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Mastercard and other updates affecting gift processing

  • 1.  Mastercard and other updates affecting gift processing

    Posted 09-02-2022 10:05 AM
      |   view attached
    In light of the Mastercard "subscription" billing updates that affect charitable organizations (I've attached that document for anyone who doesn't yet know; see question 8), I wanted to ask what listservs/enews/notification boards anyone here is on. We're trying to find ways to be more in-the-know on an earlier basis so we have more time to update our knowledge and processes.

    ------------------------------
    Jessica Baker
    Director, Data Quality, Gift Processing, Strategy
    University of Texas at Austin
    jbaker@austin.utexas.edu
    ------------------------------

    Attachment(s)



  • 2.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:02 AM
    The Mastercard rules going into effect this month do not apply to charities performing recurring donation activities:


    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: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:04 AM
    Oh, and to answer your question, I do not know of a better way to stay informed on rules, regulations, and policies affecting gift processing than FundSvcs!

    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







  • 4.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:09 AM

    That's interesting. I was told by Blackbaud it DOES affect us. 

     

    Semper Fi & America's Fund

    TheFund.org

    Rose Dixon

    Deputy, Development Operations
    Semper Fi & America's Fund

    M: 617-413-9537

    E: rose.dixon@TheFund.org

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    This email may contain Semper Fi & America's Fund privileged/proprietary information. This email and any files transmitted with it are confidential and intended only for use by the individual or entity to whom addressed.  Do not keep, copy, print, or forward this email if it is not addressed to you. Do not take any other action in reliance on the contents of this email or any attachment(s). Please destroy any misdelivered email in its entirety and notify the sender by reply email. Your cooperation is appreciated.






  • 5.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:10 AM
    The way that Mastercard wrote the regs leads to the conclusion that donations are not included. However, Blackbaud has stated that the new rules do apply to donations, and further said that 

    "Mastercard has confirmed with Blackbaud that recurring donations are classified as subscriptions and fall within the scope of the new rules."


    On the one hand, written regulations tend to trump hearsay when it comes to a compliance issue. However, if Mastercard has communicated that they intended for these rules to apply to donations, we have to assume that MC will at some point get around to clarifying the policy language, so we're encouraging clients to attend to the matter. We expect other CC companies will follow with similar regs too. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 6.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:15 AM

    We have so many of our recurring indicate the DO NOT want a monthly receipt. 

     

    If MC forces this, we will then have to tell these people it's out of our hands and our suggestion is to change to Visa, Discover, or other forms of payment.  That seems like a dumb move on MC's part. 

     

    Bottom line, we don't need to worry until after our busy season!

     

    Rose

     

    Semper Fi & America's Fund

    TheFund.org

    Rose Dixon

    Deputy, Development Operations
    Semper Fi & America's Fund

    M: 617-413-9537

    E: rose.dixon@TheFund.org

    facebook

    signature_494553183

    twitter

    instagram

    Donate

     

     


    This email may contain Semper Fi & America's Fund privileged/proprietary information. This email and any files transmitted with it are confidential and intended only for use by the individual or entity to whom addressed.  Do not keep, copy, print, or forward this email if it is not addressed to you. Do not take any other action in reliance on the contents of this email or any attachment(s). Please destroy any misdelivered email in its entirety and notify the sender by reply email. Your cooperation is appreciated.






  • 7.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 11:24 AM
      |   view attached
    Mastercard actually addressed this issue more publicly than whispering in Blackbaud's ear. Props to both the Nonprofit Times and IATS for being on top of this, and to IATS especially for sharing the source, Mastercard document, which I'm attaching here. Question 8 on page 2 addresses recurring donations.

    Note also, per #18 that donors can opt out of receiving notices for each payment.

    These regs go in effect on 9/22/2022.

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 8.  RE: Mastercard and other updates affecting gift processing

    Posted 09-02-2022 01:16 PM
    Thank you Isaac for providing the source.

