Financial Institutions impede charities from collecting gifts: How Charities can push back

Millions of Americans make estate gifts to charities hoping that long after they are gone these nonprofits will use the money they donate to advance causes they care for. But many financial institutions are frustrating donors’ wishes by erecting barriers to a charity collecting on a donor’s gift—to the financial institution’s own benefit. Financial institutions have draconian practices that equate to holding a charity’s gift hostage:

These offending financial institutions force charities to first become full customers prior to payment.
What should be paid in 30 days often takes 1-2 (even 6) years to accomplish.
They demand private and personal information on certain employees, such as their name, home address, date of birth, driver’s license, social security numbers and even personal financial statements
They inappropriately acquire fees through their predatory practices causing additional costs to the charity.

What Can Your Charity Do Now?

Iowa has already passed a law (HF 2366) effective 7-1-2024 preventing this type of business practice against charities and several other states are wanting to do the same. Watch the webinar below to hear the different ways nonprofits across the country can push back together.

Who Should Watch?

To promote action and work towards change, we encourage all nonprofit professionals watch the below webinar with their general counsel and senior leadership. We need everyone, including leadership, to learn, get involved, and support efforts to effect national change. Please share with your entire team, and perhaps even your boards, to join in this important work!