Why Having Donor Management Software is a Smart Idea


There are all kinds of businesses and entities that are donor-reliant. Maybe they receive money from other sources, but they also ask for public donations, and that money is critical for them to continue functioning. These entities might undertake aggressive ad campaigns to try and solicit as much donor money as possible.

Keeping track of all that donor money can be challenging, which is where donor management software comes in. We’ll take a few moments to talk about such software right now. If you have a donor-reliant business that doesn’t have this software yet, you might decide after you hear about it that getting some is the right move.

What Businesses Need Donor Management Software?

Generally, it’s nonprofits that need donor management software. Some examples of these sorts of entities include:

  • The Boy and Girl Scouts of America
  • Amnesty International
  • The Big Brothers and Big Sisters of America

There are hundreds or perhaps thousands of others. As one of these organizations, you’re donation-reliant, and you must work closely with your volunteers, as well as the public from whom you receive so many contributions.

What Are Some Nonprofit Challenges?

As a nonprofit, you have to worry about your day-to-day operations. Part of that is:

  • Figuring out from whom you have tried to solicit money
  • Keeping track of who has agreed to contribute, and how much each individual or organization has given

You might have spreadsheets that let you keep track of this kind of thing, but it’s easy to make a mistake with such a rudimentary system. You might lose track of a contribution or contact the same entity more than once, even when they’ve already turned you down. You’ll annoy people if you don’t have firm control of your nonprofit’s various moving parts.

What Can You Do About This?

Donor management software can be the answer to these types of difficulties. Maybe you have multiple systems in place you’re using to try and maintain control of everything. If you purchase and implement a donor management system, you can consolidate those into one place.

You might have one system through which you receive payments and another through which you track where your donations go. You probably have to allocate money to different areas to keep your entity afloat. You might have still another system through which you send out solicitation emails and maintain your mailing and phone lists.

You can keep track of all of that much easier if you have comprehensive management software. You can take advantage of the analytics suites that such software generally has. You can operate more cost-effectively and make better decisions.

This Software Can Improve the Donor Experience as Well

You should also understand that this software variety is not just for your employees. Your donors will also enjoy it and find many uses for it.

For instance, they might use the portal to create an account. If they like giving to your organization whenever they have enough money to do so, they can contribute right through the portal.

They might give when they can, or they may sign up for a monthly or quarterly contribution. Many individuals have a pet cause to which they like to give, and they’re more inclined to do so if it’s so easy and convenient.

You can select a donor management software system that’s mobile-friendly. That’s the way the world is these days: everyone is on the go, and many individuals will want to give through a smartphone app rather than doing so through a desktop or laptop at home.

You can also set up this software so your email campaigns will feel more personalized than ever before. Donors are not as likely to give if they don’t feel like the organization appreciates them. They want the personal touch.

You might not necessarily be able to give that to them every time, but with this software’s analytics, you can simulate personal attention. You can send them emails that are much warmer and have a conversational tone.

It’s going to be tough for you if you have system diversity and you’re trying to run a successful nonprofit. The more you can streamline everything about your operation, the better your success chances.

You want software that makes it easy for you to attract donors, keep track of the money for IRS purposes, etc. If you look at some of the ones that are on the market today, you should be able to find an ideal candidate.