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How To Choose The Right Donor Management Software For Your Non-Profit?

A significant part of non-profit bookkeeping is keeping track of donors. As the owner of a non-profit organization, you are always focused on communicating with your supporters. Non-profit CPAs and non-profit accountants, on the other hand, are tasked with monitoring and recording the donations provided to your organization. To make the management of this information easier, donor management software programs offer features that can help you.

Any non-profit that is using a spreadsheet, a paper ledger, or basic software to keep track of donor information or to do non-profit bookkeeping is doing themselves a major disservice, and it’s time for them to upgrade to donor management software.

What Does Donor Management Software Do for Non-Profits?

The primary function of donor management programs is to help non-profits keep track of their supporters. It allows members of your team, including non-profit accountants, to create and organize strategies and analyze relevant information. Having all this information on hand can help you improve your non-profit tax planning. The software basically becomes your primary tool to manage those who donate or who support your non-profit organization.

Although not created exactly the same, many donor management software offer similar functionalities. These features include:

  • Donation history

  • Automated messaging

  • Contact metrics

  • Contact information

Most programs also provide segmentation and tagging features that allow you to put donors into categories. This feature can help you can target your donors with the most appropriate type of messaging

Tips For Choosing The Right Donor Management Software

With all the options in the market, choosing the right donor management software can be overwhelming. This issue is especially true if you do not have a large customer support team to work with. To help you decide, here are the four basic categories of donor management programs.

  • Free donor management platforms - A good option for small non-profit organizations with a limited budget. These might not have all of the functionality of paid options, such as the ability to integrate with your non-profit accounting software or do non-profit tax planning, but it could be just what you need to get the ball rolling.

  • Fundraising software tools - Paid software but more comprehensive. These let you combine your database and your funding system, offering a more comprehensive solution that allows you to stay in touch with your clients and also monitor donations.

  • Analytics tools - For non-profits who are looking to learn more about the behavior of their donors to improve donations.

  • All-in-one software platforms - Comprehensive tools that handle everything connected to client interaction, donor retention, monitoring funds, etc.

The right donor management system is going to vary from non-profit to non-profit. To find the one that’s right for you, you have to define first what success means for your organization. What are your data management goals? What are the strategies you want to use to achieve them? This means looking at clear and concise success metrics.

Next, look at your limitations. When choosing a donor management software, you have to be pragmatic. A system that has a lot of bells and whistles might seem like a better deal than a simpler one, but you may actually be spending money on something you will never use. The more complicated the system is, the higher the chance of user error and system failure.

Here at Fusion CPA, we offer non-profit bookkeeping and tax planning services to non-profits in Atlanta and other parts of the United States. Our non-profit CPAs can help you pick the right donor management system based on your needs. We can also help you understand how these systems can be incorporated with your existing accounting software and assist you in making the most of your donations. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!

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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.