Sending Scholarship Funds Electronically
We would like to stop sending some scholarship checks to colleges via the mail. Are any of you electronically sending scholarship funds? Is there an issue with the Student ID or batching checks? We thought we might test the process with a smaller local University vs a state University. Are we biting off more than we can chew?
Thank you so much for your input!
Comments
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Since COVID, we have been using electronic funds transfers as opposed to printed cheques. It depends upon the grantee, but most have been able provide the info we need to process (Organization name and full address, Name and address of their bank as well as: Bank #, Branch # and Account #). This info can be emailed in a void cheque, Direct Deposit Form, or within the body of an email. I don't know how it works from the financial magic end. We don't retain the info on file. We have added a follow up in our process that asks if their banking information has been provided/changed, and where to send the information/what is needed. So far, none of the institutions have required a student ID, but we provide them with all the other contact info. Multiple payments to one institution can be batched. We also retain a screenshot of the EFT confirmation. Some organizations also request that they be notified once the payment is made.
For me, the thing I had to get my head wrapped around was that we were requesting information for an EFT (which has no cost incurred) vs a wire transfer (in which there is a cost), and making sure to communicate that with the grantee who also may be confused. They also may think we need an email address, but an EFT is more like a direct deposit (I think) vs a electronic transfer that you would make from your banking account.
It takes a bit to set up, communication/process wise, but it simplifies things immensely in the end! In our process, we notify the grant recipient first before transferring the funds, so they are aware it is coming, can confirm their bank info, and watch for the funds. We also have a process to authorize funding, as we no longer have two signers on a cheque and needed that step for checks/balances.
Hope this helps!
Lorna Sandberg
Director of Philanthropy and Donor Stewardship
(306) 527-7630 (cell)
(306) 751-4751 (work)
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This is great! Thank you so much!
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