Generosity

Choosing an Online Giving Service for Your Church: 7 Important Questions to Ask Before Making a Selection

Looking for an online giving tool for your church, but unsure how to pick the right one? Here are a few key things you should consider when evaluating online giving companies.

Choosing an Online Giving Service for Your Church: 7 Important Questions to Ask Before Making a Selection
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There’s a good chance your church has or is thinking about online giving

But ... do you know how to make the best choice for your church among the many online giving services available?

Here are seven important questions you need to ask before you choose a new online giving service for your church. You can also read our complete guide to online/mobile giving for more detailed information.

#1. How much does it cost?

There are a few rocks you need to look under to know how much your church will need to pay for an online giving service.

The first fee you need to ask about is: Does the service require a monthly fee of any sort? Some call it a platform fee. Or, do you need to process a minimum number of transactions every month? Or is there a "security fee", "transfer fee", "PCI fee", etc. I think you get the point here -- be sure you ask about any sort of monthly fees you'll be paying from the start or after any sort of introductory offer/promo period.

The second fee you need to ask about is: What is the per transaction fee? There’s usually not a huge variation among online giving services in this area, but it’s good to know what to expect. Check out our complete guide to fees related to online/mobile giving here.

Finally, you should ask if the service provider require you to pay more for additional features, such as a kiosk feature or text-to-give or events or any other sort of add-on feature.

#2. Do I need to sign a contract?

In order to answer to this question completely, you need to be dig in to two things.

  1. First, does the service you’re considering require you to sign a contract or make a long-term commitment?
  2. Second, does the online service require you to sign a contract to secure reduced pricing or gain access to features that are not included without a contract being signed?

Many online giving services do not require a contract, but some do. Either way, it’s important to know if you need to sign a contract and what that contract legally holds you before you commit to one service for an extended period.

#3. Can the service integrate with my church’s brand?

This question might sound trivial, but it’s more important than you may think.

According to the Digital Giving Index, giving pages that look similar to your church or non-profit or church organization will lead people to complete their gift seven times more than a non-branded online giving page, and they also lead to an increase of 33% in the average gift size.

These are HUGE numbers so don't settle for an online giving page that redirects the donor off your church website and doesn't give you much ability to brand it.

Before choosing an online giving service for your church, make sure the service you choose will allow you to weave your church's branding throughout the process seamlessly.

#4. Can the online giving tool integrate with my church management system?

If you're using a church management system (ChMS), having your giving data integrated into that system is mission critical so that giving records are complete and you're able to send out regular receipts for tax purposes. If you don't have a direct integration then your administrative team will spend countless hours doing manual data entry, dealing with files, cleaning up mistakes, and who knows what else.

At the end of the day, the perfect online giving solution for your church is one that integrates directly into your ChMS so that things are seamless and you reduce admin time.

#5. Is bank reconciliation simple?

Similarly to point #4 above, this point has to do with time and effort spent by your administration staff.

When evaluation giving solutions it's important to understand how gift reporting works as well as how to do deposit and bank reconciliation. Ideally, the system you choose will give you a simple to understand yet detailed deposit report for every deposit made into your church bank account. That way, your financial team can easily see the total deposit amount, breakout by fund, and transaction details if needed -- all tied to a specific deposit.

If the system your looking at doesn't enable easy bank account reconciliation and fund accounting breakout, beware!

#6. Can donors easily setup auto recurring giving?

This one likely isn't news to you, but just in case we thought it was important to point out.

Your online giving tool should make it SUPER simple for anyone giving to setup automated recurring giving using the bank account, credit, or debit card. Options like weekly or monthly giving should be included. And it should also be simple for your members to cancel their recurring gift should an unforeseen circumstance arise.

So, be sure to look at the online giving form and evaluate if has a simple recurring giving setup. Also, be sure to ask how donors can cancel their recurring gift? Oh, and you should also look into the admin reporting tools around recurring giving to ensure you are able to see all your recurring givers, edit recurring gifts, pause them, etc.

#7. Can donors optionally cover the processing fees?

Lastly, an option that many do not support, but is incredibly useful. The ability for the donor to cover the gift processing fees.

You'd be surprised by how many people will optional choose to cover the fees when given the opportunity. Be sure to ask about this feature, test it out on the online giving form, and get a sense of the reporting around it as you 100% do not want to go with a giving tool that doesn't offer this capability.

