If you were along for the confusing Mastercard ride as it evolved last fall, you know that nonprofits got a bit of a scare thinking they were going to be subject to extensive rules around monthly subscriptions.
To skip to the punch line, there was a lot of behind-the-scenes lobbying and the requirement was not extended to nonprofits.
CharityEngine was part of the behind-the-scenes lobbying on behalf of our clients, and we immersed ourselves in these regulations, the rationale behind them, and the overall benefit to consumers.
And we’ve been counseling our clients that it makes a lot of sense to comply with the regulations, if you can, to benefit your donors.
By spring of 2023, Mastercard began enforcing a requirement that states that consumers who pay for monthly subscriptions using a Mastercard credit card must be sent receipts each month that include simple and clear ways the consumer can cancel the subscription.
The worry for nonprofits was that the sending of receipts would place an undue burden on often-overburdened staff. And, we argued, monthly donations are not subject to rules governing traditional e-commerce transactions.
Mastercard clarified their position and agreed that nonprofits are exempt from sending receipts to every monthly donor.
But (you knew this was coming) it’s not a bad idea to comply anyway. Why?
The donor experience is key to your nonprofit’s success. When your donors feel appreciated, invested in your mission, and part of your wider family, the chances of them withdrawing their support are diminished...and the chances of them jumping in and volunteering or increasing their donations go up.
We believe that the essence of these regulations can greatly enhance the donor experience.
Let’s look at six big benefits of your nonprofit offering monthly receipts and easy unsubscribing:
Yes, unless there are a few circumstances:
In those cases, consider monthly receipting and/or communications to be goals for the future. As a more general rule for now or a goal for the future, anything that improves your donor experience is well worth serious consideration.
It’s important to note, though, that you must implement receipting thoughtfully and for the benefit of your donors. If you have a platform of disparate systems, this might not be possible, and it might behoove you to wait for a mandate.
And, just to throw all our cards on the table, we’ve got a completely unique nonprofit CRM with an advanced donor portal. And industry-leading payment processing. So if your CRM vendor can’t accommodate your requests or you’re just interested in seeing what we’ve got under the hood, just book a demo, and we’ll be happy to show you!