Glossary
Revenue & Donations

ACH Deposit

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

An ACH Deposit is an electronic transfer of funds directly into a bank account via the Automated Clearing House network.
An ACH Deposit refers to funds electronically transferred into a bank account using the Automated Clearing House (ACH) network. This method allows organizations, including nonprofits, to receive donations, grant payments, or other types of revenue directly from another bank account. ACH Deposits are typically initiated online and require the payer’s bank routing and account numbers. They offer a secure, efficient, and cost-effective alternative to paper checks, reducing processing times and minimizing manual work. ACH Deposits can be set up for one-time or recurring payments, making them a preferred method for regular donors or grantors. Nonprofits can benefit from faster fund availability and improved recordkeeping when using ACH Deposits, supporting streamlined bookkeeping and cash flow management.

Key Takeaways

  • ACH Deposits are secure, electronic bank transfers.
  • They enable quicker access to received funds.
  • Nonprofits can accept recurring donations efficiently.
  • Processing costs are typically lower than checks.

Why It Matters

ACH Deposits provide nonprofits with faster, more reliable, and cost-effective revenue collection.

Real World Example

Imagine a nonprofit organization that runs a monthly giving program. Donors sign up to contribute $25 each month, authorizing the nonprofit to withdraw this amount from their bank accounts. Instead of processing paper checks or credit card payments, the nonprofit uses ACH Deposits. Each month, the funds are electronically transferred from donors’ accounts directly into the nonprofit’s bank account. This method reduces administrative work, ensures timely receipt of donations, and lowers transaction fees. The nonprofit can then easily track these ACH Deposits in its accounting system, providing transparency for auditors and board members.

How Aplos Helps

Aplos allows nonprofits to track ACH Deposits seamlessly within its accounting software. When an ACH Deposit is received, it can be recorded as revenue or a donation, automatically linking to donor records and bank reconciliation features. This streamlines reporting and ensures your financial statements reflect all electronic transactions accurately.
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Frequently Asked Questions

What is an ACH Deposit?

An ACH Deposit is an electronic funds transfer directly into a bank account using the Automated Clearing House network.

Are ACH Deposits safe for nonprofits?

Yes, ACH Deposits are secure and use encrypted networks, making them a reliable option for receiving revenue or donations.

How does Aplos help track ACH Deposits?

Aplos enables you to record and reconcile ACH Deposits, linking them to donor records and ensuring accurate financial reporting.

Can ACH Deposits be set up for recurring donations?

Absolutely. ACH Deposits are ideal for setting up automated, recurring donations from supporters.

Are there fees associated with ACH Deposits?

ACH Deposits often have lower fees compared to credit card transactions, making them cost-effective for nonprofits.

Related Terms

Accrual Basis
Nonprofit Corporation
Statement of Functional Expenses
Endowment Fund
Sub‑Ledger
Debit Card

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