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While many churches are already reaping substantial benefits by offering their members electronic giving options, many others are trying hard to avoid it, mostly because it seems new and complicated. But it's really not that hard, and for many of your worshipers it will hardly be a new concept. So relax, take a breath, and read on for some electronic giving basics.

Most electronic giving programs use a form of payment called Electronic Funds Transfer (EFT)—a generic term for various paperless payments. The most common of these payments pass through the Automated Clearinghouse (ACH) network, established by the Federal Reserve in the early 1970s. Yes, thirty years ago!

An ACH transaction is an electronic file with instructions to move funds from one bank account to another. You've probably experienced ACH transactions before as a direct deposit of a paycheck or an automated payment. Even some Wal-Mart stores scan paper checks and convert

them into ACH payments. The National Automated Clearinghouse Association (NACHA) recently reported there were over 10 billion ACH payments in 2003, 12

percent more than in 2002. Initially limited to large companies and banks, ACH payments are now widely used by large and small businesses and nonprofits, including churches.

To start an electronic giving program, you could call your bank and ask how they can help. Many banks have software to help their clients initiate ACH transaction files. Some church management software packages have the ability to create ACH files. In that case, you need only ask your bank if they have a file transfer system to get the file to them.

Your easiest solution might be a third-party processor—a company that specializes in making EFT payments easy for their clients. They would offer the ability to create the file and to transmit it into the ACH network.

Once you have a way to create and submit ACH files, you need permission from your donors, of course. A simple form will do: "I (donor name) give St. Joseph's Church permission to debit my account (account number and routing number) in the amount of $X on the fifteenth of each month until I provide written notice otherwise." You need a record of their permission, their bank account and bank routing numbers, account holder name, amount, and date. Collect a voided check with the enrollment form to reduce data entry errors. With all this, you are ready to receive an electronic payment.

So what's stopping you from offering electronic giving to your members? Here are some of the objections we hear:

"Our members are too old and not tech-savvy." Congregants need to complete a simple enrollment form and hand it to you with a voided check. Many of your members are accustomed to automatic debits for insurance and mortgage payments, and your elderly members receive their social security payments through a direct deposit. Your program will most likely be better received than you expect, and you only need a few members to enroll to make the program worthwhile.

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