What is Gift Processing?

Gift processing is the backbone of any successful fundraising operation. It involves the systematic handling of donations from the moment they are received until they are recorded and acknowledged.

This process includes data entry, issuing tax receipts, and collecting donor information—all of which are critical for maintaining strong donor relationships.

Tackling the Challenge of Volume

One of the biggest challenges nonprofits face is managing a large volume of donations. When donations flood in, the immediate question is whether to expand your team or outsource the task.

Hiring More Staff vs. Using an Outside Vendor

Hiring More Staff: While adding more hands on deck can seem like a logical solution, it comes with significant costs and training requirements. The onboarding process itself can be time-intensive and costly, impacting your overall fundraising efficiency.
Outsourcing to a Vendor: On the other hand, outsourcing to a specialized vendor can be more cost-effective and efficient. Vendors are experts in gift processing and can handle large volumes quickly and accurately. This allows your team to focus on strategic initiatives rather than administrative tasks.

Ensuring Timely Donor Acknowledgment

Thanking donors promptly is not just a courteous gesture; it is a vital component of donor retention. Research shows that acknowledging a donation within 24-48 hours significantly increases the likelihood of future contributions.

However, if your gift processing system is sluggish, you risk damaging your relationship with donors. A streamlined gift processing system can ensure timely acknowledgments, enhancing donor satisfaction and loyalty.

Meeting Security and Regulatory Requirements

Nonprofits must adhere to strict security regulations and auditing requirements. One critical aspect is the separation of duties. If the same staff member handles multiple stages of gift processing, it can raise red flags during audits.

Separation of Duties

To comply with auditing standards, it is essential to separate tasks among different staff members. For example, one team could handle mail opening, another could process donations, and a third could issue tax receipts. This separation minimizes the risk of errors and fraud, ensuring a transparent and secure process.

An Essential Part of Fundraising

Effective gift processing is more than just a back-office function; it directly impacts donor relationships.

Accurate data entry ensures that donor information is up-to-date, which is crucial for personalized communication and long-term engagement. Issuing timely tax receipts reinforces your organization’s credibility and encourages future contributions.

Let's Get Started

Efficient gift processing is not just about handling donations—it’s about building and maintaining strong donor relationships. By addressing volume challenges, ensuring timely acknowledgments, and adhering to security regulations, your nonprofit can enhance its fundraising efforts and donor trust.

Ready to streamline your gift processing? Contact Marsherall Partners for expert assistance and elevate your fundraising operations today.