A Receiver is the entity (organization or person) that receives the payments from the Sender. They own the bank account where the payment is deposited or a verified email where the digital check is delivered. The Receiver could be a university, an individual, or any other organization.
Types of Receivers in SendGrant
Individual Receiver
An Individual Receiver is a person who receives grant payments directly into their personal bank account. This is typically the grantee, such as a student receiving scholarship funds.
Key Characteristics
- Receives funds directly into their personal bank account
- It is usually the same person as the grantee
- Has a bank account in their name
- Can use funds for various approved expenses (tuition, housing, books, etc.)
Organization Receiver
An Organization Receiver is an entity that receives grant payments on behalf of multiple grantees. Unlike individual receivers, they manage funds for numerous students or beneficiaries.
Key Characteristics
- Receives funds for one or multiple grantees
- Maintains institutional bank accounts
- Processes payments for many students
- Has formal systems for managing and distributing funds
Understanding Receivers Through Examples
1. Individual Receivers
When payments go directly to a student:
- A student has provided their personal bank account information
- The foundation transfers scholarship funds directly to this account
- The student is the Receiver because they own the receiving bank account
- They can then use these funds for educational expenses
2. Organization Receiver
When processing scholarship payments:
- State University has a dedicated bank account for receiving student payments
- The foundation (Sender) transfers funds to this account
- State University is the Receiver because they own the receiving bank account
- The university then applies these funds to the student's tuition balance
When sending payments to organizations:
- Hope Haven Women's Shelter maintains a bank account for grant funds
- The foundation transfers money to this account
- Hope Haven is the Receiver because they own the receiving bank account
- They use these funds to provide their services
Key Points About Receivers
- Both types of receivers must complete bank verification before receiving ACH transfers
- Both types of receivers must have a verified email address before receiving digital checks
- One entity can be a Receiver for multiple Senders
- The Receiver may or may not be the ultimate beneficiary of the funds
Common Use Cases
When to Use Individual Receivers?
- Direct scholarship payments to students
- Flexible spending scholarships
- Housing allowances
- Research grants to individual scholars
- Personal development grants
When to Use Organization Receivers?
- Tuition payments to universities
- Program fees to educational institutions
- Institutional research grants
- School-managed scholarship programs
- Educational institution fees
Important Notes
- An Individual Receiver can only receive payments for themselves
- An Organization Receiver can receive payments for multiple grantees
- Organization Receivers must have systems in place to properly allocate funds to the correct grantee accounts
- Both types of receivers must complete bank verification before receiving ACH payments
Common Questions
What's the difference between a Receiver and a Grantee?
A payment receiver is the entity that physically receives the payment (ACH or digital check), while the grantee is the intended beneficiary of the funds. Sometimes these are the same entity (like when a student receives funds directly), but often they're different. For example, when a foundation pays a university (receiver) for a student's scholarship (grantee).
Can an entity be both a Receiver and a Grantee?
Yes. For example, when a student receives scholarship funds directly in their personal bank account, they are both the Receiver (owner of the receiving account) and the Grantee (beneficiary of the scholarship).
What information is needed to set up a Receiver?
Typically, you'll need:
- Receiver name
- Contact's full name
- Receiver's email address
- Bank account information
- Address information