An NPO Fundraising Alternative:
The Principle:
The Charitable Fund Program is built on a partnership between Secure Data Payment Systems, SDPS, a Topsfield, MA based merchant services firm whose executive team brings a 20 plus year industry presence and your NPO at the leadership level. Core SDPS processing partners process over $27 Billion dollars of transactions yearly. The NPO/SDPS partnership works to facilitate introducing the NPO’s network of biz supporters to SDPS and at encouraging them to shift their existing merchant services program (CC processing and all other electronic payments programs) to SDPS which then offers a recurring referral fee model back to the NPO.
In a nutshell, this program simply encourages companies owned by members of the business community, friends or donors of the Sponsoring NPO(SNPO) to switch their CC processing to SDPS because SDPS agrees to give what amounts to charitable contributions directly to the SNPO in the name of the merchant. SDPS and its merchant clients have contractual relationships with nationally certified industry leading MC/VISA processors and the SNPO is in no way involved with the merchant’s company or processor nor does it have any liability associated with those relationships.
How it Works:
SDPS will enter into an agreement with the SNPO to direct the funds to the SNPO from participating local or regional businesses. SDPS can only invite and encourage businesses to participate in the model because it is to their benefit (cost savings and tax deductions not previously enjoyed) and the SNPO’s benefit(unencumbered dollars for new programs) for both to initiate the partnering association.
Unlike other fundraising models, products or programs the “Charitable Fund’ program is simple, straightforward and offers benefits to all who participate. Many other programs have designed compensation programs that incorporated complex levels of pay, difficult quotas and productivity goals, and complicated network structures requiring the SNPO to actually do the work implementing the program.
In the “Charitable Fund” program SDPS does all account management and monthly financial reporting to both merchants and the SNPO. No SNPO staff time is needed. As for revenue share, SDPS approaches the NPO as a full partner and is offering sliding scale revenue shares from 30% to a maximum of 50% of all fee income generated by the portfolio of accounts. For its role and share, in addition to the above, SDPS manages and provides all technical and customer support to the merchant population and handles all long term merchant needs.
The Results – Recurring Revenue:
THE CHARITABLE FUND PROGRAM fundraising model works well and can raise large sums of money. The difference from traditional programs is that money is not donated by an end donor/consumer directly as the result of some sort of solicitation process which may or may not generate the intended result. It comes from the revenue partner, in this case SDPS, on behalf of the participating merchant whenever a customer of the merchant network of supporters makes any purchase any time of the day and is an ongoing event year in and year out. The revenue generated is part of the fee income from the merchant transaction cost of their cc processing account.
The Charitable Fund® Program is for you if…
1. You are attuned to social innovation and social entrepreneurship and believe NPO’s must innovate especially in the area of fundraising to survive.
2. You are an NPO founder, Board Member or Executive seeking recurring revenue funding to ensure sustained mission impact.
3. You are a small to medium sized NPO
4. You have an established network of biz supporters or donors
5. You seek to show your biz supporters creative ways they can provide your NPO with extra income from their current revenues without risk or additional financial outlays
6. You believe your supporters would use services they already use if they learned using these same services from your funding partner would bring new funding to your NPO.