In today's wired world, many consumers have set aside their checkbooks in favor of electronic payment systems. Worshipers are no exception, and churches are taking notice of this trend by offering electronic giving options. Propelled by its consistent nature, ease of use, and ability to transcend physical in-house attendance, this relatively new method of accepting offerings is helping churches of all sizes increase their level of donations.

Matt Whitaker, president of Smart Payment Solutions, has noticed a surge in both awareness and implementation of electronic giving since he began working with churches about three years ago. "The first year that we started talking to churches," he says, "eight or nine times out of ten the reaction we got was, 'We had never thought about that,' or 'We didn't know we could do that.'" Whitaker says now most churches are aware of it and have thought seriously about implementing such a program.

One-Time Decision
Electronic giving (e-giving) programs provide a number of benefits. The primary one, says Whitaker, is that they create a stable source of revenue year round. Summer vacations, inclement winter weather, and illnesses are all factors that may cause parishioners to miss a week's service. Without an e-giving program in place, says Whitaker, "A small percentage of people will make up their donation the following week, but most people won't."

E-giving programs provide a stable source of revenue year round.

Deborah Matthews, vice-president of marketing at ACH Direct, agrees and points out the benefits to the donor as well as the church. "By setting up recurring payments," she says, "members of the congregation can remain faithful to their commitment to give even when they are not physically at church."

Another attribute of e-giving is its potential to bring in larger donations. Matthews notes that the Kintera/Luth Nonprofit Trend Report (report can be obtained at kinterainc.com) shows that online contributors give as much as 50 percent more than those that give through traditional means. Whitaker attributes this phenomenon to people making a one-time decision to give a certain amount each week, rather than deciding how much to give each week based on what's in their wallet at that time.

E-giving is also ideal for people who have a church home, but for some reason (work schedule, health, or travel) don't attend very often. It will be easy for them to continue supporting the church financially through e-giving, whereas they probably wouldn't mail a check every week or every month.

As more and more church members participate in e-giving, the administrative process of receiving, counting, storing, and depositing funds, and preparing detailed financial reports is significantly streamlined. This frees up church staff and volunteers to focus on other ministries, such as reaching out to infrequent attendees to increase their involvement in the church.

Look Before Leaping
So how should a church go about implementing e-giving? Mark Lowenstein, sales manager for ACH Direct, recommends assembling a team intimately familiar with the organization's technology and business framework. "Get two or three heads together and interview a couple of companies," he says. "Look for the best technology and the best processing fees. Different companies offer different types of pricing programs."

Derryck McLuhan, vice-president and managing director of Good Shepherd's Bank, suggests querying other churches that already have an e-giving program in place when selecting an online giving vendor. "The best way to do it is through relationships with other churches," he says.

McLuhan also advises churches to do their homework regarding a service contract. Churches should look for hidden costs, define how long the vendor holds donated funds, and determine the vendor's reporting functions. "Reporting functions allow churches to see who gave online, what they gave, and what they gave to," he explains. The vendor should be able to track a church's donations in real time and generate a variety of helpful reports that can be customized to suit the church treasurer's needs. Some reports can even be imported into existing financial software.

Be sure to ask if the e-giving program provider will also accept credit card donations. The major disadvantage associated with credit cards is the processing fees, which typically run about 2.5 percent of the transaction amount. Whitaker notes that some churches are morally opposed to credit cards because of the possibility of church members building large amounts of consumer debt.

On the other hand, there are several advantages to accepting credit cards. Almost everyone has at least one. They are the payment method of preference for many. Lowenstein points out that when making donations online using their credit card, donors can get airline mileage points and other rewards offered by their card providers.

If a church decides against using credit card donations, then electronic donations will only be made via bank drafts through the Automated Clearinghouse (ACH) network. ACH payments are accompanied by a flat transaction fee rather than a percentage. Also, since the funds are drawn directly from the donor's bank account, this method safeguards against people giving more than they have.

Promote the Service
Whether using only bank drafts, credit cards, or both for receiving electronic payments, you must educate your congregation about e-giving. Promote the new tithing service in bulletin inserts, newsletters, posters, and postcards. Church leaders should be well versed in how the program works and encourage worshipers to give online. "The most important thing is that the pastor promotes it from the pulpit," says McLuhan. "That's what gets the most attention and the most immediate response."

Because of the tendency for people to pledge more online and the nature of the recurring donations, e-giving helps churches of all sizes increase their revenue. "The average churchgoer will miss about seven services a year," says Whitaker, who points out that if they are on an e-giving schedule they will still give for each week they missed. And you don't need to be a big church to take advantage of that. Whitaker says they have church clients with only five to ten people using electronic giving, and the churches still benefit from it.

McLuhan agrees. "As long as a church has a website and can host a link for an online giving feature it doesn't matter if a church has 100 people or 1,000 people," he says.

Electronic transmissions are still safer than paper checks.

Safer than Checks
Security, of course, is a major concern for churches exploring e-giving. With the barrage of stories in the media about credit card fraud, stolen pin numbers, electronic hackers, and identity thieves, it's easy to forget that electronic transmissions are still safer than paper checks. Traditional paper checks not only have account information on them, but also names, addresses, and in some instances, even phone numbers and social security numbers. "Electronic transactions contain less information than is contained on a typical check," points out Whitaker.

Says Lowenstein, "If you look at the statistics, you have a better chance of getting robbed at the grocery store then you do of getting your information stolen online."

Not only is online giving secure, it also offers donors advantages over traditional giving methods. They don't have to worry about bringing a check or having cash in their wallet at each service. With each electronic donation, donors have the option of printing out their own receipt for tax purposes. The receipts are also ideal for those who feel uncomfortable keeping their hands at their sides as the collection plate passes—they can drop their receipt on the plate.

With more and more people shunning traditional checks and carrying less cash in their wallents, e-giving will continue to flourish. It's a process that simplifies the lives of congregants and church administrators alike. And most importantly, it provides a stream of steady contributions that can be used to advance a church's mission.

Chelan David is a freelance writer living in Seattle.