Which CRM Software Is Right For Your Non-Profit?

As a nonprofit, managing your relationships with your community isn’t always easy. A customer relationship management (CRM) system can simplify the process, saving you precious time and staff capacity while making your outreach timelier and more strategic. However, selecting the right CRM software can be a complicated and high-stakes decision, because once you select a system, you’ll want to stick with it. We reviewed some of the most popular CRMs to help you make the best decision.

Comparing the costs of CRM software can be difficult. Some charge onboarding fees; others don’t. Some charge annually; others charge monthly. Some charge for each individual user; others have a baseline fee for a set number of users and charge for each additional user beyond that. Nearly all have multiple cost tiers depending on the CRM features you want, the volume of contacts you will have in the system, the volume of outreach you will be using the system for and other factors.

The first step in comparing prices is making a realistic assessment of how you will use your CRM, both today and into the future. Determine which departments will be using the system, how many staff members from each department will be using it, how many contacts you have and whether you plan to grow your contact list (e.g., purchasing donor lists from other organizations or organizing outreach campaigns), the number of different campaigns you want to be able to run, and any additional functions you will be using the CRM for. With this information, you can ask the various platforms for an estimated annual cost, which allows for apples-to-apples comparisons.

Every organization uses its CRM slightly differently, and many organizations are failing to utilize the full functionality of the system they choose. By understanding the full array of features upfront, you can make a more informed choice about which system to use, and you can make the most of the system you do choose.

• Contact management: Contact management is the core function of any CRM system. Your CRM system serves as a central database of your stakeholders, be they donors, clients, press or constituents. If you keep the data in your CRM up-to-date, you can dramatically simplify the process of reaching out to contacts, make strategic choices about how and when you solicit donations, customize your asks, track how programs are affecting participants and more.
• Dashboard: Dashboards are centralized and customizable “home bases” within a CRM that let you quickly get a comprehensive picture of your activities and the status of your contacts.
• Automation: A well-designed CRM can automate many of your interactions with your clients, such as ensuring that new members of your community receive information about the organization, sending out a press release to journalists who cover related topics or reminding a development officer when a donor is overdue to make their annual gift. Automations can take a bit of time to set up, but the payoff in efficiency is significant.
• Third-party integration: Most CRMs are designed to integrate with the software used by your accounting, marketing and IT departments to, for example, automatically generate and send a tax receipt or funnel RSVP data from an event into contact records. By selecting systems that work well together, you can dramatically reduce the administrative burden on your staff.
• Employee tracking: A CRM can generate critical data for use in employee reviews, such as whose donors are giving most regularly and at the highest levels or which program staff have the most frequent contacts with clients. This data allows you to objectively evaluate staff performance and intervene if needed.
• Stakeholder analytics and reporting: Your CRM will generate a seemingly overwhelming amount of data about your stakeholders, from when they are most likely to give to which communications get the highest level of interaction from them to breakdowns of stakeholder interactions based on demographics and other factors. This data is invaluable in setting strategy and tactics, as well as in reporting impact to donors.
• Forecasting: Many CRMs can use data on the status of your donors and prospects to give you comprehensive fundraising projections to be used in budgeting and strategy setting.

When you’re shopping for a CRM system, you should take the following steps to ensure you select the best fit for your organization:

1. Know the lingo.

You’ll need to know some key CRM terms to understand what products are available and how they compare.

2. Talk to your leadership team.

Chances are, the other department heads in the organization have strong opinions about what they want out of a CRM. Try to take their opinions into account to the extent that budgets allow, and remember that effective adoption of the new CRM software will be driven in part by how excited the organization’s leadership is about using it.

3. Understand your ROI and cash flow.

Unlike many capacity investments your nonprofit can make, a CRM doesn’t need to be exclusively a cost. If used correctly, it can increase your donations and earned income and reduce the number of staff members needed to complete core functions. Take the time to make a realistic assessment of how a new CRM will affect both sides of your balance sheet, and how quickly the ROI will emerge. Don’t be afraid to spend a little more if the ROI is worth it, but be wary of how gains that take time to be realized affect your cash flow.

4. Review your options.

Using guides like this one, assess the functionality of the various systems that are available. Reach out to the ones that meet your needs, participate in a demo, and make sure you understand the pricing structure to avoid any unanticipated costs.

5. Make a selection and implement it.

Once you make a selection, announce it to your staff and provide them with training to incorporate it into their responsibilities. Keep in contact with staff as the system comes online so you can make any modifications as needed.

A well-implemented CRM benefits your organization across programs, administration, fundraising, evaluation and communication.

• Improves stakeholder communication: A CRM allows you to reach out to key audiences, be they donors, press, partners, or clients, with timely messages that are specifically tailored to their interests and needs.
• Clarifies the donor journey: Using a CRM to track who has given recently, who is overdue for outreach, which messages prompt donors to give and other key data points allows your development team to make strategic choices that will ultimately increase revenue.
• Simplifies data tracking and impact assessment: A well-implemented CRM can replace spreadsheets and other onerous tracking forms, and allow for richer analysis and representation of impact data.
• Automates processes: Nearly every nonprofit has that one process – be it reimbursements, updating the website with new events or organizing donor lists – that creates bottlenecks and slows down the entire organization. Many CRMs are designed with specific functionality to automate these processes, saving time and money.