Can Nonprofits Utilize Debt Collection Agencies?
Updated: Sep 9, 2022
The short answer? Yes. Nonprofits cannot support their mission, vision, and goals to help others without payment for services.
Although promise-to-donate patrons who do not follow through are not in a legally-binding commitment, those who are given something in return for their money are. Examples may include event tickets or sponsorship listed in a program.
Membership, tuition, or payment for services are other areas where debt collection for past-due payments can occur in nonprofits.
Utilizing a third party agency to send communication, make phone calls, and assist your organization to be “top of mind” for those who have outstanding payment can remove the frustration you have with your unpaid supporters, allowing you time to focus on what you do best.
Before moving on to the next step of debt collection, consider other alternatives and your relationship with the person or business; choose the agency that will collaborate with your un-paid customers and help fulfill your mission! Consider engaging with an empathetic collection agency. What is Empathetic Collections? (beyondgreensolutions.com)
To learn more about choosing a reputable agency, see What is a reputable debt collection agency? (beyondgreensolutions.com).