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Lockbox: moving away from it??

  • 1.  Lockbox: moving away from it??

    Posted 13 days ago
    Good afternoon, all.

    I recently started in this position and mentioned using lockbox services at a previous institution and my interest in exploring it as a possibility for us now.  Someone in the finance office mentioned to my boss that many institutions are moving away from lockbox services and finding they're not cost-effective.  Is this accurate?  Has anyone made this move away from a lockbox and if so, why?  

    Also, I would like to hear any justifications you may have used to advocate for lockbox services as well.

    TIA!
    Courtney


    ------------------------------
    Courtney Sims
    Director, Gift Processing & Data Management
    Bucknell University
    courtney.sims@bucknell.edu
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  • 2.  RE: Lockbox: moving away from it??

    Posted 13 days ago
    I think the better question to ask is, Why do you think you need one?

    Lockbox services are not needed everywhere.  If you are able to receive, deposit and record gifts within 24-48 hours you likely do not need a lockbox.  On the other hand, if it's taking you one week to turn a gift around, you might.  In that case, you will need to conduct a cost-benefit analysis.  How much will the lockbox cost you over a year compared to hiring additional staff necessary to get you down to that 48-hour goal?

    The other consideration is whether your mail is the right sort for a lockbox.  If you have a zillion direct mail pieces with standard reply devices, you might be in better shape for a lockbox than organizations that do limited direct mail and, therefore, have to pay for the higher non-standard lockbox service.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Lockbox: moving away from it??

    Posted 13 days ago
    Thanks, John!  
    Good things to consider.  I am still new to Bucknell and certainly not interested in making changes right away but was pondering the option.  As I observe over the next few months, I will keep your recommendations in mind.
    I was just surprised to hear the finance person say orgs were moving away from the service.  We loved it at my previous institution.


    ------------------------------
    Courtney Sims
    Director, Gift Processing & Data Management
    Bucknell University
    courtney.sims@bucknell.edu
    ------------------------------



  • 4.  RE: Lockbox: moving away from it??

    Posted 13 days ago
    I've not heard of organizations "moving away" from a lockbox, other than a couple of my clients where it was proving costly, and bringing it back inside was not going to impact the timing.  But, to your point, many of my large nonprofit organizations that rely heavily on direct mail and standard reply devices find lockboxes to be very necessary.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987