A disbursement is a payment the Givinga Foundation sends to your nonprofit for donations your nonprofit received. The Givinga Foundation sends disbursements by ACH (Automated Clearing House) electronic payment or by paper check, after your nonprofit’s donations meet a minimum threshold and complete a cooling period.
What happens after a donor makes a donation to my nonprofit?
After a donor makes a donation to your nonprofit, the donation goes through the following stages before your nonprofit receives the funds:
- The donor makes a donation. A donor gives to your nonprofit through a philanthropic technology platform in the Givinga Foundation network. The Givinga Foundation receives the donation shortly afterward.
- The donation enters a 7-day cooling period. The Givinga Foundation holds each donation for a mandatory 7-day cooling period before processing the disbursement.
- The donation counts toward the $50 minimum threshold. The Givinga Foundation combines your nonprofit’s donations until the total reaches at least $50.
- The Givinga Foundation sends the disbursement. Once your nonprofit’s donations have completed the cooling period and reached the $50 minimum threshold, the Givinga Foundation automatically sends the disbursement by your nonprofit’s payment method, either ACH electronic payment or paper check.
What is the cooling period for donations?
The cooling period is a mandatory 7-day hold that applies to every donation before the Givinga Foundation processes a disbursement. During the cooling period, the Givinga Foundation validates and secures each donation. The cooling period also allows time for changes to a donation, such as a donor modifying or canceling the donation.
What is the minimum disbursement threshold?
The minimum disbursement threshold is $50. The Givinga Foundation sends a disbursement only when the combined total of your nonprofit’s undisbursed donations reaches $50 or more. Donations below the $50 minimum threshold are held until additional donations bring the total to $50 or more.
The Givinga Foundation combines donations into a single disbursement instead of sending many small payments. Combining donations reduces processing costs and administrative work for both the Givinga Foundation and your nonprofit.
How does the Givinga Foundation send disbursements to my nonprofit?
The Givinga Foundation sends disbursements by one of two payment methods:
- ACH electronic payment: If your nonprofit is enrolled in e-payments, the Givinga Foundation transfers disbursements directly to your nonprofit’s bank account.
- Paper check: If your nonprofit is not enrolled in e-payments, the Givinga Foundation mails a paper check to your nonprofit’s address on file.
How long does an ACH disbursement take to arrive?
After the 7-day cooling period ends, the Givinga Foundation processes ACH electronic payments within 3-5 business days. Your nonprofit’s bank may need additional time to post the ACH payment to your account.
How long does a paper check disbursement take to arrive?
After the 7-day cooling period ends, the Givinga Foundation prints and mails the paper check. Delivery time for a paper check depends on postal service schedules.
How can my nonprofit receive disbursements faster?
To receive disbursements from the Givinga Foundation faster and avoid delays:
- Enroll in e-payments. ACH electronic payments arrive faster than paper checks and are more secure, because there is no physical check to lose in the mail. Your nonprofit can enroll in e-payments, also called direct deposit, after logging in and undergoing ID verification in the Givinga Foundation Nonprofit Portal.
- Keep your nonprofit’s profile up to date. Verify your nonprofit’s mailing address and banking information regularly. An outdated mailing address or bank account can delay or prevent a disbursement.
- Monitor pending disbursements. The Pending Disbursements card on the Reports page shows the total amount waiting to be disbursed to your nonprofit. The Reports page updates every 4 hours.