We show you how to build Donor Relationships and improve Fundraising.
We show you how to build Donor Relationships and improve Fundraising.
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Nonprofit database management revolves around the database or constituent relationship management (CRM) software you’re using. If you’re working with a platform that’s no longer serving your nonprofit’s needs, or relying on antiquated, piecemeal methods and needing to make an initial investment into comprehensive software, no amount of database best practices will overcome the outdated technology.
Therefore, the first consideration in this guide to nonprofit database management is ensuring your database itself is up to par.
Most nonprofit organizations are collecting data from a wide variety of sources, including (but not limited to):
Ideally, your CRM is the one database storing all of that information. For large, multifaceted nonprofits, having a robust solution CRM is especially crucial.
With that, let’s begin exploring CRM systems.
Whether you’re upgrading your current software or investing in a whole new solution, it’s important that you thoroughly research your options before making the investment.
Migrating to and implementing a new CRM software is time and resource-intensive, so you want to make sure that if you’re making the change, you won’t have to do it again. There are a few key features to look for as a baseline expectation for any solution:
These baseline features allow your staff to work from one connected interface, containing features specifically tasked with making their job easier. Ensuring your CRM has these features will prevent costly changes in the future.
Pro Tip: Though a vital feature— so much so that it’s listed first— integrations can be complicated. If your upgrade involves connecting a number of systems, it’s smart to work with experts who can reduce the risk of damage to your data. We always recommend working with nonprofit consulting firms who know your software and your strategy.
One online search of nonprofit CRM solutions provides a landscape of potential solutions to invest in. From top providers lists to comparisons of popular enterprise-level options, it’s easy to feel overwhelmed in your research.
One good way to narrow down your options is to simply focus on a few key considerations. We’d recommend keeping the following in mind when researching donor database software:
These considerations will play a huge role in narrowing down CRM solutions for your nonprofit.
For example, if you’re a large or mid-sized nonprofit looking for a robust solution and able to invest in support to help you in the process, an enterprise-level provider like Blackbaud or Salesforce may be the option for you. While their platforms have a more extensive implementation process (for example, read about the Salesforce for nonprofits implementation here), these solutions are powerful when it comes to overall nonprofit management.
On the other hand, if you’re a smaller organization simply looking for a solution to track your initial fundraising data, a ready-made, out-of-the-box CRM may be a better fit.
Once you’ve chosen the perfect CRM for your nonprofit organization, effective data management is crucial for your organization to make the most of that solution.
A strategic approach to data collection and maintenance can help you:
Strategic data management helps your organization stay on top of data, empowering you to make a greater impact as time goes on. Let’s explore a few key data management practices:
For modern nonprofit organizations, there’s more data available than ever before. With so many tasks heading to digital means— from giving to communications— donor interactions are logged as quantitative data points at an unprecedented rate.
Nonprofits are able to store virtually any data they seek. CRMs are often configured to store basic donor information and even further, often allow for custom field configuration to fit your nonprofit’s exact data needs.
However, just because you can store unlimited supporter data and analytics in your CRM, that doesn’t mean it’s wise to stock your database with every detail imaginable. It’s up to you to decide which information is truly meaningful to your organization and change your storage settings accordingly.
To start, you should store basic essential information:
From there, you can further refine and/or add to this list with custom fields and notes. Ideally, you should tie this data and analysis storage to your nonprofit’s overall goals. Consider what you’re trying to learn from your data, such as:
When it comes to creating custom fields for your database, aligning those fields and analytics with your goals and what you want to learn is best practice. For more information on this topic, check out Team DNL’s crash course in donor analytics.
Pro Tip: The goals informing your data storage may change over time, so it’s important to refresh your approach to data management as you would with any other strategy. If your organizational objectives evolve, take a look at your CRM— this information can guide you as you create new strategies to reach your goals!
While your CRM’s integrations will ensure that data seamlessly flows between your various software solutions, your nonprofit is ultimately responsible for managing the initial entry and ongoing maintenance of this supporter data.
This responsibility begins when data is first entered into your system. When it comes to data entry, the goal is to have clearly outlined processes to prevent confusion and errors going forward. Ensure you have answers to the following questions:
Answering these questions ahead of time ensures the data that’s entering your database is doing so in an efficient, orderly manner. It prevents time-intensive mass clean-ups in the future.
From there, the goal is to maintain the “cleanliness” of your database going forward as the information is updated. As far as ongoing maintenance, ensure you have processes to handle:
Ensure these processes are communicated to your entire team at large. These efforts are only successful if everyone follows the same routines. Even if someone isn’t interacting with your CRM on a daily basis, it’s still important that they understand data best practices when the moment arises!
As your database continues to grow, it’s important to remove the information that’s no longer serving your organization. This will make room for data that can actually inform your strategy as an organization.
Pro Tip: Ensure your data is up-to-date throughout the year by allowing donors to update their profiles by themselves! By using a CRM that gives your supporters the freedom to update their contact details, communication preferences, giving preferences, recurring gift settings, and more, you’re able to limit the amount of manual data upkeep for your team.
You work hard to store and keep your data in order; now, it’s time to reap the benefits!
Nonprofits don’t invest valuable time and resources into data management just for fun. When you use your data to develop a stronger understanding of who your donors are, you can create strategies to engage your exact audience. You’ll build stronger relationships, raise more money, and make a bigger impact as a result.
This begins with a tactful analysis of your data, pulling specific reports corresponding to the strategies you’re looking to perfect. Let’s look at a few areas of improvement you can focus on:
Essentially, each interaction with a supporter comes with a data point. Each data point provides a wealth of information on how your donors prefer to be engaged with, and it’s up to you to customize your fundraising and stewardship strategies accordingly.
After all, you’ve put in plenty of effort to collect the data— it would be a waste to not make the most of it!
Pro Tip: One of the biggest ways to simplify this process is to segment your donor base by common characteristics. These can be based on interest, giving history, giving ability, geographic location or any other demographic! Begin your trend research with these segments and you’re likely to see common preferences emerge.
Now, if you’ve read this guide and are feeling overwhelmed by the end of it— don’t fret.
Nonprofit database management can get confusing, fast. You’re not only working with a ton of quantitive information and analysis, but you’re likely working with a robust software system (or multiple) to aggregate it all. If you’re working without a tech expert or statistician on staff— as many nonprofits are— you may be feeling lost.
There’s no understating the importance of making the most of your nonprofit’s database, as it’s a way to improve your nonprofit’s efforts using an asset you already have (data). So, this isn’t something you should neglect even if it feels out of reach for your nonprofit.
Tech consultants can wear a variety of hats when you’re improving your nonprofit database management protocols, from serving as a project manager through the process, to building out your custom tech system and troubleshooting potential issues before they arise. Whether you’re looking for something specific, like Blackbaud-related support, or you’re looking to develop a full tech strategy for your organization, tech consultants can help.
NOTE: This article is attributed to "5 Nonprofit Data Management Strategies for Smarter Fundraising" April 3, 2018 Posted in Data & Analytics, Guides
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