    -Eric

    ------------------------------
    Eric Valdescaro
    Senior Director, Advancement Services
    University of Memphis
    eric.valdescaro@memphis.edu
    ------------------------------



  • 9.  RE: Mastercard and other updates affecting gift processing

    Posted 30 days ago
    Just looked at the link John provided.  They updated after he provided it...it is required.

    Update 9/2/22: Thanks for following along as this situation evolves! We have just received confirmation on a few points. This information comes from The Nonprofit Alliance.

    In short, Mastercard acknowledges that the new requirements as written (and particularly the definition of "subscription") caused considerable confusion among nonprofits. 

    They have clarified that nonprofits are required to comply with the new Mastercard rules.

    However, Mastercard will be extending the effective date of these requirements for nonprofits until March 21, 2023. Furthermore, monthly notifications (receipting) will only be required for donors who have provided an email address. Nonprofits will not be required to generate receipts by alternate means for donors whose email addresses are not available.




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



  • 10.  RE: Mastercard and other updates affecting gift processing

    Posted 30 days ago
    I love this list!  Thank you for the update!

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 11.  RE: Mastercard and other updates affecting gift processing

    Posted 30 days ago
    Email address is required to make an online donation, at least on our site, so that has no bearing on whether we'd have any cases where we wouldn't need to comply. Additionally, please note #28 on the attachment that both Isaac and I provided. If you aren't already notifying donors 3-7 days before their card is charged, you will be required to do so for those with a frequency of 6 months or longer between charges.

    Very thankful for the 6 month delay. I'm hopeful we'll be able to make the case that we aren't a subscription, especially in cases where we receive more complaints for sending the donor a monthly receipt than not.​

    ------------------------------
    Jessica Baker
    Director, Data Quality, Gift Processing, Strategy
    University of Texas at Austin
    jbaker@austin.utexas.edu
    ------------------------------



  • 12.  RE: Mastercard and other updates affecting gift processing

    Posted 21 days ago
    The 6-month extension is definitely giving us the opportunity to review our Monthly Giving Program.  We use Blackbaud's Online Express and send an initial acknowledgement letter to anyone who signed up for recurring gifts.  We do not send monthly receipts to our recurring donors.  We do send yearend letters indicating their total giving.  With that said, how many organizations are actually still sending monthly receipts to their recurring donors?  I know, it is impossible to get a 'count' but I just want to get an idea :) I have read too in past conversations that organizations are moving away from monthly receipting for the same reason that Jessica Baker mentioned.   If you are sending monthly receipts, is it through email or snail mail?  If you can share your process, that would be great!

    ------------------------------
    Annette Barrantes
    Advancement Services Specialist
    Mt. San Antonio College Foundation
    abarrantes@mtsac.edu
    ------------------------------



  • 13.  RE: Mastercard and other updates affecting gift processing

    Posted 21 days ago
    We've never sent recurring donors a monthly receipt; they don't want them. At the end of the year, we send their cumulative total for the year (tax receipt) and along with a thank you letter. During the pandemic, we sent everything by email; now it's a mix of email and snail mail.  I think most donors now prefer emailed acknowledgements and receipts (I know that I do).

    ------------------------------
    Madeleine Holdsworth
    Assoc Director, Data Systems and Analysis
    Erikson Institute
    mholdsworth@erikson.edu
    ------------------------------



  • 14.  RE: Mastercard and other updates affecting gift processing

    Posted 16 days ago
    Does anyone know if this applies to existing MasterCard recurring gifts, or only new MC recurring gifts that start after March 21, 2023?

    ------------------------------
    Jane Green
    Director of Philanthropy Operations
    Food & Water Watch
    jgreen@fwwatch.org
    ------------------------------



  • 15.  RE: Mastercard and other updates affecting gift processing

    Posted 15 days ago
    It applies to existing gifts too. 

    Isaac Shalev
    Data Strategy Expert
    (917) 859-0151
    isaac@sage70.com

    Autocorrect was used in composting this email, please excuse any typos