What is a Digital Gift Agreement?
In most giving journeys, the donor cultivation phase of the process generally gets the most attention. But once a donor commits to a gift, the issue of collecting payment still remains. That's where the digital gift agreement comes in.
Digital gift agreements may seem like familiar documents, but there is more to them than many fundraisers realize. Read on to learn everything you need to know about digital gift agreements, including what digital gift agreements are, how to generate them, and how digital gift agreements can help your fundraisers close more gifts.
What is a digital gift agreement?
A digital gift agreement is a formalized request for payment in the form of a document that details the verbal commitment a donor has made to your nonprofit organization. Givzey digital gift agreements also include customized payment options for donors, sent on your behalf, with automated nudges so you never annoy a supporter who has committed to giving.
How to write a digital gift agreement
There is no official list of requirements that make up a digital gift agreement, but there are several pieces of information that are considered standard. Missing any of these fields won't invalidate a digital gift agreement, but skipping any of them can result in new questions from donors, and put a gift you've already secured in jeopardy of ever closing.
Donor stewardship message. It just wouldn't be fundraising if some level of donor stewardship wasn't involved. This is a quick, one or two-line, customizable note at the top of your digital gift agreement to thank your donor.
Total gift agreement amount. Include a complete financial picture of the donor's full gift.
Date of the agreement. The date an agreement is made/sent is an important record for ensuring that you know where gifts are in your pipeline and that donors can see formalized documentation of their willingness to give.
Payment methods. One of the most common frustrations associated with the last mile of giving, that grey area between donor commitment and a gift coming in the door, is trusting that a donor knows precisely where to go and how to make their digital gift. With digital gift agreements, however, Givzey brings all of your organization's payment methods directly to the digital gift agreement itself. This creates a frictionless payment, precisely when it's top of mind for a donor, dramatically reducing your time to payment.
Do digital gift agreements need to be signed?
A digital gift agreement is simply a record of a commitment to give. Because of this, there's no requirement for the agreement to be signed. The job of the digital gift agreement is to formalize a commitment so a donor is reminded and positively encouraged to complete their gift.
Automate digital gift agreement reminders
Nonprofit organizations, colleges, universities, independent schools, and healthcare institutions work with anywhere from a handful to hundreds of thousands of donors every year. Regardless of where you sit on this spectrum, the time and administrative resources it takes to close outstanding gifts, rather than seeking new gifts, is staggering. Givzey's digital gift agreements automatically nudge donors who have not completed their gifts and let fundraisers know when donors or gifts need their attention. A best-in-class gift agreement solution means you never have to annoy your donors, but only intervene when you can add value to the donor experience.
Benefits of digital gift agreements
For major gifts, fundraising shops have formal pledges, legal documents, 30-60-90 reviews, and a host of tools to ensure that large sums of money are transferred in timely ways. However, in annual giving, there's a grey area between a donor's commitment and if/when that gift closes. Up to 50% of verbally committed annual gifts don't come through the door. Digital gift agreements empower nonprofit organizations in many, such as:
Improved overall health of giving pipelines
Automated tracking of gift agreements
Faster gift closes
Lower costs and administrative overhead for each closed gift
Automated nudges for unfulfilled gifts
More time spent inspiring new donors, less time chasing already-committed donors
Send digital gift agreements with Givzey
Whether you are connecting with hundreds of donors every month, or dozens, Givzey has a solution to give you control at the last mile of giving – from commitment to close. To get started with creating digital gift agreements, sign up for a Givzey free trial.