If you’re a nonprofit organization, donations are your lifeblood. The generosity and kindness of your benefactors keep your organization running, enabling critical research, greater public awareness for your cause, and the ability to share life-changing gifts. Enter donor management software.
While nonprofit organizations have a different purpose than businesses focused on returning value to their shareholders, that doesn’t mean they’re not responsible for managing complex and intricate financial scenarios. Nonprofit organizations must have the right tools in place to properly manage their financial matters, from grants to recurring gifts. Donor management software makes it easy to manage a donor database, analyze and assess donations, process payments, track events and fundraising campaigns, and carry out your nonprofit organization’s administrative tasks.
This guide will provide you with information on the following topics:
Donor management software makes it possible for nonprofit organizations (NPOs) to manage, track, and execute strategies that engage and retain donations. Donations are a vital component of any NPO, and donor management software enables users to take more control over their donor database. By tracking and analyzing a donor’s transition or communication history, donor management software helps create targeted email marketing campaigns that offer convenient links to accept online donations.
With the right donor management software, NPOs can make it easy for any number of users or volunteers to take advantage of powerful donation tools. Data mining and data conversion tools make it easy to analyze trends to identify areas of success and opportunity. And with powerful communication tools like automated email campaigns, mail merged thank-you letters, and contribution statements, staying in touch with donors is simpler than ever before.
|Customizable Donor Profiles||Allows you to create any field of information you wish to or feel would be beneficial to track. Examples include contact information, gift sizes, date of last gift, campaigns contributed to, payment methods, recent communication efforts, and more.|
|Dashboard Views||Shows a complete overview of your data that will show ongoing trends and allow for better decision making.|
|Prospect Research Integrations||Import prospect lists and turn it into internal data in your donor management program. This will help identify areas to target and prospects that need to be worked.|
|Matching Gift Searches||Cross-check donor’s place of employment to identify any employment gift matching opportunities.|
|Mailing Lists Management||Create a direct mail campaign or an email campaign by utilizing donor contact information.|
|Document Management||Share documents with your team regarding specific donations, contribution campaigns, or specific trends that may be noticed.|
|Online fundraising||Link with your company website to accept pledges and donations online. Additional capabilities include allowing donors to register for events and send reminders about upcoming events.|
NPOs depend on their solutions to manage, improve, and maintain incoming donations. Here are some key benefits that donor management software offers its users:
The best donor management software for your organization depends on the size of your NPO operation. While every NPO needs a set of tools to manage and track donations and donors, not every organization needs a larger, more comprehensive standalone solution:
Just as all NPOs have different purposes, not all donor management software solutions are alike. It’s important to carefully assess the capabilities of each donor management software solution to ensure it meets the particular needs of your NPO.
One popular piece of donor management software is DonorSnap (pictured above), a cloud-based solution available through an affordable monthly subscription fee. DonorSnap gives NPOs complete control over their donor database, making it easy to quickly manage and reach out to thousands of donors in an instant. In addition to standard features like pledge tracking, donation entry and acknowledgment, and comprehensive reporting, DonorSnap also offers direct integration with QuickBooks for enhanced accounting and fundraising capabilities.
QuickBooks itself does not have a donor management tool included in it’s base package. QuickBooks itself recommends looks into more robust systems for donor management, especially if you anticipate tracking each donor touchpoint and not just each donation. Some basic fundraising software options will have basic donor management features, which could negate the need for a complete donor management tool.
The bottom line is if your nonprofit has a deep donor base, a large employee pool, and a more involved marketing plan, you’ll be best suited with a donor management system.
One common pain point for many NPOs is the cost of adopting new donor management software. As many NPOs run on tight budgets, large investments in new solutions can prove to be costly and potentially unaffordable. While many cloud-based solutions are more affordable and make it easier to account for recurring software costs with subscription pricing, it’s important for any NPO to choose a solution that suits their budget.
Ensuring ease of use is another important pain point for donor management software. Because many NPOs depend on volunteer labor, user-friendly donor management software is essential for organizations to make the most of their donor database. Whether it’s through an intuitive user interface, comprehensive and easy to understand training documentation, or included technical support, donor management software that’s easy for volunteers to use can help reduce errors, improve data security, and maximize productivity.
Here are some of the market trends donation management software developers have taken into consideration when crafting their solutions: