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Thursday, Mar 28, 2024
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Optimal Giving: Helping Nonprofits Keep More of the Money

By teaching nonprofits about cost-saving payment-processing practices, San Diego-based Optimal Giving helps them keep more of the money they raise.

“We’re not just another credit card processing company,” said President Jeff Dowler.”Our objective is to eliminate unnecessary credit card fees. It’s about educating nonprofits and educating donors so more of the donation can go directly to the front line.

“We take existing technology and help nonprofits understand it, implement it, and optimize it to the maximum potential. We try to take a consultative approach to sales. We’re not there to talk anybody into anything.”

One of the best ways to eliminate fees is to encourage donors to have money transferred directly from their bank accounts as electronic checks or debits, said Dowler, who formed Optimal Giving in 2013. Dowler supports use of the Automated Clearing House (ACH), the banking system’s way of moving money.

“We are an ACH-first company,” he said. “I am not saying get rid of credit cards… just give them another option so you don’t have to pay the fees.”

Dowler has been working in the payment-processing industry for 15 years. He says he has worked with local nonprofits as a board member and volunteer for 30 years. He urges nonprofits to give donors an option to avoid using credit cards.

Direct debit transactions avoid costly processing fees because the funds are withdrawn directly from the donor’s bank account. Credit card processing fees often amount to 2.5 percent to 3.5 percent of donations, Dowler said.

In contrast, “direct debit or electronic check donations cost less than the price of a stamp for donations of any size,” he said.

Dowler noted that the San Diego Rescue Mission offers its donors a choice of using direct debit payments or credit cards. “They explain why they prefer direct debit in a concise and compelling way,” he said.

Dowler said his company makes just pennies on each donation that is made to the nonprofits he works with.

“We have a big vision,” he said. “We’re more mission-driven than money-driven. We’ll make plenty of money because pennies add up.”

Dowler noted that his company also encourages nonprofits to use mobile texts to solicit funding. Optimal Giving has licensed technology from Mobile Cause, a fund-raising platform, to help them accomplish this.

“Ninety-nine percent of texts get opened,” he said. “Mobile is a great way to communicate.”

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