Below are some choices and tips for what to do when your chapter receives a check, as part of fund-raiser proceeds, that does not clear because there were insufficient funds in the donor's account or the checking account on which the check was issued has been closed. (Note: a call to your chapter’s Lutheran Community Services Specialist or the Fraternal Service Center also might be helpful in these situations.)   

• If the benefit proceeds have not yet been paid to the recipient
  In this case, the chapter can choose to reduce the amount of the proceeds by the amount of the returned check. For example, a service team sends $550 of fund-raiser proceeds to the chapter, and the chapter provided an additional $100 of Care Abounds in Communities® funding. Before paying the $650 to the recipient, the chapter notices that a $10 check from the fund-raiser is returned unpaid (did not clear). The chapter decides to provide $640 to the recipient to account for the $10 returned check.

If the chapter decides to do this, it should:

1. Notify the service team contact person to explain why the check amount was reduced, and
2. Contact the Fraternal Service Center to change the online reporting of this activity to the new funds raised amount

Other options available to the chapter include:

• After obtaining a copy of the returned check from Thrivent Financial Bank, the chapter may contact the service team contact person to see if he/she would like to notify the donor about the returned check and ask for a new check.
  
  
• After other options have been explored, the chapter may decide to cover the returned check out of chapter operating funds so that the recipient isn’t impacted, especially if the returned check is for a small amount.
  
  

• If the benefit proceeds have been paid to the recipient
  In this case, the chapter checking account balance will be incorrect by the amount of the returned check. For example, the service team sent $1,000 of fund-raiser proceeds to the chapter, and the chapter voted to provide an additional $300 of Care Abounds in Communities® funding. The chapter sends the recipient a check for $1,300. A week later, the chapter notices that a $100 donor check has been returned unpaid (did not clear), which means the chapter is $100 short in its chapter checking account.  

The chapter can correct this issue using these guidelines:

• After obtaining a copy of the returned check from Thrivent Financial Bank, the chapter should explain the situation to the service team contact person and ask for this person's help in notifying the donor and asking for a replacement check.
  
  
• The chapter board could decide to notify the donor directly, explaining the reason for the check being returned and asking for a new check.
  
  
• After trying to obtain a replacement check, the chapter may decide to cover the ‘bad’ check out of its chapter operating funds.