Relationship building and management is an important aspect of running a nonprofit organization. Keeping up to date on constituents, their interactions with your organization, and monitoring changes is key to a nonprofit’s sustainability and agility. Having this information organized and updated is crucial. While there’s a broad array of constituent relationship management systems, modern customer relationship management (CRM) software can be pivotal to a nonprofit’s efficiency and success. In this article, we’ll explore how to assess CRM for nonprofits and highlight key system features, benefits, and tips.
Primarily, CRM software is used in all types of businesses and organizations, and its main purpose is to track customer data and interactions. A nonprofit organization can use a CRM system for additional purposes, such as cultivating donors and tracking fundraising initiatives.
In the nonprofit sector, constituent relationship management systems and CRM software also may be known as donor management software or fundraising software. However, a modern, robust CRM system can bring together this functionality into one centralized platform.
Key Features
A CRM system should act as a one-stop shop for nonprofits to manage their funding and constituent information. Beyond that basic functionality, a modern CRM system can serve as a centralized database to help enhance constituent engagement, improve donor retention, streamline operations, bolster fundraising, manage volunteers, and track program performance. Donor engagement and retention can be positively impacted based on the strength and features of the CRM platform. A CRM system with the capability to follow constituent activities and initiate personalized conversations can automate outreach activities. Donor activity also can be monitored for impact, engagement, and other metrics to gauge the strength of the relationship and assist in strategic planning.
Key features of CRM for nonprofits include modules for donor management, fundraising management, reporting, and outreach capabilities. A modern CRM system can be a game changer for nonprofits. Here are some top features to explore:
- Reporting Capabilities: Modern CRM systems provide inclusive reporting tools that can help nonprofits generate detailed reports on various aspects of their operations. The reports can include donor contributions, fundraising progress, event participation, and more. With real-time data, organizations can easily track performance metrics, identify trends, and make data-driven decisions. Reports also can be scheduled and sent from the system to stakeholders to keep them informed. This can enhance organizational agility, enabling stakeholders to respond proactively to emerging needs.
- Outreach Tools: Effective communication is crucial for maintaining strong relationships with donors, volunteers, and other stakeholders. CRM systems often come equipped with outreach tools that can automate personalized communications. Capabilities like automated messaging, email marketing, and social media integration can help nonprofits effectively engage with their audiences. Outreach tools in CRM can send targeted messages, manage campaigns, and track engagement, enabling your outreach efforts to be both effective and measurable.
- Integration Options: An essential advantage of modern CRM systems is the ability to integrate with other software systems. This includes accounting or enterprise resource planning (ERP) systems, payroll services, online payment processors, email marketing tools, and more. Seamless integration helps data flow smoothly between systems, reducing manual entry and errors. For example, integrating your CRM and accounting systems can automate financial reporting and reconciliation, while connecting with an email marketing tool can streamline your communication efforts. These integrations can help enhance overall efficiency and visibility at your organization.
Unique Benefits of CRM for Nonprofits
A CRM system tailored to the needs of nonprofit organizations can provide a holistic view of constituents, contracts, and grants; support timely and accurate reporting and analytics; and deliver numerous benefits. Here are some key advantages:
- Donor Management: Track donor interactions, manage donor profiles, personalize communications, and gain a 360-degree view of donor relationships. A streamlined approach to donor management can help build stronger, more personalized connections.
- Fundraising Operations: Assist donors and perform gift entry processing efficiently. A CRM system can help streamline the fundraising process, making it easier to manage donations and pledges.
- Program Management: Track and manage your programs, benefits, and service deliveries in the CRM system. This can help programs stay organized and run smoothly.
- Staff & Volunteer Management: Manage and track staff and volunteer hours, skills, and availability. This feature can help keep the right people on the right assignments.
- Financial Efficiency: Manage grants, donations, sponsorships, and other financial transactions in a centralized, secure location. Connect with accounting systems to produce financial reports and track revenue, expenses, and budgets. This integration can help foster financial transparency and efficiency.
- Resource Allocation: Prioritize initiatives with insights into program effectiveness and resource utilization. Measure and assess program outcomes, constituent satisfaction, and community impact to help use resources effectively.
- Compliance: Help streamline legal and reporting requirements. A CRM system can assist in maintaining compliance with various regulations, helping reduce administrative burden.
- Collaboration: Improve partnership management with a centralized hub for collaboration with other nonprofits, government agencies, and corporate partners. This approach can foster better communication and coordination among stakeholders.
- Technology Access: Cloud-based access enables staff and volunteers to log in and work from anywhere. This flexibility is critical for nonprofits with remote teams or those operating in multiple locations.
Selection Criteria
While there are a multitude of CRM platforms for organizations to choose from, nonprofits should keep their unique needs in mind when making their selection. Some factors to consider when selecting a CRM system are the size and complexity of operations, the need for scalability, and the degree of reporting and analytics needed.
It’s important to research various options and create a “wants and needs” list, considering factors like budget, integration needs, data analytics, training, support, and specific workflows. Some CRM systems are very customizable but require a developer to tailor the software for your needs. Other systems may provide more “out-of-the-box” functionality, don’t require a developer, and can provide more long-term benefits.
Before beginning the process of selecting a CRM, here are some things to consider when putting together a “wants and needs” list:
- What “must-have” features does your organization need for its CRM?
- How many donors do you have now and how many do you plan to have in the next five years?
- What systems will you need the software to integrate with (accounting/ERP, payroll, email marketing, etc.)?
- What are you willing to spend on CRM software?
- What kind of data analytics features would you like to have?
- What kind of training and support does your organization need for new software?
- What specific constituent relationship management workflows, CRM system roles, or permissions does your organization require?
- Do you have in-house capacity and skill sets to maintain and support the application or do you prefer to work with a consulting company?
With these tips and guidelines, your organization can make an informed decision for selecting a CRM system that can help enhance and streamline your operations. If you would like assistance in determining your CRM requirements, selecting a best-fit CRM system, or implementing your CRM system of choice, reach out to a professional at Forvis Mazars.