Gift processing and distribution involves the receipt of charitable donations from an individual or company and disbursement of those funds to the designated recipient charity(ies). Also referred to as ‘gift processing’, ‘gift disbursement’, or just ‘disbursement’, this is critically important service in support of any CSR program that involves charitable giving.
Gift processing business models can vary from one CSR service provider to the next. Gift processing services include data management, banking, electronic funds transfer, stale and returned check management, bank account reconciliation and other important components of the overall service process. As a best practice, gift processing services provided by a third party should be supported by a SOC 1 Type II audit. Because of the complexities of gift processing, many CSR service providers outsource the work to a capable third party, such as a Donor Advised Fund, a community foundation, or United Way.