Electronic Funds Transfer (EFT) is a digital payment method that enables donations to be transferred directly between bank accounts, eliminating the need for physical cheques or cash.
On the Benevity Causes Portal, nonprofit organizations can sign up for EFT to receive donations from our corporate partners and users. Compared to cheques, EFT is a faster, more secure, and cost-effective way to manage financial transactions, with funds reaching your organization quickly and reliably.
Benefits of EFT
1. Prevent lost or delayed cheques
Every year, approximately 4% of mailed cheques are lost or never deposited, which could mean millions in lost donations for nonprofits. With EFT, funds are deposited directly into your bank account, eliminating the risk of missing disbursements due to postal delays, lost mail, or misplaced cheques.
2. Reduce costs and keep more of your donations
Cheque payments come with hidden costs. Receiving cheques is five times more expensive than EFT, and sending them is 10 times more costly. If your organization relies on cheque disbursements, you may be losing $35 per cheque or up to 8% of the total donation—funds that could be used to further your mission. Switching to EFT allows you to maximize the impact of every donation received.
3. Save time and increase efficiency
Processing cheques is a manual and time-consuming task that requires depositing, tracking, and reconciling payments. For nonprofits receiving hundreds or thousands of cheques per year, this process can be overwhelming. EFT eliminates the need for physical cheque handling as payments are automatically deposited, reducing administrative work and allowing your team to focus on higher-impact activities.
4. Better security and fraud protection
Paper cheques can be stolen, forged, or lost, creating financial risks for your organization. EFT transactions, on the other hand, are securely encrypted, trackable, and directly deposited into your verified bank account. By using EFT, you protect your funds from fraud and ensure seamless access to your disbursements.
5. Receive funds faster
Timing is everything when it comes to financial planning. Unlike cheques, which can take weeks to arrive and clear, EFT payments are processed within 1-2 business days. Additionally, disbursements follow a predictable schedule, allowing you to confidently plan budgets, allocate resources, and sustain operations without uncertainty.
EFT vs. Cheques
| EFT | Cheques | |
| Processing time | 1-2 business days—faster access to funds | 5-10 business days—delays due to mailing and bank processing |
| Security | Highly secure—encrypted transactions with direct bank transfers | Risk of loss, theft, or fraud—cheques can be stolen, forged, or misplaced |
| Cost | No fees | Expensive—up to $35 per cheque or 8% of the donation amount |
| Environmental impact | Eco-friendly—completely digital, reducing paper waste | Wasteful—uses paper cheques, envelopes, and ink |
| Tracking | Easily trackable—transactions are logged and verifiable | Limited tracking—once mailed, cheques cannot be easily traced |
| Management | Automated payments—minimal administrative effort required | Manual processing required—must be received, deposited, and reconciled |
Save Trees and Fees
At Benevity, we are committed to helping nonprofits maximize their funding while minimizing unnecessary costs. To ease the transition:
- We cover cheque fees for your first two disbursements.
- After that, a $35 fee or 8% of the total amount (up to $125) applies per cheque.
By signing up to EFT, you eliminate cheque fees, reduce administrative overhead, and receive your funds faster and more securely—allowing you to focus on what matters most: making a difference.
Follow the steps to get started here: How to sign up for EFT.