ACH Donations: A Modern Alternative to Payroll Giving

Employee giving has long been tied to traditional payroll systems. However, there’s now a better, faster, and more flexible way. ACH donations—a method of donating via secure bank transfers—are transforming how employees give and how companies support donation matching programs.

With Groundswell, employees can make ACH donations to the causes they care about on their schedule, not payroll’s. Let’s explore how it works, how it compares to payroll giving, and how Groundswell helps companies and employees give smarter.

Table of Contents:

• What Is ACH Giving?
• ACH Giving vs. Payroll Giving
• How to Use ACH Giving: Groundswell
• What Else Can You Do with Groundswell?
• Modernize Your Giving Program with Groundswell

What Is ACH Giving?

ACH giving refers to charitable donations made through the Automated Clearing House (ACH) network, a secure system that moves funds directly from one bank account to another instead of by a credit or debit card. In short, it’s a digital bank-to-bank transfer that allows donors to contribute to nonprofits without using credit cards or checks.

ACH donations are popular because they:

• Avoid credit card fees
• Are secure and compliant with banking regulations
• Support recurring giving or one-time transfers
• Can be created and managed by the user, not the employer
• Can be tracked easily for tax and reporting purposes

If you’ve ever received a direct deposit, you’ve used the ACH system. Now, this same secure network can be used for donating to nonprofit organizations and charities by ACH.

How ACH Giving Works

Making an ACH donation is surprisingly simple! Here’s a quick breakdown of how it works:

• First, you authorize a nonprofit or platform (like Groundswell) to withdraw a specific amount from your bank account. 
• Next, the donation is transferred via the ACH network, typically within one to three business days. 
• Finally, you’ll receive a donation receipt for tax purposes, and the nonprofit receives your gift.

Through a platform like Groundswell, donors can easily set up ACH contributions to their personal giving accounts, schedule recurring gifts, and direct those funds to approved nonprofits.

ACH Giving vs. Payroll Giving

While both ACH giving and payroll giving are methods for employees to support charitable causes, they differ slightly in flexibility, speed, privacy, and overall user experience.

Traditional payroll giving deducts donations directly from an employee’s paycheck. While this system is familiar and often tied to employee payroll giving programs, it comes with limitations.

ACH giving allows employees to donate directly from their bank accounts using a secure ACH bank transfer, with no paycheck deductions required. It gives individuals full control over how much they give, when they give, and where their donations go.

Let’s see how the two compare:

With ACH donating, employees don’t have to wait for the next paycheck to navigate HR processes. They can donate by ACH directly from their bank account at any time, while still benefiting from donation matching through their employer. 

How to Use ACH Giving: Groundswell

Groundswell makes ACH giving seamless and simple. Here’s how it works:

1. Set up your giving account: Employees log into their Groundswell account and securely connect their bank account.
2. Make an ACH contribution: Choose the amount, the frequency, and confirm the transaction.
3. Request matching (if available): Groundswell automatically applies donation matching from participating employers, thereby amplifying the impact of your donation.
4. Send to charity: Once the funds are in your personal giving account, direct them to any eligible 501(c)(3) nonprofit. 

Unlike legacy systems, Groundswell gives employees full control over how, when, and where they give.

What Else Can You Do with Groundswell?

ACH giving is just one of the many ways Groundswell modernizes corporate philanthropy. Designed to be flexible, inclusive, and easy to use, Groundswell gives companies and their teams everything they need to power a purpose-driven workplace.

Here’s what else it can do:

• Automate and match donations to make giving simple, streamlined, and impactful.
• Launch custom giving campaigns to align with their values and community goals.
• Enable flexible giving options beyond payroll, including credit, debit, and ACH transfers.
• Support year-round engagement with intuitive tools for employee recognition, impact tracking, and matching.
• Measure program success with built-in analytics and reporting tools. 

Groundswell isn’t just a giving platform—it’s a modern approach to workplace philanthropy that puts choice and impact into employees’ hands.

Modernize Your Giving Program with Groundswell

Payroll giving served its purpose. Today’s employees want flexibility, transparency, and control. ACH donations through Groundswell make that possible. 

Whether you’re an HR leader building a culture of purpose or an employee looking for an easier way to give, Groundswell empowers you to make a bigger impact. Get started with groundswell today and bring your workplace into the modern era.

Book a demo now to learn how ACH giving can transform your employee giving experience.