How are Payees created?
The payees are created during the gift batching process and will go through these criteria checks:
- The System will look for an Active ACH payee.
- If it finds an active ACH payee, it creates the payment using that payee and sets the payment type to ACH.
- If there is no active ACH payee, then it tries to find an active payee that matches the payment preferences for name and the org address. If there is one available, it creates the payment as Check and uses the existing payee
- If there isn’t an existing payee that matches the payment preference for name and the org address, it creates one.
NOTE: The payee profile for organizations receiving International Credit Card and Match payments through CGDS are managed by CAF America.
What Organization Name is used in the Payee?
When the payee is created, we use the Official Name of the organization that is listed within the IRS Business Masterfile(for US organizations) and the Canadian Registry(for Canadian organizations).
This is a requirement set by CAFA(Charities Aid Foundation of America) in order to be able to process payments through the DAF and MAA Bank Accounts.
What happens if an Organization has multiple Chapters/Locations?
When the payee is created, we use the Official Name of the organization that is listed in the IRS/CA Registry, however we will send the payment to the address of the organization chapter that the gift was made to.
The intended organization will still receive the payment.
Example:
Susan makes a credit card donation of $50.00 to her American Cancer Society Chapter located in New York.
When the payment is created, the system will pull in the Official IRS name of American Cancer Society. The address will be pulled from the Organization record and sent to the New York Chapter, not the address in the IRS.
In the end, the payee will look like this:
American Cancer Society
132 W 32nd St
New York, NY 10001
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