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Alexandria e-giving business Faith Direct processes $1 billion for the church

Zoey Maraist | Catholic Herald Staff Writer

Brian Walsh started Faith Direct in 2004. Since then, the company has processed more than $1 billion in donations for Catholic churches around the country. Zoey Maraist | Catholic Herald

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Currently, St. Jude Church is a mere metal skeleton of a building
—  but when construction is completed, it
promises to be a beautiful cruciform place of worship for the Fredericksburg
Catholic community. The nearly 3,000 parishioners have spent more than a decade
fundraising for a church of their own, and electronic donations through FaithDirect have played a major role.

Around 40 percent of the money St. Jude collects for their
capital campaign comes from online donations, according to business manager
Helen Huff. A few years ago, the church used a different company to process
contributions, she said, but in 2012 they switched to Faith Direct, which,
unlike the other company, took the burden of administration off the church’s
small staff. “They’re extraordinarily easy to work with,” said Huff of Faith
Direct. “They really have helped us.”

The Alexandria-based company has helped hundreds of parishes
around the United States achieve their dreams of a new building, gym or
repaired air conditioning. As of this year, they’ve processed more than $1
billion for Catholic churches nationwide.

Fifty-two of the Arlington Diocese’s parishes and missions use
Faith Direct, said Jeanne Combos, diocesan director of annual appeal programs.
That’s around 14,000 households that give $23 million a year in offertory
collections.

“It helps people think more sacrificially,” said Combos. “It’s  giving the first of your fruits, and not just
what’s left over.”

Brian Walsh, a parishioner of Blessed Sacrament Church in
Alexandria, started Faith Direct in 2004 after mad searches for his checkbook
and the offertory envelope made his family late to church one too many times.
He attributes the company’s success both to their business model and the
growing popularity of electronic money transfer services.

Check usage has declined rapidly, said Walsh, so, people often make
a split second Sunday morning decision of how much to give based on the cash
they have on hand. Online giving lets parishioners thoughtfully choose how much
they want to give weekly and toward second collections. The service also allows
parishioners to contribute occasional one-time gifts or toward a capital campaign.
With online giving, even when parishioners miss church due to illness or
travel, their church receives funds.

For households that use Faith Direct, their giving typically goes
up about 30 percent a year, said Walsh. That consistent cash flow is helpful for
parishes, especially during the slow summer months and the occasional instances
where inclement weather forces pastors to cancel Mass. “Father (John C.) Cregan
used to always say that electronic giving essentially gives the parish an extra
Mass collection every week,” he said. “We feel we’re helping to solve a
critical problem.”

There are a dozen major e-giving companies specifically for
Catholic churches, but while most other e-giving companies take a percentage of
the overall receipts, Faith Direct charges a flat management fee for every
household, said Walsh. “When I started the company, it was very important for
me to identify a payment structure that was equitable for parishes,” he said.
“So as parishes succeed they aren’t penalized (for that growth).”

Faith Direct additionally handles other aspects of the business,
such as customer service and security —  ensuring personal banking information stays
safe. Through a direct mail and social media campaign, they work with the
parish to encourage parishioners to make the switch.

“Parishes realize over time that it’s very hard to manage (online
giving) internally,” he said. “(Those that) adopt e-giving the right way, it’s
a huge win for consistency, cash flow, elimination of back-end administrative
work, elimination of wasted envelopes. We have set strategic goals for every
parish we work with.”

Though it’s taken some time for online giving to catch on, Walsh and
his employees feel confident about the future. “We’re excited about the next
couple of years and grateful to be in a diocese that’s been so supportive,” he
said. 

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