ACH-verify bank information

edited October 11 in Finance & Operations

Hello,

I am curious to find out how often other foundations verify bank information if grantees are set up to receive grant payment via ACH and we only grant them once or twice a year. Who verify the account and routing number (Grants coordinators or Finance dep.) and how (email or call)?

Thank you,

Tagged:
KaraAdams

Answers

  • Hi Minal. We are not yet set up for ACH so I don't have an answer to your question. I am hoping others will respond to your question and hopefully provide ways they've automated this process so that the grantees are entering and updating the information directly to the bank or other ACH processor. Is that an option or am I dreaming?? Anyone have any luck taking your foundation out of the middle of that process?

    KaraAdams
  • Our foundation is currently looking into ways to make grant payments through ACH and I've been doing some research. Right now we require a grant agreement to be signed with every grant so it should be easy to incorporate some type of direct deposit form to be completed every time as well. We have no plans to store their bank information in our system. We can use the information provided on the direct deposit form, whether that is passed directly to our bank or we manage it temporarily in house, then destroy the form.

    We are attempting to find a way to stay out of the middle of the process to avoid errors and ensure security of their bank information.

    I will keep you posted on our progress as it develops.

    Joyce

    Then Daniel Foundation of Alabama

    KaraAdams
  • We opted to use bill.com for our grant payments. This relieves us entirely of being responsible for the appropriate handling of sensitive account information - bill.com acts as the intermediary. Grantees can sign up for a free bill.com account if it is used only for receiving payments. We have a follow up form in GLM that we have each grantee fill out that includes their bill.com PNI (payment network id). Verification is achieved when the grantee organization matches the name in bill.com tied to the PNI. We are so glad we did it! And it interfaces nicely with QuickBooks Online, which is our accounting system; both products are owned by Intuit.

    JoyceBrasher
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