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Nietech and Summit State Bank Raise First $75,000 For Schools and Nonprofits With COMMUNITYsmartSM
Nietech and Summit State Bank Raise First $75,000 For Schools and Nonprofits With COMMUNITYsmartSM
Published 06-01-05
Submitted by Nietech Corporation
Under the Sonoma County program, MasterCard® debit and credit cardholders from Summit State Bank can receive a COMMUNITYsmartSM version of their card. There is no charge to the cardholder, school or nonprofit for participating.
Nietech's program also includes a COMMUNITYsmartsm nonpayment card, extending program benefits to consumers who prefer to pay with cash. Although it does not generate rewards points, participating retailers will swipe it at the point of sale when the consumer pays with cash or check, triggering a donation to the cardholder's school or nonprofit of choice from the transaction amount.
In all cases, the merchant-funded amount from the transaction made available to schools or nonprofits is determined by the participating merchants, and ranges from 1.6 to 6.5 percent of each eligible purchase. The program is made easy because Nietech's patent-pending Nietech Administrative System (NAS) automatically collects, routes and disperses these cash donations. Consumers can go online to set up their own donation program, selecting up to three organizations from a database of more than one-million schools and nonprofits that are registered nationally. Meanwhile, merchants can go online to access customized transaction reports and analyze program results. Schools and nonprofits also have online access, free of charge, to monitor program results and payments to their organizations.
"Our continued momentum and results show that consumers really embrace the idea," said Barbara Rambo, CEO of Nietech Corporation. "This program benefits virtually everyone involved. Consumers can direct their rewards points to their schools or nonprofits, or still redeem part or all of them for personal rewards. Retailers can support their communities, but without the 'fund raising fatigue' that goes with traditional fund raising programs. Banks and other card issuers build loyalty from their card members. And most important, schools and nonprofits benefit from a steady stream of new and recurring contributions. It's really self-sustaining fund raising."
"We're just starting to build critical mass with the program now," said Terrance M. Davis, President and CEO of Summit State Bank. "A level of $75,000 in donations to local schools and nonprofits is huge within this community. And it's just the early returns. It really shows the potential of COMMUNITYsmartSM."
One of the original retailers to participate in the program is Olivers Market in Santa Rosa. "I appreciate the fact that the program has low administrative fees, and that it is focused on helping schools and nonprofits here in Sonoma County," said Tom Scott, General Manager of Olivers Market. "That's very important to us as a local merchant. And our customers like the program. The volume is certainly picking up."
Carole Ellis, President of Ursuline High School in Santa Rosa, said she's seeing the difference as both a cardholder and beneficiary of the program. Ursuline is a 125-year-old private school for girls with 360 students. "I have my own COMMUNITYsmartSM card, and see from my personal contributions that it's making a difference," she said. "It sounds trite, but this really is a win-win situation. And given the economic climate in California today, private fund raising for both public and private schools is more important than ever."
While market adoption is still ramping, Rambo said another milestone was reached this past fall when MasterCard International signed an agreement with Nietech to launch COMMUNITYsmart CASHSM, making the technology available to MasterCard debit and credit card issuers nationwide.
About Nietech Corporation
Established in 1999, Nietech Corporation is a marketing and payments technology company headquartered in Santa Rosa, Calif. COMMUNITYsmartSM is a card-based loyalty and rewards program developed by Nietech to support schools and non-profit organizations, and give retailers and financial institutions a measurable marketing program that generates new and recurring business. Through the Nietech Administrative System (NAS), a patent-pending transaction processing and settlement platform, the company achieves unsurpassed efficiencies via an automated paperless environment that simultaneously lowers administrative costs and maximizes donations to beneficiaries. More information is available at www.nietech.com.
