Hi Irina,
Since the money from credit card gifts is deposited directly into our bank
from the credit card processor, they take the cost out before the deposit
is made. When we reconcile with accounting we have to note the fees charged
against each transaction so that we balance with what was deposited.
Essentially that means that the fees are charged to all gifts scholarship
or not; we don't have a mechanism to make up for the fees or to charge them
to another fund.
I have seen some organizations I support ask if I want to cover the cost of
the credit card fees but that is not something we have instituted on our
campus.
Lisa
--
*Lisa Ziska-Marchand, M.S.*
*Director of Prospect Research & Advancement Services*
*California State University, Monterey Bay*
*(831) 582-3363*
On Thu, Sep 5, 2019 at 10:27 AM Irina A Krasnitskaya <
irinak@sfsu.edu>
wrote:
> Good afternoon all,
>
>
>
> We would like to hear how other institutions and universities handle the
> credit card fees for scholarship donations. We have added verbiage to our
> donation page that states “Gifts made by credit cards are subject to
> processing fees”.
>
>
>
> All credit card donations received through our online donation forms are
> charged with the vendor processing fee of 3% and credit card fees which
> range from 3% or 4%. These fees can add up to a 6%-7% deduction which may
> impact the amount of the award. Usually this difference is paid by the
> account that receives the donation. However, we have had some departments
> which are new or have limited funds being dissatisfied with this approach.
>
>
>
> We would appreciate your feedback on what is the best practice to handle
> credit card fees for scholarship gifts.
>
>
>
> Thank you!
>
> Irina
>
>
>
> Irina Krasnitskaya
>
> Gift Records Manager
>
> Office of University Advancement
>
> San Francisco State University
>
> 1600 Holloway Avenue, ADM 153
>
> San Francisco, CA 94132
>
>
>
> Tel: 415.338.6571
>
> Fax: 415.338.0918
>
> Email:
irinak@sfsu.edu
>
>
>
> University Advancement:
http://advance.sfsu.edu/
>
>
>
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