Are you interested in a new online giving service for your church? What questions do you have? Share questions or additional insights in the comments below!

Why Write Church Donation Letters?

In a previous blog post, I shared the different ways your church can thank donors—from automated emails to year-end giving reports. Printed donation letters also play an essential role in your church’s stewardship efforts.

Donation letters are the Swiss Army knife of your church’s gratitude arsenal. It may not be the most powerful—but it’s versatile, handy, and gets used often.

Your basic church donation letter can serve many different purposes, including:

  • Acknowledging that you received a donation
  • Thanking the giver for being generous with their finances
  • Sharing other ways the person can support your church
  • Allowing the donor to write the gift off on their taxes
  • Encouraging supporters to make recurring donations
  • Requesting future donations from church members

A single, well-crafted donation letter can pull together several of these things simultaneously. Better donation letters lead to more giving, which leads to more donation letters—thus creating a cycle of on-going church generosity.

Church Donation Letter Samples

Here’s the good news—you don’t have to write an individualized letter for every person who gives to your church. That would be tough to do for even smaller churches. And most donors don’t expect you to. They’d rather you be putting their gift to better use in the community, instead of ceaselessly writing thank you notes.

With the possible exception of some unique circumstances, your church can use template language for the majority of your church donation letters. You’ll have to add in custom details like the donor’s name and gift amount, but you can write everything else in advance.  

To make this even easier on you, here are a few basic church donation letter templates you can copy and paste. Keep in mind that not all of these have to be in print—you could just as easily turn some of these samples into email appeals.

1. Donation Acknowledgment Letter

The Donation Acknowledgement Letter is a basic way you can confirm and affirm a monetary gift to your church. Sending these is standard practice in church and nonprofit culture.

Dear [first name],
I want to personally thank you for your donation of [gift amount] to [church name]. We’re honored you would bless us with your generosity. Donations like yours make a big difference in the work our church is doing in the community.
Without givers like you, our church can’t have an impact or influence in our community. With your support, we’re partnering with local nonprofits, sending out global mission trips, and hosting small groups on topics that help real people like you. Together, we can make a difference.
Because we’re a tax-exempt nonprofit, you also get to write this donation off on your taxes. This letter serves as official proof of your donation, so keep it in your records come tax season. At the end of the year, we’ll also send you an annual recap with how much you’ve given to the church.
Thank you for supporting [church name]!
Sincerely,
[your name]

2. Donation Request Letter

Not every church member realizes the importance of giving, or understand Bible verses about tithing and giving.  So a Donation Request Letter helps to spread that awareness and encourage a spirit of generosity.

Dear [first name],
How are the finances in your household? That was a rhetorical question, so you don’t have to answer—besides, this is a letter so we wouldn’t hear you anyway. But we still want you to think about that question.
Money is a uniquely human issue, one we all struggle with to one degree or another. Even if you’re financially blessed, you still have the burden of stewarding your money wisely. And we believe that one of the best ways to invest your money is into the local church.
Tithing (giving 10% of your income) on a regular basis not only supports the work we do at [church name]. It doesn’t just support local missions and community growth. It also shows an obedience to God by making his work a financial priority in your life.
So if you find yourself ready to put God first in both your heart and your wallet, we encourage you to make a one-time gift or sign up to make recurring donations. That way, you won’t have to ever wonder again about the financial status of your household.
Sincerely,
[your name]

3. Monthly Giving Letter

Many church donations aren’t just one-time gifts. Plenty of givers contribute monthly—and that should be acknowledged.

Use this template to correspond with recurring givers.  

Dear [first name],
Thank you for being an active and faithful member of our church community. By giving to our church on a monthly basis, you’re showing that our church has a meaningful place in your heart. We just wanted to write this to let you know that you’re in our heart, too.
Donating to the church monthly allows us to preach the gospel, make disciples, and support others in our community who need help. Others like the local food bank and the nearby homeless shelter. We’re answering the cry of the needy, and it’s all thanks to contributors like you.
We earnestly appreciate your ongoing support and want to let you know we’re here for you. If there’s ever anything we can do for you and your family, don’t hesitate to reach out. You are a valued member of our church family. And you’re financial support is making a difference.
Sincerely,
[your name]

4. Year-End Giving Letter

At the end of each year, it’s customary to give your church supporters a summary of their gifts. The primary reason is for tax purposes, but it’s also a way to recap everything your church has done over the past year with their support.

