Nonprofits may find that a properly implemented and maintained customer relationship management (CRM) tool is critical for engaging with donors and consistently achieving their fundraising targets. In this article, learn about CRM best practices that can help nonprofits harness the power of data and meet their mission.
What Is CRM?
To begin with, a CRM system is the software or database where customer information is stored. In the nonprofit sector, CRMs can be used to house donor information such as name and contact information, pledge and donation history, and communication and engagement tracking. In addition, some nonprofits utilize CRM systems for member, client, or participant information.
CRM resources offer a wide range of functionalities and customization options. Some iterations may be true turnkey solutions, while others might be built out to include automated communication plans and results, as well as accounting or case management software integrations.
Tips for Nonprofits Using CRM
Consider our pointers below to help your nonprofit make the most out of its CRM tools.
- Commit to a Single Centralized Database
Sometimes, building trust in a database and its capabilities is the first hurdle to adoption. If an organization implements its first CRM system, it will likely combine information from various locations, i.e., spreadsheets saved to a company drive, into the new system. The new system should be configured to address all of the needs previously addressed by the mentioned spreadsheets. Having the organization commit, at all levels, to a single source of truth for relevant data and analysis is critical to successfully adopting the tool.
- Document User Roles & Responsibilities
A crucial part of fully utilizing your CRM solution is ensuring that staff understand their roles and responsibilities related to the system. During the initial implementation, document team roles and responsibilities and communicate expectations in multiple ways (flow chart illustrations, written guidance, verbal discussions, etc.). For added preparedness, it may also be helpful to assign backup duties for planned or unplanned absences. As with most policies and procedures, read and update this documentation annually.
- Integrate the Tool Into Meetings & Decision Making
Once the data is viewed as dependable, i.e., confirmed to be consistent and accurate, leaders can analyze the data via reports or dashboards and ultimately use it to assist in decision making. Consider incorporating specific dashboards into weekly staff meetings to depict goals or metrics visually. This will also help staff see the results of their hard work maintaining the CRM software. System information can also be presented in committee meetings, such as those for routine fundraising. The more you incorporate the data into your existing routine, the more value you may obtain from CRM software.
- Automate & Integrate
There are numerous opportunities to automate within CRM tools. Automation can help reduce time and errors related to manual entry and reconciliation, help relieve staff of repetitive tasks, and produce accurate data. The most common automations and integrations are:
- Communication Plans – They are structured workflows that send templated communications to certain populations at certain times. These are used for donor acknowledgments, newsletters, new member onboarding, and other cyclical communications. Eliminating these repetitive tasks and automating the maintenance of the relevant lists through filter criteria can free up staff capacity for higher-impact tasks.
- Address Update/Data Cleaning Services – CRM automation can include services that help maintain current addresses for donors and members. These services can also clean and standardize incoming address data to help reach more targeted constituents through direct mail campaigns. These services are especially useful for alumni databases.
- Online Payment Providers – If your online payment provider and your CRM aren’t currently integrated (even through a periodic manual upload/download process), then you may want to look at changing one or both of them. This integration is key for eliminating double or even triple transaction entries.
- Accounting Systems – Automating the payment recording process between the donor database and the accounting system can help reduce redundant staff tasks for your nonprofit. Whether initial payment entry happens in accounting or development, having a single point of entry and a single source of truth aids in building trust with donors and makes reconciliation for audit preparation that much easier.
- Reports & Dashboards – Most CRMs can automatically generate specific reports and provide a dashboard feature for real-time analytics. Scheduling reports at regular intervals or cadences helps to free staff from responding to ad-hoc requests, and makes the data widely available without an audience requiring a license to the system. Dashboards are also crucial to help focus reader attention on necessary metrics for decision making.
- Start Small With Continual Improvement
If your CRM software creates more questions than answers or hiccups than valuable insights, then the software processes may be too complex. In that case, scaling back the processes track in your CRM system may be beneficial. Once those are mastered, then slowly add on another process. For example, you may have mastered entering donations and pledges in your system and are now ready to track multiyear grants.
In addition, CRM software is not the place for a “set it and forget it” mentality. Keep up with emails from the CRM provider for new enhancements and ask the provider for best practices when encountering a new data need. Another way to be proactive is to periodically scan data points to ascertain if they are serving your nonprofit’s needs. For example, you may find that a field is not being used consistently across multiple users, so additional training or definition may be needed. On the other hand, you may need to add a new field to capture a new metric that will be reported to the board or added to a grant report.
Track More Than Donation History
Aside from the primary functions of tracking donor giving and contact information, nonprofits also use CRM software to help improve their reporting and programming. A few supplementary uses include:
- Tracking event registration, collecting payments, and contacting registrants
- Facilitating online donations and other payments
- Tracking restrictions and conditions on gifts
- Tracking pledge payment schedule and sending pledge reminders
- Tracking grant application and grant writing processes
Nonprofits have lofty goals and work on their plates. Don’t let a CRM system deter you from your mission or vision. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.