Donor data is a key tool used by nonprofits to grow in the future and ensure their sustainability. It is not just a simple digital file folder. Nonprofits must use donor data to recognize new prospects and opportunities if they hope to continue their important mission. Using donor data conscientiously can increase donations and ensure your mission aligns with your donors’.

Donor Data in Nonprofits

A donor database is a central hub of details regarding donors who have made contributions to the nonprofit organization. This data contains key details about prospects for future involvement. The database stores and tracks this information. Database software helps the nonprofit function.

Effective management of the database and software requires building out processes. This leads to choosing the best constituent relationship management program or CRM. You can then create the donor profiles, ensure standardized data entry processes, and acquire key reports. Verifying your data with public records search tools is essential to ensure its accuracy.

How to Use Donor Data Effectively for Nonprofits

These four steps can help you effectively use donor data:

1. Collect donor data: Collect data about donors to help you better understand them, take advantage of corporate charity, and reach new markets that were previously unavailable.
2. Determine the types of data to collect: Identify and separate donors based on their contributions, backgrounds, and interests.
3. Keep data organized: Segment data by using the CRM, analysis, and reporting tools.
4. Determine how to use data: Gauge prospects, screen and section donors, and prioritize certain indicators and missions.

Types of Data Your Nonprofit Should Collect

There are seven key types of data that your nonprofit should collect:

• Biographical information, including your donors’ age, status of employment, family, and how the donor communicates
• Nonprofit involvement, such as how the donor gives to charity, volunteers, organizes an event, serves on a nonprofit board, or advocates for charitable organizations
• Real estate ownership, including whether the donor has real property, a house near the nonprofit, attachment to your community, financial interests in the charity or is invested in these matters
• Educational background, including areas of study, clubs joined, any positions of leadership, close relationships to classmates or professors, involvement in community service, and any foreign countries traveled to for education
• Business connections, including whether a donor is connected to a particular corporation, involvement in a board for a nonprofit or someone close to these individuals
• Political donation history, including political party involvement and other details regarding the causes the donor is joining or holds close
• Hobbies and interests, including anything the donor is interested in, hobbies, and special interests

Nonprofit Data Management: 5 Technology Tips to Know

With Data Management, you should start where you begin, as there is often data already available before you manage it into a system. Understand how to use it and follow any necessary rules including security. You also need a continual strategy to plan for the future. You should know and use the following five tips:

1. Build an integrated CRM system: An integrated CRM system includes donor profiles, segmented lists, personas based on data trends, supporter communication, and reports.
2. Give donors control over their data: Let donors choose how they prefer to be contacted, how their data will be used, preferences to newsletter involvement and access to fundraising pages, and how to manage any recurring practice such as payment or schedules.
3. Create targeted donor segments: This requires separating donors based on communication channels and frequency, interest in the program, contribution amounts, type of giving, and membership position.
4. Devote time to database maintenance: This requires managing duplicate profiles, determining if there are mistakes or internal errors, removing duplicates fields such as email or phone, identifying lapsed or deceased donor profiles and any data not standardized.
5. Develop processes around data entry: This requires formatting the numerical data and titles of donors, creating or adding new fields or notes, ensuring certain fields are blank and who will update the details and a timetable for when.

Maintaining good data hygiene and avoiding inaccurate data is necessary to improve the management of data habits. You need the right database fit, integration of the CRM with any necessary plug-ins, and knowledge of what data you want to be tracked for the donors. To improve the operations of the organization, you need to ensure the database is clean and easily manageable for all non-technical members. You will need both external and internal data and proper cybersecurity. All members should know how to avoid a scam, phishing attempt, or data breach. You may need a cybersecurity specialist to avoid any breaches to your system.

Choosing a Donor Database: The Ultimate Guide for Nonprofits

To choose the best donor database for your organization, consider the size of your organization and its budget, including:

• Small nonprofits: These are smaller organizations with fewer funds. A cost-effective solution is Fundly CRM at around $60 a month. This tool can help you manage donor data at a lower cost. Batchbook is nearly half the cost and functions similarly to Fundly to manage your contacts and help you build relationships with all included donors. DonorSnap can also help you organize data and uses helpful reporting tools.
• Medium-sized nonprofits: With more funds available, you can use management tools such as Salsa, which comes with a tech support team. Bloomerang costs about $99 to $499 a month for CRM solutions and record management. You could also use the entirely cloud-based tool in eTapestry for $299 a month.
• Large nonprofits: With access to the most funds each month, you can purchase a higher range of products. Raiser’s Edge is available on the cloud and has a mobile app. Salesforce provides access to tools for a more complex organization. Or, you could use TrailBlazer, which adapts to your association.

Choosing the best fit also requires considering other factors, such as:

• Capacity or the size of your donor list: The number of records determines what software you need. Some grow with your group and some can handle global organizations. If you’re starting from scratch, it can be tempting to go for what appears to be the biggest and best. However, it is best to consider your current size, as well as how much you expect your organization to grow in the future.
• CRM features: Some features are essential, and any management software will work. However, you may need additional features that maintain contact data, tracking history of donation, or reporting tools. Try to conduct a side-by-side comparison of options before making your selection.
• Demonstration: Many will provide a demonstration of what the software can do. Consider what features you need and how they work while observing this demonstration.
• Customer testimonials: Previous customers may praise exactly what you need through a product review. You can also request feedback from clients. This usually gives enough insight into how the software works.
• CRM cost: While the cost is important based on the size of your organization, some CRMs that are the right fit may cost more. Remember that inefficient processes can cost you more time and money.

Finding the Right Donor Database Software for Your Nonprofit

Choosing the perfect donor database fit requires considering the following:

• Software features: You need to know what features you need and keep an open mind to which can help you in the future. Make a list of these based on the data you want the CRM to hold.
• CRM customization: Consider how easy the software is to customize. If you need to change something, you need to know if the CRM will let you. You want a program that comes with databases, but the ability to customize it based on donor data is vital.
• Usability: The CRM should be intuitive and easy to use for any member using it. This may require looking at demo videos, using the software or asking current customers.
• Cost: The software needs to fit your budget currently and in the future. These costs may include software license itself, necessary data conversion, all installations, member training, and tech support. Other costs include IT staff hired to maintain the software, advisors, and yearly upgrades to computers that may become necessary.
• Security: This includes cybersecurity and physical security. All data needs security. The involves factors include data location storage, who has access, how the information is shared and where and how the organization processes it.
• Getting data in and out: You need to know how to get into the database to input information as well as how to get the details out of the database. If it is difficult, the CRM may not be the right fit.
• Technical support: You should consider how much tech support you may need based on the CRM and the technical ability of organizational members. This can also include training, documentation and other support.

Conclusion

Understanding donor data management should be on the top of your nonprofit’s to-do list. Without all relevant, up-to-date, and comprehensive data, you will not have the necessary tools to determine the best strategies for fundraising success.