Checks are still widely used in the modern economy despite the rise in electronic payment methods. To this day, checks remain a preferred method for making charitable donations, offering both donors and recipients simplicity and financial transparency. Continue reading below as we explain the advantages of using checks for philanthropic purposes.
Avoids Processing Fees
One of the biggest reasons to make donations using checks is that it doesn’t include the unavoidable processing fees that many electronic payments have.
Donors like this because it ensures the full amount they’re donating goes to the charity, not payment processors. The receiving organization appreciates check donations for the same reason, as they don’t incur the standard credit card processing fees of 1.15% to 3.15% per donation, as reported by the Motley Fool.
Thus, the bigger your donation with a credit card, the more it will go toward credit card processing fees.
Provides a Personal Touch
Another advantage to charitable giving with a check is that it offers a tangible, personal element to the donation. You can include a personalized note or message on the memo line, making the donation feel more thoughtful and intentional. Plus, there’s something satisfying about receiving a physical check that online donations can’t replicate.
Sitting down to prepare your donation using desk checks offers a purposeful and meaningful way to make a charitable contribution. Plus, many, like those from Checkworks, come with attached stubs for record-keeping purposes, making it easy to maintain reliable records, which we’ll discuss in further detail below.
Makes for Easier Donations
Both donors and charitable organizations might like the fact that check donations are simple and easy to complete. This way, charities don’t need to set up an online payment portal or payment processing account to receive donations. It’s quick and easy for donors to take out their checkbooks, fill out a check, and hand or mail it to their charity of choice.
Plus, this simple payment method doesn’t involve any intermediaries, reinforcing the financial transparency of the donation. It’s also accessible, as people don’t need to create an online account or have access to the internet before sending a payment.
Enables Easy Record-Keeping
Charitable giving with a check makes for simplified record-keeping for the donor and the recipient. When writing a check, donors get a clear, physical record of the payment, which makes it easier to track for tax purposes.
From the charity’s standpoint, receiving checks provides a straightforward paper trail, helping them efficiently log and acknowledge donations. This helps them avoid getting bogged down by monitoring various online accounts for incoming donations or accounting for the different processing fees and payout schedules that digital payment processors impose.
Offers Enhanced Security
Some people may be more comfortable making a donation via check for security purposes. Modern checks often contain advanced security features like chemically sensitive paper to prevent the alteration of your check. So, even if it falls into the hands of a bad actor, these secure features can prevent potential fraud. Plus, as we discussed above, there’s a clear paper trail for check-based donations, providing additional transparency and safety.