Dear [first name],
You’re getting this letter because you gave to [church name] at some point during the past year. That might have been a one-time gift, or recurring donations. Either way, we want to thank you for your generous support. Every contribution helps.
One of the official reasons for this letter is for tax purposes. That’s right—you get to write these donations off on your taxes. Which is why we’ve included a summary of all the contributions you’ve made to our church this year.
But the other reason for this letter is to let you know what we’ve done with the money you gave. We take stewardship very seriously, which means we value spending our time and resources wisely.
During the year, our church supported local nonprofits, sent global missions teams, and baptised quite a few people. It was a great year for us—thanks in large part to donors like you.
So thank you for your support of our church, and we hope you’ll consider continuing to contribute to our mission in the coming year.
Sincerely,
[your name]  

5. Church Fundraising Letter

Sometimes you need to make a more significant financial push using tried and true church fundraising ideas. Some churches call this a Stewardship Campaign or a Church Capital Campaign. Either way, the goal is to raise a certain amount of money for a big project. And typically, a solid letter of appeal is an integral part of that.

Dear [first name],
God has a plan for everyone and everything. That includes you, and it includes [church name]. None of us can fully know God’s plan—the best we can do is pray and listen for clarity. Our church leadership has been doing just that and are excited to announce our latest church project.
[Detail the outline of the major church project—this could include a building campaign, or raising support for a global mission trip. Anything specific to your church that requires a fundraising letter. Be sure to include a fundraising goal so everyone knows what you’re shooting for.]
But we can’t pull this off without your support. Whether you give to the church on a regular basis, or just attend on occasion, we’re asking you to consider contributing to this massive undertaking prayerfully. It’s something we need our entire church community’s help with.
Even if you can’t make a large gift, know that every little bit helps. It’s more about coming together as a community united behind a common cause. We hope that you’ll consider making a donation towards this great step forward that we’re making together.
Sincerely,
[your name]

Tips when writing church donation letters

It’s not enough to just copy and paste this content and send away. The key to an effective church donation letter is a touch of personalization. Follow these tips to take your donation letters to the next level:

  • Examples: Add specific examples of how your church will use the donation. Tell a story about the work your church is doing in the community and connect that with giving.
  • Personalization: For regular donors, don’t be afraid to add a short, handwritten personal note. This shows that you’ve singled them out with praise.
  • Timeliness: Sending donation letters quickly reminds people you’re thankful for them. But this also takes organization and efficiency. All the more reason to use pre-written templates.
  • Storytelling: Everything is better with stories—including donation letters. Weave in a specific narrative of how your church is making a difference and how the money will be used.

There’s no one right or wrong way to write a donation letter or request contributions. You’ve got to do what is right for your church and congregation. But if you stick to these general tips, you’ll probably start to see some traction when it comes to giving.

What’s next?

Most people don’t love talking about money in church. But it’s a necessary and vital part of your church. And maximizing your efforts when it comes to donation letters will help make those conversations more comfortable. So what do you do next to put this into effect?

  • Customize these letters: Take the samples above and make them work for your church. Personalize the content. Remove the stuff that doesn’t sound genuine and add in stuff that does. Remember that these are just a starting point.
  • Create some systems: Develop processes that make it easy for you to replicate sending donation letters. Use a letter template that allows you to drop in names and details. Then develop guidelines for when these letters will be sent out.
  • Empower a champion: Find out who is going to be responsible for making these letters happen. Rather than thinking of this as adding more work to their plate, think about how you can elevate their work. This could be a staff member, or a volunteer.
  • Start sending: All of this will be for nothing if you don’t actually send out the letters. Take the time to get it right and get them into the hands of your church donors.

And if you’re looking for ways to grow your church’s giving capacity, Tithely can help.

We provide several different ways your church members can support your church financially—from online giving, text to give solutions, and giving kiosks.

Tithely’s systems make it as easy as possible for people to give to your church. Now all you need to start doing is generating a culture of gratitude. There’s nothing standing in your way. Go unleash generosity in your church.

How does your church use donation letters to spread generosity? Share your thoughts in the comments below!

Editor's Note: This is a guest post from Robert Carnes. Robert is a writer and storyteller. He's the author of The Original Storyteller: Become a Better Storyteller in 30 Days. A former church communicator and nonprofit marketer, Robert works as a managing editor for Orange in Atlanta.

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Choosing an Online Giving Service for Your Church: 7 Important Questions to Ask Before Making a Selection