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#2213261 - 05/09/19 06:25 PM Charitable Donation for new DDA customer account
tryin2comply Offline
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Joined: Jun 2013
Posts: 84
As a intermediate size community bank, we are approached by schools constantly for money. Several years ago, the decision was made to make one sizeable donation to each county school district each year. Of course that did not stop the requests. In an effort to continue to help, but also help deposits in those counties, management is considering a new program. As a pilot program, they are proposing to make a donation to the local team (usually for a specific project like new helmets) for each new customer who opens a checking account. This would be for new customers only, minimum deposit to open and direct deposit within 60 days. Donation would be paid following first direct deposit to the account. It would have an expiration date or a goal amount to be reached and the offer would expire.

I'm not sure there are true compliance concerns. But, I definitely foresee the issues of "what about my team?" What other things should I be thinking about?

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General Discussion
#2213503 - 05/14/19 01:31 PM Re: Charitable Donation for new DDA customer account tryin2comply
tryin2comply Offline
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Joined: Jun 2013
Posts: 84
Anyone?

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#2213511 - 05/14/19 02:10 PM Re: Charitable Donation for new DDA customer account tryin2comply
#Just Jay Offline
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#Just Jay
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Without knowing the size and demographics of the counties you operate in, or the tendencies for local population to switch banks for a small donation to their cause, It strikes me as a lot of work for a limited return which will diminish over time.

It strikes me as far easier to simply remind each district that makes continued requests to remind them of your donation policy, and that you look forward to working with them again next year.
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#2213517 - 05/14/19 02:43 PM Re: Charitable Donation for new DDA customer account #Just Jay
tryin2comply Offline
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Joined: Jun 2013
Posts: 84
Oh, I agree completely! I'm not a fan of this project, but mine is not opine on the efficiency or effectiveness of such a campaign. I'm just trying to decide if there are any other compliance roadblocks I'm overlooking. Thanks.

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#2213544 - 05/14/19 05:54 PM Re: Charitable Donation for new DDA customer account tryin2comply
RR Sarah Offline
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RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
We did this a few months ago. The results were underwhelming. It certainly didn't bring any new business to the bank.
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#2213826 - 05/16/19 08:00 PM Re: Charitable Donation for new DDA customer account RR Sarah
tryin2comply Offline
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Joined: Jun 2013
Posts: 84
Did you all have a specified "end time" for the promotion? I have been asked to look in to two options: one, a set date X/X/19 or two, the date and / or whenever the number of accounts opened equals X. Basically, the limit on the donations will have a cap. I've been trying to locate something in the regulation that says we can't use the cap. But, so far I've been unsuccessful. Ideas?

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#2213831 - 05/16/19 08:47 PM Re: Charitable Donation for new DDA customer account tryin2comply
RR Sarah Offline
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RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
Our promotion ran for one month (can't remember exactly which one off the top of my head). When a customer opened a new account, they were allowed to select a local charity from a list of four or five. The bank then donated $10 to that charity. At the end of the promotion we sent checks to the charities. We did not have a cap in place although that would probably be a good idea.
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