What to Do When a Donor’s Check Bounces
June 9, 2005 | Read Time: 2 minutes
Q. I am a fund raiser for an arts organization. We recently received a donation check that bounced. We are trying to find the most tactful and appropriate way to write to the donor regarding this sensitive issue. Do you have any suggestions for wording or language, and any other advice to resolve this problem?
A. Before you put pen to paper, take a step back and assume the best-case scenario — that the check was written and sent to you in good faith, says Gary Bernstein, executive director of Wingspan Arts, a New York charity that provides arts-education programs for grade school students. It is very possible that the donor’s bank, or your bank, simply made an error. Or it could be that the donor inadvertently planned poorly in arranging to have the funds available to cover the check.
Either way, the situation could be potentially embarrassing to the donor, so tread cautiously. Sending a letter, no matter how well it is written, is a very impersonal approach that could possibly be read as an accusation, says Mr. Bernstein. The last thing you want to do is alienate a donor who cares about and supports your organization. Instead, have someone within your organization — ideally, someone who knows the individual personally — place a phone call, says Mr. Bernstein. If the donor’s gift is very large, have your board president or another board member make the call, he suggests.
Whoever does the calling should be forthright and give the donor the benefit of the doubt, says Mr. Bernstein. “Mention that you greatly appreciate his or her generous donation but that you were notified by your bank that there was a problem collecting the funds from their bank,” he says. Say something like, “Not to worry, we know these things happen,” and suggest that a quick phone call from the donor to the bank should clear it up so the check can be resubmitted. Or, Mr. Bernstein says, ask whether it might be easier for the donor to supply a credit-card number so that the donation can be charged instead.
However, if the donor is not responsive or becomes hostile during the call, it is probably best to drop the matter, says Mr. Bernstein. “Thank them for their time and just hang up,” he suggests. “I would not recommend a follow-up letter, but I would continue to keep them on your contact list and see what happens over time.”