How Can Nonprofits use Debt Collection Services?
We have all heard about circumstances in which profit companies used debt collection services to retrieve the unpaid dues from their customers. In some ways, the fact remains true that profit companies use these services the most. However, it is not uncommon for NGOs to utilize collection agencies. Many environmental charities and other kinds of nonprofit organizations make good use of debt collectors. Funds are assigned to NGOs from authorities and other sources to cover their operational costs. They can use a good debt collector to manage the payment account professionally.
Understanding the types of payments which have an entry into the client’s account is a necessary step for all business debt collection services. However, Non-profit organizations receive different kinds of payments than profit organizations.
What types of payments do NGOs receive?
Non-profit does not necessarily allude to an organization that is not dealing with money. NGOs have received a designation for the fact that they do not make any profit of the money. Funds are arranged by these organizations to spend on operational expenses, charity-based projects, etc.
Where do the funds come from?
Usually, the funds indicate grants and donations. If donors are considered, debt recovery services will include the collection NGOS receive donations and other kinds of money transfers like – monthly payment, auction payments, pledges, etc.If these payments are not received by a non-profit, they can employ debt recovery services.
It is completely dependent on the collection company to use different tactics for retrieving the dues of an NGO. We at Nelson Cooper &Ortiz, LLC believe that dealing with NGO dues is not as difficult as it sounds. Our team of experts will give the donors a maximum time frame to clear their dues without negatively impacting the name of the NGO.
The next question is, what are the different kinds of payments on which collections are possible in a non-profit account? Read on to know more.
What kinds of Debt collections are possible in an NGO?
There are two kinds of payment for which an NGO can hire a debt collection service-
Legally Binding donations
NGOs can hire a debt collector if there are unpaid pledges. If some organization/someone owes a certain amount of money to a nonprofit, a legally bound document will ensure proper collection of dues.
Violation of Agreements
If an NGO is approved for a grant and yet receives no funds, it is time to read the agreement in full. If there are no clauses regarding nonpayment, nonprofits can take the help of credit collection services to ensure that the account is cleared.
Since nonprofits depend largely on the agency’s reputation before hiring their services, we are the best choice for them. Our team has been handling many such cases for a long time and therefore our experience will come handy for NGOs. Our assistance will make sure dues are cleared without affecting state/federal laws and preserving reputation too.