Donor management software is a powerful tool that helps nonprofits of every size and shape put their donor data to work on your behalf. Fundraising software helps you manage fundraising efforts and communications in one organized location. Ultimately, the right donor management software can help you learn about your donors so you can deliver better donor care, increase donations, save time, and even reduce overall fundraising costs!
The great news is that with all the options on the market, you're almost sure to find donor management software that will fit your unique needs and wants. The bad news is that it can take quite a bit of legwork to find the right software for you, and the process can feel a bit daunting. We've gathered some tips and insights to help guide your search.
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Donor Management Software Basics
Often called Constituent Relationship Management or CRM systems in the business world, donor management software helps you do a variety of things like track your supporters, collect and update essential data, and even create fundraising strategies.
While there are many perks and benefits to using donor management software, here are four reasons to invest in the right donor management software for your nonprofit.
1. Keep essential donor data organized and updated
Fundraising is not easy. It requires understanding your donors and keeping track of the right information that gives you helpful insights. A donor management system can simplify data management and help you keep track of everything from donor giving histories and trends to mailing lists and fundraising campaign results.
Equally valuable, donor management systems allow your team to import, update, and share the right information with relevant staff in one accessible location! Many systems make it easy for your fundraising team to track and update your fundraising calendars, document and track donor interactions, and even assign tasks to specific team members!
2. Organization and automation saves time and energy
We get it. Development professionals always have more on their to-do lists than hours in the day. Donor management software helps you do more with less. It enables you to organize data in an accessible place and automating many of those repetitive, manual processes so your team can get more done!
For example, many software systems allow you to track all your communications, quickly send acknowledgment letters, schedule recurring gifts, and more!
3. Improve communication and donor care
Most donor management systems allow you to segment your donors by all kinds of factors, from interests and characteristics to giving history. When you do this, you can personalize your communications and send specific fundraising appeals that will be more attractive to each donor.
Donor management software can also make you more consistent with your communication, more specific with your thank-you's, and improve your overall donor care at every level. Personalized communication really shows your donors that you care about them, which only enhances your fundraising efforts!
4. Track giving trends more effectively
The better you understand all your donor data, the easier it is to see and track giving trends. Donor management software can also make you aware of new giving opportunities you might not otherwise see.
Most donor management tools include tracking and reporting tools to help you accomplish all of this year after year. And, the more data you gather, the more powerful the tool becomes for your team!
Choosing A Donor Management Software For Your Nonprofit
There are so many donor management platforms available on the market and too many factors to consider. It's very understandable if you're feeling a bit overwhelmed when you think about choosing (or updating) your donor management software.
Here are the top factors to consider to help you find the right donor management system for your nonprofit.
Identify specific "problems" you want to solve with a donor management software
Start by identifying specific needs and "problems" or pain points you want to address with a good donor management tool. This list will help identify specific features you'll want to prioritize in your search for the ideal donor management software.
Be sure to get feedback from all the teams that will be using the donor management tool to learn about their experiences with your current systems. Take the time to discover how donor management tools can make their work more efficient and improve donations.
Study the features your organization needs and wants
Now that you've identified the pain points, it's time to study the essential features you're looking for in a donor management tool. At a minimum, a good platform will handle contact information, track donation and engagement history, and keep other data organized and accessible.
These tools help you identify donor trends and improve your overall donor care. From there, you can decide what other tools and features are essential to your organization.
Consider the capacity of the donor management software
How large is your current donor list, and how much growth do you want or anticipate in the next five to ten years? Some donor management tools are geared toward small nonprofits with few donors, and others are built to support the needs of international organizations.
It's tempting to go with "bigger and better," especially if you're choosing your first donor management tool. However, all those extra bells and whistles might not actually be as helpful as they appear on the surface--and can come with a hefty price tag.
Instead, assess the current size of your organization and choose a tool that can grow with you at least for the next three to five years.
Consider the pricing plan and structure of the donor management software
Unfortunately, if you're not careful, you can fall prey to hidden fees and confusing price tiers. Study the pricing structures and make sure you understand precisely what you'll pay.
Some platforms charge extra for setup, training, data import, and other services. Other software options have pricing tiers based on how many people will need access to the platform or how many donors you'll be tracking.
Overall, choose a platform within your budget that can grow with you as your needs expand.
Some industry experts suggest being conscious of the time of year and month when you sign a contract. Some software vendors offer promotions toward the end of a month or quarter as they're trying to meet sales quotas. Other software platforms offer discounts during the peak donation seasons. You might not be in a position to fully implement the software right away, but you might save quite a bit of money!
Look for a donor management tool with excellent customer service and training resources
What kinds of customer service resources do the donor management platforms offer? Will you be able to access support when you need it. A great provider will assign a point person to help you get everything set up and train your team on the new donor management software.
You should also look for platforms that offer training or coaching opportunities to help you get the most out of the software. For example, Salesforce has the Nonprofit Success Pack, a free and open-source learning and training platform designed specifically for nonprofits that use Salesforce donor management tools.
Take advantage of demos and free trials
Buying donor management software without a trial period is like buying a house sight unseen and without an inspection. Most reputable donor management tools offer live demos, sample downloads, free trials, and other options to let you test-drive the software. It takes time to test even three or four options, but this is a valuable investment of time and energy, so you make an informed decision.
As you're going through live demos and trials, be sure to take notes on what you like, dislike, and any concerns you have. After a while, the different software can start blending together in your mind.
Salesforce Is An Excellent Donor Management System
While not exclusively designed for nonprofits, Salesforce is a versatile CRM system that can easily adapt to the unique needs and demands of a nonprofit. The Nonprofit Success Pack further customizes Salesforce to the nonprofit world and offers support, community, and training year after year.
To sweeten the deal even further, Salesforce pairs seamlessly with all of the Soapbox Engage apps so you can integrate everything from event management to donation pages with your donor management system! This integration will save your team countless hours and eliminate manual data entry and potential errors.
Overall, it can be a long road to find the best donor management software. Taking the time to find the right solution will free your staff to work more efficiently and effectively. In the long run, the right donor management software can help take your fundraising efforts to the next level, so it's worth the time and energy to make the right choice.
Here are three more resources to help boost your fundraising efforts.
- How to Choose a CRM System for Your Nonprofit: This blog continues the conversation about donor management software. It includes factors to consider when choosing a CRM system and why you should consider Salesforce for your nonprofit CRM or donor management system!
- Event Management Software: What Your Nonprofit Needs to Know: Planning fundraising events of any size can be overwhelming and exhausting. The right event management software helps you plan more effective events with less stress, anxiety, and hassle. But there's a lot to consider when choosing an event management software option, and this blog will help you invest in the right choice for you.
- 7 Fundraising Metrics Every Nonprofit Should Track: Tracking and using the right data to assess the performance of your fundraising strategies is essential for all development professionals. With the correct data, you can get a good grasp of donor behavior and measure the success of your fundraising efforts. The key is to know which data points to pay attention to. Head over to this blog to get insights into which metrics every nonprofit should track to ensure you're getting the most out of your fundraising.
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