors by keeping back office operations as efficient and accurate as possible.
Volunteers and employees responsible for managing charities often walk a fine line when it comes to communicating the value of giving to target donors. For example, an article published in The Chronicle of Philanthropy said many individuals look closely at the finances of nonprofit groups before deciding whether or not to give them money. The website said people are mostly curious to know how much of their donation will go to overhead costs as opposed to actual on-the-ground initiatives. Organizations that come across as misleading in the eyes of donors may struggle to raise as much money as they originally intended.
However, a small group of nonprofits has made an effort in recent months to try and change the perceived importance of looking at such statistics before making donation decisions. They argue that large overhead costs don't necessarily translate to the mismanagement of funds. Instead, this kind of spending can be equally important to an agency's overall mission.
Still, the online publication The Fundraising Authority said the single biggest mistake any charitable group can make is to underestimate the importance of investing in an efficient donation campaign. For small organizations with limited resources, the process of depositing checks may single-handedly lead to large overhead costs. These groups can especially benefit from check processing machines, as they will ultimately allow for a more efficient, accurate and affordable fundraising effort. By eliminating the need to waste valuable resources taking frequent trips to the bank, nonprofits can quickly deposit all of their charity money and use it for the intended purpose. Donors who are prone to scrutinize the finances of these firms may be more willing to give money once they realize resources are allocated as effectively as possible.
January 17, 2014