What to Know About Constituent Relationship Management System for Nonprofits

These days, many nonprofits are considering a move to new constituent relationship management (CRM) software. The goal: to better track and manage their organizations’ relationships with donors, volunteers, advocates and other supporters. 

If your organization is in that boat, you’ve probably found that the nonprofit CRM software landscape continues to change. There is an ever-evolving range of options to choose from.

So, let’s look at some top things to think about as you look for the right CRM software for your organization.

What Is a CRM for Nonprofits?

First, let’s define what a CRM is for nonprofits. CRM software for nonprofits houses donor, volunteer, client, event participant and other constituent data in one place. It can help you track and manage things like: 

• Donor prospects, donors, constituents and volunteers.
• Transactions (financial transactions, like donations, event registrations, ecommerce purchases, etc.)
• Interactions (email sign-ups, email click-throughs, event registrations, etc.)
• Programs and services.
• Campaigns.
• Operations and finances.
• Reporting on all these.

Nonprofits often choose a CRM solution as their primary, or core, software. And there are different forms of CRM software solutions. 

For example, you can select a CRM platform, such as Salesforce Nonprofit Cloud, as your core platform, and then add point solutions and apps from Salesforce and/or the Salesforce AppExchange for specific functionality. Or you might choose a CRM system, like Blackbaud CRM, Bonterra or Virtuous, that includes multiple product modules within its core offering.  

Top CRM Challenges Facing Nonprofits

When looking for a new CRM solution, nonprofits face multiple challenges. Here are a few of the top ones.

Cost 

The cost of a CRM solution can be a big hurdle for nonprofits. Enterprise-level nonprofit CRM solutions, in particular, can be expensive — especially when considering the cost of software implementation, customization, training and ongoing support. Nonprofits must carefully evaluate the total cost of ownership of a CRM solution and weigh it against the potential benefits.

Integration Complexity 

Nonprofits often utilize multiple software solutions, such as accounting software, email marketing platforms and online fundraising tools. Integrating these technologies with CRM software can be complex and requires technical expertise. 

This can be simplified when the CRM solution offers standard integrations with third-party software, but it often comes down to using custom API and/or “web hooks” to create the implementation needed (This requires more time to set up and maintain). Integration platforms like Zapier and Workato help streamline the integration process with pre-built integrations. 

User Adoption 

Successfully implementing a CRM solution requires staff buy-in and training. Nonprofits must be prepared to invest time and resources to ensure proper user adoption and maximize the solution's potential. So, be sure to make change management and staff training a priority throughout the CRM selection and implementation process. Consultants are great with assisting nonprofits with the change management side of things. 

Data Security and Privacy 

Nonprofit organizations manage sensitive donor and constituent information, making data security and privacy a matter of utmost importance. Choosing a CRM solution that supports robust security measures and complies with data protection regulations is an essential consideration.  

7 Things to Know About the Nonprofit CRM Market

Now let’s look at some key things that are happening in the nonprofit CRM software market. Here are seven general trends to know about as you consider a new CRM solution:

1. Cloud-based Solutions 

Nonprofit organizations are increasingly adopting cloud-based CRM solutions due to their cost-effectiveness and ease of implementation. Cloud-based CRM solutions also offer scalability and the ability to access data from anywhere, making remote work and collaboration easier.

2. All-in-One Versus Best-in-Class 

Nonprofits were more likely to pick a single software system that offered functionality for most of their needs 15 to 20 years ago. This approach often resulted in limited functionality for some areas of the organization, especially as the organization grew and evolved. 

Today, many best-in-class point solutions offer standard integrations with CRM platforms and systems (and vice-versa), which gives nonprofits the ability to choose the best overall software mix for their organization. This gives organizations the specific functionality needed for each area of the nonprofit without compromising on data integration. Some examples of point solutions that integrate well with various CRM platforms and systems include Engaging Networks, Fundraise Up and Golden. 

3. Integrated Fundraising Capabilities 

Nonprofits are seeking CRM solutions that offer or easily integrate with fundraising tools, enabling them to track and manage donor contributions, run targeted fundraising campaigns, and generate reports to measure fundraising effectiveness. These days, integration with online payment processors and peer-to-peer fundraising tools are also mission-critical for many organizations. 

4. Donor Retention and Engagement Functionality 

Nonprofits are focusing on building long-term relationships with donors. So, naturally, CRM solutions that support things like personalized communications, automated acknowledgments, and audience segmentation for targeted outreach are gaining popularity.

5. Data Analytics and Reporting 

Nonprofit organizations are wanting more reporting and data analytics capabilities within their CRM solutions to gain insights into everything from donor behavior and campaign performance to program effectiveness. Many of today’s CRM options offer integration with business intelligence tools, allowing for advanced analytics and data visualizations.

6. Mobile Accessibility 

With the continued rise of mobile device usage, CRM solutions with mobile apps or responsive interfaces are in demand. Mobile accessibility enables nonprofit staff to access donor information, manage events and process donations on the go.

7. Automation and artificial intelligence (AI) 

Many of today’s CRM solutions can automate rote tasks or, at the very least, streamline them to save nonprofit staff time. For example, some offer the ability to set and forget donor and constituent journeys by creating an email series, such as welcome series or end-of-year campaigns, to automatically send unique, targeted messages based on a constituent’s action or in-action over the course of multiple messages.

As you can see, there are many considerations when choosing a new CRM solution for your nonprofit. In today’s evolving CRM market, it’s important to know your options, understand your organization’s goals and consider the common challenges organizations are facing. It can be extremely useful to work with a nonprofit technology consultant to help define your needs and evaluate CRM solution options to find the right match for your organization.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.